NetEase (NASDAQ: NTES) reported Q3 EPS of $5.12, $2.00 better than the analyst estimate of $3.12. Revenue for the quarter came in at $2.05 billion, which does not compare to the consensus estimate of $2.45 billion. With the sale of Kaola, its financial results have been deconsolidated and listed as discontinued operations.

• Net revenues[2] were RMB14,635.7 million (US$2,047.6 million), an increase of 11.2% compared to the third quarter of 2018. - Online game services net revenues were RMB11,534.8 million (US$1,613.8 million), an increase of 11.5% compared to the third quarter of 2018. - Youdao net revenues were RMB345.9 million (US$48.4 million), an increase of 98.4% compared to the third quarter of 2018. - Innovative businesses and others net revenues were RMB2,755.0 million (US$385.4 million), an increase of 4.5% compared to the third quarter of 2018.
• Gross profit was RMB7,870.4 million (US$1,101.1 million), an increase of 8.9% compared to the third quarter of 2018.
• Total operating expenses were RMB4,535.6 million (US$634.6 million), a decrease of 3.3% compared to the third quarter of 2018.
• Net income from continuing operations attributable to the Company's shareholders was RMB12,885.4 million (US$1,802.7 million). Non-GAAP net income from continuing operations attributable to the Company's shareholders was RMB4,726.0 million (US$661.2 million). [3]
• Basic net income per ADS from continuing operations was US$13.97; non-GAAP basic net income per ADS from continuing operations was US$5.12.[3]

"During our eventful third quarter, we realized value for our shareholders across our business lines. On a year-over-year basis, we achieved solid growth in net revenues of 11% and non-GAAP net income from continuing operations of 74%. In recognition of this success, our board of directors has approved a dividend of US$7.59 per ADS for the third quarter," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our main areas of investment are online games, online education, music and private label e-commerce. With the completion of Youdao's IPO, we will continue to invest in knowledge tools, online courses and smart devices to empower even more efficient learning in China.

"Online games remain the cornerstone of our business with steady growth from our existing titles and exciting new titles in China and globally. Our flagship title Fantasy Westward Journey Online reached new record high gross billings this quarter. We also advanced our international brand with more hit titles such as Knives Out, Identity V and Life-After in Japan. Going forward, we will continue to focus on the growth of our robust online games business worldwide, as well as create additional value among our evolving businesses rooted in education, music and e-commerce," Mr. Ding concluded.

For earnings history and earnings-related data on NetEase (NTES) click here.