Alibaba (BABA - Get Report) shares surged 3.3% in Thursday morning trading after reporting first quarter revenue that blew away expectations.

The Chinese internet giant reported a 56% increase in revenue to RMB50.184 billion ($7.4 billion), coming in well ahead of Factset estimates of $7.1 billion. The company reported diluted EPS of $0.83 and non-GAAP diluted EPS of $1.17 in the three months to the end of June. Analysts were expecting earnings of 93 cents a share.

For the same quarter last year, Alibaba reported earnings of 71 cents per share on revenue of $4.6 billion.

Alibaba shares were up 3.3% to $164.70 Thursday morning. Alibaba shares are up around 88% this year. The company's market value soared in June after the e-commerce firm forecast revenue to rise between 45% and 49% in the 2018 fiscal year and $1 trillion in gross merchandise value for 2020.

"We delivered excellent results in the first quarter, with robust revenue growth of 56%. The significant growth in customer management revenue represents the differentiated business value we provide to our customers," said CFO Maggie Wu said in a statement. "It is our intention to continue investing in long-term growth opportunities, some of which are already delivering significant value to customers and investors."

Mobile monthly active users on its China retail marketplaces reached 529 million in June, an increase of 22 million over March 2017. Alibaba added 14 million MAUs to its China retail marketplaces last quarter for a total of 507 million MAUs.

Revenue from the company's core commerce increased 58% year-over-year to $6.347 billion. The company saw its biggest increase in revenue in its cloud computing unit, seeing a 96% increase year-over-year to $359 million. While revenue from digital media and entertainment increased 30% year-over-year to $602 million.

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