Alibaba posts $38.58 billion in Q3, beating expectations

China’s Alibaba Group Holding Ltd. beat Wall Street’s third-quarter revenue expectations, helped by strong year-end shopping sales and the success of its strategy to attract cost-conscious consumers.

The company reported revenue of 280.15 billion yuan ($38.58 billion) for the three months ended Dec. 31, compared with the 279.34 billion yuan forecast by 17 analysts surveyed by LSEG.

The company’s U.S.-listed shares rose 2.7% in premarket trading.

Chinese retailers such as Alibaba have cut prices and stepped up promotions to spur consumer spending and boost sales in its core domestic e-commerce business.

Healthy demand from international markets and increased spending by customers during the year-end helped the company boost sales and post a stronger financial performance.

Last year’s annual Singles’ Day sales event, a national shopping festival often seen as a barometer of consumer sentiment, lasted longer than previous editions and led to a 26.6% rise in sales on major e-commerce platforms, according to data provider Sinton.