U.S.-traded shares of Alibaba Group Holding (BABA) recovered from pre-market difficulties on Thursday after quarterly results fell short of expectations.

The Chinese e-commerce giant reported revenue of 243.24 billion yuan ($33.91 billion) for the June quarter, up 4% year-on-year, and net profit attributable to shareholders of 24.27 billion yuan, down 29%. Both figures fell short of analyst consensus expectations compiled by Visible Alpha.

Cloud segment, sales of AI-related products increase

The company’s cloud division reported 6% higher revenue of 26.55 billion yuan, and Alibaba said “revenue from AI-related products continued to grow at triple-digit rates year-on-year,” although it did not disclose figures for that segment. The e-commerce division, which includes Chinese online shopping platforms Taobao and Tmall, saw revenue fall 1% to 113.37 billion yuan.

Alibaba American Depositary Receipts (ADRs) were trading slightly lower at $79.18 at 2 p.m. ET on Thursday, after initially falling around 5% before the U.S. market opened.