网易-S(09999) - 2024 Q1 - 季度业绩

Financial Performance - NetEase reported Q1 2024 net revenue of RMB 26.9 billion (USD 3.7 billion), a year-over-year increase of 7.2%[3] - Gross profit for Q1 2024 was RMB 17.0 billion (USD 2.4 billion), representing a 14.2% year-over-year increase[3] - Operating expenses totaled RMB 9.4 billion (USD 1.3 billion), an increase of 22.4% year-over-year[3] - Net profit attributable to shareholders was RMB 7.6 billion (USD 1.1 billion), with a non-GAAP net profit of RMB 8.5 billion (USD 1.2 billion)[4] - Basic earnings per share were USD 0.33, with a non-GAAP basic earnings per share of USD 0.37[4] - The company reported a net profit attributable to shareholders of RMB 7.6 billion ($1.1 billion) in Q1 2024, compared to RMB 6.6 billion in the previous quarter and RMB 6.8 billion year-over-year[12] - The net income for the three months ended March 31, 2024, was RMB 6,582,263 thousand, compared to RMB 6,754,634 thousand for the three months ended December 31, 2023, indicating a slight decrease of about 2.55$272.8 million), down from RMB 2.8 billion in the previous quarter and up from RMB 1.9 billion year-over-year[8] - Total net revenue from online games and related value-added services was RMB 20,921,355 for the three months ended March 31, 2024, compared to RMB 20,065,597 for the same period in 2023, representing an increase of 4.3%[25] - The total revenue from Youdao was RMB 1,480,521 for the three months ended March 31, 2024, compared to RMB 1,163,270 for the same period in 2023, marking an increase of 27.3%[25] - The total revenue from Cloud Music was RMB 1,985,548 for the three months ended March 31, 2024, compared to RMB 1,959,841 for the same period in 2023, reflecting a slight increase of 1.3%[25] Expenses and Costs - Operating expenses totaled RMB 9.4 billion ($1.3 billion) in Q1 2024, down from RMB 10 billion in the previous quarter and up from RMB 7.7 billion year-over-year[9] - Research and development expenses for the three months ended March 31, 2024, were RMB 4,479,219 thousand, compared to RMB 3,749,732 thousand for the three months ended December 31, 2023, marking an increase of about 19.5$15.7 billion), up from RMB 110.9 billion at the end of 2023[14] - The company's cash and cash equivalents decreased to RMB 21,428,902 thousand as of March 31, 2024, down from RMB 43,026,904 thousand as of December 31, 2023, reflecting a decline of approximately 50.19%[22] - Cash and cash equivalents at the end of March 31, 2024, were RMB 24,206,658, up from RMB 18,158,066 at the beginning of the period, indicating a net increase of RMB 6,048,592[24] - The total assets of the company amounted to RMB 195,064,872 thousand, an increase from RMB 185,924,978 thousand as of December 31, 2023, representing a growth of approximately 6.15%[22] Strategic Initiatives - The company plans to release several anticipated new games, including "Yanyun Shiliu Sheng" and "Marvel: Contest of Champions," in the upcoming quarters[5] - NetEase has updated its distribution agreement with Blizzard Entertainment to reintroduce popular games to the Chinese market and is expanding collaboration with Microsoft Gaming[5] - NetEase's self-developed R&D team focuses on mobile, PC, and console game development, positioning itself among the industry's leaders[19] - The company integrates cultural and educational elements into games, enhancing user engagement and community value[19] - NetEase's strategic focus includes developing innovative online services and expanding its global operations[20] Non-GAAP Metrics - Non-GAAP financial metrics are used to assess operational performance, excluding stock-based compensation expenses from net profit attributable to shareholders[21] - The non-GAAP net profit attributable to shareholders is defined as net profit excluding stock-based compensation, providing a clearer view of operational performance[21] - The company emphasizes that non-GAAP metrics should not be viewed in isolation and have limitations compared to GAAP metrics[21] - The net profit attributable to shareholders under non-GAAP for the quarter ending March 31, 2024, was RMB 876,898 thousand, up from RMB 797,194 thousand for the previous quarter, reflecting a growth of approximately 10%[29] - Basic non-GAAP earnings per share for the quarter ending March 31, 2024, was RMB 2.65, compared to RMB 2.35 for the same quarter in 2023, marking an increase of about 12.8%[29] - The diluted non-GAAP earnings per American Depositary Share (ADS) for the quarter ending March 31, 2024, was $1.84, compared to$1.81 for the previous quarter, showing a slight increase of approximately 1.7%[29] Risks and Challenges - Forward-looking statements indicate potential risks, including the online gaming market's growth sustainability and NetEase's ability to maintain its market position[20] - Risks related to government regulation changes and cybersecurity threats may adversely affect NetEase's operations and financial performance[20] - The company encourages a comprehensive review of its financial information rather than relying on any single financial metric[21] Upcoming Events - The company will hold a conference call on May 23, 2024, to discuss quarterly performance and answer questions[17]