NetEase Inc., a major Chinese game publisher, reported a 33% year-over-year increase in net profit for the fourth quarter of 2024, reaching approximately $1.2 billion, surpassing analyst estimates of about $1.05 billion. However, the company's revenue for the same period declined by 1.4%, totaling ¥26.7 billion, which fell short of the estimated ¥27.178 billion. This performance indicates a turnaround in NetEase's gaming business, despite the revenue slip. The company's gross profit was ¥16.3 billion, down 3.3% from the previous year, and below the estimated ¥16.605 billion. NetEase's stock experienced a pre-market drop of 2.9% following the announcement of these results. The company's gaming segment, which includes games and related value-added services, saw a 1.5% increase in revenue to ¥21.2 billion, while other segments like Youdao, Cloud Music, and Innovative Business and Others showed varying gross margin changes year-over-year. Amidst these financial updates, NetEase has been addressing concerns about potentially divesting its overseas game properties, which it has denied, stating a commitment to its global expansion plans. The success of new titles like Marvel Rivals, which has surpassed 40 million players, has been highlighted as setting new industry benchmarks, although this comes in the context of recent layoffs within the company's development teams.