NTES(US:NTES)2025-05-15 12:51Financial Performance - Net revenues for Q1 2025 were RMB28.8 billion (US$4.0 billion), a 7.4% increase year-over-year[4] - Net revenues from games and related services were RMB24.0 billion (US$3.3 billion), reflecting a 12.1% increase compared to Q1 2024[4] - Youdao's net revenues decreased by 6.7% year-over-year to RMB1.3 billion (US$178.9 million)[4] - NetEase Cloud Music reported net revenues of RMB1.9 billion (US$256.1 million), down 8.4% from the same quarter last year[4] - NetEase reported net revenues of RMB 28,828,545 (approximately USD 3,972,680) for the three months ended March 31, 2025, representing an increase from RMB 26,747,811 in the previous quarter[43] - Total net revenues for the same period reached RMB 28,828,545 (USD 3,972,680), up 7.7% from RMB 26,747,811 in the previous quarter[46] Profitability - Gross profit for Q1 2025 was RMB18.5 billion (US$2.5 billion), an increase of 8.6% year-over-year[4] - The gross profit for the same period was RMB 18,479,406, up from RMB 16,272,341 in the previous quarter, indicating a gross margin improvement[43] - Net income attributable to shareholders was RMB10.3 billion (US$1.4 billion), up from RMB7.6 billion in Q1 2024[19] - Net income attributable to the Company's shareholders for the three months ended March 31, 2025, was RMB 10,301,157 (approximately USD 1,419,537), compared to RMB 8,766,479 in the previous quarter, reflecting a growth of 17.5%[43] - Non-GAAP net income attributable to shareholders was RMB11.2 billion (US$1.5 billion), a 31.6% increase year-over-year[22] - NetEase reported a net income of RMB 10,546,771 (USD 1,453,384) for the three months ended March 31, 2025, representing a 18.3% increase from RMB 8,918,953 in the previous quarter[45] - Non-GAAP net income attributable to the company's shareholders for the quarter was RMB 11,236,727 (USD 1,548,462), up from RMB 9,681,968 in the previous quarter[50] Expenses and Costs - Total operating expenses decreased by 14.4% year-over-year to RMB8.0 billion (US$1.1 billion)[4] - Research and development expenses for the three months ended March 31, 2025, were RMB 4,386,313, showing a slight decrease from RMB 4,469,868 in the previous quarter[43] - The total cost of revenues for the three months ended March 31, 2025, was RMB 10,349,139 (USD 1,426,149), a decrease from RMB 10,475,470 in the previous quarter[46] - The share-based compensation cost for the three months ended March 31, 2025, was RMB 951,872 (USD 131,170), showing a slight increase from RMB 931,444 in the previous quarter[49] Cash and Assets - As of March 31, 2025, the company's net cash totaled RMB137.0 billion (US$18.9 billion), an increase from RMB131.5 billion at the end of 2024[23] - The total current assets increased to RMB 157,670,710 as of March 31, 2025, from RMB 153,324,656 as of December 31, 2024[42] - Cash and cash equivalents decreased to RMB 41,748,614 as of March 31, 2025, from RMB 51,383,310 as of December 31, 2024[42] - Net cash provided by operating activities was RMB 12,106,652 (USD 1,668,341) for the three months ended March 31, 2025, down from RMB 13,012,200 in the previous quarter[45] - The company reported a total cash, cash equivalents, and restricted cash balance of RMB 45,395,483 (USD 6,255,665) at the end of the period[45] - NetEase's total assets reached RMB 200,858,132 as of March 31, 2025, up from RMB 195,991,550 as of December 31, 2024[42] - Total liabilities decreased slightly to RMB 52,988,888 as of March 31, 2025, from RMB 53,497,412 as of December 31, 2024[42] Business Development - The company maintained a strong game pipeline with multiple new titles under development, including MARVEL Mystic Mayhem and Destiny: Rising[7] - The company emphasized the importance of non-GAAP financial measures in assessing its operating performance, excluding share-based compensation expenses[38] - The company experienced a significant decrease in cash used in investing activities, totaling RMB (12,841,002) (USD (1,769,538)) for the quarter, compared to RMB 20,628,527 in the previous quarter[45] - The gross profit for the games and related value-added services segment was RMB 16,552,745 (USD 2,281,029), reflecting a 16.8% increase compared to RMB 14,166,848 in the previous quarter[46]