Q1 2025 NetEase Inc Earnings Call Transcript
Key Points
- NetEase Inc (NTES) reported a 7% year-over-year increase in total net revenue, driven by strong performance in gaming and value-added services.
- The company's flagship titles and new game releases, such as Marvel Rivals and FragPunk, have achieved significant success globally, contributing to a 12% year-over-year increase in gaming revenue.
- NetEase Inc (NTES) has successfully expanded its global gaming portfolio, with games like Once Human and Where Winds Meet gaining traction in multiple regions.
- The company continues to innovate with AI-driven enhancements in gaming experiences and educational services, leading to strong user engagement and growth in AI subscription sales.
- NetEase Inc (NTES) maintains a robust cash position and has approved a dividend payout, reflecting strong financial health and shareholder value creation.
- NetEase Inc (NTES) faced a decline in Youdao's learning services revenue, with a 7% year-over-year decrease, as the company prioritizes core services with long-term potential.
- NetEase Cloud Music experienced an 8% decline in net revenue from the same period last year, primarily due to decreased revenue from social entertainment services.
- The company's innovative businesses and others segment saw a 17% year-over-year decrease in net revenue, impacted by declines in Yanxuan and advertising services.
- Despite the successful launch of Once Human mobile, monetization remains conservative, with management focusing on enhancing commercialization strategies.
- FragPunk's popularity declined rapidly after its initial launch, highlighting challenges in maintaining engagement in the competitive FPS game market.
Good day, and welcome to the NetEase first-quarter 2025 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Helen Wu. Please go ahead.
Thank you, operator. Please note that today's discussion will contain forward-looking statements related 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, 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 in this discussion.
A general discussion of the risk factors that could affect NetEase business and financial results is included in certain filings of the company with the Securities and Exchange
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