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Earnings Call Summary | NetEase(NTES.US) Q1 2024 Earnings Conference

Futu News ·  May 24 05:13  · Conference Call

The following is a summary of the NetEase, Inc. (NTES) Q1 2024 Earnings Call Transcript:

Financial Performance:

  • NetEase reported Q1 2024 net revenue of RMB26.9 billion, an increase led by their game portfolio.

  • Revenue from games and related value-added services were RMB 21.5 billion, up 7% year-over-year.

  • Youdao's net revenue was RMB 1.4 billion while NetEase Cloud Music's net revenue was RMB 2 billion.

  • Gross profit margin for games and related VAS was 69.5%, up from 66.7% in the same period last year.

  • Operating expense was RMB 9.4 billion or 35% of net revenue.

  • Non-GAAP net income rose by 12.5% year-over-year to reach RMB 8.5 billion.

Business Progress:

  • The company continues to strengthen its R&D capabilities and extend game varieties with games such as 'Justice mobile' and 'Eggy Party' contributing to increased revenues.

  • Expansion of music categories alongside partnerships with popular Chinese stars.

  • Preparations are underway for new game launches including War Wings Mod, Ashfall, and Marvel Rivals.

  • Rapid growth from AI-driven subscription services at Youdao.

  • Revamps of current games like 'Condor Hero' and launching of 'Where Winds Meet' ensure fresh and engaging content.

  • Strategic adjustments in games and efforts in game development in the shooting genre depict a promising future for the company.

  • Active development in overseas studios and continuation of share repurchase and dividends signal strong business strategies and confidence.

More details: NetEase IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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