NetEase (NASDAQ:NTES) reported its quarterly earnings results late on Wednesday, bringing in a profit that was stronger than what analysts called for, while the company’s revenue surged more than 25% year-over-year and topped expectations, lifting NTES stock after hours.

The China-based business had a strong first quarter due in large part to positive performances from its gaming and e-commerce segments, lifting revenue to $2.74 billion, a 29.5% increase compared to the year-ago quarter. Analysts were calling for the business to bring in sales of $2.71 billion.

NetEase added that its earnings, when adjusted for special items, came in at $3.48 per ADS. The Wall Street consensus estimate projected the company would amass earnings of $1.86 per ADS.

The company’s Online game services branch was its largest unit and it saw a sales increase of 35%, while the e-commerce segment saw sales gain roughly 28% year-over-year. “Online game services revenues continued to grow steadily with the support of a diversified portfolio and impressive performances from all of our leading titles,” NetEase CEO William Ding said.

The company’s operating expenses declined roughly 1.3% when compared to the year-ago quarter to $697.5 million, due in part to decreased marketing expenditures connected to online game services and e-commerce, as well as lower costs related to shipping and handling.

NTES stock is up about 2.3% after the bell on Wednesday following the company’s strong quarterly earnings showing. Shares had been down roughly 0.1% during regular trading hours for NetEase as the business geared up to report for its period.