网易(09999) - 2024 Q3 - 季度业绩

Financial Performance - NetEase's net revenue for Q3 2024 was RMB 26.2 billion (USD 3.7 billion), a decrease of 3.9% year-over-year[4] - Revenue from games and related value-added services was RMB 20.9 billion (USD 3.0 billion), down 4.2% year-over-year[4] - Youdao's revenue increased to RMB 1.6 billion (USD 224.1 million), up 2.2% year-over-year[4] - NetEase Cloud Music's revenue remained stable at RMB 2.0 billion (USD 284.9 million) compared to the previous quarter[4] - Gross profit for Q3 2024 was RMB 16.5 billion (USD 2.3 billion), a decrease of 2.9% year-over-year[4] - The net profit attributable to shareholders for Q3 2024 was RMB 6.5 billion (USD 931.7 million), compared to RMB 6.8 billion in the previous quarter and RMB 7.8 billion year-over-year[13] - The basic earnings per share for Q3 2024 was USD 0.29, down from USD 0.30 in the previous quarter and USD 0.35 year-over-year[13] - Net profit attributable to shareholders under non-GAAP measures is defined as net profit excluding stock-based compensation expenses, providing a clearer view of operational performance[23] - Net income attributable to shareholders under non-GAAP was RMB 8,645,164, representing a 3.4% decrease from RMB 8,918,000 in the same period last year[33] - The total gross profit margin for the company was 62.2%, compared to 63.2% in the previous quarter[31] Operating Expenses - The total operating expenses for Q3 2024 amounted to RMB 9.3 billion (USD 1.3 billion), an increase from RMB 9.0 billion in the previous quarter and a decrease from RMB 9.4 billion year-over-year[12] - The total operating costs increased to RMB 10,304,106, up from RMB 9,443,587 in the previous quarter[31] - Research and development expenses for Q3 2024 totaled RMB 4,347,052 thousand, slightly down from RMB 4,455,717 thousand in Q2 2024[27] - Research and development expenses amounted to RMB 294,630, reflecting a 10.5% increase from RMB 266,000 in the previous quarter[32] Cash Flow and Assets - As of September 30, 2024, the company's net cash balance was RMB 120 billion (USD 17.1 billion), an increase from RMB 110.9 billion at the end of 2023[15] - Net cash inflow from operating activities for Q3 2024 was RMB 10.6 billion (USD 1.5 billion), compared to RMB 6.5 billion in the previous quarter and RMB 9.8 billion year-over-year[15] - Cash and cash equivalents decreased to RMB 20.18 billion from RMB 21.43 billion, reflecting a decline of approximately 5.9%[26] - The company reported a net cash outflow from investing activities of RMB 515,908 for the three months ended September 30, 2023, compared to RMB 6,318,756 for the same period last year, indicating a significant reduction in investment expenditures[30] - Cash and cash equivalents at the end of the period were RMB 18,158,066, down from RMB 27,588,325 at the beginning of the period, representing a decrease of approximately 34.4%[30] Market and Product Developments - The mobile game "Naraka: Bladepoint" has seen a stable increase in popularity since its launch in July, reaching the fourth position on the iOS bestseller list[6] - "World of Warcraft" and "Hearthstone" have returned to the Chinese market, with daily active users increasing by over 50% and 150% respectively compared to pre-suspension levels[5] - New games such as "Destiny: Rising" and "Marvel's Secret Wars" are set to launch in December, expanding the game product matrix[6] - The company plans to continue expanding its market presence and invest in new technologies and products to drive future growth[31] Shareholder Returns - The company approved a quarterly dividend of USD 0.0870 per share, with payment expected on December 10, 2024[16] - As of September 30, 2024, the company had repurchased approximately 18.2 million American Depositary Shares for a total of about USD 1.6 billion under its buyback plan[18] Risks and Strategic Focus - The company faces various risks, including market growth stagnation and regulatory changes that could adversely affect operations[22] - The company has a commitment to developing innovative online services to keep pace with market trends and demands[22] - The company emphasizes the importance of non-GAAP financial metrics for investors to assess current operational performance and outlook[24] Tax and Liabilities - The effective tax rate for Q3 2024 was 16.1%, slightly up from 16.0% in the previous quarter and 14.2% year-over-year[13] - Total liabilities decreased to RMB 49.17 billion from RMB 57.84 billion, representing a reduction of about 15%[26] - The company experienced a net cash outflow from financing activities of RMB 2,423,355 for the three months ended September 30, 2023, compared to RMB 4,608,462 for the same period last year, indicating a reduction in financing costs[30]