AI tech highlights NetEase's Q2 earnings, with multiple games a big hit

On August 24, NetEase released its Q2 2023 financial results. Net revenues of $24 billion, non-GAAP net income from continuing operations attributable to the Company's shareholders of $9 billion, and R&D investment of $3.9 billion.

In the second quarter, NetEase achieved significant results in games and related value-added services, with revenue reaching 18.8 billion yuan. In a conference call, NetEase CFO Yang Zhaoxuan said, "We have prioritized our R&D resources and focus on self-developed games, which have much higher profit margins compared to licensed releases. we released several self-developed games in June, and they all performed very well, so we can look forward to a steady increase in profit margins in the second half of the year."

In addition, NetEase Cloud Music made significant progress in strengthening its music-focused product experience and commercialization capabilities. Its single-quarter revenue reached 19 billion yuan and gross margin doubled year-on-year to 27.0%; the platform's monthly active users grew steadily, increasing by 14% year-on-year in the first half of the year to over 200 million.

NetEase's revenue reached 12 billion yuan in the second quarter, up 26% year-on-year. NetEase's innovation and other businesses realized 21 billion yuan in net revenue in the second quarter, and the gross margin of the innovation business reached 29.5% in the second quarter, a double-digit increase compared to the previous quarter. (Sources: NetEase, Sina Finance)