NTES Earnings Prediction
The chart below shows how NTES performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NTES sees a +1.53% change in stock price 10 days leading up to the earnings, and a +0.38% change 10 days following the report. On the earnings day itself, the stock moves by -3.51%. This data can give you a slight idea of what to expect for the next quarter's release.
NTES Key Earning Data
NTES Earnings Analysis
Positive
Earnings Surprise Achieved: NetEase, Inc. beats earnings expectations with reported EPS of $2.07, exceeding expectations of $1.77.
Net Revenue Increase: Total net revenue reached RMB 105.3 billion for 2024, marking a 2% increase year-over-year.
Record High Game Revenue: Revenue from games and related services was RMB 83.6 billion, also a record high, contributing to the 22nd consecutive year of revenue growth from online games operations.
Successful Game Launch: Marvel Rivals launched successfully, achieving over 40 million players and topping Steam’s charts shortly after release, showcasing strong player engagement.
Game Launch Success: Where Winds Meet, launched in December, garnered 3 million downloads within four days and over 50 million players in two weeks, indicating strong market interest.
Blizzard Games Return Excitement: The return of Blizzard games to China, including World of Warcraft and Hearthstone, has been met with enthusiasm, driving community engagement and record attendance at events.
Record High Revenue Achievement: Identity V achieved record high revenue in 2024, demonstrating the success of its operational strategies and player engagement initiatives.
First Annual Operating Profit: Youdao achieved its first-ever annual operating profit in 2024, with a year-over-year increase in operating profit of over 10% in Q4.
Net Revenue Increase: NetEase Cloud Music saw a slight increase in net revenue for the full year, with improvements in gross profit margin due to membership subscriptions and cost management.
Strong Cash Position: The company maintains a strong cash position with net cash of approximately RMB 131.5 billion, up from RMB 110.9 billion at the end of 2023.
Negative
Revenue Growth Slowdown: NetEase's total net revenue for 2024 was RMB 105.3 billion, representing only a 2% increase year-over-year, indicating a slowdown in growth compared to previous years.
Gaming Revenue Stagnation: The net revenue from games and related services was RMB 83.6 billion, up just 3% from 2023, suggesting that the gaming segment is not experiencing significant growth despite new releases.
Learning Services Revenue Decline: Youdao's Learning Services revenue declined by 9.5% year-over-year in Q4, primarily due to a focus on long-term growth and profitability, which may indicate challenges in the education sector.
Revenue Decline in Q4: NetEase Cloud Music's revenue decreased by 5% year-over-year in Q4, reflecting lower revenue from social entertainment services, which could signal difficulties in maintaining user engagement.
Gross Profit Margin Decline: The gross profit margin for games and related services decreased from 69.5% to 66.7% year-over-year, attributed to a higher proportion of revenue from licensed games, which typically have lower margins.
Gross Profit Margin Decline: The gross profit margin for Youdao also declined from 49.9% to 47.8% year-over-year, indicating challenges in maintaining profitability in its learning services segment.
Innovative Segment Revenue Decline: The innovative business segment saw a revenue decline of 6% year-over-year, suggesting that new initiatives may not be generating expected returns.
Operating Expenses Analysis: Operating expenses for Q4 were RMB 8.5 billion, accounting for 32% of total net revenue, which may raise concerns about cost management as the company continues to invest in R&D and marketing.
NTES FAQs
How does NTES typically perform around its earnings report dates?
NTES's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +1.53% change leading up to the report and a +0.38% change in the 10 days following the release.
Is NetEase Inc (NTES) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NTES Earning Call Sentiment
NetEase, Inc. (NASDAQ:NTES) Q4 2024 Earnings Call Transcript

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