HANGZHOU, China, May 25, 2023
/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 first quarter
ended March 31, 2023.
First Quarter 2023 Financial Highlights
- Total net revenues were RMB1.2
billion (US$169.4 million),
representing a 3.1% decrease from the same period in 2022.
- Net revenues from learning services were RMB732.4 million (US$106.6
million), representing an 11.3% decrease from the same
period in 2022.
- Net revenues from smart devices were RMB212.7 million (US$31.0
million), representing a 16.0% decrease from the same period
in 2022.
- Net revenues from online marketing services were
RMB218.1 million (US$31.8 million), representing a 79.7% increase
from the same period in 2022.
- Gross margin was 51.7%, compared with 53.5% for the
same period in 2022.
"Our high-quality learning services and smart devices, such as
Youdao Literature and Youdao Dictionary Pen, continue to grow in
popularity. Despite the pandemic's initial impact on these
businesses, they rebounded back to growth in the second half of the
quarter. Rollout of new and updated digital content services led to
over 40% year-over-year growth in gross billings from learning
services, excluding adult courses. Our advertisement business
experienced significant year-over-year growth of 79.7%, continuing
the momentum brought by the matching algorithm upgrades in Q4 last
year," said Dr. Feng Zhou, Chief
Executive Officer and Director of Youdao.
"This year, our aim is to simultaneously grow our business and
improve our financial metrics. We are confident in achieving this
by leveraging our user scale, a strong learning services and
devices pipeline, and AI technology, particularly generative AI,
which is now crucial. Our focus in these areas will enable us to
continuously improve the user experience and drive sustainable
growth," Dr. Zhou concluded.
First Quarter 2023 Financial
Results[1]
Net Revenues
Net revenues for the first quarter of 2023 were RMB1.2 billion (US$169.4
million), remaining stable compared with RMB1.2 billion for the same period of 2022.
Net revenues from learning services were RMB732.4 million (US$106.6
million) for the first quarter of 2023, representing an
11.3% decrease from RMB826.0 million
for the same period of 2022. The year-over-year decline was
primarily due to the decreased revenue derived from adult and
vocational courses and other courses compared with the same period
of 2022.
Net revenues from smart devices were RMB212.7 million (US$31.0
million) for the first quarter of 2023, representing a 16.0%
decrease from RMB253.2 million for
the same period of 2022, primarily due to the decreased demands for
learning products in the first quarter of 2023.
Net revenues from online marketing services were RMB218.1 million (US$31.8
million) for the first quarter of 2023, representing a 79.7%
increase from RMB121.4 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 first quarter of 2023 was RMB601.9 million (US$87.6
million), representing a 6.2% decrease from RMB641.8 million for the same period of 2022.
Gross margin decreased to 51.7% for the first quarter of 2023 from
53.5% for the same period of 2022.
Gross margin for learning services was 62.0% for the first
quarter of 2023, compared with 63.9% for the same period of 2022.
The decrease was mainly resulted from the decline in economic
scales due to the decreased revenues from learning services.
Gross margin for smart devices increased to 39.6% for the first
quarter of 2023 from 33.7% for the same period of 2022. The
improvement was mainly attributable to the popularity of Youdao
Dictionary Pen X5 launched in the third quarter of 2022 which
carries a higher gross margin than other products.
Gross margin for online marketing services increased to 29.1%
for the first quarter of 2023, from 23.7% 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 over last year.
Operating Expenses
Total operating expenses for the first quarter of 2023 were
RMB797.6 million (US$116.1 million), compared with RMB766.9 million for the same period of last
year.
Sales and marketing expenses for the first quarter of 2023 were
RMB565.2 million (US$82.3 million), representing an increase of
11.6% from RMB506.4 million for the
same period of 2022. This increase was primarily driven by
increasing sales and marketing efforts associated with Youdao's
learning services and smart devices.
Research and development expenses for the first quarter of 2023
were RMB182.8 million (US$26.6 million), representing a decrease of 9.9%
from RMB203.0 million for the same
period of 2022. The decrease was primarily due to fewer research
and development employees that contribute to payroll-related cost
savings in the first quarter of 2023.
General and administrative expenses for the first quarter of
2023 were RMB49.6 million
(US$7.2 million), representing a
decrease of 13.8% from RMB57.6
million for the same period of 2022. The decrease was
primarily due to fewer general and administrative employees that
contribute to payroll-related cost savings in the first quarter of
2023.
Loss from Operations
As a result of the foregoing, loss from operations for the first
quarter of 2023 was RMB195.8 million
(US$28.5 million), compared with
RMB125.1 million for the same period
in 2022. The margin of loss from operations was 16.8%, compared
with 10.4% for the same period of last year.
Net Loss from Continuing Operations Attributable to Youdao's
Ordinary Shareholders
Net loss from continuing operations attributable to Youdao's
ordinary shareholders for the first quarter of 2023 was
RMB204.4 million (US$29.8 million), compared with RMB95.4 million for the same period of last year.
Non-GAAP net loss from continuing operations attributable to
Youdao's ordinary shareholders for the first quarter of 2023 was
RMB193.9 million (US$28.2 million), compared with RMB70.9 million for the same period of last
year.
Basic and diluted net loss from continuing operations per
American depositary share ("ADS") attributable to ordinary
shareholders for the first quarter of 2023 was RMB1.67 (US$0.24),
compared with RMB0.77 for the same
period of 2022. Non-GAAP basic and diluted net loss from continuing
operations per ADS attributable to ordinary shareholders was
RMB1.59 (US$0.23), compared with RMB0.57 for the same period of 2022.
Other Information
As of March 31, 2023, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB601.0
million (US$87.5 million),
compared with RMB1.0 billion as of
December 31, 2022. For the first
quarter of 2023, net cash used in continuing operating activities
was RMB437.0 million (US$63.6 million), capital expenditures totaled
RMB0.5 million (US$0.1 million), and depreciation and
amortization expenses amounted to RMB7.6
million (US$1.1 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. 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$80.0 million long-term
loans with maturity dated March 31,
2024 drawn down under the US$300.0
million revolving loan facility. In support of Youdao's
future business, NetEase Group has agreed to provide financial
support for Youdao's continuing operations.
As of March 31, 2023, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's learning services, were
RMB832.2 million (US$121.2 million), compared with RMB1.1 billion as of December 31, 2022.
[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. 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. As of the date of
this release, the Company has accumulatively repurchased an
aggregate of approximately 1.8 million ADSs for approximately
US$10.0 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 6:00 a.m. Eastern
Time on Thursday, May 25, 2023 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, May 25, 2023). 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:
|
2081819
|
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 June 1, 2023:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
2081819
|
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 RMB6.8676 to US$1.00, the exchange rate on March 31, 2023 set forth in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or US$ 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 first quarter 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 March
31,
|
|
As of March
31,
|
|
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB
|
|
RMB
|
|
USD (1)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
783,611
|
|
579,280
|
|
84,350
|
|
Time
deposits
|
|
273
|
|
277
|
|
40
|
|
Restricted
cash
|
|
873
|
|
5
|
|
1
|
|
Short-term
investments
|
|
232,152
|
|
21,476
|
|
3,127
|
|
Accounts receivable,
net
|
|
405,139
|
|
260,049
|
|
37,866
|
|
Inventories
|
|
232,260
|
|
219,324
|
|
31,936
|
|
Amounts due from
NetEase Group
|
|
7,888
|
|
7,630
|
|
1,111
|
|
Prepayment and other
current assets
|
|
207,777
|
|
176,353
|
|
25,679
|
|
Total current
assets
|
|
1,869,973
|
|
1,264,394
|
|
184,110
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, equipment and
software, net
|
|
92,116
|
|
85,184
|
|
12,404
|
|
Operating lease
right-of-use assets, net
|
|
78,405
|
|
74,242
|
|
10,810
|
|
Long-term
investments
|
|
90,703
|
|
90,693
|
|
13,206
|
|
Goodwill
|
|
109,944
|
|
109,944
|
|
16,009
|
|
Other assets,
net
|
|
35,015
|
|
33,862
|
|
4,931
|
|
Total non-current
assets
|
|
406,183
|
|
393,925
|
|
57,360
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,276,156
|
|
1,658,319
|
|
241,470
|
|
|
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payables
|
|
282,354
|
|
122,622
|
|
17,855
|
|
Payroll
payable
|
|
266,340
|
|
166,254
|
|
24,208
|
|
Amounts due to NetEase
Group
|
|
68,809
|
|
88,477
|
|
12,883
|
|
Contract
liabilities
|
|
1,067,285
|
|
832,244
|
|
121,184
|
|
Taxes
payable
|
|
50,908
|
|
63,586
|
|
9,259
|
|
Accrued liabilities and
other payables
|
|
564,922
|
|
597,894
|
|
87,061
|
|
Short-term loans from
NetEase Group
|
|
878,000
|
|
878,000
|
|
127,847
|
|
Long-term loans from
NetEase Group - current (2)
|
|
-
|
|
549,736
|
|
80,048
|
|
Total current
liabilities
|
|
3,178,618
|
|
3,298,813
|
|
480,345
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term lease
liabilities
|
|
43,635
|
|
40,440
|
|
5,889
|
|
Long-term loans from
NetEase Group (2)
|
|
522,345
|
|
-
|
|
-
|
|
Other non-current
liabilities
|
|
8,832
|
|
11,289
|
|
1,643
|
|
Total non-current
liabilities
|
|
574,812
|
|
51,729
|
|
7,532
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,753,430
|
|
3,350,542
|
|
487,877
|
|
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
64,571
|
|
63,571
|
|
9,257
|
|
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
|
Youdao's shareholders'
deficit
|
|
(1,535,089)
|
|
(1,748,308)
|
|
(254,574)
|
|
Noncontrolling
interests
|
|
(6,756)
|
|
(7,486)
|
|
(1,090)
|
|
Total shareholders'
deficit
|
|
(1,541,845)
|
|
(1,755,794)
|
|
(255,664)
|
|
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
|
2,276,156
|
|
1,658,319
|
|
241,470
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.8676 on the last trading day of March
(March
31, 2023) as set forth in the H.10
statistical release of the U.S. Federal Reserve Board.
|
|
|
|
|
|
|
|
|
Note 2:
The outstanding balance
of long-term loans from NetEase Group, with maturity dated March
31, 2024, was reclassified to current liabilities as of March 31,
2023.
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
(RMB and USD in
thousands, except share and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (1)
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
826,011
|
|
806,270
|
|
732,421
|
|
106,648
|
|
Smart
devices
|
|
253,160
|
|
406,956
|
|
212,749
|
|
30,979
|
|
Online marketing
services
|
|
121,370
|
|
240,756
|
|
218,100
|
|
31,758
|
|
Total net
revenues
|
|
1,200,541
|
|
1,453,982
|
|
1,163,270
|
|
169,385
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(558,719)
|
|
(679,295)
|
|
(561,420)
|
|
(81,749)
|
|
Gross
profit
|
|
641,822
|
|
774,687
|
|
601,850
|
|
87,636
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses (2)
|
|
(506,385)
|
|
(515,944)
|
|
(565,205)
|
|
(82,300)
|
|
Research and
development expenses (2)
|
|
(202,980)
|
|
(179,474)
|
|
(182,830)
|
|
(26,622)
|
|
General and
administrative expenses (2)
|
|
(57,561)
|
|
(54,597)
|
|
(49,606)
|
|
(7,223)
|
|
Total operating
expenses
|
|
(766,926)
|
|
(750,015)
|
|
(797,641)
|
|
(116,145)
|
|
(Loss)/Income from
operations
|
|
(125,104)
|
|
24,672
|
|
(195,791)
|
|
(28,509)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
2,034
|
|
3,072
|
|
2,294
|
|
334
|
|
Interest
expense
|
|
(8,585)
|
|
(14,643)
|
|
(15,763)
|
|
(2,295)
|
|
Others, net
|
|
36,053
|
|
3,767
|
|
6,378
|
|
928
|
|
(Loss)/Income before
tax
|
|
(95,602)
|
|
16,868
|
|
(202,882)
|
|
(29,542)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(566)
|
|
(13,833)
|
|
(3,201)
|
|
(466)
|
|
Net (loss)/income
from continuing operations
|
|
(96,168)
|
|
3,035
|
|
(206,083)
|
|
(30,008)
|
|
Net loss from
discontinued operations
|
|
(6,105)
|
|
-
|
|
-
|
|
-
|
|
Net
(loss)/income
|
|
(102,273)
|
|
3,035
|
|
(206,083)
|
|
(30,008)
|
|
Net loss attributable
to noncontrolling interests
|
|
748
|
|
9,263
|
|
1,730
|
|
252
|
|
Net (loss)/income
attributable to ordinary shareholders of the
Company
|
|
(101,525)
|
|
12,298
|
|
(204,353)
|
|
(29,756)
|
|
Including:
|
|
|
|
|
|
|
|
|
|
Net (loss)/income from
continuing operations attributable to ordinary
shareholders of the Company
|
|
(95,420)
|
|
12,298
|
|
(204,353)
|
|
(29,756)
|
|
Net loss from
discontinued operations attributable to ordinary shareholders
of the Company
|
|
(6,105)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss)/income
per ADS
|
|
(0.82)
|
|
0.10
|
|
(1.67)
|
|
(0.24)
|
|
-Continuing
operations
|
|
(0.77)
|
|
0.10
|
|
(1.67)
|
|
(0.24)
|
|
-Discontinued
operations
|
|
(0.05)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
(loss)/income per ADS
|
|
(0.82)
|
|
0.10
|
|
(1.67)
|
|
(0.24)
|
|
-Continuing
operations
|
|
(0.77)
|
|
0.10
|
|
(1.67)
|
|
(0.24)
|
|
-Discontinued
operations
|
|
(0.05)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net (loss)/income per ADS
|
|
123,330,958
|
|
123,584,460
|
|
122,268,844
|
|
122,268,844
|
|
Shares used in
computing diluted net (loss)/income per ADS
|
|
123,330,958
|
|
124,345,717
|
|
122,268,844
|
|
122,268,844
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of
USD1.00=RMB6.8676
on the last trading day of
March (March 31, 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
|
|
2,180
|
|
1,231
|
|
1,259
|
|
183
|
|
Sales and marketing
expenses
|
|
3,090
|
|
3,249
|
|
1,131
|
|
165
|
|
Research and
development expenses
|
|
8,862
|
|
5,702
|
|
4,785
|
|
696
|
|
General and
administrative expenses
|
|
5,384
|
|
6,845
|
|
3,321
|
|
484
|
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
UNAUDITED ADDITIONAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
826,011
|
|
806,270
|
|
732,421
|
|
106,648
|
|
Smart
devices
|
|
253,160
|
|
406,956
|
|
212,749
|
|
30,979
|
|
Online marketing
services
|
|
121,370
|
|
240,756
|
|
218,100
|
|
31,758
|
|
Total net
revenues
|
|
1,200,541
|
|
1,453,982
|
|
1,163,270
|
|
169,385
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
298,297
|
|
289,829
|
|
278,125
|
|
40,498
|
|
Smart
devices
|
|
167,804
|
|
218,969
|
|
128,588
|
|
18,724
|
|
Online marketing
services
|
|
92,618
|
|
170,497
|
|
154,707
|
|
22,527
|
|
Total cost of
revenues
|
|
558,719
|
|
679,295
|
|
561,420
|
|
81,749
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
63.9 %
|
|
64.1 %
|
|
62.0 %
|
|
62.0 %
|
|
Smart
devices
|
|
33.7 %
|
|
46.2 %
|
|
39.6 %
|
|
39.6 %
|
|
Online marketing
services
|
|
23.7 %
|
|
29.2 %
|
|
29.1 %
|
|
29.1 %
|
|
Total gross
margin
|
|
53.5 %
|
|
53.3 %
|
|
51.7 %
|
|
51.7 %
|
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
|
(RMB and USD in
thousands, except per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
from continuing operations attributable to ordinary
shareholders of the Company
|
|
(95,420)
|
|
12,298
|
|
(204,353)
|
|
(29,756)
|
|
Add: share-based
compensation
|
|
19,516
|
|
17,027
|
|
10,496
|
|
1,528
|
|
impairment of long-term investments
|
|
5,000
|
|
1,800
|
|
-
|
|
-
|
|
Non-GAAP net
(loss)/income from continuing operations attributable to
ordinary shareholders of the Company
|
|
(70,904)
|
|
31,125
|
|
(193,857)
|
|
(28,228)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
(loss)/income from continuing operations per ADS
|
|
(0.57)
|
|
0.25
|
|
(1.59)
|
|
(0.23)
|
|
Non-GAAP diluted net
(loss)/income from continuing operations per ADS
|
|
(0.57)
|
|
0.25
|
|
(1.59)
|
|
(0.23)
|
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-first-quarter-2023-unaudited-financial-results-301834455.html
SOURCE Youdao, Inc.