NetEase reports Q4 and full-year 2024 financials

NetEase, Inc. (NASDAQ:NTES), a leading internet technology company based in China with a market capitalization of $68.45 billion, announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, today.

The company, known for its services in prepackaged software and maintaining a robust gross margin of 62.79%, shared its performance data in a recent 6-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, NetEase demonstrates strong financial health with an impressive overall score of 3.5 out of 5.

The report, filed on February 20, 2025, did not disclose specific financial figures but indicated that the company has sustained its growth momentum throughout the fiscal year 2024. NetEase’s continued expansion in the global market, particularly in the gaming sector, is reflected in the results, with a noted increase in both domestic and international user bases.

The company’s financial strength is evident in its healthy current ratio of 3.08 and trailing twelve-month revenue of $15.06 billion. For deeper insights into NetEase’s financial metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and detailed valuation metrics.

William Lei Ding, Chief Executive Officer of NetEase, signed off on the report, ensuring the company’s compliance with SEC regulations. The 6-K form is a requirement for foreign private issuers like NetEase to provide the U.S. Securities and Exchange Commission with an update on significant corporate events.

Investors and analysts often scrutinize these filings to assess a company’s financial health and strategic direction. The data provided in such documents are crucial for understanding the company’s operational outcomes and future prospects.

NetEase’s presence in the competitive prepackaged software industry, alongside other tech giants, is significant as the company continues to innovate and expand its offerings. The company’s performance is closely watched as an indicator of broader market trends in the technology sector.

The information disclosed in the 6-K filing is based on a press release statement from NetEase, Inc., and provides investors with the latest available financial information regarding the company’s performance.

As NetEase operates within the fast-paced technology market, these results are of particular interest to stakeholders looking to gauge the company’s position and adaptability in a dynamic industry landscape.

Investors are encouraged to review the full details of the 6-K filing to gain a comprehensive understanding of NetEase’s financial performance and strategic initiatives over the past fiscal year.

With a P/E ratio of 14.8 and a dividend yield of 2.34%, coupled with a strong Buy consensus from analysts, NetEase presents an interesting investment case. InvestingPro subscribers can access the detailed Pro Research Report, offering comprehensive analysis of NetEase’s market position and growth prospects among 1,400+ top US-listed companies.

In other recent news, NetEase reported its fourth-quarter 2024 earnings, revealing a complex financial picture. The company achieved a non-GAAP net profit of RMB9.7 billion, surpassing Citi’s estimate by 24.1%, primarily due to strong performance in its online gaming segment and lower operating expenses.

However, total net revenues for the quarter were RMB26.7 billion, which was a 1.4% year-over-year decrease and fell short of the consensus forecast of RMB27.2 billion. This shortfall was attributed to weaker revenues in non-gaming segments, including a 9.5% decline in Youdao (NYSE:DAO)’s education revenues and a 5.3% decrease in Cloud Music revenues.

Citi analysts maintained their Buy rating for NetEase, setting a price target of $121, despite the revenue miss. The company’s online gaming revenues grew by 1.5% year-over-year, aligning closely with analyst expectations. For the full fiscal year 2024, NetEase reported a 1.1% increase in revenue to RMB8.0 billion, with online music services revenue growing 23.1%, driven by an increase in paying subscribers.

NetEase’s gross profit for the year increased by 27.5% to RMB2.7 billion, with a gross margin improvement to 33.7%. CEO William Ding highlighted the company’s focus on strengthening its core music business and expanding its content library.

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