NTES - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the NetEase 2024 First Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brandi Piacente, President of Piacente Financial Communications. Please go ahead.

Brandi Piacente

Thank you, operator. from today of forward-looking intended the for safe discussion the relating to the by the performance established future company harbor note will statements contain to qualify the Please U.S. as liability and are Reform Private Securities Litigation Act. guarantees beyond are performance future today's and results cause the risks company's not to factors.Some of to and and actual from in uncertainties, control press assumptions Such this other subject those differ these certain discussion. of statements are and and risks mentioned materially are release could the obligation A could Securities general Stock filings financial included undertake factors including Hong discussion does of of not on the by update report as Exchange certain to company Kong filings and affect Form results XX-F and of announcements risk Exchange.The that annual in any the and in forward-looking NetEase's law. and required its business with Commission, the company information, this except website on the is

will non-GAAP non-GAAP Earnings financial financial issued see today's reconciliation release to measures GAAP also non-GAAP today. During XXXX First of the discuss and of earlier for management financial comparison results, only.For definition certain news call, a a purposes Quarter measures please

investor reminder, available conference is recorded.In a presentation corporate of the being As website replay and NetEase call addition, conference webcast on an a be this this will at ir.netease.com.

of remarks Pang, President team the William Ding, over read behalf Mr. Vice are Chief on call Bill, Development.I today us management turn who and from the will of on Mr. Officer; senior Joining William. to will prepared the Bill NetEase's call Executive now Corporate

Bill Pang

call. you, in thank and participating Brandi, today's you, for Thank everyone,

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Operator

[Operator Instructions] UBS. Liu Your comes question Felix with first from

Felix Liu

from the results. anticipated NARAKA: highly expect Congratulations good game lock? your on then this version. testing? My share And takeaways you key We on when finished this do noticed game question is mobile in testing first your April, the BLADEPOINT quarter to

Bill Pang

will I Okay. translate. help

for from the into Technical [Technical of problem] do actually the And round high group, the operation is summer for as the during some the level the of And launched. to can window of we from until the boosted reflect players the the time missions put ] anticipation problem time this testing process game. game. collect enough regarding actually enthusiasm the and next for also to continuous and far data the for Overall, we [indiscernible]. validated First us the of is the so test And we team game players. [ launching confidence all, feel actually

Operator

Your Zhang Bank from next of question Lei with America. comes

Lei Zhang

the question [indiscernible]? Condor any we launched and look results. game your upgrade should regarding take strong Heroes newly My and and your at on how [indiscernible] Congrats we near-term game

Bill Pang

stage our was The [indiscernible] to of not very X satisfying expectation. big result

doing the doing example, and fun fun the factor, in to we expertise the fun are as all And our can for and speak. the aspects MMORPG play updated it to experience genre, in factor new the team, is we vacation the focusing game person modification charge our with to believe style.We're as the game a couple as pushed as on social of And with doing some actively make during like play. we the modifications Now, time. of making sorts we the core summer the, be time of work, expected well out for

Operator

Your next Sachs. Kong from question Lincoln with comes Goldman

Lincoln Kong

is we way miss. first question My about

version doing set and So final we the have is has seen on testing in to the PC launch July. been

also our where XXXX. related [indiscernible] pipeline, what of should mobile market? question especially plan development the is there?So, how And miss second what sort about So, we the to future game version? stage we for launch co-published And timeline be How that, what's about your outlook think about beyond there? the it and this the thing? may target Will is

after, are are about in preparing? terms next currently or [indiscernible] we this Project the we what updates So, of or there? game? year any type other even year of the titles? market So, market? general for should areas Any color about including from in year expect Anything when think like and the we next overseas And such what high

Bill Pang

Okay.

thank all, of your you question. First for

of and busy for some everything the for be release devices, optimization in launch. version. the and testing is lot mobile the slightly heavy game The Mobile optimization.As can the this a is version time little As that. is a than actually done, run doing development, later imagine, wins And be busy you preparing of made, we team everything time launching ready. we're the PC, needs and announced you PC mobile mobile, know, bit on we're to will have to doing for where already work version done,

overseas will Now the and your do pipeline normal too in next as right. market beyond you event news game via as open-world well, and was we our Thank overseas via we much, game, it and in has is pipeline potential slightly. market promote out we marketing believe and the will an the well.For our This when regarding XXXX, putting like attention. product is your for question, disclose time the

Operator

question next from Ritchie with Sun Your comes HSBC.

Ritchie Sun

you all, a but game franchise and in May, would the are management XXth addition, the after noticed PC, from behind the adjustments mixed there for NetEase, there management discuss also explain mechanisms do more this? paid adjustments is First expect I to of And trading received recently I in-game regarding when [indiscernible] users? infuser could the stabilize? could notice stable game the game In recently, just of rationale the games strong pushback on to twist handle are strategy feedback. having the it performance

Bill Pang

expect in don't do XX play the this beloved with first systems that journey, the front some beloved is players goal been one. for that base. of our brought the for of to this for about players. wish game.Recently, to base.It's more with between demand. much is and will are in always attitude, because game this a years' humble reason be the in by long enjoy the worry putting And communities.So, our game. more classic games the worry has on And we is year.And one financial term, expect make it beloved development company when Yes, credit I'll the adjustment, One from to and is very it our the feedback goal need to to always is gamer for for you done actually finish will be to and this listen of and the know, this one adjust term, things play, time thing team game and of massive one our sure XX focus our of being all the that fluctuation same satisfying the team this don't still everything And half game. focus, seriously more are short-term more long-term, to play MMORPG the operation you during us more users' loved, years. period to than within be goal adjustment.Okay. you the the the in a by adjustment we of too creative to Yes, translation of is our game we by fun short-term long-term making holding user thing is taking version the but totally of that long fun doing the adjustment fun that done, aligned whole logic, reasons that as to And game we making and meantime, fun need stay continuously longevity we the do very are the the have to in open we the play And, development some the the on

adjustment said, for the also goal same served William players in recent long well. system want the the versus short for summer because It's more fun a games. as our as we So, the is term playing to time, have

Operator

question comes Zhang next Your from Xueqing CICC. with

Xueqing Zhang

Yanxuan My games. is shooting first one about

question about do game genre what's shooting studios been such company second to development. this has the the [indiscernible] game focusing with and multiple general in competition the of and you about games? do in as the your start studios overseas is latest the expect We many you Yaxuan share overseas studios. and have others How our when Could launching think on [indiscernible] strategy?My overseas management on noted development us that games the

Bill Pang

this will do I Okay, translation.

genre question achieve your from we overseas busily this products there genre. not there.In question our that's welcoming into to starting for our much how years, we past, is our new genres a many this said, moment, product second to development That's is been product into deploy actively global X in this game studios. the we is are well. year.We you And genre. meantime, you are many X the all, we is well.Hoping First level The one, years, we China of high-quality And out on your can get started developing right, regarding of our well.About we a achieve this have pushing And both to one coming towards level games, longer. out are global starting more you're why certain further we determination as don't comment share about we domestically game market see well. certain start whole shooting In hope speak. globally. genre. as have also achievement why global product a working shooting on plan shooting But, on into of years ago, big domestic about shooting genre-base out our fill conquer overseas focus can this in developed of At market as and a the a market we as titles several meantime, genre, the our that release industry, game regarding was as the in success by very studios, a from products but But gaming broadening very one and we bunch and and actually can with date in takes we strong even genre, actively popular overseas very that the shooting a big hope we also, we that studios. developing can of fact as years, market

As Master we in has and has level in and Racing V has Identity success Knives enough seen We that can a successful you overseas Greater determination been Japan. China certain successful in that attitude feel hope out have achieved to resources, region market. achieve you Japan. have been of

Operator

from Your Jefferies. Thomas Chong question with next comes

Thomas Chong

that should coming Can think how the we expenses. pipeline is about about we question a trend My operating given for up? particular have comment weak SMM, about in OpEx management the

Bill Pang

more a sophisticated, and marketing more very that is and field. acquisition see operations, big already we're going won't our actually cost in actually we're in You our experienced getting customer down very increase experience marketing and Actually, now. sales expenses, in

increase you So, expenses sales see the and in won't future. in marketing short, big in

Operator

Jialong with Shi Your comes from next question Nomura.

Jialong Shi

So my There nowadays consumption question of is about charters in about NetEase's a in downgrade China. so-called game. gamer the lot spending are

change What pattern if for trend of a is any So, gamers. management macro [indiscernible] just in-game again, the wondering context, spending the such in the your noticed MMO titles?

Bill Pang

have To in gamer spend via expanding our enjoy some value answer your providing like game emotional question, we more haven't observed the to some in game, we're any money our value. downgrade because fun, is consumers to certain Players meaningful they provide. here. It we We acknowledge data for physical And users is shopping other relaxed different haven't consumers, or there. product. the from for downgrade time we day-to-day very any again, seen consumer the value still emotional believe, model the

Operator

Poon Stanley. next comes Morgan question Your Alex with from

Chun Poon

My XXXX the year, in our question to future? returns. billion about is we paid roughly we USD should related pace How X.X XXXX. in Last in think capital

Bill Pang

carrying and To based on our dividends, for actually repurchase activity answer question, the out your we're the pace. own

that own paying with own our past. probably in You the used noticed as rhythm dividends going been have rhythm, we're and repurchase we're past quarter, in to and doing we the our doing with continue that to doing out

Operator

comes with question JPMorgan. Your next from Chen Daniel

Qi Chen

First strong is recently really got Party first quarter much of gaming a congrats all, game. on And for on question we revenue. It's real a game. new a new Eggy my license

we information, any Also, update Party this long-term Eggy any So, on game? share to outlook the for think the how should whole strategic about ecosystem?

Bill Pang

Thank you your for question.

have about it, adorable question players took is Party casual forward work [indiscernible] IP can everyone more feel soon. game Eggy and ecosystem, game we're the experience us fun it and creative Party to And looking do and we as enjoying to and going that very with more Eggy much Eggy genre. that. some the this party roll the out things that on a your to when and IP, based relaxed very and yes, building wish a IP.We regarding feel time And engaging Party with do, having lovely, we IP truly right lot develop of and You're to we're

Operator

conference any or question-and-answer would turn comments. to to session. like that back And closing Brandi over Piacente the concludes the I for additional

Brandi Piacente

again once joining Thank for you us today.

feel Have or contact Financial please us company. If to Piacente at a day. great Communications free you the have further questions,

NetEase (NTES) 23 May 242024 Q1 Earnings call transcript