Youdao Q2 Revenue Rises 3.5% as Learning Services Jump 21%
NTES sits 15% above its 52-week low of $106.06.
Summary
Youdao, NetEase's education technology subsidiary, reported Q2 revenue up 3.5% year-over-year, driven by a 20.9% surge in learning services. Operating profit nearly tripled, and gross margin improved to 48.9%. The company also repurchased 7.5 million ADSs and appointed a new director. This follows NetEase's own Q2 results released earlier today, which showed a 19% profit decline. Youdao's strong learning services growth and margin expansion contrast with weakness in smart devices and online marketing. The stock trades at 46x forward earnings, above its three-month average of 37x.
At the time of this announcement, NTES was trading at $122.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $78.7B. The 52-week trading range was $106.06 to $159.55. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.