NetEase Inc (NASDAQ:NTES) stock fell 0.67% (As on August 23, 11:17:06 AM UTC-4, Source: Google Finance) after the company reported second-quarter earnings that beat analyst expectations, but revenue fell short of estimates. Games and related value-added services net revenues were RMB20.1 billion (US$2.8billion),an increase of 6.7% compared with the same quarter of 2023. Youdao net revenues were RMB1.3 billion (US$181.9 million), an increase of 9.5%compared with the same quarter of 2023. Cloud Music net revenues were RMB2.0 billion (US$280.8 million), an increase of 4.7%compared with the same quarter of 2023. Innovative businesses and others net revenues were RMB2.1 billion (US$284.5million), which was relatively stable compared with the same quarter of 2023. Gross profit was RMB16.0 billion (US$2.2 billion), an increase of 11.6%comparedwiththesame quarter of 2023. Non-GAAP net income attributable to the Company’s shareholders was RMB7.8billion (US$1.1 billion).

NTES in the second quarter of FY 24 has reported the adjusted earnings per share of RMB12.15 ($1.67), beating the analysts’ estimates for the adjusted earnings per share of RMB11.97. The company had reported the adjusted revenue growth of 6.1 percent to RMB25.49 billion ($3.51 billion) in the second quarter of FY 24, missing the analysts’ estimates for revenue of RMB26.11 billion.

Moreover, in the second quarter, Lost Light mobile game, a multiplayer tactical shooter game, topped the iOS download charts in China following its June launch.  Once Human, a multiplayer open-world survival game set in a post-apocalypticworld, attained over 230,000 peak concurrent users on Steam soon after its launch, ranking among the top 5 most-played games in the world.  Naraka: Bladepoint mobile game hit the top 3 on iOS grossing charts soon after launchinChina, and topped the iOS download chart for over a week. The company generated continued popularity of hit games, with Naraka: Bladepoint reaching record-high DAUs on its three-year anniversary, and Identity V continuing its strong performance, hitting record-high DAUs in July and August, consecutively.

Furthermore, the company has unveiled plans to bring Where Winds Meet and Marvel Rivals to consoles at PlayStationStateof Play. Marvel Rivals also announced during Gamescom its release date for December 6th. The company has announced FragPunk, a 5v5 first-person hero shooter game, at the Xbox Games Showcase2024, highlighting its innovative shooting experience with unique card mechanics. Eggy Party joined Nintendo Direct with upcoming plans for a worldwide release on Switch. The company brought World of Warcraft back to China with players enthusiastically welcoming the unfolding return of Blizzard’s game portfolio.