NetEase Inc · NASDAQ:NTES
NetEase — Q4 2023 Earnings Presentation
14 slides from NetEase's earnings presentation, Feb 29, 2024
Slide 1: 4Q23 Investor Presentation
NetEase 4Q23 Investor Presentation Investor Relations Feb 29, 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 $72.4 3.3 $3.8 $1.44 billion billion billion Market Cap1 Shares Outstanding, Basic Net Income per ADS Net Revenues (02/28/24) Diluted (4Q23) (GAAP) (4Q23) (4Q23) $0.9 billion $15.6 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 69.0% 69.5% VAS 3,500 59.1% 90.0% 93% (4Q23) 3,068 2,947 80.0% 3,000 2,688 70.0% 2,500 60.0% ~ 23%: 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 • Leading franchises, such as Fantasy Westward Journey and Westward Journey Online, maintained enduring
Slide 7: Youdao
YOUDAO USD million1 Youdao Net Revenues and Gross Margin • Youdao continued to propel technological Gross Margin Net Revenues innovation and product development, further 53.3% 55.9% 49.9% improving profitability and cash flow 217 209 • Learning services consistently raised the quality of 205 its uni
Slide 8: Cloud Music
CLOUD MUSIC USD million1 Cloud Music Net Revenues and Gross Margin • Cloud Music continued to navigate quality development across music-centric ecosystem Gross Margin Net Revenues 27.2% 30.3% • Further extended robust monetization momentum 17.8% in the core online music business, as a result of an i
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) 4.1 14.6 13.6 12.3 2.9 2.4 3.8 0.9 FY2021 FY2022 FY2023 Q4 2023 FY2021 FY2022 FY2023 Q4 2023 Value Returned to Shareholders Operating Cash Flow US$ FY2021 FY2022 FY2023 Q4 2023 Dividend per ADS (declared) $
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 Dec 31, RMB Dec 31, USD in millions (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 24,889 21,429 3,018 Time deposits 84,948 100,856 14,205 Other current assets 21,766 20,408 2,875 Total current assets 131,603 142,693 20,098 Proper
Slide 13: Income Statement Summary
INCOME STATEMENT SUMMARY 4Q22 3Q23 4Q23 4Q23 QoQ YoY in millions except per ADS data & percentage data RMB RMB RMB USD Change Change (Unaudited) (Unaudited) (Unaudited) Total net revenues: 25,354 27,270 27,140 3,823 -0.5% 7.0% Games and related value-added services 19,086 21,780 20,921 2,947 -3.9% 9
Slide 14: Thank You
THANK YOU