Chinese e-commerce leader Alibaba posted revenue figures which surpassed expert forecasts despite the interruptions caused by the coronavirus. Profits, on the other hand, dropped 88 percent in the first quarter of the year.
Alibaba said net profit fell to $447 million in January-March but company officials expressed optimism after revenue improved nearly seven percent higher than the average forecast of analysts.
“Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March.”
– Chief Maggie Wu, CFO, Alibaba
Alibaba’s expectations for the quarter had been a riddle as senior company officials saying early in the pandemic that forecasts were remarkably complex due to the unique nature of the outbreak.
Analysts have stated that eventually the longer-term social-distancing anxieties connected with the pandemic could greatly boost e-commerce in China, where it is already a status-quo among millions of consumers.
“The pandemic has fundamentally altered consumer behavior and enterprise operations, making digital adoption and transformation a necessity,” said Alibaba CEO Daniel Zhang.
“We believe we will emerge from this crisis stronger and be ready to capture more growth in the future.”
Analysts remark that it would be hard for Alibaba to keep those former growth rates forever and that usage to remain solid in the future.