NetEase Inc · NASDAQ:NTES
NetEase — Q3 2023 Earnings Presentation
14 slides from NetEase's earnings presentation, Nov 16, 2023
Slide 1: 3Q23 Investor Presentation
NetEase 3Q23 Investor Presentation Investor Relations Nov 16, 2023
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 $74.2 3.2 $3.7 $1.67 billion billion billion Market Cap1 Shares Outstanding, Basic Net Income per ADS Net Revenues (11/15/23) Diluted (3Q23) (GAAP) (3Q23) (3Q23) $1.1 billion $14.3 billion A Net income attributable to the Cash position 2 MSCI ESG Rating 3 Company's shareholder
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% Online Games Related 67.4% 69.0% VAS 3,500 65.0% 90.0% 94% (3Q23) 2,985 80.0% 3,000 2,563 2,577 70.0% 2,500 60.0% ~ 22%: 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 • Our recently launched titles have demonstrated strong performance during the quarter. Ø Justice mobil
Slide 7: Youdao
YOUDAO USD million1 Youdao Net Revenues and Gross Margin • Youdao achieved record-high revenue, driven by Gross Margin Net Revenues growth in its learning services and online 54.2% 55.9% marketing services, and substantially reduced its 47.0% loss from operations as an ongoing effort. 211 Ø The grow
Slide 8: Cloud Music
CLOUD MUSIC USD million1 Cloud Music Net Revenues and Gross Margin • Cloud Music considerably strengthened its music-centric membership monetization and further improved overall profitability. Gross Margin Net Revenues 27.0% 27.2% • Net revenues declined 16% compared to the same period last year, as
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 build its brand awareness by consistently creating highly popular products t
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS USD billion1 Net Revenues Net Income Attributable to Shareholders (GAAP) 13.2 2.8 12.0 2.3 10.1 1.7 1.1 3.7 FY2020 FY2021 FY2022 Q3 2023 FY2020 FY2021 FY2022 Q3 2023 Value Returned to Shareholders Operating Cash Flow US$ FY2020 FY2021 FY2022 Q3 2023 Dividend per 3.8 ADS (declare
Slide 11: ESG Performance
ESG PERFORMANCE MSCI Ratings DJSI (Dow Jones Sustainability Index) Ratings Sustainalytics Ratings
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY 2022 2023 Dec 31, RMB Sep 30, RMB Sep 30, USD in millions (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 24,889 15,116 2,072 Time deposits 84,948 87,174 11,948 Other current assets 21,766 25,275 3,464 Total current assets 131,603 127,565 17,484 Propert
Slide 13: Income Statement Summary
INCOME STATEMENT SUMMARY 3Q22 2Q23 3Q23 3Q23 QoQ YoY in millions except per ADS data & percentage data RMB RMB RMB USD Change Change (Unaudited) (Unaudited) (Unaudited) Total net revenues: 24,427 24,011 27,270 3,738 13.6% 11.6% Games and related value-added services 18,699 18,799 21,780 2,985 15.9%
Slide 14: Thank You
THANK YOU