NetEase Cloud Music Inc. Reports Fiscal Year 2024 Financial Results

Core Viewpoint - NetEase Cloud Music Inc. reported a modest revenue growth of 1.1% for fiscal year 2024, driven by a significant increase in online music services and subscription memberships, while also focusing on enhancing user engagement and community building [1][7][11]. Financial Performance - Revenue for 2024 reached RMB 7,950.1 million, up from RMB 7,867.0 million in 2023, marking a 1.1% increase [2][7]. - Gross profit increased by 27.5% to RMB 2,681.5 million from RMB 2,102.7 million in 2023, with gross margin improving to 33.7% from 26.7% [2][11]. - Net profit surged by 113.2% to RMB 1,565.4 million compared to RMB 734.2 million in 2023, while adjusted net profit reached RMB 1,700.1 million, more than doubling from RMB 818.5 million in 2023 [2][11]. Business Overview - The company focused on strengthening its core music business and enhancing user engagement through expanded content offerings, personalized recommendations, and innovative features [5][10]. - Monthly active users (MAUs) increased, with a DAU/MAU ratio maintained above 30%, indicating strong user engagement [6][8]. Revenue Breakdown - Revenue from online music services grew by 23.1% to RMB 5,400.1 million, driven by increased subscription memberships, which rose to RMB 4,500.0 million from RMB 3,600.0 million in 2023 [7][10]. - Revenue from social entertainment services declined to RMB 2,600.0 million from RMB 3,500.0 million in 2023, reflecting a strategic shift towards the core music business [7][11]. Community and Content Development - The company expanded its music content library, focusing on popular genres among younger audiences and enhancing partnerships with major music labels [9][12]. - The platform celebrated the 10th anniversary of its independent musician platform, supporting over 773,500 registered independent artists [16][18]. Future Initiatives - The company plans to enhance its content ecosystem, strengthen partnerships with copyright holders, and improve user engagement through innovative features and community-building initiatives [12][14]. - Continued focus on optimizing profitability through disciplined operations and cost management is a key strategic priority [14][11].