Alibaba reported fiscal first-quarter earnings on Thursday that beat expectations, sending shares higher in U.S. pre-market trade.

Shares of the Chinese e-commerce giant in Hong Kong rose more than 4% ahead of the earnings report. Alibaba’s U.S.-listed shares were 7% higher.

Here’s how Alibaba did in its fiscal first quarter, versus Refinitiv consensus estimates: 

• Revenue: 205.55 billion Chinese yuan ($30.68 billion) vs 203.19 billion yuan expected, remaining flat year-on-year
• Earnings per American depositary share (ADS): 11.73 Chinese yuan vs 10.39 yuan expected, down 29% year-on-year
• Net income: 22.73 billion yuan vs 18.72 billion yuan expected

In the quarter, Alibaba faced a number of headwinds including a resurgence of Covid in China that led to major cities, such as the financial metropolis of Shanghai, being locked down. That led to a sluggish Chinese economy in the second quarter of the year.

Meanwhile, the e-commerce giant continues to face a strict regulatory environment after Beijing’s more than a year-and-a-half crackdown on the domestic technology sector.

While Alibaba had a tough quarter, analysts are expecting growth to pick up in the coming months.

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