NetEase Inc · NASDAQ:NTES
NetEase — Q2 2024 Earnings Presentation
14 slides from NetEase's earnings presentation, Aug 22, 2024
Slide 1: 2Q24 Investor Presentation
NetEase 2Q24 Investor Presentation Investor Relations August 22, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This announcement contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expect
Slide 3: NetEase, Inc.
NetEase, Inc. NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase”) is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest running mobile
Slide 4: Market Snapshot
MARKET SNAPSHOT In USD $59.7 3.2 $3.5 $1.45 billion billion billion Market Cap 1 Shares Outstanding, Basic Net Income per ADS Net Revenues (08/21/24) Diluted (2Q24) (GAAP) (2Q24) (2Q24) $0.9 $16.0 billion billion A Net income attributable to the Net cash 2 MSCI ESG Rating 3 Company's shareholders (G
Slide 5: Games and Related Value-Added Services
GAMES AND RELATED VALUE-ADDED SERVICES USD million1 Games and Related Value-added Services Net Revenues and Gross Margin Gross Margin Online Games Related VAS 4,000 100.0% 67.4% 69.5% 70.0% 3,500 90.0% 2,953 80.0% 3,000 2,760 Online Games Related 2,587 70.0% VAS 2,500 96% (2Q24) 60.0% ~ 24%: PC & co
Slide 6: Online Games
ONLINE GAMES PC & CONSOLE GAMES MOBILE GAMES Flagship Self-Developed PC & Console Titles Self-Developed Mobile Games Mobile Games in Overseas Markets Licensed Mobile Games From Overseas Developers • Launched popular new titles, further enhancing our appeal in diversified genres. Lost Light mobile ga
Slide 7: Youdao
YOUDAO USD million1 Youdao Net Revenues and Gross Margin Gross Margin Net Revenues • Youdao achieved historic-high operating cash flow 47.0% 49.0% 48.2% and significantly narrowed its operating loss. 192 • Digital content services achieved healthy revenue growth, fueled by AI-powered products. 182 •
Slide 8: Cloud Music
CLOUD MUSIC USD million1 Cloud Music Net Revenues and Gross Margin Gross Margin Net Revenues 38.0% 27.0% 32.1% • Cloud Music continued to propel quality development across its music-centric ecosystem. 279 281 • Further nurtured its content ecosystem through 268 cooperation with various music labels,
Slide 9: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS USD million1 Innovative Businesses and Others NetEase Yanxuan Net Revenues and Gross Margin • Leading private-label consumer lifestyle brand in China Gross Margin Net Revenues • Continued to strengthen its brand presence with highly popular products in focused catego
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS USD billion1 Net Revenues Net Income Attributable to Shareholders (GAAP) 4.0 14.2 13.3 12.1 2.8 2.3 3.5 0.9 FY2021 FY2022 FY2023 Q2 2024 FY2021 FY2022 FY2023 Q2 2024 Value Returned to Shareholders Operating Cash Flow US$ FY2021 FY2022 FY2023 Q2 2024 Dividend per $1.17000 $1.3870
Slide 11: ESG Performance
ESG PERFORMANCE MSCI Ratings DJSI (Dow Jones Sustainability Index) Ratings Sustainalytics Ratings A 47 18.1 Last Updated: October 2023 Last Updated: October 2023 Last Updated: April 2023 NetEase is average among 68 NetEase has been selected as a NetEase is rated as a low-risk companies in the Media
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY 2023 2024 Dec 31, RMB Jun 30, RMB Jun 30, USD in millions (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 21,429 18,982 2,612 Time deposits 100,856 93,456 12,860 Other current assets 20,408 25,715 3,539 Total current assets 142,693 138,153 19,011 Proper
Slide 13: Income Statement Summary
INCOME STATEMENT SUMMARY 2Q23 1Q24 2Q24 2Q24 QoQ YoY in millions except per ADS data & percentage data RMB RMB RMB USD Change Change (Unaudited) (Unaudited) Total net revenues: 24,011 26,852 25,486 3,507 -5.1% 6.1% Games and related value-added services 18,799 21,460 20,056 2,760 -6.5% 6.7% Youdao 1
Slide 14: Thank You
THANK YOU