NetEase Announces Third Quarter 2024 Unaudited Financial Results

PR Newswire
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HANGZHOU, China, Nov. 14, 2024 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

  • Net revenues were RMB26.2 billion (US$3.7 billion), a decrease of 3.9% compared with the same quarter of 2023.

    • Games and related value-added services net revenues were RMB20.9 billion (US$3.0 billion), a decrease of 4.2% compared with the same quarter of 2023.

    • Youdao net revenues were RMB1.6 billion (US$224.1 million), an increase of 2.2% compared with the same quarter of 2023.

    • NetEase Cloud Music net revenues were RMB2.0 billion (US$284.9 million), an increase of 1.3% compared with the same quarter of 2023.

    • Innovative businesses and others net revenues were RMB1.8 billion (US$252.8 million), a decrease of 10.3% compared with the same quarter of 2023.

  • Gross profit was RMB16.5 billion (US$2.3 billion), a decrease of 2.9% compared with the same quarter of 2023.

  • Total operating expenses were RMB9.3 billion (US$1.3 billion), a decrease of 0.8% compared with the same quarter of 2023.

  • Net income attributable to the Company's shareholders was RMB6.5 billion (US$931.7 million). Non-GAAP net income attributable to the Company's shareholders was RMB7.5 billion (US$1.1 billion).[1] 

  • Basic net income per share was US$0.29 (US$1.46 per ADS). Non-GAAP basic net income per share was US$0.33 (US$1.67 per ADS).[1]

[1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement.

Third Quarter 2024 and Recent Operational Highlights

  • Launched popular new titles and expanded established games in new regions, strengthening NetEase's competitive edge across more markets in diversified genres.

    • Naraka: Bladepoint mobile game gained significant popularity since its launch in July, reaching No. 4 on the iOS grossing chart with its September seasonal update, effectively catering to growing player demand for action-based PvP games.

    • Racing Master topped the App Store and Google Play free-to-play charts in Japan following its launch in August.

    • World of Warcraft and Hearthstone's return to China reignited historic level of player community enthusiasm. Following their relaunch, World of Warcraft saw a 50% increase in daily active players as compared to levels before the shutdown, while Hearthstone achieved over 150% growth.

  • Generated continued popularity of hit games Identity V and Naraka: Bladepoint, showcasing NetEase's long-term operation capabilities for online games.

  • Strengthened diversified portfolio, announcing more exciting titles in the making, including Destiny: Rising and MARVEL Mystic Mayhem, and new games, such as Marvel Rivals and Where Winds Meet, set for launch in December.

  • Youdao significantly improved its profitability in the third quarter, achieving its first-ever third-quarter operating profit and a record-high quarterly operating profit, compared with a loss in the same period last year.

  • NetEase Cloud Music continued to drive quality development across its music-centric ecosystem, further expanding its subscriber base and sustaining healthy revenue growth momentum in its online music services.

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