The earnings call reflected strong performance and strategic growth in the gaming sector and the successful relaunch of Blizzard games in China. However, there were challenges in certain segments like innovative businesses and Youdao's profitability margins, which were offset by strong future release strategies and significant gaming revenue growth.

Company Guidance

During the NetEase Q3 2024 earnings call, the company provided guidance highlighting various metrics that underscored their sustained growth and strategic initiatives. Total net revenue for the quarter was RMB 26.2 billion, with net revenue from online games reaching RMB 20 billion, a 5% increase quarter-over-quarter. PC games showed notable strength, with net revenue up 29% year-over-year and 30% quarter-over-quarter. The company boasted record high revenues for multiple titles, including Identity V, which achieved unprecedented DAUs and high global concurrent online players. Youdao, the company's digital learning division, reported its first profitable third quarter with operating income exceeding RMB 100 million. NetEase Cloud Music also demonstrated robust performance, with gross profit margins improving to 32.8%. The company's cash reserves stood strong at approximately RMB 120 billion, and the board approved a dividend for the quarter. Additionally, NetEase continued its share repurchase program, buying back shares worth USD 43 million in the quarter.

Record-Breaking Revenue for Gaming

Total online games net revenue reached around RMB 20 billion, with PC games net revenue up 29% year-over-year and 30% quarter-over-quarter.

NetEase Cloud Music Growth

Gross profit margin for NetEase Cloud Music reached 32.8%, up from 27.2% last year, with increased net revenue from membership subscriptions.

Successful Blizzard Game Relaunch

World of Warcraft saw a 50% increase in daily active players, while Hearthstone achieved over 150% growth post-relaunch in China.

Strong Pipeline of New Releases

Upcoming releases include Marvel Rivals globally on December 6, and Project Morgan's test in December, showcasing commitment to innovation.

Youdao Profitability

Youdao achieved its first profitable third quarter with income from operations exceeding RMB 100 million.

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NetEase (NTES) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

NTES Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 08, 2018	2018 (Q2)	- / 0.57	0.612	-6.87% (-0.04)	―	―
Nov 14, 2018	2018 (Q3)	- / 0.48	0.52	-8.11% (-0.04)	―	―
Feb 20, 2019	2018 (Q4)	- / 0.50	0.265	88.67% (+0.24)	―	―
May 15, 2019	2019 (Q1)	- / 0.64	0.276	130.86% (+0.36)	―	―
Aug 07, 2019	2019 (Q2)	- / 0.77	0.57	34.45% (+0.20)	―	―
Nov 20, 2019	2019 (Q3)	- / 0.99	0.478	107.43% (+0.51)	―	―
Feb 26, 2020	2019 (Q4)	- / 0.77	0.5	53.00% (+0.27)	―	―
May 19, 2020	2020 (Q1)	- / 0.88	0.637	37.83% (+0.24)	―	―
Aug 13, 2020	2020 (Q2)	- / 1.09	0.766	41.91% (+0.32)	―	―
Nov 19, 2020	2020 (Q3)	- / 0.73	0.991	-26.33% (-0.26)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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NTES Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 14, 2024	$75.90	$83.80	+10.41%
Aug 22, 2024	$91.62	$81.39	-11.17%
May 23, 2024	$96.82	$93.26	-3.68%
Feb 29, 2024	$109.43	$105.18	-3.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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