In today’s briefing:
- Quiddity ASX Rebal Mar 23: Good Hit Rate, Some Short Buildup, Decent Impact
- Bilibili 4Q: Gaming to Drop Further with In-House Developed Strategy
- NetEase Inc.: Acquisition of SkyBox Labs & Other Drivers
- Salesforce Inc.: Major Drivers
- Autodesk Inc.: Launch of Moxion Rooms & Other Drivers
- Workday Inc.: Major Drivers
Quiddity ASX Rebal Mar 23: Good Hit Rate, Some Short Buildup, Decent Impact
- The index changes for the ASX Index family for the March 2023 Rebalance were announced after the close on Friday 3rd March 2023.
- There will be one, two, and four changes for ASX 20, ASX 100, and ASX 200 indices, respectively. There will also be 12 ADDs and 9 DELs for ASX 300.
- In this insight, we take a closer look at our expectations for index flows, short interest, and recent price performance of the names involved in the rebalance event.
Bilibili 4Q: Gaming to Drop Further with In-House Developed Strategy
- Bilibili reported 4Q2022 results. Net revenue increased 6.2% YoY to RMB6,142m (vs consensus RMB6,154m) while operating losses expanded to RMB2,327M (vs consensus RMB1,905.9m).
- Mobile Games revenues declined 11.5% YoY in 4Q2022 due to the restructuring of the games biz to focus on self-developed gaming titles.
- We expect Bilibili’s earnings to remain under pressure with aggressive cost controls to impact growth and Mobile games to slow-down in 2023E with lack of new titles for launch.
NetEase Inc.: Acquisition of SkyBox Labs & Other Drivers
- NetEase delivered a mediocre set of results for the last quarter as it failed to meet market expectations with respect to net revenues.
- The company’s legacy titles, including the Westward Journey Online series and Fantasy Westward Journey Online did perform well and helped deliver an earnings beat.
- The company’s new game, the Egg Party, hit the Chinese market by storm this quarter.
Salesforce Inc.: Major Drivers
- Salesforce had another strong quarter and delivered an all-around beat.
- Besides, the Data cloud became their most crucial cloud, enhancing each Salesforce cloud and enhancing the automation, intelligence, and real-time of every aspect of their Customer 360.
- With native integration of Tableau and Data Cloud, they recently released Tableau plus Data Cloud.
Autodesk Inc.: Launch of Moxion Rooms & Other Drivers
- Despite pandemic, geopolitical, policy, and macroeconomic headwinds, Autodesk gave a strong financial performance in the quarter and delivered an all-around beat.
- The product subscription renewal rate and its net revenue retention rate remain strong.
- The company continues to make excellent progress in its strategic initiatives, which drives accelerating the adoption of the Autodesk Construction Cloud.
Workday Inc.: Major Drivers
- Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in subscription revenue for the quarter and the entire fiscal year.
- While Talent Optimization is Workday’s fastest-growing SKU with an attach rate on new transactions of more than 85% in fiscal year 2023, approximately 50% of all active Workday HCM customers currently use Workday Skills Cloud.
- The company intends to boost margin expansion in fiscal 2024 while returning to a 20% plus subscription revenue growth when the environment recovers.
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