Youdao Reports First Quarter 2024 Unaudited Financial Results
First Quarter 2024 Financial Highlights
-
Total net revenues were
RMB1.4 billion (US$192.8 million ), representing a 19.7% increase from the same period in 2023.
- Net revenues from learning services wereRMB718.0 million (US$99.4 million ), representing a 2.0% decrease from the same period in 2023.
- Net revenues from smart devices wereRMB181.2 million (US$25.1 million ), representing a 14.8% decrease from the same period in 2023.
- Net revenues from online marketing services wereRMB492.7 million (US$68.2 million ), representing a 125.9% increase from the same period in 2023. - Gross margin was 49.0%, compared with 51.7% for the same period in 2023.
"We achieved first-ever profitable first quarter and first-ever consecutive two-quarters of profitability. In the first quarter, Youdao Lingshi was upgraded with a tiered teaching approach tailored to individual needs and capabilities. The strong momentum of Real-Time API and the rapid growth of domestic KOLs (Key Opinion Leaders) advertising drove our online market services to a record high net revenue of
"Looking ahead, our strategy will focus on digital content services, online marketing services and AI-driven subscription services. We will continue to leverage our AI capabilities and understanding of education to expand the applications of our proprietary large language model, Ziyue, in education, advertising and other areas. We will accelerate the implementation of our products and applications, striving to better assist users in improving learning and work efficiency. With our business focus, I am confident that we will reach full-year profitability in the near future,"
[1] Total sales of AI-driven subscription services for a specific period refers to the total amount of consideration for our AI-driven subscription services, net of the total amount of refunds in such period. |
First Quarter 2024 Financial Results
Net Revenues
Net revenues for the first quarter of 2024 were
Net revenues from learning services were
Net revenues from smart devices were
Net revenues from online marketing services were
Gross Profit and Gross Margin
Gross profit for the first quarter of 2024 was
Gross margin for learning services was 63.1% for the first quarter of 2024, compared with 62.0% for the same period of 2023.
Gross margin for smart devices decreased to 32.6% for the first quarter of 2024 from 39.6% for the same period of 2023. The decrease was due to the promotion on earlier generations of smart devices, which had lower gross margin.
Gross margin for online marketing services was 34.3% for the first quarter of 2024, compared with 29.1% for the same period of 2023. The increase was mainly attributable to improved gross margin profile of performance-based advertisements through third parties' internet properties compared with the same period of last year.
Operating Expenses
Total operating expenses for the first quarter of 2024 were
Sales and marketing expenses for the first quarter of 2024 were
Research and development expenses for the first quarter of 2024 were
General and administrative expenses for the first quarter of 2024 were
Income/(Loss) from Operations
As a result of the foregoing, income from operations for the first quarter of 2024 was
Net Income/(Loss) Attributable to
Net income attributable to
Basic and diluted net income per American depositary share ("ADS") attributable to ordinary shareholders for the first quarter of 2024 were
Other Information
As of
As of
Share Repurchase Program
On
Conference Call
Dial-in details for the earnings conference call are as follows:
|
+1-888-346-8982 |
International: |
+1-412-902-4272 |
Mainland |
400-120-1203 |
|
800-905-945 |
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+852-3018-4992 |
Conference ID: |
5374784 |
A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.youdao.com.
A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until
United States: |
+1-877-344-7529 |
International: |
+1-412-317-0088 |
Replay Access Code: |
5374784 |
About Youdao, Inc.
For more information, please visit: http://ir.youdao.com.
Non-GAAP Measures
Non-GAAP financial measures are not defined under
For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release.
The accompanying table has more details on the reconciliation between our GAAP financial measures that are mostly directly comparable to non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
Tel: +86-10-6508-0677
E-mail: youdao@thepiacentegroup.com
In
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(RMB and USD in thousands) |
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As of |
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As of |
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As of |
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2023 |
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2024 |
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2024 |
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RMB |
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RMB |
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USD (1) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
|
454,536 |
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262,917 |
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36,414 |
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Time deposits |
|
277 |
|
282 |
|
39 |
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Restricted cash |
|
395 |
|
595 |
|
82 |
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Short-term investments |
|
71,848 |
|
62,213 |
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8,616 |
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Accounts receivable, net |
|
354,006 |
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365,281 |
|
50,591 |
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Inventories |
|
217,067 |
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189,525 |
|
26,249 |
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Amounts due from |
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26,117 |
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47,365 |
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6,560 |
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Prepayment and other current assets |
|
175,705 |
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195,618 |
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27,093 |
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Total current assets |
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1,299,951 |
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1,123,796 |
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155,644 |
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Non-current assets: |
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Property, equipment and software, net |
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70,906 |
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63,426 |
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8,784 |
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Operating lease right-of-use assets, net |
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89,022 |
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91,871 |
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12,724 |
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Long-term investments |
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51,396 |
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49,435 |
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6,847 |
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|
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109,944 |
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109,944 |
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15,227 |
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Other assets, net |
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44,976 |
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55,433 |
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7,677 |
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Total non-current assets |
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366,244 |
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370,109 |
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51,259 |
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Total assets |
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1,666,195 |
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1,493,905 |
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206,903 |
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Liabilities, Mezzanine Equity and Shareholders' Deficit |
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Current liabilities: |
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Accounts payables |
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159,005 |
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119,706 |
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16,579 |
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Payroll payable |
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282,679 |
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158,493 |
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21,951 |
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Amounts due to |
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82,430 |
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73,037 |
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10,116 |
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Contract liabilities |
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1,052,622 |
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769,138 |
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106,524 |
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Taxes payable |
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52,781 |
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54,890 |
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7,602 |
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Accrued liabilities and other payables |
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591,770 |
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641,085 |
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88,789 |
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Short-term loans from |
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878,000 |
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878,000 |
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121,602 |
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Total current liabilities |
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3,099,287 |
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2,694,349 |
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373,163 |
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Non-current liabilities: |
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Long-term lease liabilities |
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49,337 |
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47,689 |
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6,605 |
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Long-term loans from |
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630,360 |
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881,120 |
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122,034 |
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Other non-current liabilities |
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16,314 |
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17,373 |
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2,406 |
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Total non-current liabilities |
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696,011 |
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946,182 |
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131,045 |
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Total liabilities |
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3,795,298 |
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3,640,531 |
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504,208 |
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Mezzanine equity |
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37,961 |
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39,079 |
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5,412 |
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Shareholders' deficit: |
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(2,186,736) |
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(2,206,312) |
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(305,571) |
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Noncontrolling interests |
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19,672 |
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20,607 |
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2,854 |
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Total shareholders' deficit |
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(2,167,064) |
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(2,185,705) |
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(302,717) |
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Total liabilities, mezzanine equity and shareholders' deficit |
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1,666,195 |
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1,493,905 |
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206,903 |
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Note 1: |
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The conversion of Renminbi (RMB) into |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(RMB and USD in thousands, except share and per ADS data) |
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Three Months Ended |
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2023 |
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2023 |
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2024 |
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2024 |
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RMB |
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RMB |
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RMB |
|
USD (1) |
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Net revenues: |
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Learning services |
|
732,421 |
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784,012 |
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717,996 |
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99,441 |
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Smart devices |
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212,749 |
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222,407 |
|
181,198 |
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25,096 |
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Online marketing services |
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218,100 |
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474,102 |
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492,665 |
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68,233 |
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Total net revenues |
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1,163,270 |
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1,480,521 |
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1,391,859 |
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192,770 |
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|
|
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|
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Cost of revenues (2) |
|
(561,420) |
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(741,720) |
|
(710,356) |
|
(98,383) |
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Gross profit |
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601,850 |
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738,801 |
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681,503 |
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94,387 |
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Operating expenses: |
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Sales and marketing expenses (2) |
|
(565,205) |
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(441,399) |
|
(455,440) |
|
(63,078) |
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Research and development expenses (2) |
|
(182,830) |
|
(168,130) |
|
(146,723) |
|
(20,321) |
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General and administrative expenses (2) |
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(49,606) |
|
(52,989) |
|
(49,416) |
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(6,844) |
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Total operating expenses |
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(797,641) |
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(662,518) |
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(651,579) |
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(90,243) |
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(Loss)/Income from operations |
|
(195,791) |
|
76,283 |
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29,924 |
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4,144 |
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Interest income |
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2,294 |
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1,733 |
|
975 |
|
135 |
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Interest expense |
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(15,763) |
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(18,869) |
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(20,334) |
|
(2,816) |
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Others, net |
|
6,378 |
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(2,589) |
|
2,892 |
|
401 |
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(Loss)/Income before tax |
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(202,882) |
|
56,558 |
|
13,457 |
|
1,864 |
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|
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Income tax (expenses)/benefits |
|
(3,201) |
|
(441) |
|
1,028 |
|
142 |
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Net (loss)/income |
|
(206,083) |
|
56,117 |
|
14,485 |
|
2,006 |
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Net loss/(income) attributable to noncontrolling interests |
|
1,730 |
|
365 |
|
(2,053) |
|
(284) |
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Net (loss)/income attributable to ordinary shareholders of the Company |
|
(204,353) |
|
56,482 |
|
12,432 |
|
1,722 |
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Basic net (loss)/income per ADS |
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(1.67) |
|
0.47 |
|
0.11 |
|
0.02 |
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Diluted net (loss)/income per ADS |
|
(1.67) |
|
0.47 |
|
0.10 |
|
0.01 |
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Shares used in computing basic net (loss)/income per ADS |
|
122,268,844 |
|
119,764,891 |
|
118,317,220 |
|
118,317,220 |
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Shares used in computing diluted net (loss)/income per ADS |
|
122,268,844 |
|
120,426,624 |
|
118,928,848 |
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118,928,848 |
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Note 1: |
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The conversion of Renminbi (RMB) into |
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Note 2: |
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Share-based compensation in each category: |
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Cost of revenues |
|
1,259 |
|
(2,975) |
|
778 |
|
108 |
|
Sales and marketing expenses |
|
1,131 |
|
865 |
|
1,136 |
|
158 |
|
Research and development expenses |
|
4,785 |
|
(312) |
|
3,503 |
|
485 |
|
General and administrative expenses |
|
3,321 |
|
5,224 |
|
2,479 |
|
343 |
|
|
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UNAUDITED ADDITIONAL INFORMATION |
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(RMB and USD in thousands) |
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Three Months Ended |
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|
2023 |
|
2023 |
|
2024 |
|
2024 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
|
|
|
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|
Net revenues |
|
|
|
|
|
|
|
|
|
Learning services |
|
732,421 |
|
784,012 |
|
717,996 |
|
99,441 |
|
Smart devices |
|
212,749 |
|
222,407 |
|
181,198 |
|
25,096 |
|
Online marketing services |
|
218,100 |
|
474,102 |
|
492,665 |
|
68,233 |
|
Total net revenues |
|
1,163,270 |
|
1,480,521 |
|
1,391,859 |
|
192,770 |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
Learning services |
|
278,125 |
|
285,383 |
|
264,759 |
|
36,669 |
|
Smart devices |
|
128,588 |
|
137,150 |
|
122,060 |
|
16,905 |
|
Online marketing services |
|
154,707 |
|
319,187 |
|
323,537 |
|
44,809 |
|
Total cost of revenues |
|
561,420 |
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741,720 |
|
710,356 |
|
98,383 |
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|
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Gross margin |
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|
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|
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Learning services |
|
62.0 % |
|
63.6 % |
|
63.1 % |
|
63.1 % |
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Smart devices |
|
39.6 % |
|
38.3 % |
|
32.6 % |
|
32.6 % |
|
Online marketing services |
|
29.1 % |
|
32.7 % |
|
34.3 % |
|
34.3 % |
|
Total gross margin |
|
51.7 % |
|
49.9 % |
|
49.0 % |
|
49.0 % |
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|||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
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(RMB and USD in thousands, except per ADS data) |
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Three Months Ended |
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2023 |
|
2023 |
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2024 |
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2024 |
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|
|
RMB |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
|
|
|
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|
Net (loss)/income attributable to ordinary shareholders of the Company |
|
(204,353) |
|
56,482 |
|
12,432 |
|
1,722 |
|
Add: share-based compensation |
|
10,496 |
|
2,802 |
|
7,896 |
|
1,094 |
|
impairment of long-term investment |
|
- |
|
10,000 |
|
- |
|
- |
|
Non-GAAP net (loss)/income attributable to ordinary shareholders of the |
|
(193,857) |
|
69,284 |
|
20,328 |
|
2,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP basic net (loss)/income per ADS |
|
(1.59) |
|
0.58 |
|
0.17 |
|
0.02 |
|
Non-GAAP diluted net (loss)/income per ADS |
|
(1.59) |
|
0.58 |
|
0.17 |
|
0.02 |
|
View original content:https://www.prnewswire.com/news-releases/youdao-reports-first-quarter-2024-unaudited-financial-results-302153863.html
SOURCE