NETEASE Announces Record Profits in Fiscal Year 2023 Q2, Total Revenue Up 3.7% YOY
August 31, 2023
☀️Earnings Overview
NETEASE ($NASDAQ:NTES) reported on June 30th 2023, their fiscal year 2023 Q2, that their total revenue had increased 3.7% to CNY 24.0 billion compared to the same period in the previous year, and their net income had jumped 55.8% to CNY 8.2 billion.
Analysis
GoodWhale’s analysis of NETEASE‘s wellbeing reveals a high health score of 10/10, considering its cashflows and debt. NETEASE is capable of paying off debt and funding future operations, and is strong in asset, dividend, growth, and profitability. Based on these metrics, NETEASE is classified as a ‘gorilla’, a type of company that is characterized by stable and high revenue or earnings growth due to its strong competitive advantage. Investors who are looking for companies that show strong performance in the market are likely to find NETEASE appealing. NETEASE has the potential to generate good returns with its strong asset base and excellent financial performance. Therefore, investors who are looking for long-term growth are likely to find NETEASE’s offering attractive. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Netease. NETEASE_Announces_Record_Profits_in_Fiscal_Year_2023_Q2_Total_Revenue_Up_3.7_YOY”>More…
| Total Revenues | Net Income | Net Margin |
| 98.84k | 25.65k | 22.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Netease. NETEASE_Announces_Record_Profits_in_Fiscal_Year_2023_Q2_Total_Revenue_Up_3.7_YOY”>More…
| Operations | Investing | Financing |
| 30.17k | -951.66 | -33.12k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Netease. NETEASE_Announces_Record_Profits_in_Fiscal_Year_2023_Q2_Total_Revenue_Up_3.7_YOY”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 167.91k | 49.64k | 177.17 |
Key Ratios Snapshot
Some of the financial key ratios for Netease are shown below. NETEASE_Announces_Record_Profits_in_Fiscal_Year_2023_Q2_Total_Revenue_Up_3.7_YOY”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.6% | 14.5% | 22.7% |
| FCF Margin | ROE | ROA |
| 27.0% | 12.6% | 8.4% |
Summary
NetEase Inc. had a strong financial quarter ending June 30th 2023 as total revenue rose 3.7% year over year to CNY 24.0 billion and net income surged 55.8% to CNY 8.2 billion. Despite the impressive financials, investors responded negatively with the stock price falling on the news. While the company’s strong financials suggest potential upside, investors may be concerned about future growth and profitability, and will need to monitor future earnings releases before making any investing decisions.
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