Chinese e-commerce giant Alibaba’s investment in new services such as cloud computing looks to be paying off, with fourth-quarter revenue forecasts topping estimates, despite a broader downturn in the Chinese economy.
The company saw a 51% year-over-year jump in revenue for the quarter. The 93.5 billion yuan revenue beat estimates of 91.58 billion.
In a press release, Alibaba credited new cloud and data technology with helping to boost growth and better target customers.
“We are making progress on the monetization of recommendation feeds and enhancing recommendation algorithms. During the quarter, we allocated more traffic for testing of recommendation monetization, which generated incremental customer management revenue in a quarter with seasonally lower revenue,” the statement said.
The group also touted success in gaining traction with “New Retail” platforms, connecting online and mobile services to brick-and-mortar stores.
The better-than-expected results come amid a slowing economy, including in the retail sector, where sales grew in April at the slowest pace in 16 years