Youdao(US:DAO) Cai Fu Zai Xian·2025-11-20 09:25Core Insights - NetEase Youdao (NYSE: DAO) reported its Q3 2025 unaudited financial results, showing a continuous profit for five consecutive quarters driven by its "AI-native" strategy and focused business structure [1] - The company achieved a net revenue of 1.63 billion yuan, a year-on-year increase of 3.6%, with operating profit reaching 28.3 million yuan and operating cash flow out narrowing by 31.4% [1] - Youdao's CEO expressed confidence in meeting the financial goals set at the beginning of the year, aiming for rapid improvement in operating profit and achieving annual cash flow breakeven [1] Financial Performance - In Q3 2025, Youdao's learning services net revenue reached 640 million yuan, while AI subscription service sales hit nearly 100 million yuan, marking a historical high with over 40% year-on-year growth [1][2] - The online marketing services revenue reached 740 million yuan, a significant year-on-year increase of 51.1%, becoming the largest revenue source for the first time [3] Strategic Adjustments - Youdao made strategic adjustments in its learning services segment, focusing on high-demand and high-growth potential areas, with sales from Youdao Ling Shi growing over 40% in Q3 [2] - The company launched the new generation Youdao AI Q&A pen, Space X, which supports real-time Q&A across nine subjects for junior and senior high school students [2] AI and Technology Development - Youdao's AI capabilities were reinforced, with the "Zi Yue" large model receiving the highest level 5 certification from the China Academy of Information and Communications Technology [4] - The company introduced the "Zi Yue 3.0" model for real-time translation supporting 38 languages, showcasing significant advancements in AI technology [4] Future Outlook - Youdao plans to continue deepening its AI-native strategy, focusing on the application and innovation of the "Zi Yue" large model in learning and advertising scenarios [5]