NetEase Announces First Quarter 2024 Unaudited Financial Results

Financial Performance - Net revenues for Q1 2024 were RMB 26.9 billion (US$ 3.7 billion), a 7.2% increase year-over-year [2][6] - Gross profit for Q1 2024 was RMB 17.0 billion (US$ 2.4 billion), reflecting a 14.2% increase compared to Q1 2023 [2][8] - Net income attributable to shareholders was RMB 7.6 billion (US$ 1.1 billion), up from RMB 6.8 billion in Q1 2023 [2][13] - Non-GAAP net income attributable to shareholders was RMB 8.5 billion (US$ 1.2 billion), compared to RMB 7.6 billion in Q1 2023 [2][14] Segment Performance - Game and related value-added services net revenues were RMB 21.5 billion (US$ 3.0 billion), a 7.0% increase year-over-year [2][6] - Youdao net revenues were RMB 1.4 billion (US$ 192.8 million), a 19.7% increase compared to Q1 2023 [2][7] - Cloud Music net revenues remained stable at RMB 2.0 billion (US$ 281.1 million) [2][7] - Innovative businesses and others generated RMB 2.0 billion (US$ 272.8 million), a 6.1% increase year-over-year [2][7] Operational Highlights - Established game franchises maintained high popularity, with titles like Identity V achieving record-high daily active users during its sixth anniversary [3][4] - Dunk City Dynasty topped iOS download charts in multiple regions shortly after its launch [3][4] - Youdao focused on digital content and AI-driven services, achieving its first sequential quarter of positive net income [3][5] - Cloud Music upgraded its app to enhance user experience and drive long-term growth [3][5] Cost and Expenses - Total operating expenses for Q1 2024 were RMB 9.4 billion (US$ 1.3 billion), a 22.4% increase year-over-year [2][12] - Gross profit margin for games and related services was 69.5%, consistent with the previous quarter and up from 66.7% in Q1 2023 [9][10] Cash Flow and Financial Position - As of March 31, 2024, net cash totaled RMB 113.4 billion (US$ 15.7 billion), an increase from RMB 110.9 billion at the end of 2023 [15] - Net cash provided by operating activities was RMB 9.6 billion (US$ 1.3 billion) for Q1 2024 [15][31] Dividend and Share Repurchase - The board approved a dividend of US$ 0.0990 per share for Q1 2024, payable on June 17, 2024 [16] - As of March 31, 2024, approximately 8.9 million ADSs had been repurchased under a US$ 5.0 billion share repurchase program [18]