Cloud Village (NetEase Music) Pre-IPO
Cloud Village Inc. (CVI), also known as NetEase Music, now plans to raise around US$500m in its Hong Kong IPO. The company has also obtained investments from Baidu and Alibaba, along with other investors.
As of Jun 21, it had 184.5m online music MAUs, 26m online music services monthly paying users, 496,000 social entertainment services monthly paying users. It had over 60m music tracks, of which more than 1m were created by registered independent artists. Its daily active users on average spent 76mins daily listening to music.
CVI’s revenue has grown 4.3x over FY18-20, to RMB4.9bn. There have been no signs of slowdown as its revenue increased by 102% in FY19 and was up another 111% in FY20. Both online music services and social entertainment services revenue have shown strong growth. Online music services revenue grew by 73% in 2019 and another 47.6% in 2020. Social entertainment services revenue was the largest driver of growth, as it grew by 344% in 2019 and was up another 320% in 2020. However, it remains a distant second player in the market and has yet to make a profit.
We covered various aspects of the deal in our previous notes, Cloud Village (NetEase Music) Pre-IPO - Was in the slow stream, playing catch-up, Cloud Village (NetEase Music) Pre-IPO - Tencent Music peer comp, regulatory impact, Cloud Village (NetEase Music) Pre-IPO - Initial thoughts on valuation, and Cloud Village (NetEase Music) Pre-IPO - Mixed PHIP update, updated thoughts on valuation.
In this note, we will talk about the updates from the revised PHIP filing.