NetEase Clocks 4% Revenue Growth In Q4, Miss Street View

NetEase, Inc NTES reported fourth-quarter FY22 revenue growth of 4% year-on-year to $3.68 billion, marginally missing the consensus of $3.70 billion.
Segments and margins: Games and related value-added services revenues grew 1.6% Y/Y to $2.8 billion. The corresponding gross margin declined by 180 bps to 59.1%.
Youdao, Inc's DAO revenue rose 9% Y/Y to $210.8 million, and the corresponding gross margin increased by 260 bps to 53.3%.
Also Read: Activision Blizzard Fails To Renew Gaming License With NetEase; Explores Other Alternatives To Tap Biggest Gaming Market
Cloud Music's revenues were $344.5 million, up 25.8% Y/Y, and its gross margin expanded by 1,370 bps to 17.8%.
Innovative businesses and other revenue rose 3.4% Y/Y to $353.5 million, and the gross margin rose by 100 bps to 31.5%.
Non-GAAP net income from continuing operations per ADS of $1.07 missed the consensus of $1.17.
NetEase held $13.9 billion in cash and equivalents and generated $1.3 billion in operating cash flow.
Dividend: The board approved a dividend of $0.2700 per ADS for Q4 versus $0.4350 in Q3 ($0.405 per ADS in Q4 FY21).
China's video games regulator approved 87 new video games for February, including titles under Tencent Holding Ltd TCEHY, Alibaba Group Holding Limited BABA, and NetEase.
Price Action: NTES shares traded lower by 1.03% at $85.16 in premarket on the last check Thursday.

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