NetEase Inc (NASDAQ:NTES) stock fell 2.54% (As on November 16, 11:24:44 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 23 has reported a rise in sales that outpaced expenses. The Beijing-based company said that net profit in the third quarter rose 17% on year to 7.84 billion yuan (US$1.08 billion). Revenue rose nearly 12% on year to CNY27.27 billion, the bulk of which came from games and value-added services, while cost of revenues fell 3.5% on year. Operating profit rose almost 60% on year. The company also said Chief Financial Officer Charles Zhaoxuan Yang would resign for personal reasons. The executive plans to act in a consulting role with NetEase through June as the company seeks a successor. As of September 30, 2023, the Company’s total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans, totaled RMB104.4 billion (US$14.3 billion), compared with RMB95.6 billion as of December 31, 2022.

Moreover, Games and related value-added services net revenues were RMB21.8 billion (US$3.0 billion), an increase of 16.5% compared with the third quarter of 2022. Youdao net revenues were RMB1.5 billion (US$210.9 million), an increase of 9.7% compared with the third quarter of 2022. Cloud Music net revenues were RMB2.0 billion (US$270.4 million), a decrease of 16.3% compared with the third quarter of 2022. Innovative businesses and others net revenues were RMB2.0 billion (US$271.2 million), a slight increase compared with the third quarter of 2022. Gross profit was RMB17.0 billion (US$2.3 billion), an increase of 23.4% compared with the third quarter of 2022. Total operating expenses were RMB9.4 billion (US$1.3 billion), an increase of 4.5% compared with the third quarter of 2022.

Additionally, Justice mobile game gained robust revenue and user growth, accumulating over 50 million registered players. Dunk City Dynasty, NetEase Game’s first self-developed basketball game, topped China’s iOS top-grossing chart at the end of October. Time-honored flagship titles, including the Fantasy Westward Journey series, continued to invigorate players, and newer hit games, including Eggy Party, Identity V and Naraka: Bladepoint, maintained ongoing popularity. Hotly anticipated new games spanning diverse genres reached ongoing Company development milestones with multiple high-profile titles slated for launch in 2024. Cloud Music considerably strengthened its music-centric membership monetization and further improved profitability. Cloud Music continued to cultivate its music community and introduce premium offerings, including expansive content and innovative features. Youdao achieved record-high revenue, driven by growth in its learning services and online marketing services, and substantially reduced its loss from operations as an ongoing effort.