Alibaba Group Holding Ltd (NYSE:BABA) the Chinese e-commerce giant announced that it has recorded 45% increase in revenue over its last year’s revenue. Though, a strong performance in the quarter was as expected, what was unexpected was a change of guard at the highest executive level.
First the results
Lu reported that the first quarter results posted profits of $463 million. However, the profits were 49% lesser than the profits the company had earned in the same quarter of last year. The profits fell short of the forecasts made by analysts.
On the other hand, revenue rose by a whopping $2.8 billion in the past year. Revenue reported was in line with analyst expectations it was noted.
Additionally, the company found an increase in the number of monthly active users.
Lu To Make Way For Zhang
After the announcement of the earnings report, changes in the management were announced by the CFO of Alibaba Group Holding Ltd. In the announcement it was noted that present CEO Johanthan Lu would continue in the transition period, until Daniel Zhang could take over full operations of the company.
The announcement noted that Lu would not exit the company. Instead he would remain on the Board of Directors as the Vice Chairman.
On his part, the CEO designate, Zhang is no new face at Alibaba Group Holding Ltd (NYSE:BABA). Zhang has been with the organization for over 8 years now and has been responsible for the Alibaba Group Holding Partnership program.
As new CEO at the helm, it will be tough stage for Zhang to take charge of the reigns. The company is already fighting the government over allegations of fake goods being sold over the platform. Analysts do reserve some doubts about the long-term growth of the company. Many see a drop in earnings in the quarter ahead.