NetEase Cloud Music (9899) Q3 2024 earnings summary

Executive summary

• Net revenues for the third quarter of 2024 reached RMB2.0 billion (US$284.9 million), up 1.3% year-over-year.

• The company maintained steady revenue compared to the previous quarter and expanded its subscriber base.

• Focused on quality development and healthy growth in its music-centric ecosystem.

Financial highlights

• Net revenues were RMB1,999 million for Q3 2024, compared to RMB2,041 million in Q2 2024 and RMB1,973 million in Q3 2023.

• Gross profit for Q3 2024 was RMB655 million, up from RMB537 million in Q3 2023 and RMB655 million in Q2 2024.

• Gross profit margin improved to 32.8% in Q3 2024, from 27.2% in Q3 2023 and 32.1% in Q2 2024.

Outlook and guidance

• Management emphasized ongoing focus on subscriber growth and delivering engaging experiences to sustain momentum.