NetEase

NetEase, Inc. is an internet technology company, which engages in the provision of premium online services centered around content, community, communication and commerce. It develops and operates some of the most popular PC-client and mobile games in China. The firm also operates some of the most popular international online games in China by partnering with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers. NetEase also offers other services, including the intelligent learning services of its majority-controlled subsidiary, Youdao, its music streaming platform, NetEase Cloud Music, and its private label e-commerce platform, Yanxuan. The company operates through the following business segments: Online Game Services, Youdao, Cloud Music, and Innovative Businesses and Others. The Online Game Services segment produces online PC-client games. The Youdao segment is an online education service provider in China. The Cloud Music segment represents revenue from online music services through the sales of membership subscriptions in various content and service packages. The Innovative Businesses and Others segment offers other services, which includes live video streaming and its private label e-commerce platform, Yanxuan. The company was founded by Lei Ding in June 1997 and is headquartered in Beijing, China.

Earnings data Q1 2021

Earnings data Q2 2021

Earnings data Q3 2021

Earnings data Q4 2021

Earnings data Q1 2022

Earnings data Q2 2022

Earnings data Q3 2022

Earnings data Q4 2022

Earnings data Q1 2023

Earnings data Q2 2023

Earnings data Q3 2023

Earnings data Q4 2023

Earnings data Q1 2024

Earnings data Q2 2024

Earnings data Q3 2024

Earnings data Q4 2024

NetEase reports record revenues, eyes growth through global expansion

NetEase delivered strong financial performance driven by games, cloud music, and Youdao's success, positioning the company for future growth.
While facing competition and ESG challenges, NetEase's strategic focus on new game launches and global expansion presents promising opportunities.
Investors should monitor NetEase's innovation in gaming, expansion efforts, and commitment to ESG principles for long-term sustainability.

NetEase reports robust Q1 earnings, eyes sustainable growth ahead

NetEase's Q1 2023 performance reflects strong revenue growth and profitability, driven by flagship titles and global expansion efforts. The company faces challenges in optimizing margins and navigating competitive landscapes but sees opportunities in upcoming game releases and expanding service offerings. NetEase aims for sustainable growth and breakeven targets in the near future.

NetEase reports robust Q2 earnings driven by gaming portfolio growth

NetEase's Q2 2023 performance reflects strong financial results, driven by growth in gaming revenues, expansion of Youdao's services, and improved margins in NetEase Cloud Music and Yanxuan.
The company's focus on quality content, innovation, and user engagement positions it well for future success, despite potential challenges in a competitive and evolving market landscape.
By leveraging its strengths in game development and operational efficiency, NetEase has the opportunity to capitalize on market opportunities and drive sustained growth in the coming quarters.

NetEase excels in Q3 2023, focuses on innovation and sustainability

NetEase's Q3 2023 performance reflects strong revenue growth, driven by a mix of legacy and new game titles. The company's focus on innovation, user satisfaction, and diversified revenue streams positions it well for future growth.
While challenges like market competition and balancing monetization strategies persist, NetEase's commitment to providing a healthier gaming environment and long-term game sustainability presents opportunities for sustained success.
Overall, NetEase's strategic emphasis on innovation, global expansion, and user-centric approaches underscores its resilience in the dynamic gaming industry landscape.

NetEase reports strong 2023 earnings, eyes global expansion and innovation

NetEase had a successful year in 2023, reporting top and bottom line growth. The company expanded globally, focusing on new game genres and female players. Financially, they reported strong revenue and profitability, with a focus on talent development and social responsibility.
Despite challenges of increasing competition, NetEase is well-positioned to capitalize on opportunities in international expansion and innovation. By investing in R&D and maintaining user engagement, the company aims to drive growth and navigate the evolving gaming landscape effectively.

NetEase reports robust Q1 earnings driven by game portfolio success

NetEase's Q1 2024 performance reflects strong financial results and a focus on innovation in gaming.
While challenges like rising marketing costs exist, opportunities in new technologies and content drive growth.
The company's commitment to ESG practices and recognition underpin its sustainable business approach.
Overall, NetEase's strategic focus on game portfolio strength and financial performance positions it well for future success.

NetEase reports 6% revenue growth in Q2 2024 earnings call

NetEase delivered solid financial results in Q2 2024, driven by revenue growth in games, Youdao, and Cloud Music
While facing cost pressures and margin challenges, the company's strategic focus on key segments positions it well for future growth
Opportunities in mobile games, online marketing, and music streaming offer avenues for revenue diversification and expansion

NetEase reports robust Q3 earnings driven by gaming division

NetEase delivered a strong performance in Q3 2024, driven by robust revenue growth in the gaming division and improved profitability in other segments.
The company's focus on developing successful titles and expanding its music and education offerings positions it well for future growth.
While facing challenges in a competitive market, NetEase's solid financial results and strategic initiatives indicate resilience and potential for further expansion.
By capitalizing on strengths, addressing challenges, and seizing opportunities, NetEase is poised to sustain its growth trajectory and enhance shareholder value.

Revenue

Cost of revenue

Gross profit

Operating expenses

SG&A

Other

Operating income

EBITDA

Net income

Earnings per share

Total assets

Current assets

Cash & equivalents

Receivables

Inventory

Non-current assets

Net PPE

Intangibles

Total liabilities

Current liabilities

Short term debt

Income tax payable

Non-current liabilities

Long-term debt

Total equity

Stockholders equity

Minority interest

Total liabilities & equity

Total debt

Net debt

Book value per share

Cash from operations

Funds from operations

Change in working capital

Cash from investing

Capital expenditure

Purchase/sale of investments

Purchase/sale of business

Other sources

Cash from financing

Change in stock

Change in debt

Cash dividends paid

Cash from other sources

Net change in cash

Free cash flow

The average of price targets set by Wall Street analysts indicates a potential upside of 27.2% in NetEase (NTES). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

How Much Upside is Left in NetEase (NTES)? Wall Street Analysts Think 27.24%

Activision Blizzard

China games company NetEase Inc. has rejected a proposal from World of Warcraft creator Activision Blizzard to temporarily extend its partnership while the U.S. company seeks a new partner, calling the proposed terms "unequal and unfair" in an escalating public spat.

China's NetEase criticizes Blizzard offer as unequal, unfair

Tencent Holdings Limited

Shares of Tencent Holdings , the world's largest gaming company, and smaller rival NetEase Inc rose on Wednesday after China's video games regulator granted the first gaming licences in 2023, further easing an industry crackdown.

Shares of Tencent, NetEase rise as China gaming crackdown ends

Activision Blizzard said it is in talks with several videogame firms to find a new partner in China.

Activision Says NetEase Rejected Offer to Extend China Licensing Partnership

China's video games regulator on Tuesday granted publishing licences to 88 online games, including titles belonging to Tencent Holdings Ltd , NetEase Inc and miHoYo.

China approves 88 games in January, including titles by Tencent and NetEase

Activision Blizzard , the U.S. video game giant behind hit franchise Warcraft, said on Tuesday that its Chinese publisher NetEase had turned down a proposal to extend their partnership for six months.

Blizzard says China's NetEase rejects proposal to extend partnership for six months

NetEase has ramped up its international expansion efforts in gaming over the last two years as China's domestic market has slowed amid tougher regulation.

China's NetEase buys gaming studio involved in major titles including Halo Infinite and Minecraft

Futu Holdings

Futu Holdings Ltd FUTU and NetEase Inc NTES shares are trading higher Wednesday morning. Shares of Chinese companies at large are trading higher after Chinese regulators reportedly approved a capital raise for Ant Group.

Why Futu Holdings And NetEase Shares Are Trading Higher

HANGZHOU, China , Jan. 2, 2023 /PRNewswire/ -- Cloud Music Inc. (HKEX: 9899, "NetEase Cloud Music" or the "Company"), a leading interactive music streaming service provider in China, today announced that sales from top C-pop artist Chenyu Hua's new album have exceeded RMB20 million (over 760,000 copies sold) on NetEase Cloud Music as of December 31, 2022, topped the 2022 annual album sales chart on the platform, less than two weeks after its official debut. Chenyu Hua's fifth album, "希忘(Xiwang) Hope" witnessed instant success after launching on NetEase Cloud Music in December 2022, with over 100,000 copies sold within 1 minute and more than 300,000 copies sold in 35 minutes following its first sale.

C-Pop Artist Chenyu Hua's New Album Won NetEase Cloud Music's Best-selling Digital Album of 2022 With Over 760,000 Copies Sold

-- Includes expanded licensing and digital distribution for Mayday HANGZHOU, China , Dec. 31, 2022 /PRNewswire/ -- Cloud Music Inc. (HKEX: 9899, "NetEase Cloud Music" or the "Company"), a leading interactive music streaming service provider in China, today announced that it has entered into a licensing agreement for digital music distribution ("the Agreement") with B'in Music International Co., Ltd. ("B'in Music"), a leading C-pop music production company, granting NetEase Cloud Music the right to distribute B'in Music's music catalog, including one of the most influential C-pop bands Mayday.

Cloud Music Inc. Adds Expansive C-Pop Portfolio with B'in Music Agreement

Baidu

JD.com

Pinduoduo Inc - ADR

Vipshop Hlds

In light of Beijing announcing the lifting of Covid-19 quarantine measures, five Chinese stocks with high guru ownership as of the third-quarter 13F portfolio filing date are Baidu Inc. ( BIDU , Financial), Pinduoduo Inc. ( PDD , Financial), JD.com Inc. ( JD , Financial), NetEase Inc. ( NTES , Financial) and Vipshop Holdings Ltd. ( VIPS , Financial) according to the Aggregated Portfolio of Gurus, a Premium feature of GuruFocus.

5 Chinese Stocks Gurus Are Packing Into

Alibaba

KE Holdings

Trip.com

Yum China Hlds

Shares of some U.S.-listed Chinese companies advanced on Tuesday on optimism that easing of the country's COVID-19 travel restrictions on foreigners would deliver a business boost.

U.S. listed Chinese stocks rise as China eases COVID-19 lockdown restrictions

Despite the pressures of an undoubtedly challenging macroeconomic backdrop in China, NetEase, Inc. posted solid Q3 results. The macro-environment in China is improving and the termination of the partnership with Activision is likely only a minor headwind to NetEase fundamentals.

NetEase: Now A Buy (Upgrade)

HANGZHOU, China , Dec. 8, 2022 /PRNewswire/ -- Cloud Music Inc. (HKEX: 9899, "NetEase Cloud Music" or the "Company"), a leading interactive music streaming service provider in China, today announced that it has entered into a licensing agreement for digital music distribution ("the Agreement") with Pony Canyon Inc. ("Pony Canyon"), a leading anime and music production company in Japan, granting NetEase Cloud Music the right to distribute Pony Canyon's music catalog. Under the terms of the Agreement, the two companies will join hands to bring more creative music content, especially J-pop and anime music, to audiences in China.

Cloud Music Inc. Adds Expansive J-Pop Portfolio with Pony Canyon Agreement

Investors need to pay close attention to NetEase (NTES) stock based on the movements in the options market lately.

Is the Options Market Predicting a Spike in NetEase (NTES) Stock?

NetEase (NTES) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

What Makes NetEase (NTES) a New Buy Stock

BEIJING , Nov. 30, 2022 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), a leading technology-focused intelligent learning company in China, today announced that due to the challenges related to the COVID-19 pandemic, it will postpone its previously announced annual general meeting of shareholders (the "2022 AGM"), originally scheduled for December 1, 2022, to a later date to be determined by the Company's board of directors. For additional details of the 2022 AGM, please refer to the Company's current report on Form 6-K dated November 3, 2022.

Youdao, Inc. Announces Rescheduling of Annual General Meeting

HANGZHOU, China , Nov. 28, 2022 /PRNewswire/ -- Cloud Music Inc. (HKEX: 9899, "NetEase Cloud Music" or the "Company"), a leading interactive music streaming service provider in China, announced that it has entered into a licensing renewal agreement ("the Agreement") with Avex, a leading entertainment conglomerate in Japan, granting NetEase Cloud Music the right to distribute Avex's music catalog in China. Under the terms of the Agreement, both parties will collaborate to promote the presence of prominent and fan-favorite J-pop artists and content under the Avex.

Cloud Music Inc. Extends Partnership with Avex to Amplify J-Pop Content

The average of price targets set by Wall Street analysts indicates a potential upside of 65.1% in NetEase (NTES). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Wall Street Analysts Think NetEase (NTES) Could Surge 65%: Read This Before Placing a Bet

RingCentral

VeriSign

The Internet-Software & Services industry is in recovery mode even as a slowing economy in 2023 looms large. NTES, RNG and VRSN are better equipped than others to come out on top.

3 Picks from the Recovering Internet Software & Services Industry

Seeking Alpha has published 10 of my bullish NetEase essays. It is only proper I write this 11th buy endorsement. The recent Q3 numbers are excellent. NetEase is still very profitable despite the growth slowdown.

Consistent Profitability And Relative Undervaluation Make NetEase Attractive

One of the saddest messages on Blizzard's divorce from NetEase over publishing WorldofWarcraft etc. in China came from NetEase exec.

Nobody wins in Blizzard's divorce from NetEase in China

The Chinese games provider is performing relatively well in a weak economy.

Why NetEase Stock Was Up Before Falling This Week

NetEase, Inc. (NASDAQ:NTES ) Q3 2022 Earnings Conference Call November 17, 2022 7:00 AM ET Company Participants Margaret Shi - Director of Investor Relations Charles Yang - Chief Financial Officer William Ding - Chief Executive Officer Conference Call Participants Kenneth Fong - Credit Suisse Lincoln Kong - Goldman Sachs Charlene Liu - HSBC Alex Poon - Morgan Stanley Felix Liu - UBS Natalie Wu - Haitong International Operator Good day, and welcome to the NetEase 2022 Third Quarter Earnings Conference Call. Today's conference is being recorded.

NetEase, Inc. (NTES) Q3 2022 Earnings Call Transcript

Activision Blizzard Inc. ATVI, -0.68% says it will find new ways to serve gamers in China impacted by the end of its licensing deal with NetEase Inc. NTES, +1.57% . The video game giant's licensing agreements with the Chinese internet technology company date back to 2008, but expire on Jan. 23, 2023.

News for NetEase Stock (NTES)