Despite growing headwinds in China, e-commerce giant Alibaba (BABA) is pivoting with success. In the last quarter, the company offset price war pressures by growing its cloud and AI businesses.
Alibaba earned $2.06 in EPADS (non-GAAP) on revenue of $34.57 billion (+2.0% Y/Y). The company reported a 26% Y/Y revenue growth in Cloud Intelligence Group. The unit benefited from triple-digit growth for AI-related product revenue. This is the eighth consecutive quarter in a row.
Expect short-term losses to shrink. Alibaba is scaling up marketing expenses to grow its user base. This pays off if it retains those new customers in the long term.
MongoDB (MDB) reported revenue of $591.4 million (+23.7% Y/Y). AI projects are driving cloud-based unstructured data management demand at an unprecedented rate.
Expect growth acceleration to continue. Workloads that MongoDB acquired moved the business upmarket. IT is growing faster. As workloads increase, so will revenue growth.
Elastic (ESTC) broke out ahead of its first-quarter earnings report. Revenue increased by 13.8% Y/Y to $415.29 million for a Q1 non-GAAP EPS of $0.60. Growth is accelerating after Elastic provided ongoing support for its highly differentiated search AI platform. The sales team executed solidly. AI is clearly shaping technology decisions. As a result, strong sales of the Elastisearch AI platform will continue from here.
A sample use case is one client that used the AI to power 40 different applications. Elastic Cloud enabled the firm to increase operational efficiency, thanks to better search features.
