Alibaba (BABA) Q1 2018 earnings were released before opening bell this morning. The China-based online retailer reported adjusted earnings of $1.17 per share on $7.4 billion in revenue, compared to the consensus estimates of 93 cents per share and $7.12 billion in sales.

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Alibaba Q1 2018 earnings

On a GAAP basis, Alibaba Q1 2018 earnings amounted to 83 cents per share, a 92% increase year over year.

Cloud computing revenue surged 96% to $359 million on the back of a 75% increase in paying cloud customers, bringing the total to 1.01 million paying cloud customers. Core commerce revenue grew 58% year over year to $6.3 billion, while China commerce retail revenues rose 57% to $5.4 billion, accounting for 73% of total revenue. Digital media and entertainment revenues increased 30% to $602 million, while innovation initiatives and other revenue rose 21% to $95 million.

Since the end of March, Alibaba has added 12 million annual active customers, which it previously reported as annual active buyers, to its China retail marketplaces, bringing its total active buyer base to 466 million. The company’s mobile monthly active user base grew to 529 million as it added 22 million users since March.

“Our technology is driving significant growth across our business and strengthening our position beyond core commerce,” Alibaba CEO Daniel Zhang said in a statement. “We are excited about the future as we continue to innovate and drive synergies among the businesses throughout the Alibaba ecosystem.”

Alibaba reports strong growth in Tmall, New Retail

Alibaba said average spending per merchant and the number of paying merchants drove the strength in its China retail marketplaces, while the Taobao app drove the strong growth in active users and engagement. The company also reported that Tmall is gaining market share in core categories in the business to consumer market. Gross merchandise volume for physical goods sold through Tmall surged 49% year over year. The key categories were fashion and apparel, consumer electronics and fast moving consumer goods.

The company also updated its New Retail initiatives. In May, Alibaba completed the privatization and acquisition of a controlling stake in department store and mall operator Intime Retail Group.

After Alibaba Q1 2018 earnings were released, the retailer’s stock surged in premarket trading, climbing by more than 5% to as high as $167.81. The shares were on track to open at a record high.