Core Insights - Youdao, Inc. reported a 3.6% increase in net revenues for Q3 2025, totaling RMB1,628.5 million (US$228.8 million) compared to RMB1,572.5 million in Q3 2024 [5][8] - The company emphasized its AI-Native Strategy, which has led to significant growth in online marketing services and AI-driven subscription services [3][4] Financial Performance - Net revenues from online marketing services surged by 51.1% year-over-year to RMB739.7 million (US$103.9 million), driven by demand from the NetEase group and international markets [9][8] - Learning services revenues decreased by 16.2% to RMB643.1 million (US$90.3 million), attributed to a strategic focus on higher ROI customer engagements [6][8] - Revenues from smart devices fell by 22.1% to RMB245.8 million (US$34.5 million), primarily due to reduced demand for smart learning devices [7][8] Profitability Metrics - Gross profit for Q3 2025 was RMB687.9 million (US$96.6 million), reflecting a 12.9% decrease from RMB789.5 million in Q3 2024, with a gross margin of 42.2% compared to 50.2% in the previous year [10][8] - Income from operations dropped significantly by 73.7% to RMB28.3 million (US$4.0 million), resulting in an operating margin of 1.7% [16][8] - Net income attributable to ordinary shareholders was nearly zero, down from RMB86.3 million in Q3 2024, with non-GAAP net income at RMB9.2 million (US$1.3 million) [17][18] Operating Expenses - Total operating expenses decreased to RMB659.6 million (US$92.7 million) from RMB682.2 million in the same period last year [13][8] - Sales and marketing expenses fell by 6.1% to RMB487.7 million (US$68.5 million), while research and development expenses increased by 6.9% to RMB127.8 million (US$18.0 million) [14][13] Cash Flow and Financial Position - As of September 30, 2025, Youdao's cash and short-term investments totaled RMB557.7 million (US$78.3 million), down from RMB662.6 million at the end of 2024 [19][8] - The company reported net cash used in operating activities of RMB58.6 million (US$8.2 million) for the quarter [19][8] Future Outlook - Youdao plans to continue executing its AI-Native Strategy, focusing on the application of its large language model, Confucius, to enhance customer value [4][3] - The company remains confident in achieving its full-year targets, including operating cash-flow breakeven for the first time [4][3]

Core Points - Youdao, Inc. will hold its annual general meeting of shareholders on December 16, 2025, 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 discussion between shareholders and management [1] - The record date for determining shareholders entitled to attend the AGM is set for December 1, 2025 [2] - Holders of Class A and Class B ordinary shares, as well as beneficial owners of American Depositary Shares (ADSs), are entitled to attend the AGM [3] - Shareholders can access the annual report on the company's investor relations website and request a hard copy of the audited consolidated financial statements [4] - Youdao, Inc. specializes in AI-powered solutions for learning and advertising, offering services such as learning services, online marketing, and smart devices [5]

Core Viewpoint - Youdao, Inc. will report its third quarter 2025 financial results on November 20, 2025, before the U.S. market opens [1]. Group 1: Financial Reporting - The earnings teleconference call will occur at 5:00 a.m. Eastern Time on November 20, 2025, with management discussing quarterly results and answering questions [2]. - Dial-in details for the earnings conference call include toll-free numbers for the United States, Mainland China, and Hong Kong, along with an international number [2]. - A live and archived webcast of the conference call will be available on the Company's investor relations website [2]. Group 2: Company Overview - Youdao, Inc. is an AI-powered solutions provider specializing in artificial intelligence applications for learning and advertising [4]. - The company primarily offers learning services, online marketing services, and smart devices, all powered by advanced technologies [4]. - Youdao was founded in 2006 as part of NetEase, Inc., a leading internet technology company in China [4].