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 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted from $5.00 to $4.50, indicating a potential upside of 34.3% from the current price of $3.35 [1][4][10]. Core Insights - The company is focusing on high school education and AI subscription services, with hardware revenue expected to recover in Q3 2024. The growth rate for high school business has been revised down from 25-30% to 20-25% for 2024 [1]. - The second quarter of 2024 saw a revenue increase of 9.5% year-on-year to 1.3 billion RMB, with learning services, hardware, and advertising revenues showing varied performance [1]. - The company reported an adjusted net loss of 96 million RMB in Q2 2024, which was better than market expectations [1]. Financial Performance Summary - Revenue projections for 2024 have been slightly adjusted, with an expected overall revenue growth of 12%. Learning services and hardware revenues are projected to decline by 3% and 9% respectively, while advertising revenue is expected to grow by 62% [1][11]. - The company achieved a gross profit margin of 48.3% in 2024, with a slight improvement from previous estimates [3][11]. - The adjusted net profit margin is projected to be -0.4% for 2024, indicating ongoing challenges but potential for recovery in subsequent years [3][11]. Revenue Breakdown - Learning services revenue is expected to be 3.05 billion RMB in 2024, down from previous estimates [3]. - Hardware revenue is projected to recover to 832 million RMB in 2024, with a growth rate of 11% [3]. - Advertising revenue is forecasted to reach 2.16 billion RMB, reflecting a growth rate of 7.7% [3]. Market Position - The company has a market capitalization of approximately $104.62 million, with a 52-week high of $4.65 and a low of $3.05 [4][10]. - The company has maintained a strong retention rate of over 70% for its digital content services, indicating robust customer loyalty [1].

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 ...

HANGZHOU, China, Aug. 5, 2024 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an intelligent learning company with industry-leading technology in China, today announced that it will report its second quarter 2024 financial results on Thursday, August 22, 2024, before the open of the U.S. markets.The earnings teleconference call with simultaneous webcast will take place at 6:00 a.m. Eastern Time on Thursday, August 22, 2024 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, August 22, 2024). ...