Q4 2024 NetEase Inc Earnings Call Transcript
Key Points
- NetEase Inc (NTES) achieved a record high total net revenue of RMB105.3 billion in 2024, with RMB83.6 billion from games and related services.
- The company successfully launched new game titles, such as Marvel Rivals and Where Winds Meet, which have garnered significant player engagement and set new industry standards.
- NetEase Inc (NTES) reported a 17% year-over-year growth in PC client games, with a 57% increase in Q4, driven by strong performances from titles like Westward Journey Online II.
- Youdao, a subsidiary of NetEase Inc (NTES), achieved its first-ever annual operating profit in 2024, with a focus on technology-driven innovation and profitability enhancement.
- NetEase Cloud Music continued to drive quality development, expanding its music library and enhancing user engagement through innovative features like Lyric book and Liveo.
- NetEase Inc (NTES) experienced a decline in learning services revenue for Youdao, leading to a 9.5% year-over-year decrease in Q4.
- NetEase Cloud Music's net revenue decreased by 5% year-over-year in Q4, reflecting lower revenue from social entertainment services.
- The company's gross profit margin for games and related services decreased to 66.7% in Q4, down from 69.5% in the same period last year.
- NetEase Inc (NTES) faced challenges in maintaining high gross profit margins for Youdao, which decreased to 47.8% in Q4 from 49.9% the previous year.
- The company reported a decrease in net revenue for innovative business and others, down 17% year-over-year in Q4, primarily due to decreased revenue from advertising services and other innovative businesses.
Good day, and welcome to the NetEase 2024 fourth quarter and fiscal year 2024 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Brandi Piacente.
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 U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are 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 Medici's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. including
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