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Chapter 337 The Much-Anticipated Financial Report

American companies typically release their first-quarter financial reports in April. Every year around this time, as if following a biological clock, major companies gradually unveil the mystery of their first-quarter financial reports, presenting the market with their operating results for the past three months.

Financial professionals are already accustomed to studying financial reports with coffee in the April morning light, while media reporters are also eager to dig out big news that will affect the market from the dry numbers.

However, during this year's April earnings season, YueDong Games was definitely a unique case.

Because it set its IPO date for May 3rd, throughout April, all the financial, technology, and even entertainment media focused their attention on this game company like spotlights, eager to see if YueDong Games' first-quarter financial report would bring any surprises.

Prior to this, when YueDong Games submitted its IP0 application, its high valuation had already caused quite a stir in the market.

At the time, supporters believed that YueDong Games had unique advantages in game development and platform operation, and that the high valuation was an acknowledgment of its future potential.

The opposition, however, believes that the company has not been sufficiently tested by the market over a long period of time, and that overestimating its value poses a risk.

The first-quarter financial report is precisely the key evidence to verify whether this high valuation is justified.

If the financial report shows strong results and meets market expectations for growth, then the previous controversies will naturally dissipate.

However, if the data falls short of expectations, the doubts about the valuation bubble bursting will likely overwhelm YueDong Games instantly.

As the days passed and April's calendar was torn page by page, the clocks on Wall Street ticked away. Major technology companies, entertainment companies, and financial institutions released their first-quarter financial reports. Some delivered better-than-expected results, causing their stock prices to rise accordingly, while others were less impressive, triggering a slight panic among investors.

However, amidst this wave of financial reports, YueDong Games remained silent for a long time.

Without releasing a financial forecast or explaining the reasons, this silence has led to a proliferation of speculations that have spread throughout the media and investment circles.

Some media outlets subtly suggested in their reports, "Could it be that YueDong Games' first-quarter financial report did not meet expectations, hence the delay in releasing it?"

This speculation is not unfounded. After all, in the capital market, companies that are slow to release financial reports are often those with poor performance.

Some financial commentators half-jokingly, half-seriously remarked on the show, "As the saying goes, you can only tell if a mule or a horse is good by taking it out for a spin. But Leap Games is different; it doesn't even have the courage to take a lap now. Could it be a donkey? Or a lame one at that?"

While these words were spoken in jest, they also reflected the sentiments of many investors. Even institutional investors who had actively subscribed during YueDong Games' roadshow were now beginning to waver.

During the roadshow, the YueDong Games team painted an impressive picture of the company's future, which attracted many institutions who then invested real money to subscribe for shares.

But now the financial report has not been released yet. Is it because YueDong Games' first quarter report is really so bad that they dare not release it?

But hiding isn't a solution. An ugly daughter-in-law has to meet her in-laws sooner or later. No matter how good or bad the financial data is, YueDong Games will eventually have to put it on the table.

Moreover, with the listing ceremony on May 3rd drawing ever closer, the importance of financial reports has been amplified many times over, directly impacting the stock price performance after the IPO.

Just when the speculation and doubts from the outside world reached their peak, and almost everyone thought that Leap Games was about to fail.

On April 23, the much-anticipated first-quarter financial report of YueDong Games was finally officially released.

The release of this financial report was like a bombshell, causing an uproar in the American capital market and gaming industry. It instantly dispelled all previous doubts and speculations, and the media went completely crazy, dedicating the largest pages and the most eye-catching headlines to reporting this major news.

The Los Angeles Times online edition was updated immediately, with a huge headline at the top: "Behind $4.62 million in revenue, Leap is rewriting the gaming industry."

"Total revenue of $4.62 million in the first quarter, $1.83 million in platform revenue, and $2.42 million in gaming revenue. These figures not only far exceeded market expectations, but the word 'astonishing' would not be an exaggeration."

"This is not just simple numerical growth, but a disruption of the industry model." Goldman Sachs industry analyst Marc Stein made no secret of his admiration for Jumping Games in an interview with the Los Angeles Times.

He further analyzed that YueDong Games' platform revenue accounted for 42%, an increase of nearly ten times compared to before. Behind this data is YueDong Games' complete change of the traditional game channel marketing model.

In the current gaming market, Sony's PlayStation has always been driven by hardware sales, attracting players with its high-performance game consoles.

Nintendo, on the other hand, adheres to its cartridge ecosystem, maintaining its user base with unique game cartridges and proprietary games.

However, YueDong Games took a different approach, building a large and active user ecosystem that covers 68 games and has users spending an average of 4.2 hours online per day through a combination of the Internet and online services.

In particular, the collaboration between Leap Games and Nintendo has not only brought huge revenue growth to both parties, but has also forced the entire gaming industry to re-examine the importance of the Leap Games platform.

Prior to this, almost everyone thought that the YueDong Games platform was just a tool launched by YueDong Games to unify its own game accounts, and had no special value.

But now, with the release of the financial report, it's clear that YueDong Games is revolutionizing the lives of all marketing and distribution companies.

If this trend continues, a large number of game developers will definitely choose to partner with YueDong and port their games to the YueDong gaming platform.

After all, the YueDong gaming platform has demonstrated strong user appeal and commercial potential. For game developers, joining such a platform means reaching more potential players and gaining more revenue.

As more and more game developers join, the content on the YueDong Games platform will become richer, attracting more players to join. In this way, YueDong Games will be able to more firmly lock in its online game users.

This is like a perfect virtuous cycle: the platform grows bigger and bigger, the number of users increases, and manufacturers are more and more willing to cooperate. In this cycle, YueDong Games will gradually gain the right to speak in the online game industry, and may even dominate the entire online game industry.

GamePro magazine, an authoritative media outlet in the gaming industry, also gave Leap Games' financial report a very high evaluation, stating in its commentary that "Leap Games is riding the third wave of the gaming industry."

"YueDong Games' financial report is not only a milestone in the company's own development, but also a declaration that the game industry has officially entered the era of online ecosystem."

"In 1977, the Atari 2600 ushered in the era of console gaming, bringing games from simple arcades to homes;

In 1985, Nintendo's Famicom rebuilt the chaotic order of the gaming industry and propelled it into a new stage of development.

Today, YueDong Games is driving the game industry into its third wave with a platform-based approach.

"The core of this third wave lies in the reconstruction of the relationship between players, developers, and platforms. In the traditional game model, players are always in a passive position, only able to accept the games provided by hardware manufacturers, with little room for choice. If they want to play a certain game, they must buy the corresponding game console or game cartridge. Once the hardware is updated, many newly released games may no longer be supported."

"Developers, on the other hand, are constrained by distribution channels and revenue sharing ratios. Often, developers work hard to create a good game, but they have to share most of the profits with publishers and hardware manufacturers, and they can only get a small portion. They are also subject to various unequal contracts, which seriously dampens their enthusiasm."

"And YueDong Games has precisely solved this pain point in the industry. For players, in the future they will no longer have to passively accept games provided by manufacturers, but can freely choose any game they want to play on the YueDong platform, and will no longer have to buy hardware specifically for a certain game."

"For developers, there's no longer any pressure from distribution channels, because all developers receive the same fees on the YueDong Games platform, with no discrimination. Developers only need to focus on game development and ensure high-quality games to earn reasonable revenue through the platform, which undoubtedly greatly stimulates their enthusiasm for innovation."

According to our internal data, the number of registered users on the YueDong gaming platform has exceeded eight million.

At this growth rate, with more high-quality games launching this year, the platform's user base is likely to double.

"It is this promising and rapidly growing user market that allows players, platforms, and developers to all benefit, creating a win-win ecosystem for all three parties."

Compared to reports on YueDong Games' business and its impact on the industry, more media outlets seem to be more concerned about the company's market value.

With only ten days left until YueDong Games' IPO on May 3rd, this impressive financial report, which is sure to impress everyone, will undoubtedly provide a significant boost to YueDong Games' market capitalization at this crucial juncture.

Everyone is curious about just how far the market value of YueDong Games will be pushed to.

A $50 offering price and a $70 billion valuation are certain, although YueDong has not yet officially announced the specific price.

But who the hell cares about these numbers now? The focus of everyone's discussion has shifted to how many times the stock price of YueDong Games will multiply after its IPO.

The Wall Street Journal, a globally renowned financial media outlet, gave a positive response to YueDong Games' IPO.

"On May 3rd, LGC will become the only voice in the financial market."

"The market has already reacted immediately to YueDong Games' financial report. On the Nasdaq stock market, concept stocks related to YueDong Games have seen a surge. Among them, the stock prices of YueDong Games' hardware suppliers, such as IBM and Cisco, have all risen by more than 3%."

"With Jumping Games predicting that its user base will more than double this year, its demand for hardware will also rise sharply. This will undoubtedly bring more orders and business growth to suppliers such as IBM and Cisco. As a result, investors are optimistic about the prospects of these companies, driving up their stock prices."

"However, in this stock market frenzy related to Jumping Games, we have to mention Oracle again."

The Wall Street Journal article specifically mentioned Oracle, stating that "Oracle's best decision in its history was probably welcoming Ernst to the company."

"Google's rapid development has led to YueDong Games' better-than-expected performance. Oracle, which has fully completed its business integration, has seen its stock price nearly double in just two months, making it one of the brightest stars in the stock market this year."

"If I were Larry Ellison, I wouldn't be too much to bow down to Ernst this Christmas."

In addition to the positive reaction in the stock market, major financial giants on Wall Street have also begun to raise their market capitalization estimates for YueDong Games.

Morgan Stanley first gave its forecast, setting a target price of $118 for YueDong Games' IPO, corresponding to a market capitalization of $185 billion, nearly 2.5 times the IPO price of $50.

Times.

Other financial institutions followed suit, offering similar optimistic forecasts.

Most institutions believe that YueDong Games' market capitalization after its IPO will be between $180 billion and $200 billion.

Of all the institutions, Merrill Lynch's predictions were undoubtedly the most exaggerated.

Merrill Lynch believes that if the market value of YueDong Games does not exceed $20 billion, it is severely undervalued.

Merrill Lynch analysts even predict that YueDong Games' market capitalization is likely to exceed 260 billion after the company releases its annual financial report next year.

It reached a high level of hundreds of millions of dollars.

The reason for making such a bold prediction is that he believes the win-win ecosystem of "players-developers-platform" built by YueDong Games has a strong moat effect, and the company's performance will continue to grow rapidly in the future, and its market value will naturally rise accordingly.

In an instant, the entire capital market was abuzz with excitement because of YueDong Games' financial report.

Both institutional and individual investors are full of expectations for YueDong Games' IPO.

Everyone is eagerly anticipating May 3rd, wanting to see for themselves what kind of industry miracle YueDong Games will create.

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