Alibaba Group Holding Ltd. (NYSE: BABA) reported fiscal third-quarter results before markets opened Tuesday morning. The China-based internet giant reported adjusted diluted earnings per American depositary share (ADS) of $1.30 on revenues of $7.67 billion. Third-quarter results compare to the consensus estimates for EPS of $1.13 on revenues of $7.33 billion. One ADS is equal to one ordinary share, and the exchange rate used is based on 6.6685 yuan per dollar.

The number of annual active buyers on Alibaba’s retail marketplaces totaled 443 million at the end of the third quarter, up by 4 million (1%) sequentially. Monthly mobile active users rose from 393 million at the end of last December to 493 million (up 25%) at the end of December 2016. The company’s core commerce revenues rose by 45% year over year, the cloud-computing segment revenues rose by 115%, digital media and entertainment segment revenues rose 273% and other revenues rose 61%.

Operating income rose 66% year-over-year in the quarter to $2.98 billion. Excluding the impact of share-based compensation, the cost of revenue rose to 35% of revenue, compared with 28% in the year-ago quarter. Alibaba attributed the increase primarily to a rise in content acquisition costs at Youku Tudou, inventory costs at Lazada and logistics costs associated with its Tmall Supermarket.

The company’s chief financial officer, Maggie Wu, said:

We reported another excellent quarter, with robust revenue growth of 54%. With three quarters of the year coming in ahead of expectations, we are adjusting up our 2017 fiscal year revenue guidance from 48% to 53% year-over-year growth. This quarter we generated US$4.9 billion in free cash flow on a non-GAAP basis, enabling us to continue investing in growth areas globally, including cloud computing, digital media and entertainment and innovation initiatives, as well as core commerce.

The company’s record-breaking Singles Day (November 11 — 11/11) sales total of $17.8 billion easily eclipsed the U.S. Black Friday through Cyber Monday online shopping weekend sales total of $12.8 billion.

Alibaba did not provide a forecast in its press release. Analysts expect earnings per ADS of $0.67 on revenues of $5.23 billion in the company’s fourth fiscal quarter. For the full fiscal year ending in March, consensus estimates call for earnings per ADS of $3.26 on revenues of $22.23 billion.

Alibaba’s ADSs traded up around 5% in Tuesday’s premarket session, at $103.25 in a 52-week range of $59.25 to $109.87. The consensus 12-month price target was $119.82 a share before this morning’s announcement. The high price target estimate is $139.25.

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