After the market on November 16th, NetEase released its financial report for the third quarter of 2023. In the third quarter, NetEase achieved a net income of 27.3 billion yuan; Under non GAAP, the net profit attributable to the company's shareholders from continuing operations is 8.6 billion yuan; The single quarter R&D investment is 4.3 billion yuan, and the R&D investment in the first three quarters of this year has exceeded 12 billion yuan. During the quarter, NetEase AI self-developed large models completed batch applications in core business and physical scenarios, while using technology to support the Smart Asian Games and increase the protection of minors, innovating and unleashing the social value of technology.
At the core business level, NetEase Games actively promotes innovation in its business model and gameplay. Multiple new products such as the "Cold Against the Current" mobile game have exceeded market expectations, winning the championship in segmented tracks, and driving the net revenue of the gaming sector to 21.8 billion yuan. NetEase Cloud Music's net income in the third quarter was 2 billion yuan, and it continued to strengthen the monetization ability of its membership business centered on music content, further increasing its gross profit margin to 27.2%. Thanks to AI technology landing products such as the Confucius Education Model, NetEase Youdao has rapidly developed multiple businesses, with a single quarter net income of 1.5 billion yuan reaching a new high and a gross profit margin of 55.9%, reaching a new high in the past two years. NetEase's innovation and other businesses had a net income of 2 billion yuan in the third quarter.
It is worth mentioning that NetEase Games achieved multi-point flowering in the third quarter. Among them, the mobile game "Cold Against the Current" broke the traditional MMO model limitations of high average fees and low user base. As the first MMORPG mobile game in the industry to rely solely on content gameplay, it set a new record of exceeding 50 million users in 45 days of public beta testing. In July, 'Eternal Disaster' transformed its core business model and opened it for free to all users, further expanding into the international market. After turning into a free game, the global number of players in 'Eternal Disaster' has continuously increased to over 40 million. It has collected awards from four major international gaming platforms, including Steam, Xbox, Epic, and PS5, and achieved a 'Grand Slam' for domestic games.