NetEase (9999) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 reached RMB 28.8 billion (US$4.0 billion), up 7.4% year-over-year, driven by strong performance in gaming and value-added services.

• Net income attributable to shareholders was RMB 10.3 billion (US$1.4 billion), with non-GAAP net income at RMB 11.2 billion (US$1.5 billion), up 32–35% year-over-year.

• Major new game launches, including Marvel Rivals, FragPunk, Once Human, and Where Winds Meet, achieved global engagement and revenue milestones.

• Robust global expansion, diversified game portfolio, and technology-driven innovation underpin continued growth.

• Quarterly dividend of US$0.1350 per share (US$0.6750 per ADS) declared for Q1 2025.

Financial highlights

• Gross profit for Q1 was RMB 18.5 billion (US$2.5 billion), up 8.6–9% year-over-year, with a gross margin of 64.1%.

• Total operating expenses decreased 14.4% year-over-year to RMB 8.0 billion (US$1.1 billion).

• Net cash position as of March 31, 2025, was RMB 137.0 billion (US$18.9 billion).

• Net cash provided by operating activities was RMB 12.1 billion (US$1.7 billion), up from RMB 9.6 billion a year ago.

• Non-GAAP basic earnings per ADS was US$2.44 (US$0.49 per share).

Outlook and guidance

• Continued investment in content creation, product development, and global expansion, with a robust pipeline of new titles and updates planned.

• Ongoing focus on esports, with Identity V and Naraka: Bladepoint selected for the 2026 Asian Games and plans for further international esports operations.

• AI-driven innovation and technology expected to accelerate content production and enhance user experience.

• Management emphasized long-term operations and deepening user engagement globally.