NetEase reported its first-quarter financial results, surpassing market expectations with a 7.2% year-on-year increase in revenue to 26.9 billion yuan (USD 3.7 billion). The company's gross profit rose by 14.2% to 17.0 billion yuan, with a gross profit margin of 63.2%, up 4.0% from the previous year. Revenue from games and related value-added services reached 21.5 billion yuan, marking a 7.0% increase year-on-year. The Youdao segment saw a 19.7% rise in revenue to 1.4 billion yuan. Non-GAAP net income was 8.5 billion yuan, up 12% from a year ago. NetEase's Non-GAAP EPADS was $1.84, beating estimates by $0.12. Despite these positive results, the company's stock saw a decline of 3.6% in the pre-market session. NetEase logged an 11.8% jump in first-quarter profit.