NETEASE Reports Positive Earnings Results for Q2 of FY2023
August 27, 2023
☀️Earnings Overview
On June 30th, 2023, NETEASE ($NASDAQ:NTES) reported their earnings for Q2 of FY2023, with total revenue amounting to CNY 24.0 billion – a 3.7% increase from the same period of the prior year. Net income for the period was CNY 8.2 billion, representing a 55.8% increase compared to the same quarter of the previous year.
Share Price
On Thursday, NETEASE reported positive earnings results for the second quarter of its fiscal year 2023. The stock opened at $98.2 and closed at $98.6, a slight 3.9% decrease from its prior closing price of 102.6. In a statement, NETEASE’s Chief Financial Officer, Wu Gang, said that the company had achieved “solid performance” in the quarter due to strong investments in new products, technologies and marketing campaigns. He added that he was optimistic about the company’s future prospects and that he expects the company to continue to show strong growth in the coming quarters.
The positive earnings report marks another success story for NETEASE, which has seen steady growth in revenue and profits over the past few years despite rising competition in the online gaming market. Investors will be keeping a close eye on the company’s progress in the coming months as it continues to invest in new products and technologies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Netease. 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. 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. 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. 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% |
Analysis
At GoodWhale, we recently conducted an analysis of NETEASE‘s fundamentals and are excited to share the results. Risk Rating, our proprietary risk assessment tool, has rated NETEASE as a low risk investment in terms of financial and business aspects. However, there is one warning risk we detected in NETEASE’s balance sheet that we would like to point out. Register with us to learn more about this risk warning and how it may affect your investment decision. More…
Summary
Investors responded negatively to NETEASE‘s Q2 Fiscal Year 2023 earnings report, with stock price dropping on the same day it was released. The reported total revenue for the quarter was CNY 24.0 billion, a 3.7% increase from the previous year. Net income also rose 55.8% to CNY 8.2 billion.
Despite the positive results, investors seemed unconvinced, indicating potential worries over future performance. Analysts suggest that investors should look beyond this quarter’s numbers and consider long-term potential before making their final decision.
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