NASDAQ$NTES

NetEase Inc.-ADR · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

NetEase Cloud Music Inc. reported an increase in revenue and profitability for Q4 2024, with strong growth in online music services and improved cost efficiency.

NetEase Cloud Music Inc. delivered strong financial results for Q4 2024, with revenue growing to RMB 7.95 billion, driven by online music services. Gross profit increased significantly due to cost control measures, leading to a higher gross margin. Net profit more than doubled year-over-year, and adjusted net profit showed strong growth. However, social entertainment revenue declined due to a strategic focus on core music services.

  • Total revenue increased by 1.1% to RMB 7.95 billion.
  • Gross profit rose by 27.5% to RMB 2.68 billion.
  • Net profit surged by 113.2% to RMB 1.57 billion.
  • Revenue from social entertainment services declined as the company focused on its core music business.

Headline financials

Total Revenue

$3.72B

Previous: $3.82B-2.7%
EPS (adj)

$2.07

Previous: $1.60+29.4%
Gross Profit Margin

60.8%

No prior period
Capital Expenditures

-$70.2M

Previous: -$4.13B+98.3%
Net Income

$8.77B

Previous: $6.58B+33.2%
Operating Income

$7.82B

Previous: $6.87B+13.9%
Gross Profit

$16.3B

Previous: $16.8B-3.3%

Revenue & EPS history

NetEase · Revenue · Quarterly

$3.72B

Q4 2024-2.7%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

NetEase · $30.5B total across 4 segments · Q1 2026

  • Games and related VAS
    $25.7B
  • NetEase Cloud Music
    $2B
  • Innovative businesses and others
    $1.5B
  • Youdao
    $1.3B

Forward guidance

NetEase Cloud Music plans to enhance its content library, optimize operational efficiency, and drive subscription-based revenue growth in the upcoming year.

Tailwinds

  • Expansion of the content library with partnerships in key music genres.
  • Enhanced user engagement through personalized recommendations.
  • Growth in subscription-based memberships and retention rates.
  • Continued cost optimization to improve profitability.
  • Strategic collaborations with external partners for monetization opportunities.

Headwinds

  • Decline in social entertainment revenue due to a shift in focus.
  • Potential dilution in monthly ARPPU affecting revenue growth.
  • Increasing competition in the music streaming industry.
  • Regulatory challenges in China’s digital content market.
  • Macroeconomic uncertainties impacting consumer spending.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+16.7%

Q4 2016

Best reaction

-17.2%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.4%+5.5%+3.9%
Q4 2025-4.1%-2.4%-4.9%
Q3 2025+0.5%+4.9%+3.0%
Q1 2025+14.6%+13.0%+20.8%
Q4 2024-2.6%-4.4%-6.8%
Q3 2024+12.1%+12.3%+25.1%
Q1 2024-8.0%-7.3%-8.8%
Q4 2023-3.9%-5.6%-7.8%
Q3 2023+1.8%+1.2%-10.6%
Q2 2023-3.8%+2.2%-0.8%
Q1 2023+7.2%+1.8%+11.5%
Q4 2022-8.6%-9.8%+3.9%
Q3 2022-5.5%-8.2%-0.0%
Q2 2022-7.5%-4.4%-9.7%
Q1 2022+0.5%+7.2%-6.4%
Q4 2021+8.9%+2.1%+2.3%
Q3 2021+1.2%+3.9%-11.1%
Q2 2021+8.1%+3.8%-4.7%
Q1 2021+5.1%+11.9%+5.7%
Q4 2020-6.5%-6.3%-11.5%
Q3 2020+9.4%+14.1%+10.9%
Q2 2020-2.8%+1.1%-4.0%
Q1 2020+2.2%-2.5%+7.2%
Q4 2019-4.7%-8.2%-10.8%
Q3 2019+2.0%+5.6%+5.8%
Q2 2019+11.9%+10.6%+31.1%
Q1 2019+6.4%-1.8%+1.4%
Q4 2018-4.7%-2.4%+1.2%
Q3 2018+8.0%+8.9%+15.8%
Q2 2018-13.9%-17.5%-26.1%
Q1 2018-7.6%-12.3%-4.3%
Q4 2017-7.7%-6.0%-0.4%
Q3 2017+9.3%+15.2%+19.2%
Q2 2017-8.1%-9.8%-11.7%
Q1 2017+1.8%+4.5%+11.7%
Q4 2016+16.7%+16.1%+13.8%
Q3 2016-8.2%-12.5%-10.2%
Q2 2016-2.6%-0.3%+11.6%
Q1 2016+1.7%
Q4 2015-13.4%
Q3 2015+4.2%
Q2 2015-5.4%
Q1 2015+10.3%
Q4 2014+2.9%
Q3 2014+4.4%
Q2 2014+3.3%
Q1 2014-0.6%
Q4 2013+1.0%
Q3 2013-1.1%
Q2 2013+3.7%
Q1 2013-2.9%
Q4 2012+6.7%
Q3 2012-17.2%
Q2 2012+2.0%
Q4 2011+0.6%
Q1 2012-5.7%
Q3 2011-13.2%
Q4 2010+0.7%
Q4 2009+0.7%
Q4 2008+0.7%
Q2 2011+0.7%
Q1 2011+7.6%
Q3 2010-5.0%
Q2 2010+3.1%
Q1 2010-3.1%

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