Financial Data and Key Metrics Changes - Net revenues for Q3 2024 reached RMB1.57 billion, marking a 2.2% increase year-over-year [9][24] - Income from operations reached RMB107.3 million compared to a loss of RMB57.7 million in the same period last year, representing the first profitable third quarter [9][30] - Operating cash outflow narrowed to RMB85.4 million, an improvement of 71% compared to the same period last year [9] Business Line Data and Key Metrics Changes - Learning services net revenues were RMB767.9 million, down 19.2% year-over-year, due to a focus on high-demand services and reduced low ROI customer acquisition [10][25] - Digital content services within learning services generated RMB513.7 million, covering costs and yielding profit [11] - AI-driven subscription services in learning services grew to nearly RMB70 million, representing over 150% year-over-year growth [13] - Online marketing services net revenues reached RMB489.4 million, representing a 45.6% increase year-over-year, driven by expansion into new sectors and AI optimization [15][27] - Smart devices segment net revenues reached RMB315.3 million, up 25.2% year-over-year, with improved gross margin at 42.8% [17][28] Market Data and Key Metrics Changes - Overseas advertising accounted for approximately 20% of ad revenue in Q3, with KOL ad revenue up over 50% year-over-year [16] - The online marketing services sector saw significant growth in gaming and related industries, driving ad revenue to historical highs [51] Company Strategy and Development Direction - The company aims to integrate generative AI technology across its businesses to enhance competitiveness and achieve full-year operational profitability [20][22] - Focus on delivering high-quality services and learning outcomes at scale in the online learning sector [12][58] - Plans to explore new domestic and international opportunities in online marketing services [22][60] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the medium to long-term growth potential of online learning services, emphasizing the importance of customer satisfaction and retention [35][40] - The smart devices segment is expected to continue its growth trajectory, supported by successful product launches and enhanced team capabilities [44][46] - The advertising business is anticipated to maintain solid profitability despite facing short-term challenges [54] Other Important Information - The company has made significant strides towards achieving full-year operational profitability, with cumulative income from operations reaching RMB64.6 million [21] - The company plans to launch new products in the fourth quarter, including enhancements to existing offerings [19][47] Q&A Session Summary Question: Strategy on increasing investments in the learning service sector - Management emphasized a focus on strong demand services and scaling back low ROI customer acquisition efforts, ensuring sustainable development for long-term success [34][35] Question: Sustainability of growth in the smart devices sector - Management highlighted positive outcomes from strategic focus and channel reorganization, with expectations for continued growth in the fourth quarter [41][44] Question: Future growth potential of online marketing services - Management identified significant growth potential in domestic and international advertising, particularly in online entertainment and AI tools [50][51][53] Question: Outlook for the fourth quarter - Management expressed confidence in achieving profitability for the year, with continued focus on digital content services, online marketing, and AI-driven subscription services [55][56][58]

Financial Highlights - Total net revenues for Q3 2024 were RMB1.6 billion (US$224.1 million), a 2.2% increase from RMB1.5 billion in Q3 2023 [1][2] - Net revenues from learning services decreased by 19.2% year-over-year to RMB767.9 million (US$109.4 million) [1][2] - Net revenues from smart devices increased by 25.2% year-over-year to RMB315.3 million (US$44.9 million) [1][2] - Net revenues from online marketing services increased by 45.6% year-over-year to RMB489.4 million (US$69.7 million) [1][2] - Gross margin for Q3 2024 was 50.2%, down from 55.9% in Q3 2023 [1][3] Profitability and Operations - Income from operations for Q3 2024 was RMB107.3 million (US$15.3 million), compared to a loss of RMB57.7 million in Q3 2023 [5] - Net income attributable to ordinary shareholders for Q3 2024 was RMB86.3 million (US$12.3 million), compared to a net loss of RMB102.9 million in Q3 2023 [5] - Non-GAAP net income attributable to ordinary shareholders for Q3 2024 was RMB88.7 million (US$12.6 million), compared to a non-GAAP net loss of RMB67.3 million in Q3 2023 [5][8] Operating Expenses - Total operating expenses for Q3 2024 were RMB682.2 million (US$97.2 million), down from RMB917.3 million in Q3 2023 [4] - Sales and marketing expenses decreased by 22.9% year-over-year to RMB519.6 million (US$74.0 million) [4] - Research and development expenses decreased by 36.2% year-over-year to RMB119.6 million (US$17.0 million) [4] Cash and Financial Support - As of September 30, 2024, total cash and cash equivalents were RMB489.4 million (US$69.7 million), down from RMB527.1 million at the end of 2023 [6] - NetEase Group has agreed to provide financial support for ongoing operations, including RMB878.0 million in short-term loans and US$128.4 million in long-term loans [6] Share Repurchase Program - The company has repurchased approximately 7.5 million ADSs for around US$33.8 million under its share repurchase program [7]

Core Points - Youdao, Inc. will hold its annual general meeting of shareholders on December 12, 2024, from 3:00 p.m. to 5:00 p.m. Beijing Time, at its offices in Beijing [1] - No proposals will be submitted for shareholder approval at the AGM; it will serve as an open forum for discussions between shareholders and management [1] - The record date for determining shareholders entitled to attend the AGM is set for December 2, 2024 [2] Company Overview - Youdao, Inc. is an intelligent learning company in China, focusing on developing technologies for learning content, applications, and solutions for users of all ages [5] - The company offers a range of products including online knowledge tools, smart devices, STEAM courses, and education digitalization solutions [5] - Youdao was founded in 2006 as part of NetEase, Inc., a leading internet technology company in China [5]

Company Overview - Youdao, Inc. is an intelligent learning company in China, recognized for its industry-leading technology [4] - The company offers a range of products including online knowledge tools, smart devices, STEAM courses, and digital education solutions [4] - Youdao was founded in 2006 as part of NetEase, Inc., a prominent internet technology company in China [4] Upcoming Financial Results - Youdao will report its third quarter 2024 financial results on November 14, 2024, before the U.S. market opens [1] - A teleconference call will be held at 5:00 a.m. Eastern Time on the same day, with management discussing the quarterly results and answering questions [2] Conference Call Details - Dial-in details for the earnings conference call include toll-free numbers for Mainland China and Hong Kong, as well as an international number [2] - A replay of the conference call will be available one hour after the live call, accessible until November 21, 2024 [3]

On October 3, NetEase Youdao (DAO, Financial) experienced a significant increase of 30.79%, reaching $5.65 per share with a trading volume of $3.47 million.Financial data reveals that as of June 30, 2024, NetEase Youdao's total revenue was RMB 2.714 billion, marking a 14.5% year-over-year growth. The company's net loss attributable to shareholders was RMB 87.043 million, showing an improvement of 82.71% year-over-year.Important Note: NetEase Youdao is scheduled to disclose its 2024 fiscal third-quarter repo ...

交银国际研究 财务模型更新 盈利预测变动 有道 (DAO US) 聚焦高中、AI 订阅及广告，硬件 3 季度将恢复收入增长 2024 年 2 季度业绩符合预期。学习服务聚焦高中及 AI 订阅，素质教育收入短 期收缩，硬件收入将在3季度恢复增长，中高端词典笔销售将带动硬件利润率 环比改善。预计业务健康度提升，下半年运营层面实现盈利。基于高中业务 以稳健增长为主，我们将 2024 年高中增速从 25-30%下调至 20-25%，基于 15 倍高中业务市盈率不变，目标价从 5.0 美元下调至 4.5 美元，维持买入。 2 季度收入同比增 9.5%至 13 亿元（人民币，下同），其中学习服务/硬件/ 广告分别-5.5%/-25%/+68%。调整后净亏损 9600 万元，对比我们/彭博市场 预期亏损 9900 万元/1.2 亿元。 业绩要点：1）数字内容服务收入同比增 6.8%，有道领世续报率达 70%+ 创新高，同比提升 10 个百分点。2）广告收入连续 7 个季度同比增速超 50%，受 RTA 和 AI 工具拉动，以及加强与网易合作。3）智能硬件收入和 毛利率同比下降，因中低端价位产品销售占比上升，预计 2 季度将 ...

maybefalse My Buy investment rating for Youdao, Inc.'s (NYSE:DAO) shares stays unchanged. DAO's Q2 2024 bottom line beat and results briefing commentary indicate that the company is coming closer to reaching an operating profitability inflection point. DAO's first quarter results and its AI-related revenues were the focus of the prior May 27, 2024 update. I review Youdao's latest second quarter bottom line performance with this latest write-up. Narrower Than Expected Losses Were The Key Highlight Of DAO ...

Youdao, Inc. (NYSE:DAO) Q2 2024 Earnings Conference Call August 22, 2024 6:00 AM ET Company Participants Jeffrey Wang - Investor Relations Director Feng Zhou - Chief Executive Officer Peng Su - Vice President, Strategy and Capital Markets Lei Jin - President Wayne Li - Vice President, Finance Conference Call Participants Brian Gong - Citi Thomas Chong - Jefferies Howard Ton - Macquarie Bo Zhang - Huatai Securities Crystal Li - China Merchant Securities Operator Good day and welcome to the Youdao 2024 Second ...

Exhibit 99.1 For investor and media inquiries, please contact: In China: Jeffrey Wang Youdao, Inc. Tel: +86-10-8255-8163 ext. 89980 E-mail: IR@rd.netease.com Piacente Financial Communications Helen Wu Tel: +86-10-6508-0677 E-mail: youdao@thepiacentegroup.com In the United States: Piacente Financial Communications Brandi Piacente Tel: +1-212-481-2050 E-mail: youdao@thepiacentegroup.com Youdao Reports Second Quarter 2024 Unaudited Financial Results Hangzhou, China – August 22, 2024 – Youdao, Inc. ("Youdao" or ...

HANGZHOU, China, Aug. 22, 2024 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an intelligent learning company with industry-leading technology in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.Second Quarter 2024 Financial HighlightsTotal net revenues were RMB1.3 billion (US$181.9 million), representing a 9.5% increase from the same period in 2023.- Net revenues from learning services were RMB643.8 million (US$88.6 million), represent ...