09:30 AM EDT, 08/15/2024 (MT Newswires) -- Alibaba Group's ( BABA ) fiscal first-quarter earnings fell less than expected while revenue trailed Wall Street's estimates.

The Chinese e-commerce giant posted adjusted earnings of 16.44 renminbi ($2.30) per American depositary share for the three months ended June 30, down from 17.37 renminbi a year earlier. The consensus among analysts on Capital IQ was for 14.94 renminbi.

"We continue to invest for growth in our core businesses while reducing losses in other business units through operating efficiency," Chief Financial Officer Toby Xu said in a statement.

Revenue rose 4% year over year to 243.24 billion renminbi, missing the Street's view for 247.45 billion renminbi. Sales in the Taobao and Tmall group segment fell 1% from last year to 113.37 billion renminbi. Within this division, China commerce retail fell 2% while wholesale jumped 16%. The international digital commerce business surged 32% to 29.29 billion renminbi.

Revenue in the cloud business rose 6% year over year to 26.55 billion renminbi.

"We're seeing more major customers choosing Alibaba Cloud as their computer infrastructure for (artificial Intelligence) development," Chief Executive Eddie Wu said during an earnings call, according to a Capital IQ transcript. "At the same time, Alibaba's proprietary large language models are gaining wider adoption."

Local services revenue rose 12% while Cainiao Smart Logistics Network increased by 16% in the quarter. Digital media and entertainment revenue increased 4%.

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