A customer shops at an Alibaba rural service centre in Jinjia Village, Tonglu, Zhejiang province, China, July 20, 2015.
A customer shops at an Alibaba rural service centre in Jinjia Village, Tonglu, Zhejiang province, China, July 20, 2015. E-commerce growth in the countryside now outpaces that in major cities, though fewer than one tenth of online purchases made on Alibaba platforms were shipped to rural areas in the first quarter of this year. Alibaba estimates the potential market at 460 billion yuan ($74 billion) by next year. Picture taken July 20. Reuters/Aly Song

As Chinese e-commerce giant Alibaba published its financial results for the quarter, it announces that its revenue has increased by 32 percent. Although the value of goods transacted grew at a very slow pace, revenue amounted to 22,171 million yuan (AU$4.9 million) in the quarter that ended on Sept. 30, shunning analysts’ estimates of 21,245.29 million yuan( AU$4.7 million).

Even Wall Street expected the company to post revenue of US$21.25 billion ( AU$29.85 billion). “We continued our efforts to drive healthy GMV growth, deliver an unparalleled consumer experience and help quality merchants do business on our platform,” said Daniel Zhang, chief executive officer of Alibaba Group. “This was a great quarter for Alibaba Group, with strong growth across the board and particular outperformance in mobile,” he added.

Maggie Wu, chief financial officer of Alibaba Group, said that the gross merchandise volume rose to US$112 billion (AU$157.34 billion), a year-on-year increase of US$25 billion (AU$35.12 billion) in this quarter. In addition, she mentioned that significant progress has been recorded in monetisation and nearly US$2.1 billion (AU$2.95 billion) free cash has generated. “The fundamental strength of our business gives us the confidence to invest in our strategic priorities,” she added.

The strong results were reflective of growing trend in shopping on mobile phones. "Mobile is the trend and Alibaba is capturing that trend," said T.H. Capital Research analyst Tian Hou, according to Reuters.

However, its consumer spending results were comparatively weak as only 60 percent of it accounted for China's economic growth in the first half of 2015. "The Chinese consumer is slowing down, so is Alibaba's volume. However, they did deliver a very good quarter," Gil Luria, a technology analyst at Wedbush Securities, told CNBC's "Squawk on the Street."

On contrary, Kevin O'Leary, founder of the O'Leary Financial Group, believed that the consumer spending environment was growing in the country but assured that it would be more volatile.

On Tuesday, the company’s New York-listed shares rose up to 6 percent.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.