NetEase (9999) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of CNY 105.3 billion (US$14.4 billion) for 2024, with games and related value-added services reaching CNY 83.6 billion (US$11.5 billion), marking 22 consecutive years of growth in online games.

• Q4 2024 net income attributable to shareholders was RMB8.8 billion (US$1.2 billion), up 33% year-over-year, with non-GAAP net income at RMB9.7 billion (US$1.3 billion); full-year net income was RMB29.7 billion (US$4.1 billion).

• Launched several successful new titles, including Marvel Rivals and Where Winds Meet, both achieving strong player engagement and global recognition; Marvel Rivals surpassed 40 million users.

• Blizzard games' return to China, including World of Warcraft, Hearthstone, and Overwatch 2, drove significant community enthusiasm and record engagement.

• Legacy franchises like Fantasy Westward Journey and Identity V achieved record high annual revenues, demonstrating enduring popularity.

Financial highlights

• Total net revenue for 2024 was CNY 105.3 billion (US$14.4 billion), up 2% year-over-year; Q4 revenue was CNY 26.7 billion (US$3.7 billion), down 1.4% year-over-year.

• Net revenue from games and related VAS was CNY 83.6 billion (US$11.5 billion), up 3% year-over-year; online games revenue was CNY 80.4 billion, up 6%.

• Q4 gross profit margin was 60.8%; games and related VAS Q4 gross margin was 66.7%.

• Non-GAAP net income attributable to shareholders for Q4 was RMB9.7 billion (US$1.3 billion), up 31% year-over-year; full-year non-GAAP net income was RMB33.5 billion (US$4.6 billion), up 3%.

• Net cash position as of December 31, 2024, was RMB131.5 billion (US$18.0 billion).

Outlook and guidance

• Plans to expand Where Winds Meet to console platforms and overseas markets in 2025.

• Global launch of FragPunk set for March 6, with additional key titles in the pipeline for upcoming months.

• Continued investment in Marvel Rivals, including e-sports and cross-media promotions, with a long-term operational focus.

• Management expects continued growth in global gaming, with new titles and international expansion driving momentum.

• Ongoing focus on innovation, quality, and global expansion across all business segments.