- NetEase, Inc NTES reported that Q1 FY23 revenue growth surpassed expectations by rising 6.3% YoY to reach $3.65 billion, while predictions expected $3.56 billion.
- Segments and margins: Revenue obtained from games and related value-added services grew 7.6% YoY to $2.92 billion. The corresponding gross margin increased to 66.7%, a rise of 450 bps due to modifications in the revenue mix.
- Youdao, Inc’s DAO revenue decreased by 3.1% YoY to $169.4 million, while its corresponding gross margin also declined by 140 bps to 51.7% due to reduced net revenues earned from learning services.
- Also Read: What’s Going On With Alibaba Stock Wednesday
- Revenues of Cloud Music were $285.4 million, down by 5.2% YoY, and its gross margin expanded by 1,020 bps to 22.4% due to improved cost control measures.
- Innovative businesses and other revenue increased by 12.8% YoY to $270.5 million, and the gross margin also increased by 370 bps to 25.4%.
- Non-GAAP EPADS of $1.69 exceeded expectations by beating predictions of $1.25.
- NetEase showed to have $13.9 billion in cash and equivalents and generated $873.8 million in operating cash flow.
- Dividend: NTES’s board approved a dividend of $0.4650 per ADS for Q1 versus $0.2700 per ADS for Q4 FY22 ($0.3220 per ADS for Q1 FY22).
- CEO William Ding unveiled plans to debut several highly anticipated games across various genres and geographies, with a primary focus on developing games that appeal to diverse demographics. Ding further revealed efforts to raise the bar with dynamic, premium content.
- Price Action: As of the last check today, NTES share prices traded at $85.00 premarket, up by 1.81 %.
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