NetEase, Inc. (NASDAQ:NTES) stock fell Thursday after the company reported first-quarter results.

NetEase Q1 Earnings Beat Expectations

The company reported first-quarter revenue of $4.44 billion, or 30.6 billion Chinese yuan, up 6.1% year over year and above analyst estimates of $4.20 billion.

Adjusted earnings were $2.53 per ADS, topping analyst expectations of $2.02.

Gaming Segment Drives Revenue And Margin Expansion

Revenue from games and related value-added services rose 6.9% to $3.7 billion, while gross margin for the segment improved to 74.79% from 68.83% a year earlier.

Youdao revenue increased 3.8% to $195.4 million, though gross margin declined to 44.68% from 47.31% a year ago.

NetEase Cloud Music …

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