Q3 2024 NetEase Inc Earnings Call Transcript
Key Points
- NetEase Inc (NTES) achieved total net revenue of RMB26.2 billion, with a significant contribution from its gaming division.
- The company's popular game titles, such as Identity V and Naraka Bladepoint, reached record high revenues and player engagement.
- NetEase Inc (NTES) successfully launched Naraka Bladepoint Mobile, which quickly topped the iOS charts and accumulated 50 million new users.
- Youdao, a subsidiary of NetEase Inc (NTES), reported its first profitable third quarter with significant growth in AI-driven subscription services.
- NetEase Cloud Music saw healthy revenue growth and improved gross profit margins due to increased membership subscriptions and cost optimization.
- Total net revenues from games and related services declined by 4% year-over-year due to adjustments in PC live streaming services.
- Gross profit margin for Youdao decreased year-over-year, primarily due to a decline in revenues from learning services.
- NetEase Cloud Music experienced a 2% quarter-over-quarter decline in net revenues from social entertainment services.
- Innovative businesses and others saw a 10% decrease in net revenue compared to the same quarter of 2023, mainly due to decreased advertising revenues.
- Selling and marketing expenses increased as a percentage of total net revenue, primarily due to higher marketing expenditures for new game launches.
Good day, and welcome to the NetEase 2024 third quarter earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brandi Piacente. Please go ahead.
Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance of the company and are intended to qualify for the safe harbor from liability as established by the US Private Securities Litigation Reform Act. Such statements are not guarantees of future performance subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion.
A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the company with the Securities and Exchange Commission including its annual report on Form
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