Youdao(US:DAO)2025-05-15 10:14Financial Performance - Total net revenues for Q1 2025 were RMB1.3 billion (US$178.9 million), a 6.7% decrease from RMB1.4 billion in Q1 2024[4] - Net revenues from learning services were RMB602.4 million (US$83.0 million), a 16.1% decrease from RMB718.0 million in Q1 2024[7] - Net revenues from smart devices increased by 5.1% to RMB190.5 million (US$26.3 million) from RMB181.2 million in Q1 2024[8] - Total net revenues for the three months ended March 31, 2025, were RMB 1,298,262 (USD 178,905), a decrease of 6.1% from RMB 1,391,859 in the same period last year[35] - Learning services revenue was RMB 602,414 (USD 83,015), down 16.1% year-over-year[35] Profitability - Income from operations reached RMB104.0 million (US$14.3 million), a 247.7% increase from RMB29.9 million in Q1 2024[17] - Net income attributable to ordinary shareholders was RMB76.7 million (US$10.6 million), over sixfold increase from RMB12.4 million in Q1 2024[18] - Basic and diluted net income per ADS was RMB0.65 (US$0.09) and RMB0.64 (US$0.09), compared to RMB0.11 and RMB0.10 for Q1 2024[19] - Net income attributable to ordinary shareholders for the three months ended March 31, 2025, was RMB 76,743 (USD 10,575), a decrease of 7.7% year-over-year[39] - Non-GAAP net income attributable to ordinary shareholders was RMB 81,676 (USD 11,255) for the same period[39] Expenses and Margins - Gross margin for Q1 2025 was 47.3%, down from 49.0% in Q1 2024[9] - Gross profit for the three months ended March 31, 2025, was RMB 614,227 (USD 84,642), resulting in a gross margin of 47.3%[35][38] - Total operating expenses decreased to RMB510.2 million (US$70.3 million) from RMB651.6 million in Q1 2024[13] - Operating expenses decreased to RMB 510,186 (USD 70,305), down from RMB 651,579 in the previous year[35] Cash and Assets - As of March 31, 2025, Youdao's cash and short-term investments totaled RMB424.5 million (US$58.5 million), down from RMB662.6 million at the end of 2024[20] - Cash and cash equivalents as of March 31, 2025, were RMB 335,892 (USD 46,287), down from RMB 592,721 as of December 31, 2024[34] - The company’s total assets as of March 31, 2025, were RMB 1,539,208 (USD 212,109), a decrease from RMB 1,814,395 as of December 31, 2024[34] Liabilities - Total current liabilities decreased to RMB 2,575,930 (USD 354,973) from RMB 2,946,952 in the previous quarter[34] Strategic Initiatives - The company plans to accelerate the deployment of its large language model, Confucius, to enhance user experience and profitability[5]