HANGZHOU, China, Feb. 29,
2024 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the
"Company") (NYSE: DAO), an intelligent learning company with
industry-leading technology in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
- Total net revenues were RMB1.5 billion (US$208.5
million), representing a 1.8% increase from the same period
in 2022.
- Net revenues from learning services were RMB784.0 million (US$110.4
million), representing a 2.8% decrease from the same period
in 2022.
- Net revenues from smart devices were RMB222.4 million (US$31.3
million), representing a 45.3% decrease from the same period
in 2022.
- Net revenues from online marketing services were
RMB474.1 million (US$66.8 million), representing a 96.9% increase
from the same period in 2022.
- Gross margin was 49.9%, compared with 53.3% for the
same period in 2022.
Fiscal Year 2023 Financial Highlights
- Total net revenues were RMB5.4
billion (US$759.1 million),
representing a 7.5% increase from 2022.
- Net revenues from learning services were RMB3.1 billion (US$443.4
million), representing a 2.1% increase from 2022.
- Net revenues from smart devices were RMB909.2 million (US$128.1
million), representing a 27.6% decrease from 2022.
- Net revenues from online marketing services were
RMB1.3 billion (US$187.6 million), representing a 98.1% increase
from 2022.
- Gross margin was 51.4%, keeping flat as compared
with 51.6% for 2022.
"Our financial performance was solid in the fourth quarter,
producing all-time high income from operations and operating cash
inflow. In terms of business operations, since the introduction of
AI writing refinement, we have efficiently and effectively provided
over 25,000 tailored recommendations. The integration of AI
technology has further empowered our online marketing services,
expanding the application of RTA (Real-Time API) technology and
broadening our customer base, resulting in record high net revenues
of this segment and over 50% year-over-year growth for five
consecutive quarters. Additionally, the launch of the Mr. P AI
Tutor, powered by our proprietary large language model Ziyue, has
been well received by our users. In 2023, Youdao's fundamentals
strengthened, with key financial indicators improving on a
year-over-year basis," said Dr. Feng
Zhou, Chief Executive Officer and Director of Youdao.
"Looking ahead, I am confident in the further improvement of our
fundamentals and long-term development. We will continue to
leverage our AI advantages and upgrade our large language model
Ziyue, further exploring applications in the areas of learning
services, smart devices, and online marketing services. By
accelerating the implementation of our products and applications,
we are committed to better assisting users in enhancing their
learning and work efficiency and effectiveness," Dr. Zhou
concluded.
Fourth Quarter 2023 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2023 were RMB1.5 billion (US$208.5
million), slightly increased compared with the same period
of 2022.
Net revenues from learning services were RMB784.0 million (US$110.4
million) for the fourth quarter of 2023, representing a 2.8%
decrease from RMB806.3 million for
the same period of 2022.
Net revenues from smart devices were RMB222.4 million (US$31.3
million) for the fourth quarter of 2023, representing a
45.3% decrease from RMB407.0 million
for the same period of 2022, primarily due to our continuous
efforts to streamline marketing channels with low return on
investment for intelligent learning products in the fourth quarter
of 2023.
Net revenues from online marketing services were RMB474.1 million (US$66.8
million) for the fourth quarter of 2023, representing a
96.9% increase from RMB240.8 million
for the same period of 2022. The year-over-year increase in
revenues from online marketing services was mainly attributable to
the increased demand for performance-based advertisements through
third parties' internet properties.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2023 was RMB738.8 million (US$104.1
million), representing a 4.6% decrease from RMB774.7 million for the same period of 2022.
Gross margin decreased to 49.9% for the fourth quarter of 2023 from
53.3% for the same period of 2022.
Gross margin for learning services was 63.6% for the fourth
quarter of 2023, largely flat as compared with 64.1% for the same
period of 2022.
Gross margin for smart devices decreased to 38.3% for the fourth
quarter of 2023 from 46.2% for the same period of 2022, which was
mainly attributable to a lower revenue base of smart devices.
Gross margin for online marketing services increased to 32.7%
for the fourth quarter of 2023, from 29.2% for the same period of
2022. 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 fourth quarter of 2023 were
RMB662.5 million (US$93.3 million), compared with RMB750.0 million for the same period of last
year.
Sales and marketing expenses for the fourth quarter of 2023 were
RMB441.4 million (US$62.2 million), representing a decrease of
14.4% from RMB515.9 million for the
same period of 2022. This decrease was attributable to the reduced
marketing expenditures in learning services and smart devices in
the fourth quarter of 2023.
Research and development expenses for the fourth quarter of 2023
were RMB168.1 million (US$23.7 million), representing a decrease of 6.3%
from RMB179.5 million for the same
period of 2022. The decrease was primarily due to the decreased
headcount for research and development employees, which led to
payroll-related cost savings in the fourth quarter of 2023.
General and administrative expenses for the fourth quarter of
2023 were RMB53.0 million
(US$7.5 million), representing a
decrease of 2.9% from RMB54.6 million
for the same period of 2022.
Income from Operations
As a result of the foregoing, income from operations for the
fourth quarter of 2023 was RMB76.3
million (US$10.7 million),
compared with RMB24.7 million for the
same period of 2022. The margin of income from operations was 5.2%,
compared with 1.7% for the same period of last year.
Others, Net
Others, net for the fourth quarter of 2023 were RMB2.6 million (US$0.4
million) net loss, compared with RMB3.8 million net gain for the same period of
2022. Others, net for the fourth quarter of 2023 mainly included an
impairment loss of long-term investments of RMB10.0 million (US$1.4
million), partially offset by the gains from government
grants. The gain for the same period of last year was mainly from
government grants.
Net Income from Continuing Operations Attributable to
Youdao's Ordinary Shareholders
Net income from continuing operations attributable to Youdao's
ordinary shareholders for the fourth quarter of 2023 was
RMB56.5 million (US$8.0 million), compared with RMB12.3 million for the same period of last year.
Non-GAAP net income from continuing operations attributable to
Youdao's ordinary shareholders for the fourth quarter of 2023 was
RMB69.3 million (US$9.8 million), compared with RMB31.1 million for the same period of last
year.
Basic and diluted net income from continuing operations per
American depositary share ("ADS") attributable to ordinary
shareholders for the fourth quarter of 2023 was RMB0.47 (US$0.07),
compared with RMB0.10 for the same
period of 2022. Non-GAAP basic and diluted net income from
continuing operations per ADS attributable to ordinary shareholders
was RMB0.58 (US$0.08), compared with RMB0.25 for the same period of 2022.
Other Information
As of December 31, 2023, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB527.1
million (US$74.2 million),
compared with RMB1.0 billion as of
December 31, 2022. For the fourth
quarter of 2023, net cash provided by continuing operating
activities was RMB160.6 million
(US$22.6 million), capital
expenditures totaled RMB5.9 million
(US$0.8 million). Youdao's ability to
continue as a going concern is dependent on management's ability to
implement an effective business plan in future periods in light of
the changing regulatory environment, generate operating cash flows
and continue to be able to obtain outside sources of financing as
necessary for Youdao's future development. In support of Youdao's
future business, NetEase Group has agreed to provide financial
support for Youdao's continuing operations. As of the date of this
release, Youdao has received various financial support from the
NetEase Group, including, among others, RMB878.0 million short-term loans, and
US$94.0 million long-term loans with
maturity dated March 31, 2027 drawn
down under the US$300.0 million
revolving loan facility.
As of December 31, 2023, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's learning services, were
RMB1.1 billion (US$148.3 million), keeping stable as compared
with RMB1.1 billion as of
December 31, 2022.
Fiscal Year 2023 Financial
Results[1]
Net Revenues
Net revenues for 2023 were RMB5.4
billion (US$759.1 million),
representing a 7.5% increase from RMB5.0
billion for 2022.
Net revenues from learning services were RMB3.1 billion (US$443.4
million) for 2023, keeping flat as compared with
RMB3.1 billion for 2022.
Net revenues from smart devices were RMB909.2 million (US$128.1
million) for 2023, representing a 27.6% decrease from
RMB1.3 billion for 2022. The decrease
was primarily due to our continuous efforts to streamline marketing
channels with low return on investment for intelligent learning
products starting from the second half of 2023.
Net revenues from online marketing services were RMB1.3 billion (US$187.6
million) for 2023, representing a 98.1% increase from
RMB672.4 million for 2022. The
increase was mainly attributable to the increased demand for
performance-based advertisements through third parties' internet
properties.
Gross Profit and Gross Margin
Gross profit for 2023 was RMB2.8
billion (US$389.8 million),
compared with RMB2.6 billion for
2022. Gross margin for 2023 was 51.4%, compared with 51.6% for
2022.
Gross margin for learning services was 63.2% for 2023, compared
with 62.0% for 2022.
Gross margin for smart devices was 39.2% for 2023, compared with
39.1% for 2022.
Gross margin for online marketing services increased to 31.7%
for 2023 from 27.4% for 2022. The increase was mainly attributable
to improved gross margin profile of performance-based
advertisements through third parties' internet properties compared
with last year.
Operating Expenses
Total operating expenses for 2023 were RMB3.2 billion (US$455.5
million), representing a decrease of 3.8%, compared with
RMB3.4 billion for 2022.
Sales and marketing expenses for 2023 were RMB2.3 billion (US$319.5
million), keeping stable as compared with RMB2.3 billion for 2022.
Research and development expenses for 2023 were RMB743.4 million (US$104.7
million), representing a decrease of 7.5%, compared with
RMB803.8 million for 2022. The
decrease was primarily due to the decreased headcount for research
and development employees, which led to payroll-related cost
savings in 2023.
General and administrative expenses for 2023 were RMB222.0 million (US$31.3
million), representing a decrease of 3.1%, compared with
RMB229.2 million for 2022.
Loss from Operations
Loss from operations for 2023 was RMB466.3 million (US$65.7
million), compared with RMB774.7
million for 2022. The margin of loss from operations was
8.7%, compared with 15.5% for 2022.
Others, Net
Others, net for 2023 were RMB11.6
million (US$1.6 million) net
loss, compared with RMB81.4 million
net gain for 2022. Others, net for 2023 mainly included impairment
losses of long-term investments of RMB43.7
million (US$6.2 million),
partially offset by the gains from government grants. The gain for
last year was mainly from government grants.
Net Loss from Continuing Operations Attributable to Youdao's
Ordinary Shareholders
Net loss from continuing operations attributable to Youdao's
ordinary shareholders for 2023 was RMB549.9
million (US$77.5 million),
compared with RMB720.9 million for
2022. Non-GAAP net loss from continuing operations attributable to
Youdao's ordinary shareholders for 2023 was RMB475.4 million (US$67.0
million), compared with RMB639.9
million for 2022.
Basic and diluted net loss from continuing operations per
American depositary share ("ADS") attributable to ordinary
shareholders for 2023 was RMB4.53
(US$0.64), compared with RMB5.83 for 2022. Non-GAAP basic and diluted net
loss from continuing operations per ADS attributable to ordinary
shareholders was RMB3.92 (US$0.55), compared with RMB5.18 for 2022.
Operating Cash Flow from Continuing Operations
For 2023, net cash used in continuing operating activities was
RMB438.1 million (US$61.7 million) and capital expenditures totaled
RMB17.9 million (US$2.5 million).
[1] As
previously disclosed, in compliance with applicable regulatory
requirements, the Company had ceased to offer the after-school
tutoring services on academic subjects in China's compulsory
education system (the "Academic AST Business") at the end of
December 2021. The Academic AST Business met the criteria of
discontinued operations. Retrospective adjustments to the
historical statement of operations have also been made to provide a
consistent basis of comparison for the financial results of the
continuing operations. The financial information and non-GAAP
financial information included in this press release are presented
on a continuing operations basis, unless otherwise specifically
stated.
|
Share Repurchase Program
On November 17, 2022, the Company
announced that its board of directors had authorized the Company to
adopt a share repurchase program in accordance with applicable laws
and regulations for up to US$20.0
million of its Class A ordinary shares (including in the
form of ADSs) during a period of up to 36 months. This amount was
subsequently increased to US$40.0
million in August 2023. As of
December 31, 2023, the Company has
accumulatively repurchased an aggregate of approximately 5.2
million ADSs for approximately US$24.8
million in the open market under the share repurchase
program.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 5:00 a.m. Eastern
Time on Thursday, February 29, 2024 (Beijing/Hong Kong Time: 6:00 p.m., Thursday,
February 29, 2024). Youdao's management will be on the call
to discuss the financial results and answer questions.
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
+1-888-346-8982
|
International:
|
+1-412-902-4272
|
Mainland China (toll
free):
|
400-120-1203
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Conference
ID:
|
1578305
|
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 March 7, 2024:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
1578305
|
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is an intelligent learning company with
industry-leading technology in China dedicated to developing and using
technologies to provide learning content, applications and
solutions to users of all ages. Building on the popularity of its
online knowledge tools such as Youdao Dictionary and Youdao
Translation, Youdao now offers smart devices, STEAM courses, adult
and vocational courses, and education digitalization solutions. In
addition, Youdao has developed a variety of interactive learning
apps. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ:
NTES; HKEX: 9999), a leading internet technology company in
China.
For more information, please visit: http://ir.youdao.com.
Non-GAAP Measures
Youdao considers and uses non-GAAP financial measures, such as
non-GAAP net income/(loss) from continuing operations attributable
to the Company's ordinary shareholders and non-GAAP basic and
diluted net income/(loss) from continuing operations per ADS, as
supplemental metrics in reviewing and assessing its operating
performance and formulating its business plan. The presentation of
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with accounting principles generally
accepted in the United States of
America ("U.S. GAAP").
Youdao defines non-GAAP net income/(loss) from continuing
operations attributable to the Company's ordinary shareholders as
net income/(loss) from continuing operations attributable to the
Company's ordinary shareholders excluding share-based compensation
expenses and impairment of long-term investments. Non-GAAP net
income/(loss) from continuing operations attributable to the
Company's ordinary shareholders enables Youdao's management to
assess its operating results without considering the impact of
these items, which are non-cash charges in nature. Youdao believes
that these non-GAAP financial measures provide useful information
to investors in understanding and evaluating the Company's current
operating performance and prospects in the same manner as
management does, if they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. Non-GAAP financial
measures have limitations as analytical tools, which possibly do
not reflect all items of expense that affect our operations. In
addition, the non-GAAP financial measures Youdao uses may differ
from the non-GAAP measures uses by other companies, including peer
companies, and therefore their comparability may be limited.
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. Youdao encourages you to
review its financial information in its entirety and not rely on a
single financial measure.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars ("US$") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to US$ were made at the rate of RMB7.0999 to US$1.00, the exchange rate on December 29, 2023 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ amounts referred could be
converted into US$ or RMB, as the case may be, at any particular
rate or at all.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. The Company may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding such risks, uncertainties or factors is
included in the Company's filings with the SEC. The announced
results of the fourth quarter and full year of 2023 are preliminary
and subject to adjustments. All information provided in this press
release is as of the date of this press release, and the Company
does not undertake any duty to update such information, except as
required under applicable law.
For investor and media inquiries,
please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: youdao@thepiacentegroup.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
YOUDAO,
INC.
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
USD
(1)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
783,611
|
|
454,536
|
|
64,020
|
Time
deposits
|
|
273
|
|
277
|
|
39
|
Restricted
cash
|
|
873
|
|
395
|
|
56
|
Short-term
investments
|
|
232,152
|
|
71,848
|
|
10,120
|
Accounts receivable,
net
|
|
405,139
|
|
354,006
|
|
49,861
|
Inventories
|
|
232,260
|
|
217,067
|
|
30,573
|
Amounts due from
NetEase Group
|
|
7,888
|
|
26,117
|
|
3,679
|
Prepayment and other
current assets
|
|
207,777
|
|
175,705
|
|
24,747
|
Total current
assets
|
|
1,869,973
|
|
1,299,951
|
|
183,095
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property, equipment and
software, net
|
|
92,116
|
|
70,906
|
|
9,987
|
Operating lease
right-of-use assets, net
|
|
78,405
|
|
89,022
|
|
12,538
|
Long-term
investments
|
|
90,703
|
|
51,396
|
|
7,239
|
Goodwill
|
|
109,944
|
|
109,944
|
|
15,485
|
Other assets,
net
|
|
35,015
|
|
44,976
|
|
6,335
|
Total non-current
assets
|
|
406,183
|
|
366,244
|
|
51,584
|
|
|
|
|
|
|
|
Total
assets
|
|
2,276,156
|
|
1,666,195
|
|
234,679
|
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficit
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payables
|
|
282,354
|
|
159,005
|
|
22,395
|
Payroll
payable
|
|
266,340
|
|
282,679
|
|
39,815
|
Amounts due to NetEase
Group
|
|
68,809
|
|
82,430
|
|
11,610
|
Contract
liabilities
|
|
1,067,285
|
|
1,052,622
|
|
148,259
|
Taxes
payable
|
|
50,908
|
|
52,781
|
|
7,434
|
Accrued liabilities and
other payables
|
|
564,922
|
|
591,770
|
|
83,349
|
Short-term loans from
NetEase Group
|
|
878,000
|
|
878,000
|
|
123,664
|
Total current
liabilities
|
|
3,178,618
|
|
3,099,287
|
|
436,526
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term lease
liabilities
|
|
43,635
|
|
49,337
|
|
6,949
|
Long-term loans from
NetEase Group
|
|
522,345
|
|
630,360
|
|
88,784
|
Other non-current
liabilities
|
|
8,832
|
|
16,314
|
|
2,298
|
Total non-current
liabilities
|
|
574,812
|
|
696,011
|
|
98,031
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,753,430
|
|
3,795,298
|
|
534,557
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
64,571
|
|
37,961
|
|
5,347
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
Youdao's shareholders'
deficit
|
|
(1,535,089)
|
|
(2,186,736)
|
|
(307,996)
|
Noncontrolling
interests
|
|
(6,756)
|
|
19,672
|
|
2,771
|
Total shareholders'
deficit
|
|
(1,541,845)
|
|
(2,167,064)
|
|
(305,225)
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
|
2,276,156
|
|
1,666,195
|
|
234,679
|
|
|
|
|
|
|
|
Note
1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB7.0999 on the last trading day of
December
(December 29, 2023) as set forth in the H.10 statistical
release of the U.S. Federal Reserve Board.
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands, except share and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
(1)
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
806,270
|
|
950,761
|
|
784,012
|
|
110,426
|
|
3,084,375
|
|
3,148,114
|
Smart
devices
|
|
406,956
|
|
251,879
|
|
222,407
|
|
31,325
|
|
1,256,446
|
|
909,192
|
Online marketing
services
|
|
240,756
|
|
336,143
|
|
474,102
|
|
66,776
|
|
672,361
|
|
1,331,902
|
Total net
revenues
|
|
1,453,982
|
|
1,538,783
|
|
1,480,521
|
|
208,527
|
|
5,013,182
|
|
5,389,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(679,295)
|
|
(679,147)
|
|
(741,720)
|
|
(104,469)
|
|
(2,426,766)
|
|
(2,621,746)
|
Gross
profit
|
|
774,687
|
|
859,636
|
|
738,801
|
|
104,058
|
|
2,586,416
|
|
2,767,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses (2)
|
|
(515,944)
|
|
(674,173)
|
|
(441,399)
|
|
(62,170)
|
|
(2,328,095)
|
|
(2,268,428)
|
Research and
development expenses (2)
|
|
(179,474)
|
|
(187,328)
|
|
(168,130)
|
|
(23,681)
|
|
(803,791)
|
|
(743,364)
|
General and
administrative expenses (2)
|
|
(54,597)
|
|
(55,822)
|
|
(52,989)
|
|
(7,463)
|
|
(229,210)
|
|
(221,996)
|
Total operating
expenses
|
|
(750,015)
|
|
(917,323)
|
|
(662,518)
|
|
(93,314)
|
|
(3,361,096)
|
|
(3,233,788)
|
Income/(Loss) from
operations
|
|
24,672
|
|
(57,687)
|
|
76,283
|
|
10,744
|
|
(774,680)
|
|
(466,326)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
3,072
|
|
2,167
|
|
1,733
|
|
244
|
|
12,908
|
|
8,348
|
Interest
expense
|
|
(14,643)
|
|
(17,753)
|
|
(18,869)
|
|
(2,658)
|
|
(45,607)
|
|
(69,472)
|
Others, net
|
|
3,767
|
|
(21,097)
|
|
(2,589)
|
|
(364)
|
|
81,445
|
|
(11,578)
|
Income/(Loss) before
tax
|
|
16,868
|
|
(94,370)
|
|
56,558
|
|
7,966
|
|
(725,934)
|
|
(539,028)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
(13,833)
|
|
(2,557)
|
|
(441)
|
|
(62)
|
|
(13,844)
|
|
(11,089)
|
Net income/(loss)
from continuing operations
|
|
3,035
|
|
(96,927)
|
|
56,117
|
|
7,904
|
|
(739,778)
|
|
(550,117)
|
Net loss from
discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,105)
|
|
-
|
Net
income/(loss)
|
|
3,035
|
|
(96,927)
|
|
56,117
|
|
7,904
|
|
(745,883)
|
|
(550,117)
|
Net loss/(income)
attributable to noncontrolling interests
|
|
9,263
|
|
(5,978)
|
|
365
|
|
51
|
|
18,851
|
|
182
|
Net income/(loss)
attributable to ordinary shareholders of
the
Company
|
|
12,298
|
|
(102,905)
|
|
56,482
|
|
7,955
|
|
(727,032)
|
|
(549,935)
|
Including:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) from
continuing operations attributable to ordinary
shareholders of the
Company
|
|
12,298
|
|
(102,905)
|
|
56,482
|
|
7,955
|
|
(720,927)
|
|
(549,935)
|
Net loss from
discontinued operations attributable to ordinary
shareholders of the
Company
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,105)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income/(loss)
per ADS
|
|
0.10
|
|
(0.85)
|
|
0.47
|
|
0.07
|
|
(5.88)
|
|
(4.53)
|
-Continuing
operations
|
|
0.10
|
|
(0.85)
|
|
0.47
|
|
0.07
|
|
(5.83)
|
|
(4.53)
|
-Discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.05)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income/(loss) per ADS
|
|
0.10
|
|
(0.85)
|
|
0.47
|
|
0.07
|
|
(5.88)
|
|
(4.53)
|
-Continuing
operations
|
|
0.10
|
|
(0.85)
|
|
0.47
|
|
0.07
|
|
(5.83)
|
|
(4.53)
|
-Discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.05)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income/(loss) per ADS
|
|
123,584,460
|
|
121,275,391
|
|
119,764,891
|
|
119,764,891
|
|
123,597,604
|
|
121,381,857
|
Shares used in
computing diluted net income/(loss) per ADS
|
|
124,345,717
|
|
121,275,391
|
|
120,426,624
|
|
120,426,624
|
|
123,597,604
|
|
121,381,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of
USD1.00=RMB7.0999
on the last trading day of
December (December
29, 2023) as set forth in
the
H.10 statistical
release of the U.S. Federal Reserve Board.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
2:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
1,231
|
|
2,312
|
|
(2,975)
|
|
(419)
|
|
5,984
|
|
1,645
|
Sales and marketing
expenses
|
|
3,249
|
|
1,659
|
|
865
|
|
122
|
|
12,669
|
|
6,071
|
Research and
development expenses
|
|
5,702
|
|
(2,071)
|
|
(312)
|
|
(44)
|
|
30,578
|
|
8,020
|
General and
administrative expenses
|
|
6,845
|
|
3,255
|
|
5,224
|
|
736
|
|
21,478
|
|
15,061
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED ADDITIONAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
806,270
|
|
950,761
|
|
784,012
|
|
110,426
|
|
3,084,375
|
|
3,148,114
|
Smart
devices
|
|
406,956
|
|
251,879
|
|
222,407
|
|
31,325
|
|
1,256,446
|
|
909,192
|
Online marketing
services
|
|
240,756
|
|
336,143
|
|
474,102
|
|
66,776
|
|
672,361
|
|
1,331,902
|
Total net
revenues
|
|
1,453,982
|
|
1,538,783
|
|
1,480,521
|
|
208,527
|
|
5,013,182
|
|
5,389,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
289,829
|
|
305,694
|
|
285,383
|
|
40,195
|
|
1,172,703
|
|
1,159,357
|
Smart
devices
|
|
218,969
|
|
144,528
|
|
137,150
|
|
19,317
|
|
765,641
|
|
552,810
|
Online marketing
services
|
|
170,497
|
|
228,925
|
|
319,187
|
|
44,957
|
|
488,422
|
|
909,579
|
Total cost of
revenues
|
|
679,295
|
|
679,147
|
|
741,720
|
|
104,469
|
|
2,426,766
|
|
2,621,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
64.1 %
|
|
67.8 %
|
|
63.6 %
|
|
63.6 %
|
|
62.0 %
|
|
63.2 %
|
Smart
devices
|
|
46.2 %
|
|
42.6 %
|
|
38.3 %
|
|
38.3 %
|
|
39.1 %
|
|
39.2 %
|
Online marketing
services
|
|
29.2 %
|
|
31.9 %
|
|
32.7 %
|
|
32.7 %
|
|
27.4 %
|
|
31.7 %
|
Total gross
margin
|
|
53.3 %
|
|
55.9 %
|
|
49.9 %
|
|
49.9 %
|
|
51.6 %
|
|
51.4 %
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands, except per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing operations attributable to ordinary
shareholders of the Company
|
|
12,298
|
|
(102,905)
|
|
56,482
|
|
7,955
|
|
(720,927)
|
|
(549,935)
|
Add: share-based
compensation
|
|
17,027
|
|
5,155
|
|
2,802
|
|
395
|
|
70,709
|
|
30,797
|
impairment of long-term investments
|
|
1,800
|
|
30,500
|
|
10,000
|
|
1,408
|
|
10,300
|
|
43,740
|
Non-GAAP net
income/(loss) from continuing operations attributable to
ordinary shareholders of the Company
|
|
31,125
|
|
(67,250)
|
|
69,284
|
|
9,758
|
|
(639,918)
|
|
(475,398)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
income/(loss) from continuing operations per ADS
|
|
0.25
|
|
(0.55)
|
|
0.58
|
|
0.08
|
|
(5.18)
|
|
(3.92)
|
Non-GAAP diluted net
income/(loss) from continuing operations per ADS
|
|
0.25
|
|
(0.55)
|
|
0.58
|
|
0.08
|
|
(5.18)
|
|
(3.92)
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302075189.html
SOURCE Youdao, Inc.