Youdao(US:DAO)2025-08-14 10:07Financial Performance - Total net revenues for Q2 2025 were RMB1.4 billion (US$197.9 million), a 7.2% increase from RMB1.3 billion in Q2 2024[5] - Total net revenues for the second quarter of 2025 reached RMB 1,417,541 thousand, representing a 7.5% increase from RMB 1,321,721 thousand in the same period of 2024[33] - Net revenues from learning services were RMB657.8 million (US$91.8 million), a 2.2% increase from RMB643.8 million in Q2 2024[6] - Learning services generated RMB 657,838 thousand in revenues for the second quarter of 2025, a 2.2% increase from RMB 643,762 thousand in the same quarter of 2024[36] - Net revenues from online marketing services were RMB632.9 million (US$88.3 million), a 23.8% increase from RMB511.2 million in Q2 2024[8] - Online marketing services revenues increased to RMB 632,882 thousand in the second quarter of 2025, up 23.7% from RMB 511,237 thousand in the same quarter of 2024[36] - Net revenues from smart devices were RMB126.8 million (US$17.7 million), a 23.9% decrease from RMB166.7 million in Q2 2024[7] Profitability - Gross margin for Q2 2025 was 43.0%, down from 48.2% in Q2 2024[9] - Gross profit for the second quarter of 2025 was RMB 609,360 thousand, with a gross margin of 43.0%, down from 48.2% in the same quarter of 2024[36] - Income from operations was RMB28.8 million (US$4.0 million), compared to a loss of RMB72.6 million in Q2 2024[15] - Non-GAAP net income attributable to ordinary shareholders was RMB12.5 million (US$1.7 million), compared to a non-GAAP net loss of RMB96.0 million in Q2 2024[17] - Non-GAAP net income attributable to ordinary shareholders for the second quarter of 2025 was RMB 12,515 thousand, compared to a non-GAAP net loss of RMB 95,966 thousand in the same quarter of 2024[37] - The net loss attributable to ordinary shareholders for the second quarter of 2025 was RMB 17,763 thousand, compared to a net loss of RMB 99,475 thousand in the same quarter of 2024[37] - Net loss attributable to ordinary shareholders was RMB17.8 million (US$2.5 million), improved from RMB99.5 million in Q2 2024[17] Assets and Liabilities - Cash and short-term investments totaled RMB617.0 million (US$86.1 million) as of June 30, 2025, down from RMB662.6 million at the end of 2024[19] - The company reported a total current asset value of RMB 1,573,283 thousand as of June 30, 2025, compared to RMB 1,486,768 thousand as of December 31, 2024[32] - The company’s cash and cash equivalents stood at RMB 536,228 thousand as of June 30, 2025, down from RMB 592,721 thousand as of December 31, 2024[32] - Contract liabilities were RMB856.7 million (US$119.6 million) as of June 30, 2025, compared to RMB961.0 million at the end of 2024[20] - Total liabilities decreased slightly to RMB 3,851,363 thousand as of June 30, 2025, from RMB 3,903,707 thousand as of December 31, 2024[32] Research and Development - Research and development expenses for the second quarter of 2025 were RMB 128,321 thousand, a decrease from RMB 152,987 thousand in the same quarter of 2024[33]