The Chinese e-commerce giant's quarterly revenue grew 45 percent. The company named a new CEO but didn't say why it's making the change. Fred Katayama reports.
More people ordering off their mobile devices helped turbocharge Alibaba's revenue in the latest quarter. The e-commerce giant's gross merchandise volume on its retail marketplaces lke Taobao expanded significantly. The company managed to nearly double the percentage of business done over smartphones and other mobile devices over the past year. Profit fell 49 percent because of employee stock awards. Strip that out, and profit rose for the quarter. In a conference call, Alibaba's CFO said the company will keep investing part of its cash flow in new businsses. Revenue and profit easily beat analysts forecasts. Alibaba's shares shot up at the open but still not far from a post-IPO low hit on Tuesday. Wedbush Securities analyst Gil Luria said, "Alibaba had another good quarter in spite of very low expectations from the investment community. Revenue is still growing at 45 percent, and monetization rates were stable compared to last year." The company will soon be in new hands. Alibaba said COO Daniel Zhang will replace Jonathan Lu as CEO next week. The company didn't give a reason for the change. Zhang is credited with being a key architect of the world's largest shopping event, the so-called "Singles Day" of November 11, China's response to Valentine's Day.