Core Insights - Youdao has reported strong financial results for Q3 2025, driven by its "AI-Native" strategy, maintaining profitability for five consecutive quarters and strengthening its financial position [1][7]. Financial Performance - In Q3 2025, Youdao's net revenue reached RMB 1.6 billion (approximately US$200 million) [5]. - Advertising revenue hit a record high of RMB 0.74 billion (approximately US$101 million), marking a year-over-year growth of 51.1% and becoming the largest revenue segment for the first time [2][5]. - Operating profit for Q3 was RMB 28.3 million (approximately US$3.93 million), with a nearly 150% year-over-year increase in operating profit for the first three quarters [5][7]. - Operating cash outflow narrowed by 31.7% year-over-year, indicating improvements in operational efficiency [5]. Advertising and Global Expansion - Youdao's overseas advertising business saw revenue growth exceeding 100% year-over-year, supported by AI capabilities that enhance global expansion efforts [3]. - The Youdao Ads platform has evolved to provide integrated solutions for influencer marketing, utilizing AI for influencer matching, content creation, and data analytics [4][3]. Technological Innovations - Youdao introduced AI-driven enhancements for influencer marketing, including automated analysis of customer requirements and real-time sentiment analysis for campaign performance monitoring [4]. - The company launched the Youdao iMagicBox, which integrates image-to-video conversion and digital human presenters, creating a closed-loop production-placement system to optimize advertising efficiency [6].