Q4 2025 Alibaba Group Holding Ltd Earnings Call
Good day, ladies and gentlemen, thank you for standing by welcome to Alibaba Group's March quarter, 2025, and full field fiscal year 'twenty twenty-five results conference call.
At this time all participants are in listen only mode. After.
After managements prepared remarks, there will be a Q&A session.
Speaker Change: I would now like to turn the call over to Lydia Lu head of Investor Relations of Alibaba Group.
Speaker Change: Please go ahead.
Lydia Lu: Good day, everyone welcome to Alibaba group's March quarter, and full fiscal year 2025 earnings conference call with US today Archie was high Chairman Eddie Route Chief Executive Officer, Toby sheet, Chief Financial Officer, Yafei, Chief Executive Officer of Alibaba ecommerce in the script.
Lydia Lu: This call is also being webcast from the Investor Relations section of our copy website, a replay of the call will be available on our website. Later today now let me quickly cover the safe Harbor today's discussion may contain forward looking statements, particularly statements about our business.
Lydia Lu: Financial results that are subject to risks and uncertainties, which could cause actual results to differ materially from those contained in the forward looking statements. Please refer to the safe Harbor statements that appear in our press release and Investor presentation provide you today. Please note that certain financial measures that we use on this call.
Speaker Change: I expressed on a non-GAAP basis, our GAAP results and Recalculations of GAAP to non-GAAP measures can be found in our earnings press release, unless otherwise stated growth rate or stated metrics refer to year over year growth versus the same quarter last year and now I would turn the call over to <unk>.
Lydia Lu: Eddie.
Lydia Lu: Oh.
Lydia Lu: Filippo.
Lydia Lu: Thank you.
Lydia Lu: Yes.
Lydia Lu: Welcome to join our quarterly earnings call we.
Lydia Lu: We delivered strong performance this quarter with total revenue, excluding Sun art, and Dentyne growing 10% year over year.
Lydia Lu: And adjusted EBITA, increasing 36% year over year for fiscal year 2025 hour user first AI driven strategy continued to deliver meaningful results with accelerated growth across our core businesses. We've established a well defined growth portfolio centered on AI, plus cloud e-commerce and other <unk>.
Lydia Lu: And our platform businesses, we're seizing the historic opportunity presented by AI and stepping up our investments in infrastructure and advanced technologies to further strengthen Alibaba global leadership in technology.
Lydia Lu: Capabilities will also be translated into sustained the drivers of our business growth driven by robust and growing demand Alibaba cloud revenue growth accelerated to 18% this quarter with revenue, excluding Alibaba consolidated subsidiaries, increasing 17% year over year public cloud revenue growth continued to accelerate revenue from AI related products has maintained trip.
Lydia Lu: <unk> digit year over year growth for the seventh consecutive quarter for the full fiscal year Alibaba cloud revenue grew by double digits and looking ahead, we expect AI to remain a key driver of accelerated revenue growth for Alibaba cloud.
Lydia Lu: While uncertainties persist in the global AI supply chain customer demand remains strong and unwavering we continue to see growing demand for cloud and AI and opportunity that will define the next 10 to 20 years, and we will not be derailed by short term supply chain fluctuation.
Lydia Lu: Our confidence and commitment to investing in cloud and AI infrastructure remains unchanged and we are actively exploring diversified solutions to meet rising customer demand. We continue to advance foundational research and innovation in large models pushing the boundaries of model capabilities, while remaining firmly firmly committed to open source.
Lydia Lu: In April we released our next generation <unk> three model as open source.
Lydia Lu: Ranking amongst the top performers globally on multiple authoritative benchmark by the end of April we had open sourced over 200 models under the Cuban family with more than 300 million downloads worldwide and over 100000 derivative models, making it the world's largest open source model families.
Lydia Lu: As we accelerate the adoption of AI plus cloud across a wide range of industries, two clear trends have emerged among large and mid sized enterprises AI applications are expanding from internal systems to more customer facing use cases at the same time adoption of AI products as rapidly extending from large enterprises to a growing number of smaller.
Lydia Lu: Medium sized businesses this quarter the industry penetration of our AI products expanded rapidly in addition to faster adoption across sectors like Internet services autonomous driving financial services and online education. We're also seeing strong momentum in more traditional industries, such as animal farming and manufacturing.
Lydia Lu: X-ray, which are actively exploring AI applications and have shown significant growth and demand in the financial sector. We continue to deepen our industry leadership recently.
Lydia Lu: Industrial and commercial bank of China, ICB seat officially selected Alibaba cloud colored DB as its enterprise wide transactional distributed database. This represents a strong endorsement of our technological capabilities by one of the most demanding financial institutions in terms of business performance and technology.
Lydia Lu: And E Commerce remained focused on putting users first we continue to invest in user growth and improvement user experience taobao and tmall groups are stronger momentum in user growth and 88 VIP members surpassed 50 million this quarter at CTG customer management revenue rose, 12% year over year, while adjusted EBITA increased by 8% we continue to invest in.
Lydia Lu: Improving the operating environment for merchants, increasing our support for those offering high quality products and services fueled by strong momentum in its cross border businesses <unk> achieved year over year revenue growth of 22% this quarter operational and investment efficiency also continued to improve.
Despite potential uncertainties in global trade regulations, we remain confident that <unk> diversified footprint across global markets positions us well to manage changes effectively and we remain on track to achieve overall quarterly profitability in our international E Commerce business in the coming fiscal year.
Lydia Lu: Other businesses within the group continued to maintain healthy operations, the digital media and Entertainment group achieved profitability on an adjusted EBITA basis, this quarter and fiscal year 2026, we will continue to focus on driving growth in our core businesses of E Commerce, and AI plus cloud, while shaping our second growth curve powered by technology over the medium to long term. Thank you.
Speaker Change: Thank you Eddie the strong financial results helped to past quarter highlight the good progress we are making in driving growth in our core businesses.
Speaker Change: I'll now with Taobao and Tmall businesses, we saw a substantial increase in CMI growth, which grew 12% year over year.
Speaker Change: Primarily driven by the improvement of takeaway.
Speaker Change: Our take rate benefited from the impact of the software service fee and the increasing penetration of <unk>.
Speaker Change: Merchants spanning phase II, Tencent taste convenience of use and the improvement of marketing efficiency.
Speaker Change: Our cloud business continues to exhibit robust momentum with revenue growth accelerating to 18% and overall revenue excluding Alibaba consolidated subsidiary accelerated to 17% driven by an even foster public cloud revenue growth.
Speaker Change: Notably our AI momentum remains robust with AI related product revenue sustaining triple digit growth for the seventh consecutive quarter.
Speaker Change: We are seeing our AI product being adopted across an increasingly diverse industries, including a set of digital natives industries as well as traditional verticals such as manufacturing, reflecting the broader application of AI technologies in real World business.
Speaker Change: Environment.
Speaker Change: These demonstrate our commitment to innovation and reinforce our leadership in the cow in the AI sector.
Speaker Change: This quarter, a IDC maintained its rapid growth momentum, primarily driven by strong performance in cross border businesses, we continued to enrich its product offerings and diversify its business models to meet the needs of local consumers through local supply.
Speaker Change: We will continue to focus on enhancing operating efficiency and navigating in dynamic macro and geopolitical environment.
Speaker Change: Our commitment to sustainable growth and improving efficiency delivered solid results with all segments achieving year over year EBITDA improvement this quarter, leading to a 36% increase in overall group EBITA.
Speaker Change: A number of lossmaking businesses on track of turning profitable, while we are investing in selective strategic AI driven initiatives that position us to capture long term opportunities and create value to our users and our customers.
Speaker Change: This quarter, we continued to optimize our business portfolio by exiting non core assets, we expect to generate U S. Dollar $2 6 billion in maximum of cash proceeds from the sale of ethanol and in time.
Speaker Change: These actions allow us to sharpen our focus on core businesses and invest in key growth areas, while also enabling solid cash return to shareholders.
Speaker Change: Our board of Directors has approved an annual dividend of U S. Dollar 1.15 per a D S with presenting a 5% increase year over year. This increase reflects the impact of our share repurchase program, which resulted in a 5.1% net.
Speaker Change: <unk> in share count after accounting for Aesop issuance for this fiscal year.
Speaker Change: The board also approved a special dividend of U S. Dollar zero point 95 Pro E D S.
Speaker Change: <unk> is higher than last year's U S. Dollar 0.66 for eight years.
Speaker Change: This increase demonstrates that we are making solid progress in disposing noncore businesses in the financial investment.
Speaker Change: In total we are distributing U S dollar to pair a b S. In eight in cash dividends. This year amounting to U S dollar $4 6 billion.
Speaker Change: Combined with the U S. Dollar 11 9 billion in shared with purchases. We have returned a total of U S. Dollar 16.5 billion to our shareholders for this fiscal year.
Speaker Change: On a consolidated basis total consolidated revenue was RMB $236 5 billion, an increase of 7% year over year.
Speaker Change: Excluding the revenue from FINMA and in time group revenue would have grown 10% year over year.
Speaker Change: Consolidated adjusted EBIDTA increased 36% to RMB $32 6 billion, primarily attributable to revenue growth and improved operating efficiency, partly offset by the increase in investments in our e-commerce businesses in tech knowledge.
Speaker Change: Our non-GAAP net income was RMB 29, 8 billion an increase of 22%.
Speaker Change: Our GAAP net income was RMB 12 billion, an increase of RMB 11, 1 billion, primarily due to market to market changes from our equity investment.
Speaker Change: The increase in income from operations and a decrease in impairment of equity method investments, partly offset by the losses arising from the disposal of subsidiaries.
Speaker Change: Yes.
Speaker Change: Operating cash flow this quarter was RMB 27.5 billion, an increase of 18%.
Free cash flow this quarter decreased 76% to RMB, three 7 billion, which was mainly attributed to the increase in our cloud infrastructure expenditure.
Speaker Change: As of March 31st 2025, we continued to maintain a strong net cash position of RMB 366, 4 billion or U S. Dollar 55 billion.
Speaker Change: Strong net cash position and healthy operating cash flow bring us confidence and have sufficient resources to increase our investment in cloud and AI infrastructure to capitalize the sustained strong demand and the substantial growth potential presented by latest.
Speaker Change: The AI innovations.
Speaker Change: Now, let's look at the segment results, starting with Taobao and Tmall group.
Speaker Change: Revenue from Taobao, and Tmall group was RMB $101 4 billion, an increase of 9%.
Speaker Change: Custom manual revenue increased by 12%, primarily driven by the improvement of takeaway.
Speaker Change: Our take rate benefited from the impact of Soviet where service fee and increasing penetration of trends anti medic.
Speaker Change: Merchant benefit through chimpanzees convenience of use and improvement of marketing efficiency, we continue to invest in user growth in the other strategic initiatives such as price competitive products customer service membership program benefits and AI technology applications too.
Speaker Change: Enhance user experience. These efforts led to stronger momentum in new consumer growth and the continuous increase in orders.
Speaker Change: On the merchant and we remained focused on improving their operating environment and ensuring they are sustainable development on our platform. In particular, we increased the support of merchants that provide high quality products and a customer services, including <unk>.
Speaker Change: Powerful marketing new product launch and the customer management.
Speaker Change: During this quarter the number of 80, a VIP members continued to increase by double digits year over year, surpassing 50 million with solid profitability and increasing our pool on a cohort basis, we will continue to focus on its retention rate.
Speaker Change: Taobao and Tmall group adjusted EBIDTA increased by 8% to RMB 41, 7 billion, primarily due to the increase in revenue from custom manual service, partly offset by the increase in investments in user experience and technology.
Speaker Change: Revenue from E. I D. C grew 22% to RMB $33 6 billion this quarter.
Speaker Change: Similarly, driven by strong performance in cross border businesses.
Speaker Change: D. C is adjusted EBITA was a loss of RMB, three eight or $3 6 billion compared to a loss of RMB four 1 billion in the same quarter last year.
Speaker Change: A I D. C continued to focus on enhancing operating and investment efficiency, leading to a narrow the losses this quarter.
Speaker Change: In particular, the unit economics of the artiste breakfast choice business improved on a sequential basis.
Speaker Change: Yeah D C has a diverse Jill graphic co presence.
Speaker Change: Moving forward, we will continue to diversify and enrich our product offerings by engaging local merchants and partners through different business models in different markets and to navigate in the dynamic macro and the geopolitical environment.
Speaker Change: Revenue from cloud Intelligence group grew 18% in overall revenue, excluding Alibaba consolidated subsidiaries increased by 17%, primarily driven by an even foster public cloud revenue growth.
Speaker Change: Notably AI related product revenue maintained at triple digit year over year growth for the seventh sick taste quota.
Speaker Change: Our AI product are seeing broader adoption across a wide range of industry verticals, including Internet retail manufacturing and the media with a growth in focus on value added applications.
In April we launched Queen three series, a new generation of hybrid reasoning models. They combine the capabilities of fast simple responses and depot Cheng of thoughts reasoning into a single model.
Speaker Change: The Queen three serious cover a full range of models sizes, including two M. O E models and the sixth gens models. All cream three models have been fooling open source Amato scope hugging face in other platforms. We believe the full open sourcing off.
Speaker Change: Queen free will drive innovation and the new applications by developers stop us and the enterprises.
Speaker Change: Klaus adjusted EBIDTA increased by 69% year over year, primarily due to foster growth of public cloud products and improving operating efficiency.
Speaker Change: Holly offset by increasing investments in customer growth and technology innovation, we will continue to invest in anticipation of customer growth and technology innovation, including a product in a services two including acute increased how adoption for AI and.
Speaker Change: Our market leadership.
Speaker Change: The adjusted EBIDTA margin decreased quarter over quarter by 1.9 percentage points.
Speaker Change: We increased our investments in technology and product development to capture the surge in demand and also as we ramp up infrastructure investments to growing investment to growing demand.
Speaker Change: Higher depreciation and amortization expenses also weighed on margins.
Speaker Change: Revenue from Tanya decreased by 12% and adjusted EBIDTA increased by 55%. This is the result of the increasing integration of logistic offerings into our e-commerce businesses.
Speaker Change: Revenue from local service group grew 10% driven by the combined or the growth of both a map and element as well as revenue growth from marketing services, while its adjusted EBITA loss continued to narrow year over year as scale increased and a U K unit economics improve.
Speaker Change: Due to operating efficiency our.
Speaker Change: Our adjusted EBITA loss increased quarter over quarter, mainly due to seasonal factors, including high investments during Chinese new year holiday.
Speaker Change: Revenue from digital media and Entertainment group grew 12% to RMB five 6 billion, primarily driven by the strong performance of the movie and entertainment businesses and the increase in York Who's advertising revenue adjusts.
Speaker Change: Adjusted EBITA of D. N E turned positive primarily driven by <unk> profitability.
Speaker Change: Revenue from all other segment increased by 5% primarily due to the increase in revenue from fresh Apple in Alibaba health, partly offset by a decrease in revenue from <unk> due to its sale and deconsolidation in February 2025.
Speaker Change: While adjusted EBITA was a loss of RMB, two 5 billion.
Speaker Change: The all other segment comprises a set of innovative businesses, including several strategic AI, driven technology infrastructure and our businesses, while we continued to drive efficiency improvements occur.
Speaker Change: Cross business lines. We are also investing in AI opportunities to maintain our competitive edge and to drive future growth.
Speaker Change: In closing during this quarter, we are making significant strides in enhancing the competitiveness of our e-commerce in cow businesses, our taobao and Tmall group delivered solid growth, reflecting the improvement in monetization efficiency in cow revenue growth continued to a Saturday.
Speaker Change: Sequentially as we are seeing surging demand and ramping up of our capacity, we will onboard more customers and accelerate our business growth. We are also focusing on improving the efficiency of all settlements to establish a clear path to profitability with D. A.
Speaker Change: He turned profitable this quarter.
Speaker Change: This quarter, we strengthened our balance sheet by monetizing non core assets in a financial investments. These actions enable us to focus more on our core businesses and provide greater flexibility to invest extensively for growth.
Speaker Change: And to return value to shareholders.
Speaker Change: We are executing with speed and precision to capture the substantial opportunities ahead in the AI era.
Speaker Change: Thank you that's the end of our prepared remarks, we can open up for Q&A.
Speaker Change: Hi, everyone for todays call you are welcome to ask questions in Chinese or English is third party translator will provide consecutive interpretation for the Q&A session. Please note that the translation is for convenience purpose only in a case of any discrepancy our management's statement in the original language will prevail if you.
Speaker Change: We're not able to hear the Chinese translation bilingual transcripts of this call will be available on our website, losing one week. After the end of the meeting Idaho, Jim Kennedy of walkways cranial Joelle argument Eva will Neil Desilva, who is already in negotiation that Yogi <unk> E. Signing Moody's ship ambient that early here, who yoga as of yet.
Speaker Change: He will know Glenn He told you Asia, Yes, we saw the potential agents, who will that natural with AE entity level, either shoichi Lou jump that we issue a whole each old Navy's element outwork, Josh on Eagle operator, please start Q&A session. Thank you.
Thank you.
Speaker Change: If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: If you wish to cancel your request please press star two.
Speaker Change: If you're on a speakerphone please pick up the handset to ask your question.
Speaker Change: To give more people the opportunity to ask questions. Please keep yourself to no more than one question at a time.
Speaker Change: Your first question comes from Gary Yu with Morgan Stanley. Please go ahead.
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Speaker Change: Yeah, Jacob Oh Gee outside.
Glenn: Yeah.
Glenn: Okay.
Glenn: Thank you and I have two questions regarding.
Glenn: The cloud.
Glenn: The first is that we've seen that it's been difficult in the past for.
Glenn: AI to be.
Glenn: For cloud to be monetized in the AI era, I recall management, having said that in our previous quarters earnings call.
Glenn: And more than 90% of tokens, we're serving together in the cloud so first over the past several months I'm wondering in the course of talking with your customers if you've seen any big change on that front.
Glenn: And in the past you know starting with the enterprises that weren't that willing to.
Glenn: To go onto the cloud.
Glenn: Because AI is now providing a big push to get onto the cloud. So I'm wondering if you're starting to see that kind of uptick.
Glenn: And if you have I'm wondering what kinds of companies.
Glenn: It is in and what industries and if you could share with us some color on that as well as provide some guidance for the FY 'twenty.
Glenn: <unk> 26, a fiscal year in terms of cloud service revenues that was my first question. The second question has to do with AI.
Glenn: Applications are in.
Glenn: Particular in the E Commerce area.
Glenn: Looking ahead say two to three years down the road, where do we expect should be at.
Glenn: Because we are one of the earlier are companies in the E Commerce space, that's beginning to apply AI.
Glenn: In our e-commerce offerings. So if you could provide some kind of outlook as for how much market share.
Glenn: And you're expecting to be able to gain as a result of that new deployment.
Glenn: Deployment and at the same time in terms of monetization.
Speaker Change: Will these new AI tools provide further space for expansion. Thank you.
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Eddie: Thank you. This is Eddie so I will take this question.
Eddie: The first question so.
Eddie: In the.
Speaker Change: A quarter that just concluded our cloud revenue grew by 18% year over year.
Speaker Change: And I think that that is primarily benefited from it being driven by demand related to AI.
Speaker Change: And.
Speaker Change: You know in terms of put it putting a number on that if we look at AI driven demand in the cloud space.
Speaker Change: It's already grown by triple digits for seven consecutive quarters now.
Speaker Change: And.
Speaker Change: Behind that that means that there's a lot of new companies that are starting to make use of AI services. So as we said before.
Speaker Change: You know a lot of the companies that started out initially adopting AI, where one's in the internet space or Internet finance education autonomous driving those early adopter kinds of sectors.
Speaker Change: What we're seeing now is a lot of <unk>.
Speaker Change: New scenarios and a lot of our newer kinds of companies in other sectors.
Speaker Change: That are taking up our AI services.
Speaker Change: So.
Speaker Change: You know a lot of these companies might have.
Speaker Change: Before they adopted AI, they might've been able to.
Speaker Change: Access to services offline.
Speaker Change: With IDC, our internally with their own server rooms are in their own company, but because precisely because they are now adopting AI.
Speaker Change: They have a powerful impetus to migrate onto the cloud.
Speaker Change: And so.
Speaker Change: As you've seen we've given you. Some examples for example in the animal farming, our animal husbandry sector as well as in the manufacturing sector.
Speaker Change: As well as the EU small commodity city and companies there are.
Speaker Change: There are a lot of these kinds of companies that are originally.
Speaker Change: We're handling these workloads offline.
Speaker Change: So when it comes time for them to implement.
Speaker Change: And adopt AI applications.
Speaker Change: They're migrating these services onto.
Speaker Change: The cloud and when they migrate onto the cloud.
Speaker Change: They will probably have some simple applications, where they can do API calls, but when it comes to accessing their company internal proprietary data or proprietary internal processes within the enterprise and integrating with doors and a lot of the time, what they're going to be doing is posed.
Speaker Change: Training on the basis of our open source model in order to meet those specific enterprise specific demands.
Speaker Change: So we certainly are seeing a lot of this kind of demand.
Speaker Change: Through our buy leann or through leasing.
Speaker Change: <unk> compute on Alibaba cloud.
Speaker Change: And may.
Speaker Change: Use of I S layer services and other services are they're satisfying all of those different.
Speaker Change: Jamat. So that's my response to your first question.
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Speaker Change: And then just to add to that previous answer in terms of the trends that we're seeing across these different sectors with more and more companies are adopting our cloud based AI services.
Speaker Change: Uh huh.
Speaker Change: You know these are companies that had been using a traditional CPU based compute that are now turning to our AI and AI compute.
Speaker Change: So given that what we see for the next few quarters to come is a growth track a significant growth track for revenues in Alibaba cloud and we have a quite strong confidence and conviction.
Speaker Change: In that.
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Speaker Change: Thank you this is Jonathan and I will take the second part of the question regarding the application of AI in the ecommerce space.
Speaker Change: So.
Speaker Change: As we've said several times this huge potential for applying AI in E. Commerce are certainly in the present phase.
Speaker Change: One thing that we're paying a lot of attention to is leveraging AI to further enhance the user.
Speaker Change: Experience and as you know, we have an opportunity to reshape.
Speaker Change: The consumer experience with AI for example in terms of search recommendations and advertising.
Speaker Change: Where we are operating these systems based on traditional algorithms and I think that this is a high priority for us in the new.
Speaker Change: Near term, we're already making many attempts.
Speaker Change: Attempts are on this front and are already starting to see results.
Speaker Change: It has the potential to enhance of course, the search experience as well as to provide more precise recommendations as well as to our enhanced advertising.
Speaker Change: Efficiency.
Speaker Change: So we're seeing our a I already making a significant difference in those different ways. Secondly, we're also thinking about how we can leverage AI to enhance working efficiency internally for our employees and beyond our employees also more generally for merchants because as you know when it comes to e-commerce.
Speaker Change: From a platform the other big player in the system is our merchants.
Speaker Change: We also trust that with the deeper adoption of AI, we will be able to further elevate efficiency across our entire.
Speaker Change: Ecosystem and then the third point is that we believe in the longer term that AI can create new forms of interaction.
Speaker Change: And.
Speaker Change: Engagement Ah and we're working on innovation based.
Speaker Change: Forms of interaction and innovation.
Speaker Change: Engagement for the future. We're piloting these things are actively and we believe that our AI.
Speaker Change: We'll play a critical role in terms of driving long term enhancement in the user experience on taobao.
Speaker Change: And equally in terms of driving enhancement and the.
Speaker Change: The efficiency of Commerce.
Speaker Change: Next question please.
Speaker Change: Thank you. Your next question comes from Alex Yao with JP Morgan.
Speaker Change: Go ahead.
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Speaker Change: Indeed, some of the pension issue documentation.
Speaker Change: Forget holbox fishing in English and in Hungary, and C. D. The unification of European time elements, our colleague John Johnson attention initial shook Hardy crunching data Chachi now I shook Hardy and Sean Johnson to our INR, Hi, Shlomo you Darwin I should so we only got holiday on a C. G.
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Speaker Change: Okay.
Speaker Change: Thank you so I have a couple of questions regarding our monetization on top.
Speaker Change: Taobao and Tmall.
Speaker Change: The first is what is the overall direction that we're moving in and what is the objective the goal in terms of monetization.
We know that starting from last year in April you launched a chunk John tweak Qs T and then in September.
Speaker Change: September.
Speaker Change: U S.
Speaker Change: Started implementing 0.6% software or service fee on top out where previously it had been zero you weren't charging anything so over the past two or three quarters, we've seen.
Speaker Change: These different monetization initiatives progressively rolled out in and making a difference that we can see in the financial statements, but looking more to the mid to long term. When you think about monetization what are the factors that you are.
Speaker Change: Considering we know that are you know over the last two to three years are the monetization rate has been relatively stable, perhaps with a slight decline.
Speaker Change: Whereas the monetization rates of the competitors have all risen by quite a large margin so and in particular taobao. We know has one of the lowest monetization rates.
Speaker Change: Among any of the platforms across the industry. So when we're thinking about take.
Speaker Change: Take rate and you know thinking.
Speaker Change: Thinking about that gap with the competitors are.
Speaker Change: Or are we thinking about our merchants and their ROI, we're thinking about our own ROI and how how are you considering that and whereas the balance.
Speaker Change: And then the second follow on question to that is that we started implementing these monetization initiatives last year accused E T as well as the commission on Taobao. So that's all been in the course of one year and is that it or.
Speaker Change: Or is there going to be more to this there's sort of a multi year initiative, a multiyear cycle, where we're going to continue progressively to rollout more monetization measures. Thank you.
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Speaker Change: You'll see that you'll what then goes to the woman the syndromes with Jimmy that's into iOS shut off I'm Gonna go then D number that strategical, Sean will meal, which you talking both are showing up on time between Shanghai and what should the Asia Tushar.
Speaker Change: Unless you're a H N. One is yet Changsha number yet Oh, we should start the home gym Nuomi, yeah sure surge on the acreage, which has shrunk woman cage, a well done somewhat promising to move the Shanghai show the children I'll, let let Han welcome to location that John that you got condensate.
Speaker Change: Thank you.
Speaker Change: So I'll take the question.
Speaker Change: Regarding the monetization rate and how we're working to continue to enhance monetization.
Speaker Change: The first thing I would say is that our foremost our business objective.
Speaker Change: Is to stabilize market share in the mid to long term.
Speaker Change: On Oh on the on that basis, our monetization rate essentially reflects the size of our market share.
Speaker Change: <unk>.
Speaker Change: Over the past year, we have indeed, a rolled out various new products, including our acute C T among others.
Speaker Change: And what that did is it allowed us to take some of the traditional advertising products that we werent able very well to monetize with respect to certain merchants and make a big improvement on that score for example for a white label merchants are these are merchants a shoe in the pan.
Speaker Change: Ah Ah Ah represents.
Speaker Change: And at a much lower level of monetization and that's been significantly improved so I think in the next few quarters to come we will certainly continue to see this kind of a trend going forward.
Speaker Change: And of course, we've also begun charging.
Speaker Change: Commission on payments.
Speaker Change: <unk>.
Speaker Change: So and that has made a difference in this present phase in terms of monetization, but looking more to the long term.
Speaker Change: On the one hand, we want to.
Speaker Change: Enhance the user experience and.
Speaker Change: Enhance our business model on that basis and that will result in the optimization of monetization rate.
Speaker Change: We want to see a growth in our G M V and stability in our market share and on that basis, we will certainly.
Speaker Change: Go about implementing more different kinds of monetization products and make different attempts pilot different monetization.
Speaker Change: Models I already spoke earlier about some of the attempts were making already around AR AI and I think there's certainly potential there. So on on that basis, we will continue to innovate and to enhance our monetization rate.
Speaker Change: And to create more possibilities for our higher levels of monetization.
Speaker Change: Operator next question please.
Speaker Change: Thank you your.
Speaker Change: Your next question comes from Ronald Keung with Goldman Sachs. Please go ahead.
Speaker Change: Yeah, and he told me dumbfounded ADR now without one way I need Goodson Domino to cool Jean Paul you mean, if I'm glad to do it.
Speaker Change: Anytime you get aggregate clean gear.
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Speaker Change: Now, let me I cannot tell when they took one lifestyle yeah seller I made that you can tell Michele yeah, clearly it to life.
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Speaker Change: No ozone will enjoy woman got some ups to cool AI voice young Dang, Gail Doggy wholesale that you about Michigan glasses on Ts element digital motion shall I made that you've got development to go again, when I go to and dumped Haiti and Jonathan.
Speaker Change: Yeah.
Speaker Change: Thank you so I have a question regarding Alibaba cloud growth rate because.
Speaker Change: I recall that in the.
Speaker Change: Past quarter it'd be it had been said that.
Speaker Change: Starting from Spring Festival onward, we saw a surge in demand for inference.
Speaker Change: <unk> workloads.
Speaker Change: So I'm wondering if we can we look at our February March compared to January whether you saw that continuing rapid acceleration and what what kind of growth we're talking about on a month over month basis.
Speaker Change: M a C.
Speaker Change: For the quarter as a whole I think it might've been 18%, but that would be the average for January February and March as as a whole and then also you know when we look at these models within the Q N family there.
Speaker Change: Some smaller models as well as somewhat larger models.
Speaker Change: I'm wondering how we would evaluate.
Speaker Change: These are different AI models are larger ones and the smaller ones because we're running out of them on the cloud so I'd like to hear.
Speaker Change: About how are.
Speaker Change: What your view is in terms of growth in demand for inference.
Speaker Change: Compute power with respect to these models given that some of them are very small models. Thank you.
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Speaker Change: And since I'm the U S M. A M King Jim Barr well you know what you like.
Speaker Change: And in turn calls in the EBITDA, that's the gist of it.
Speaker Change: Cynthia Toyota figure due to logistics or me or shutdown, daughter, Coke with a single cohort as usual.
Speaker Change: In cohort two with Apple as a partner.
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Speaker Change: But anyway go women the 19th out of the AI I'm looking to El Nino will Linda K, then tailwind I'm working interest in Johan bore the brunt of invoicing the Eagle Yale and do all day. So Damian does on them that women shouldn't that kind of thing was that he has done and daughter.
Speaker Change: He or she says day.
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Speaker Change: So we will pay for the Eagle with you Bob So you would say that the way a lot of woman the cohort that you're adding the seven one times in the United States.
Speaker Change: Oh. Thanks. So this is Eddie I will take that question and your first question had to do with the pace of our cloud revenue growth in the various months over the quarter you know during the first quarter in the period January February March.
Speaker Change: There was the spring festival, the Chinese new year. So I don't think that period of time is really very representative of the overall pace of developments are but I think if you look at the quarter. Our after the Spring Festival. Then you certainly do see a lot of new customers a lot of new <unk>.
Speaker Change: <unk> arise a lot of that new demand is for inference.
Speaker Change: Workloads or for workloads that are driven by inference based scenarios.
Speaker Change: So a lot of the large scale adoption.
Speaker Change: Oh I I think is what you're you're going to see in the next few months to come so not just in in February and March after the spring festival, but through April and May as well.
Speaker Change: And I think the the surge that you're seeing in demand growth is representative often closer to what you can expect to see as the regular pace of growth.
Speaker Change: Going forward.
Speaker Change: So because there there were some disruptions in supply chains in January February March as well as the seasonal impact of the spring festival and in that time. So I think you need to look beyond that.
Speaker Change: To see what the regular.
Speaker Change: Pattern has going forward looking at customer demand is.
Speaker Change: I said a lot of demand is driven by inference that continues to grow steadily.
Speaker Change: Additionally.
Speaker Change: You had also asked a separate question about the effect of the different AI models different sizes of models on the cloud business.
Speaker Change: So yeah, you're absolutely right. Our Q1 open source models are have a lot of edge model AR applications.
Speaker Change: And there also are applications that are suitable more suitable to be run on the cloud there's a lot of different applications.
Speaker Change: But in particular, when we talk about the smaller models of around 3 billion parameters or even smaller these kinds of models.
Speaker Change: Or are running on a local devices for example on mobile phones of customers or it could be in toys or it could be on different kinds of smart devices.
Speaker Change: And so they're not going to have much of an impact in terms of driving our cloud business, but because those same customers are using.
Speaker Change: The Q and models are what that means is often they're also going to require additional usage of cloud based compute resources as well. So it's not just an edge.
Speaker Change: Model.
Speaker Change: That can achieve that kind of service requirement.
Speaker Change: And then you have the larger models, a 32 billion parameters or higher and although yes, you can run those on a consumer grade.
Speaker Change: Video processing card, none nonetheless to really be able to run big models and run them well run application as well.
Speaker Change: You need to put them in the cloud are so.
Speaker Change: That way.
Speaker Change: The kind of elasticity.
Speaker Change: Can scale to meet the.
Speaker Change: The requisite workloads and of course, you get a better price.
Speaker Change: Well for the compute.
Speaker Change: So I think that the edge models to a certain extent.
Speaker Change: Uh huh.
Our complementary.
Speaker Change: With our our cloud based large parameter.
Speaker Change: Models, they work well together as a as a business model.
Speaker Change: So I and and I think that the use of a smaller models also contributes to higher reliance by those customers on.
Speaker Change: The relevant products at Alibaba cloud. Thank you.
Speaker Change: Next question please.
Kenneth Fong: Thank you. Your next question comes from Kenneth Fong with UBS. Please go ahead.
Kenneth Fong: Hi, Good evening management and thanks for taking my question I ask the question in a recent announcement.
Kenneth Fong: Easter shopping investment that we said, we will invest 10 billion with all of them are to grow the quick commerce business can management share. Some plans on let's say area for investment why do we do it now and how would it impact positive below cheap for a local centers, especially in light of the intensified competition.
Kenneth Fong: In our food delivery business recently, thank you.
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Kenneth Fong: You should hear what your thoughts that would you say.
Speaker Change: No. Its usual one Jim what are you guys trying to straight answer that Josh is you can find switching the Chicago finally ship you shouldn't Bobby's here Josh.
Kenneth Fong: Schindler, Egypt shutting that down.
Speaker Change: Well just challenge that wasn't soon with a Chinese year.
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Speaker Change: Shenton budget, Shanghai will be on training for the Shanghai, you mean little more that youre, showing in Florida, California. They know what meal financings will do.
Speaker Change: She now John hit on a woman at the pop up shop truth, Shazam, John anticipating until it's yeah, well Michelle you got a journey of that John that you can choose what susana.
Speaker Change: Interest Alicia Yoshi, that's huge unusual with only one case that fit unquiet treat she can't giant Ghana feed Alcoholics Yentl I'm sure with that Xiaomi is showing a shallow mount pushy they'll pay off all of the Penguin.
Speaker Change: Thank you. This is John fan so I will take.
Speaker Change: This question.
Speaker Change: You know instant Congress is not a new race track for Alibaba. This isn't a day one for us so to speak in.
Speaker Change: In this in the sector, we've been building up our capabilities.
Speaker Change: In this marketplace for many many years now.
Speaker Change: We invested of course in Lima.
Speaker Change: And developed a fresh it Paul.
Speaker Change: Well as well. So these were all putting pieces in place in that instant commerce.
Speaker Change: Space.
Speaker Change: So I think it's entirely natural for us to continue to develop and grow in this market.
Speaker Change: Of course, there have been many.
Speaker Change: New large new developments in this market.
Speaker Change: Recently as.
Speaker Change: As well.
Speaker Change: So.
Speaker Change: I think that these are some of the Ah.
Speaker Change: The reasons that we're positioned to do very well in the market and we have some strong advantages.
Speaker Change: Uh huh.
Speaker Change: Uh huh.
Speaker Change: One thing to note about this incident retail market is that it's a huge market because it basically every person in China every consumer in China.
Speaker Change: We'll have demand for instant Congress today, it could be a market of some say 500 to 600 million consumers going forward that could easily be a 1 billion consumers. It's also a market that's growing and developing extremely rapidly.
Speaker Change: And it's important to know that our taobao has extremely broad.
Speaker Change: User base already in place so it's entirely natural.
Speaker Change: For us to develop in this direction into a boost up our instant commerce offerings as a new service or.
Speaker Change: A new category.
Speaker Change: And to integrate it into the tableau platform.
Speaker Change: Secondly.
Speaker Change: In terms of our merchants.
Speaker Change: Merchants in the market, we have extremely mature and experienced merchant base already in place.
Because as I said all of mine has been operating in this market for many years now and we also have an extremely robust and mature logistics system to support instant Congress.
Speaker Change: As well so this all makes it possible for us to provide an excellent service experience Forrester Congress on taobao.
Speaker Change: So we're building on.
Speaker Change: Very strong base with very strong advantages and leveraging those advantages are I expect that we can move forward very quickly and deliver.
Speaker Change: Delivering an excellent service experience for our inter commerce instant commerce, while at the same time, ensuring an excellent balance in terms of business efficiency.
Speaker Change: Oh, sometimes not just sue and that's just as I go through those out until towards sort of the nickel.
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Speaker Change: Number one we actually ship out I'm going with that Yugo Ville I think eventually engineered woman the tranche English is that quite saw the one, particularly the post split on whom we bought the couldn't go to the pub, rather even core but on the ha untrue try again and Johnny that you should ensure that you've got there.
Speaker Change: Not much Huntsville, what Michel was saying why don't get huge on the Yugo Sheena you know hold on.
Speaker Change: <unk> you want the xiaomi it more sure Oh, you just shoot all of them, but if you could be on the pinch out the well.
Speaker Change: Not to mention any of them to uphold the tongue Andrew I'll have to tell you how it's another human Coojong unusual woman, Italy, Pall mall triangle, even if they don't you bother you go unit.
Speaker Change: The Queen's Young Cade on how mature abstention shooting towards the upjohn that Oh I'm sorry, one more question. If you don't use that authority.
Speaker Change: And then I can expand on that further.
Speaker Change: To say that over the past couple of weeks, we've been making are some attempts with taobao Sionko Tobol instant Congress or quick commerce offering and the results of that trial have vastly exceeded our original.
Speaker Change: Expectation.
Speaker Change: This is a we're talking about the growth in scale as well as our efficiency of operations and both of those dimensions results were better than we had expected and.
Speaker Change: And I think that in the longer term.
Speaker Change: To develop this will result in.
Speaker Change: Many different benefits and advantages for top off first of all for tableau is an app or an e-commerce app.
Speaker Change: And instant Congress is a high frequency.
Speaker Change: Consumption scenario, so by developing more instant Congress on the Taobao App, we can drive higher levels of user engagement with the turbo App and that's definitely going to be a good thing for for tomo and long term secondly.
Speaker Change: We see new possibilities for combining a nationwide e-commerce with local or hyperlocal.
Speaker Change: E Commerce, and we hope that in the next period of time to come we can develop those synergies rapidly by investing aggressively.
Speaker Change: And that integration.
Speaker Change: So.
Speaker Change: We aim to convert more taobao app users.
Speaker Change: Into users of the instant commerce offering on Taobao and then in the long term, we believe that by driving the growth of this new business format on Taobao, we can.
Speaker Change: Upgrade our business model further.
Speaker Change: And we can drive more engagement.
Speaker Change: With our App so in the short term the focus of our investment.
Speaker Change: We will be on developing.
Speaker Change: Developing new users are as I said.
Speaker Change: We see a huge potential for the travel up to grow its users Ah Ah and to convert existing users into instant commerce users. So in the short term, we will be investing aggressively in this business.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Next question please.
Joyce Ju: Thank you. Your next question comes from Joyce Ju with Bank of America. Please go ahead.
Joyce Ju:
Speaker Change: Hal Hickey and once you get your head with Orange This year, Oh, let me add to that.
Speaker Change: J J a woman does it revert back why don't you bring cash Sheila I'd be cautious on <unk>.
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Speaker Change: Jacob.
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Speaker Change: Ashok <unk> quite a hell of.
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Speaker Change: At that time snail, mail <unk> parcel.
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Speaker Change: I will now give them a better usage.
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Speaker Change: You'll get more gas out.
Speaker Change: Yeah.
Speaker Change: Thanks management for taking my.
Speaker Change: Question.
Speaker Change: So as we know recently.
Speaker Change: This year's 618 618 campaign has begun so first of all I'd like to know what.
Speaker Change: What different strategies, we can expect to see this year around the 618 promotion in terms of our events are in terms of.
Speaker Change: The pace of the pre sales period.
Speaker Change: So on and then secondly, I'm wondering how is the feedback is on the merchant side and on.
Speaker Change: On the user side.
Speaker Change: And then just to follow on from that previous question before mine I'm wondering if there's any connection.
Speaker Change: Connection.
Speaker Change: We can expect to see between instant commerce or rapid Congress and this year's 618.
Speaker Change: The campaign in terms of synergies and if there might be some a nice happy surprises waiting for us in the instant Congress space in connection with the 618.
Speaker Change: They know what they have to go and tell Joe Gunn head count knowledge is really and truly the tenant finish out now which is one punch Nathan Glens with only a high school notes out nodular sure.
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Speaker Change: There are other jugal, if they can hershey.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you. This is John fan and I will take the question about the strategic direction for our instant.
Speaker Change: Instant Congress are starting their first I I think in the short term our priority as I was just saying is to achieve very rapid conversion to convert more.
Speaker Change: Existing taobao users into our instant Congress users.
Speaker Change: On taobao and to.
Speaker Change: Position top out with that kind of mind share amongst our consumers are.
Speaker Change: We're already seeing good results as I said from our initial forays.
Speaker Change: <unk> and.
Speaker Change: When our users first make use of instant Congress then they continue to come back with high engagement and high frequency. So we're seeing higher levels of engagement from those consumer.
Speaker Change: Consumers.
Speaker Change: And then a major goal for us in the present phase is to get that to get the insulin commerce business right.
Speaker Change: I think in the longer term.
Speaker Change: There are many possibilities to achieve synergy between instant Congress hyper local and nationwide commerce.
Speaker Change: Okay coming to the 618 campaign. The other part of your question I I think that this is.
Speaker Change: Just getting started in fact I think the campaign doesn't actually start until officially until tomorrow.
Speaker Change: So certainly you can expect to see some changes.
Speaker Change: Including around marketing and including around the pacing.
Speaker Change: Of the campaign. These changes are aimed at better orienting and gearing.
Speaker Change: The campaign to the new competitive.
Speaker Change: Environment and of course also at offering consumers a good experienced good prices and good services, but because the campaign hasn't actually started yet I'm not in a position to share with you any of those details, but I will look forward on giving you a fuller report on the campaign during our next quarterly earnings call.
Right.
Speaker Change: Due to the time limit we will now take the last question.
Speaker Change: Thank you.
Alicia Yap: Next question comes from Alicia Yap with Citigroup. Please go ahead.
Alicia Yap: Hi, good evening, Thanks for taking my questions I wanted to follow up on the TMR. This quarter, so wonder to management to elaborate a little bit the strong performance this quarter how much of that is.
Speaker Change: It's driven by the G. M D. Azar says 60 anchor transient rate improvement.
Speaker Change: And also wanted to follow up how much more leverage that this improvement trend entre.
Speaker Change: Further drive the monetization.
Speaker Change: Improvement in this upcoming fiscal 2026, and then also a follow up well with the step up investment industrial delivery business.
Speaker Change: You know a.
Speaker Change: To put some pressure on job teaching EBITDA in the coming quarters. Thank you.
Speaker Change: Okay.
Speaker Change: Oh, gosh, you're going to be some official whether he would what's wrong when the nausea Gwennie C M R. But.
Speaker Change: And so you do see them or to teach them the minimum choice at washout.
Speaker Change: Good G M V. A U a graduate of Jimmy Choo Donuts washer, Shelly R. Rudkin fool field, Wanda or home, Ohio, Ah shall be out of the Congo, a cause you'd say are.
Speaker Change: <unk> seen the booties shrunk a take a CMO or Hangzhou made by Chinese C. O R. P. T schoenthal somebody on to igo Ugo shrink rate legalized thoughts your thoughts I should say she's shooting shortly from its what holds the Cui Cui should.
Speaker Change: Just as a tall agenda to get EBITA. Some guy you Shea Yodlee just yet.
Speaker Change: And yeah, Alicia, which end up without the equal from going to the CMO to India now Jacob downtown Sedalia tissue or Tim go see him out of tin towns as to the key to teach the younger.
Speaker Change: The English food eating so unusual woman the gigabyte Gen full faith chimney or that you showed she went to the strong opinion is and I should know theatrical you showed some good trends and create the Jacobs shouldn't hold Tad woman chetan. Good upon golf Shouldnt shouldering the Shinto that's one seat.
Speaker Change: So we'll end up seeing the tiny element icon Chilean but even so how would you answer that way Jay Ah, Tony got Iran can't Fool faded out too Jacob on the highway Youll Shang counting things should yeah last year Sika beta Theta at a low base with Hamiel Janney potential to be that Guy here said Jake.
Speaker Change: Tweets, who take a ranking full fate the cheap seats on anything she can email in the highway you're eating the yogurt.
Speaker Change: That's the point of your acquaintance.
Speaker Change: They seemed a tiny anemia, well what does that seem to adding OE in EMEA, yeah, well in my mind take a shot at that so it's a D day, one that 10 Grand came full face sinking anymore, what he thought gee to treat a woman niche emptied the eating the takeaway the Samsung just eat yet yeah, again, transiently <unk> totally tissue Jacob.
Speaker Change: And which indicate a hydro one cancer colon they each either okay.
Speaker Change: The second pillar iPad button that changing the accordion counsel at 10000 feet a simple, yes wait to eat some good take rate you'll you could send the challenge I think tweedle, Alright said tend heat that take a S. I shouldn't totally trademark always announce when anyone of them gone Tito junk anted alcohol chica tens and take the true Yeah Hi.
Speaker Change: Wait some jaw and thought that you should assume the Shanghai.
Speaker Change: <unk> kind of gotten paid 30, both Paula and both Georgetown teach him well you don't want no Bronco champion seems like actually you don't want them to go and be yeah, I'll parse out what you were supposed to Taipei, Shanghai, So you'd see here some bolt on capital I guess hiseq suddenly aren't Italian cause you. Some concern now that you've got one I'm not sure if people from that's in shall we say seeing the tiny in EMEA the woman that.
Speaker Change: Good that takeaway shanshan, you'll you've got positive data in that.
Speaker Change: Thank you. So this is tobey let me start by answering your question about our CMO.
Speaker Change: And.
Speaker Change: As I said earlier, there were really two major drivers of TMR growth in this quarter. The first was the software service fee. The 0.6% charge that we began charging starting from September of last year and then the second factor has been the our growing penetration.
Speaker Change: Asian of Shan Shan Tway accused E T.
Speaker Change: And as penetration in terms of advertising revenues.
Speaker Change: So in the new fiscal year looking ahead, I think that both of those factors will continue to exist.
Speaker Change: And to a play a role starting first off with the software service fee.
Speaker Change: There are we will continue to be a period of time going forward because last year. We started from a very low base. So we will continue to be a rolling out and charging that softer service fee first point secondly in the earliest period of implementing the software service fee we had various.
Speaker Change: Merchant friendly measures rebates to certain merchants and.
Speaker Change: In the coming fiscal year.
Speaker Change: Ah or in 2025, we will slowly.
Speaker Change: Start to roll back some of those rebates.
Speaker Change: So in the new year, then the software or service fee will continue to.
Speaker Change: Be a positive factor.
Speaker Change: For our further growth of monetization.
Speaker Change: Then the second point regarding our Q E T.
Speaker Change: We'll continue to drive penetration of our Qs T a.
Speaker Change: And in fact progress to date is entirely in line with our expectations.
Speaker Change: The penetration rate continues to grow.
Speaker Change: And.
Speaker Change: That is also having a positive a driving effect on our monetization rates are of course in the process of driving penetration of our accused E T.
Speaker Change: Junk found also also mentioned this earlier.
Speaker Change: <unk>.
Speaker Change: The most important thing is our growth in terms of new.
Speaker Change: Merchants getting new merchants to adopt.
Speaker Change: Q E T. So that includes a lot of small and medium sized merchants.
Speaker Change: Who have now.
Speaker Change: Started to make use of our.
Advertising.
Speaker Change: Products as well as.
Speaker Change: White label merchants and so on so from a certain perspective.
Speaker Change: This is incremental budget and incremental new.
Speaker Change: Advertising revenue.
Speaker Change: So this increase will be a positive for driving growth and monetization.
Speaker Change: In the new fiscal year. Thank you.
Speaker Change: Uh huh.
Speaker Change: Alicia Guaymi quaint and consequently, the EBIT kind of wins here. He was he should take the two of them and I cant D. J, Jonathan So called woman I should say, Jake our Muslim juncture, megami or gamma herschelle when dealing with Gentiva should help them. So you can take a coach and down from a high should we chalk Buda.
Speaker Change: With a total city bulk oil at a woman does take a young who the T M. Jacob Jim you'll change and lead the chocolate a champion and I don't know how many tier total now let me T. J S. Jacques will take the highest since we eat at home. So you want me to EBIDTA quiz feature Jacob Kington passionate appeal Bachman key do continue to gently opioid pathway.
Speaker Change: But that's really kind of like what did you do that you do you know we kind of Dovetailing that you will.
Speaker Change: Not see the ticketing to Kashi bulk, let's say here Jake Jake Oh quick commerce infant commerce that I'm confirming that you ship Jacob total talking yeah, Yeah, we do woman the EBIDTA couldn't always hit you can actually do them and I guess, if I'm in the total yeah whittling away from Intel atom do these you'll put it sometime confuse vignettes so.
Speaker Change: During childhood was out yesterday, what would your agenda that Jacob.
Speaker Change: I'm going to tell you they got hit that sweet tea here well, yeah, we called out Jack.
Speaker Change: So you tend to see I can't we can't go you'd see a woman they send good EBITA powertrain EBITDA covenant that will alert you that you do see that in Richardson, Texas highway with tissue to eating a portal.
Speaker Change: And then turning to your second question concerning <unk>.
Speaker Change: EBITA.
Speaker Change: As a junk time already.
Speaker Change: Said you know our primary goal that we're focused on for the medium term is stabilizing our overall market share.
Speaker Change: And.
Speaker Change: As part of that process, we are making a lot of investments that.
Speaker Change: That includes our investments in user experience as well as in price competitive products.
Speaker Change: Products.
Speaker Change: And as we've.
Speaker Change: Said, we still very much remain in an investment stage. This.
Speaker Change: This is an investment period and certainly that will have.
Speaker Change: And impact on EBITA.
Speaker Change: In line with our competitive developments E U.
Speaker Change: Would expect to see fluctuation in avatar on a quarterly basis.
Speaker Change: So I think that's what you can expect to see and that's what you've already seen over the past several quarters.
Speaker Change: So starting from this quarter, obviously, we're also making new investments in quick commerce or instant Congress.
Speaker Change: And then also will have an impact on our EBITA.
Speaker Change: On the one hand these investments will result.
Speaker Change: Our result in the acquisition of new users new user growth.
Speaker Change: Well as increase in frequency and in stickiness. So in a in a certain sense are you could see this as a supplanting some.
Speaker Change: Some of our original investments and market growth.
Speaker Change: So of course, we do take that into consideration, but overall, we would expect that our EBITA ctg's EBITA overall in the next few quarters to come will experience some fluctuation.
Speaker Change: In line with competitive dynamics.
Speaker Change: Thank you everyone for joining us today. We appreciate your time, we will see you next quarter.
Speaker Change: That does conclude our conference for today. Thank you for participating you may now disconnect.
Speaker Change: Okay.
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