The Chinese game company delivered better-than-expected earnings for the third quarter, which sent the share price higher last month.
NetEase released three new titles, including Cyber Hunter, Xuan Yuan Sword: Dragon Upon the Cloud, and Bloom & Blade. The company also launched Activision Blizzard's (NASDAQ:ATVI) World of Warcraft (WoW) Classic in China, which contributed to growth in subscribers. Overall, revenue grew 11% year over year to $2.05 billion for the quarter.
Adjusted earnings per share came in well above analysts' estimates at $5.12. Non-GAAP income from continuing operations surged 74% year over year.
NetEase also made a $700 million investment in NetEase Cloud Music by Alibaba and Yunfeng and successfully completed the IPO of its online education business, Youdao.
During the conference call to discuss the quarter, CFO Charles Zhaoxuan Yang said, "We are very confident in the future prospect of the sectors we choose to be in, and we have developed and will continue to strengthen our distinct product offerings in each of these markets."
The company doesn't provide guidance, but with the addition of WoW Classic, management is optimistic about the growth prospects of the PC game portfolio heading into 2020. Analysts currently expect NetEase to grow revenue and adjusted earnings by 2.2% and 5.9%, respectively, next year.