Alibaba (NYSE: BABA) announced adjusted earnings per share of $1.74 before the bell on Thursday, with revenue coming in at $31.1 billion.
The numbers reported were against an anticipated EPS of $1.93 and revenue of $32.05 billion.
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In reaction to the report, Alibaba’s share price has fallen 7% to $150.28.
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Alibaba attributed the 38% fall in profit year-over-year primarily to net losses arising from changes in market prices of its equity investments.
“This quarter, Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future,” said Daniel Zhang, Chairman and CEO of Alibaba Group.
“Our global annual active consumers across the Alibaba Ecosystem reached approximately 1.24 billion, with a quarterly net increase of 62 million consumers, and we are on track to achieve our longer-term target of serving two billion consumers globally.”
The company revised its fiscal year 2022 revenue guidance and now expects revenue to grow 20% to 23% year-over-year.
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