Shares of Alibaba are up 4.68% in early trading Thursday after the earnings beat.
Sales on the company's e-commerce platforms made up 86 per cent of revenue in the three months to June 30th, up from 73 per cent a year prior.
In June Alibaba raised its expectations for full year revenue growth to 45-49 per cent.
But the company, based in the eastern Chinese city of Hangzhou, also has poured money into cloud computing, digital media and entertainment as its seeks to build up new revenue streams.
The way Squali sees it, Alibaba is in a unique position because of its "differentiated commerce model, strong brand, unmatched scale in the world's largest Internet market and proven management".
It has accelerated the roll-out of its e-commerce infrastructure in Southeast Asia, with a further $1-billion investment in Singapore-based e-commerce platform Lazada Group, and targeted new merchants in Russian Federation and the United States as part of a wider plan to boost revenues and attract new customers outside of China. That was better than the mean forecast of 47.7 billion yuan, according to analysts polled by Thomson Reuters.
Overall revenues in the quarter rose 56 percent to 50.2 billion yuan, beating the $7.2 billion average of analyst estimates compiled by Bloomberg.
It reported net income of 14.03 billion yuan (US$2.07 billion) for the quarter.
Alibaba's cloud business has crossed 1 million paying customers for the first time in its latest quarter, where revenue for the unit climbs 96 percent to hit 2.43 billion yuan (US$359 million).
Revenue from online marketing, which Alibaba calls "customer management" services, topped 26.2 billion yuan, up by nearly two-thirds from 2016.
Net income attributable to the company's shareholders almost doubled to $2.17 billion, or 83 cents per share.