UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2023
Commission file number: 001-39087
Youdao, Inc.
(Exact Name of Registrant as Specified in Its Charter)
No. 399, Wangshang
Road, Binjiang District
Hangzhou 310051, People’s Republic of China
+86 0571-8985-2163
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form
40-F ☐
EXHIBIT INDEX
|
Exhibit No. |
|
Description |
| |
|
|
| 99.1 |
|
Press Release |
Signature
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
|
Youdao, Inc. |
| |
|
|
| |
|
|
| Date: |
November 16, 2023 |
|
By: |
/s/ Feng Zhou |
| |
|
|
|
Name: |
Feng Zhou |
| |
|
|
|
Title: |
Chief Executive Officer, Director |
Exhibit 99.1
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 Reports Third Quarter 2023 Unaudited
Financial Results
Hangzhou, China – November 16, 2023 –
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 third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights
| l | Total net revenues were RMB1.5 billion (US$210.9 million), representing a 9.7% increase from the same period of 2022. |
| o | Net revenues from learning services were RMB950.8 million (US$130.3 million), representing a 7.0% increase from the same period
of 2022. |
| o | Net revenues from smart devices were RMB251.9 million (US$34.5 million), representing a 29.3% decrease from the same period
of 2022. |
| o | Net revenues from online marketing services were RMB336.1 million (US$46.1 million), representing a 113.5% increase from the
same period of 2022. |
| l | Gross margin was 55.9%, compared with 54.2% for the same period of 2022. |
“AI continues to drive the development of
our learning services, smart devices and online marketing services, enhancing product quality and user satisfaction. As a result, net
revenues in the third quarter reached a record high, while loss from operations significantly narrowed. We made multiple advancements
during the period that are gaining market traction, supporting our financial improvements. First, we introduced Hi Echo, the world’s
first digital human language coach, helping users improve their English-speaking skills anytime and anywhere. Second, we launched AI quiz
recommendations and other features, which drove historically high gross margins for digital content services. Third, by leveraging AI
technology, we provided users with more personalized solutions, resulting in all-time high net revenues from online marketing services.
Lastly, users have embraced our newly launched Youdao Dictionary Pen X6 Pro, which includes advanced features, such as English grammar
instructions,” said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.
“Looking ahead, I am confident in the long-term
prospects for our company, supported by increasingly dynamic AI systems. Our previously implemented proprietary large language model Ziyue
is receiving positive feedback from our users and its generative capabilities will continue to improve. Moving forward, we will maintain
ongoing communication with our users to better meet their demands. In addition, we will also accelerate the deployment of our AI products
and applications, continuously enhancing the user experience. We are committed to creating a win-win situation in boosting user learning
efficiency and effectiveness while securing and advancing our company's sustainable development,” Dr. Zhou concluded.
Third Quarter 2023 Financial Results1
Net Revenues
Net revenues for the third quarter of 2023 were
RMB1.5 billion (US$210.9 million), representing a 9.7% increase from RMB1.4 billion for the same period of 2022.
Net revenues from learning services were RMB950.8
million (US$130.3 million) for the third quarter of 2023, representing a 7.0% increase from RMB888.5 million for the same period of 2022.
The year-over-year increase from learning services was primarily driven by the strong sales performance of digital content services compared
with the same period of 2022.
Net revenues from smart devices were RMB251.9
million (US$34.5 million) for the third quarter of 2023, representing a 29.3% decrease from RMB356.5 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 third quarter of 2023.
Net revenues from online marketing services were
RMB336.1 million (US$46.1 million) for the third quarter of 2023, representing a 113.5% increase from RMB157.5 million for the same period
of 2022. The year-over-year increase in revenues from online marketing services was mainly attributable to the increased revenue from
performance-based advertisements through third parties’ internet properties.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2023 was
RMB859.6 million (US$117.8 million), representing a 13.1% increase from RMB760.2 million for the same period of 2022. Gross margin increased
to 55.9% for the third quarter of 2023 from 54.2% for the same period of 2022.
Gross margin for learning services was 67.8% for
the third quarter of 2023, compared with 64.5% for the same period of 2022. The increase was primarily attributable to the improvement
in economies of scale in the third quarter of 2023.
Gross margin for smart devices increased to 42.6%
for the third quarter of 2023 from 40.4% for the same period of 2022. The improvement was mainly attributable to the newly launched Youdao
Dictionary Pen X6 Pro which carries a higher gross margin than other products.
Gross margin for online marketing services increased
to 31.9% for the third quarter of 2023, from 27.1% 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.
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.
Operating Expenses
Total operating expenses for the third quarter
of 2023 were RMB917.3 million (US$125.7 million), compared with RMB979.2 million for the same period of last year.
Sales and marketing expenses for the third quarter
of 2023 were RMB674.2 million (US$92.4 million), representing a decrease of 5.0% from RMB709.8 million for the same period of 2022. This
decrease was attributable to the reduced marketing expenditures in learning services, partially offset by the increased marketing expenditures
for smart devices.
Research and development expenses for the third
quarter of 2023 were RMB187.3 million (US$25.7 million), representing a decrease of 12.0% from RMB212.9 million for the same period of
2022. The decrease was primarily due to the research and development payroll-related cost savings in the third quarter of 2023.
General and administrative expenses for the third
quarter of 2023 were RMB55.8 million (US$7.7 million), largely flat as compared to RMB56.5 million for the same period of 2022.
Loss from Operations
As a result of the foregoing, loss from operations
for the third quarter of 2023 was RMB57.7 million (US$7.9 million), compared with RMB219.0 million for the same period of 2022. The margin
of loss from operations was 3.7%, compared with 15.6% for the same period of last year.
Others, Net
Others, net for the third quarter of 2023 were
RMB21.1 million (US$2.9 million) net loss, compared with RMB40.1 million net gain for the same period of 2022. Others, net for the third
quarter of 2023 mainly included an impairment loss of long-term investments of RMB30.5 million (US$4.2 million), partially offset by the
gains from government grants. The gain for the same period of 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 the third quarter of 2023 was RMB102.9 million (US$14.1 million), compared with RMB183.9 million
for the same period of last year. Non-GAAP net loss from continuing operations attributable to Youdao’s ordinary shareholders for
the third quarter of 2023 was RMB67.3 million (US$9.2 million), compared with RMB164.4 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 third quarter of 2023 was RMB0.85 (US$0.12),
compared with RMB1.49 for the same period of 2022. Non-GAAP basic and diluted net loss from continuing operations per ADS attributable
to ordinary shareholders was RMB0.55 (US$0.08), compared with RMB1.33 for the same period of 2022.
Other Information
As
of September 30, 2023, Youdao’s cash, cash equivalents, restricted cash, time deposits and short-term investments totaled RMB360.1
million (US$49.4 million), compared with RMB1.0 billion as of December 31, 2022. For the third quarter of 2023, net cash used in continuing
operating activities was RMB294.7 million (US$40.4 million), capital expenditures totaled RMB4.7 million (US$0.6 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$86.0 million long-term loans with maturity dated March 31, 2027 drawn down under the US$300.0 million revolving loan facility.
As of September 30, 2023, the Company’s
contract liabilities, which mainly consisted of deferred revenues generated from Youdao’s learning services, were RMB931.6 million
(US$127.7 million), compared with RMB1.1 billion as of December 31, 2022.
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 September 30, 2023, the Company has accumulatively repurchased an
aggregate of approximately 3.6 million ADSs for approximately US$18.3 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, November 16, 2023 (Beijing/Hong Kong Time: 6:00 p.m., Thursday,
November 16, 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: |
9098188 |
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 November 23, 2023:
| United States: |
+1-877-344-7529 |
| International: |
+1-412-317-0088 |
| Replay Access Code: |
9098188 |
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 RMB7.2960 to US$1.00, the exchange rate on September 29, 2023 set forth in the
H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 third 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.
| YOUDAO, INC. | |
| |
| |
|
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |
| |
| |
|
| (RMB and USD in thousands) | |
| |
| |
|
| | |
| |
| |
|
| | |
| |
| |
|
| | |
As of December 31, | |
As of September 30, | |
As of September 30, |
| | |
2022 | |
2023 | |
2023 |
| | |
RMB | |
RMB | |
USD (1) |
| | |
| |
| |
|
| Assets | |
| |
| |
|
| Current assets: | |
| |
| |
|
| Cash and cash equivalents | |
| 783,611 | | |
| 337,863 | | |
| 46,308 | |
| Time deposits | |
| 273 | | |
| 277 | | |
| 38 | |
| Restricted cash | |
| 873 | | |
| 324 | | |
| 44 | |
| Short-term investments | |
| 232,152 | | |
| 21,674 | | |
| 2,971 | |
| Accounts receivable, net | |
| 405,139 | | |
| 347,707 | | |
| 47,657 | |
| Inventories | |
| 232,260 | | |
| 177,641 | | |
| 24,348 | |
| Amounts due from NetEase Group | |
| 7,888 | | |
| 13,042 | | |
| 1,788 | |
| Prepayment and other current assets | |
| 207,777 | | |
| 232,618 | | |
| 31,882 | |
| Total current assets | |
| 1,869,973 | | |
| 1,131,146 | | |
| 155,036 | |
| | |
| | | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property, equipment and software, net | |
| 92,116 | | |
| 77,338 | | |
| 10,600 | |
| Operating lease right-of-use assets, net | |
| 78,405 | | |
| 95,771 | | |
| 13,127 | |
| Long-term investments | |
| 90,703 | | |
| 64,495 | | |
| 8,840 | |
| Goodwill | |
| 109,944 | | |
| 109,944 | | |
| 15,069 | |
| Other assets, net | |
| 35,015 | | |
| 46,551 | | |
| 6,380 | |
| Total non-current assets | |
| 406,183 | | |
| 394,099 | | |
| 54,016 | |
| | |
| | | |
| | | |
| | |
| Total assets | |
| 2,276,156 | | |
| 1,525,245 | | |
| 209,052 | |
| | |
| | | |
| | | |
| | |
| Liabilities, Mezzanine Equity and Shareholders' Deficit | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payables | |
| 282,354 | | |
| 163,073 | | |
| 22,351 | |
| Payroll payable | |
| 266,340 | | |
| 161,446 | | |
| 22,128 | |
| Amounts due to NetEase Group | |
| 68,809 | | |
| 70,656 | | |
| 9,684 | |
| Contract liabilities | |
| 1,067,285 | | |
| 931,610 | | |
| 127,688 | |
| Taxes payable | |
| 50,908 | | |
| 67,128 | | |
| 9,201 | |
| Accrued liabilities and other payables | |
| 564,922 | | |
| 732,311 | | |
| 100,371 | |
| Short-term loans from NetEase Group | |
| 878,000 | | |
| 878,000 | | |
| 120,340 | |
| Total current liabilities | |
| 3,178,618 | | |
| 3,004,224 | | |
| 411,763 | |
| | |
| | | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Long-term lease liabilities | |
| 43,635 | | |
| 55,687 | | |
| 7,633 | |
| Long-term loans from NetEase Group | |
| 522,345 | | |
| 603,103 | | |
| 82,662 | |
| Other non-current liabilities | |
| 8,832 | | |
| 16,506 | | |
| 2,262 | |
| Total non-current liabilities | |
| 574,812 | | |
| 675,296 | | |
| 92,557 | |
| | |
| | | |
| | | |
| | |
| Total liabilities | |
| 3,753,430 | | |
| 3,679,520 | | |
| 504,320 | |
| | |
| | | |
| | | |
| | |
| Mezzanine equity | |
| 64,571 | | |
| 68,180 | | |
| 9,345 | |
| | |
| | | |
| | | |
| | |
| Shareholders' deficit: | |
| | | |
| | | |
| | |
| Youdao's shareholders' deficit | |
| (1,535,089 | ) | |
| (2,212,273 | ) | |
| (303,217 | ) |
| Noncontrolling interests | |
| (6,756 | ) | |
| (10,182 | ) | |
| (1,396 | ) |
| Total shareholders' deficit | |
| (1,541,845 | ) | |
| (2,222,455 | ) | |
| (304,613 | ) |
| | |
| | | |
| | | |
| | |
| Total liabilities, mezzanine equity and shareholders’ deficit | |
| 2,276,156 | | |
| 1,525,245 | | |
| 209,052 | |
Note
1:
The
conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB7.2960 on the last
trading day of September (September 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 | |
Nine
Months Ended |
| | |
September 30, | |
June 30, | |
September 30, | |
September 30, | |
September 30, | |
September 30, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD (1) | |
RMB | |
RMB |
| Net revenues: | |
| |
| |
| |
| |
| |
|
| Learning services | |
| 888,493 | | |
| 680,920 | | |
| 950,761 | | |
| 130,313 | | |
| 2,278,105 | | |
| 2,364,102 | |
| Smart devices | |
| 356,480 | | |
| 222,157 | | |
| 251,879 | | |
| 34,523 | | |
| 849,490 | | |
| 686,785 | |
| Online marketing services | |
| 157,461 | | |
| 303,557 | | |
| 336,143 | | |
| 46,072 | | |
| 431,605 | | |
| 857,800 | |
| Total net revenues | |
| 1,402,434 | | |
| 1,206,634 | | |
| 1,538,783 | | |
| 210,908 | | |
| 3,559,200 | | |
| 3,908,687 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues (2) | |
| (642,254 | ) | |
| (639,459 | ) | |
| (679,147 | ) | |
| (93,085 | ) | |
| (1,747,471 | ) | |
| (1,880,026 | ) |
| Gross profit | |
| 760,180 | | |
| 567,175 | | |
| 859,636 | | |
| 117,823 | | |
| 1,811,729 | | |
| 2,028,661 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Sales and marketing expenses (2) | |
| (709,769 | ) | |
| (587,651 | ) | |
| (674,173 | ) | |
| (92,403 | ) | |
| (1,812,151 | ) | |
| (1,827,029 | ) |
| Research and development expenses
(2) | |
| (212,926 | ) | |
| (205,076 | ) | |
| (187,328 | ) | |
| (25,675 | ) | |
| (624,317 | ) | |
| (575,234 | ) |
| General and
administrative expenses (2) | |
| (56,520 | ) | |
| (63,579 | ) | |
| (55,822 | ) | |
| (7,651 | ) | |
| (174,613 | ) | |
| (169,007 | ) |
| Total operating expenses | |
| (979,215 | ) | |
| (856,306 | ) | |
| (917,323 | ) | |
| (125,729 | ) | |
| (2,611,081 | ) | |
| (2,571,270 | ) |
| Loss from operations | |
| (219,035 | ) | |
| (289,131 | ) | |
| (57,687 | ) | |
| (7,906 | ) | |
| (799,352 | ) | |
| (542,609 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 4,033 | | |
| 2,154 | | |
| 2,167 | | |
| 297 | | |
| 9,836 | | |
| 6,615 | |
| Interest expense | |
| (12,277 | ) | |
| (17,087 | ) | |
| (17,753 | ) | |
| (2,433 | ) | |
| (30,964 | ) | |
| (50,603 | ) |
| Others, net | |
| 40,058 | | |
| 5,730 | | |
| (21,097 | ) | |
| (2,892 | ) | |
| 77,678 | | |
| (8,989 | ) |
| Loss before tax | |
| (187,221 | ) | |
| (298,334 | ) | |
| (94,370 | ) | |
| (12,934 | ) | |
| (742,802 | ) | |
| (595,586 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income tax benefits/(expenses) | |
| 1,108 | | |
| (4,890 | ) | |
| (2,557 | ) | |
| (351 | ) | |
| (11 | ) | |
| (10,648 | ) |
| Net loss from continuing operations | |
| (186,113 | ) | |
| (303,224 | ) | |
| (96,927 | ) | |
| (13,285 | ) | |
| (742,813 | ) | |
| (606,234 | ) |
| Net loss from discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (6,105 | ) | |
| - | |
| Net loss | |
| (186,113 | ) | |
| (303,224 | ) | |
| (96,927 | ) | |
| (13,285 | ) | |
| (748,918 | ) | |
| (606,234 | ) |
| Net loss/(income) attributable to noncontrolling
interests | |
| 2,194 | | |
| 4,065 | | |
| (5,978 | ) | |
| (819 | ) | |
| 9,588 | | |
| (183 | ) |
| Net loss attributable to ordinary
shareholders of the Company | |
| (183,919 | ) | |
| (299,159 | ) | |
| (102,905 | ) | |
| (14,104 | ) | |
| (739,330 | ) | |
| (606,417 | ) |
| Including: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss from continuing operations attributable to ordinary shareholders
of the Company | |
| (183,919 | ) | |
| (299,159 | ) | |
| (102,905 | ) | |
| (14,104 | ) | |
| (733,225 | ) | |
| (606,417 | ) |
| Net loss from discontinued operations attributable to ordinary shareholders
of the Company | |
| - | | |
| - | | |
| - | | |
| - | | |
| (6,105 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net loss per ADS | |
| (1.49 | ) | |
| (2.45 | ) | |
| (0.85 | ) | |
| (0.12 | ) | |
| (5.98 | ) | |
| (4.97 | ) |
| -Continuing operations | |
| (1.49 | ) | |
| (2.45 | ) | |
| (0.85 | ) | |
| (0.12 | ) | |
| (5.93 | ) | |
| (4.97 | ) |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.05 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted net loss per ADS | |
| (1.49 | ) | |
| (2.45 | ) | |
| (0.85 | ) | |
| (0.12 | ) | |
| (5.98 | ) | |
| (4.97 | ) |
| -Continuing operations | |
| (1.49 | ) | |
| (2.45 | ) | |
| (0.85 | ) | |
| (0.12 | ) | |
| (5.93 | ) | |
| (4.97 | ) |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.05 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Shares used in computing basic net los per ADS | |
| 123,767,013 | | |
| 122,247,009 | | |
| 121,275,391 | | |
| 121,275,391 | | |
| 123,602,039 | | |
| 121,926,770 | |
| Shares used in computing diluted net loss per ADS | |
| 123,767,013 | | |
| 122,247,009 | | |
| 121,275,391 | | |
| 121,275,391 | | |
| 123,602,039 | | |
| 121,926,770 | |
Note
1:
The
conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB7.2960 on the last
trading day of September (September 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 | |
| 798 | | |
| 1,049 | | |
| 2,312 | | |
| 317 | | |
| 4,753 | | |
| 4,620 | |
| Sales and marketing expenses | |
| 2,879 | | |
| 2,416 | | |
| 1,659 | | |
| 227 | | |
| 9,420 | | |
| 5,206 | |
| Research and development expenses | |
| 7,586 | | |
| 5,618 | | |
| (2,071 | ) | |
| (284 | ) | |
| 24,876 | | |
| 8,332 | |
| General and administrative expenses | |
| 4,801 | | |
| 3,261 | | |
| 3,255 | | |
| 447 | | |
| 14,633 | | |
| 9,837 | |
| YOUDAO, INC. | |
| |
| |
| |
| |
| |
|
| UNAUDITED ADDITIONAL INFORMATION | |
| |
|
| (RMB and USD in thousands) | |
| |
| |
| |
| |
| |
|
| | |
| |
| |
| |
| |
| |
|
| | |
Three Months Ended | |
Nine
Months Ended |
| | |
September 30, | |
June 30, | |
September 30, | |
September 30, | |
September 30, | |
September 30, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD | |
RMB | |
RMB |
| | |
| |
| |
| |
| |
| |
|
| Net revenues | |
| |
| |
| |
| |
| |
|
| Learning services | |
| 888,493 | | |
| 680,920 | | |
| 950,761 | | |
| 130,313 | | |
| 2,278,105 | | |
| 2,364,102 | |
| Smart devices | |
| 356,480 | | |
| 222,157 | | |
| 251,879 | | |
| 34,523 | | |
| 849,490 | | |
| 686,785 | |
| Online marketing services | |
| 157,461 | | |
| 303,557 | | |
| 336,143 | | |
| 46,072 | | |
| 431,605 | | |
| 857,800 | |
| Total net revenues | |
| 1,402,434 | | |
| 1,206,634 | | |
| 1,538,783 | | |
| 210,908 | | |
| 3,559,200 | | |
| 3,908,687 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Learning services | |
| 315,086 | | |
| 290,155 | | |
| 305,694 | | |
| 41,899 | | |
| 882,874 | | |
| 873,974 | |
| Smart devices | |
| 212,365 | | |
| 142,544 | | |
| 144,528 | | |
| 19,809 | | |
| 546,672 | | |
| 415,660 | |
| Online marketing services | |
| 114,803 | | |
| 206,760 | | |
| 228,925 | | |
| 31,377 | | |
| 317,925 | | |
| 590,392 | |
| Total cost of revenues | |
| 642,254 | | |
| 639,459 | | |
| 679,147 | | |
| 93,085 | | |
| 1,747,471 | | |
| 1,880,026 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross margin | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Learning services | |
| 64.5 | % | |
| 57.4 | % | |
| 67.8 | % | |
| 67.8 | % | |
| 61.2 | % | |
| 63.0 | % |
| Smart devices | |
| 40.4 | % | |
| 35.8 | % | |
| 42.6 | % | |
| 42.6 | % | |
| 35.6 | % | |
| 39.5 | % |
| Online marketing services | |
| 27.1 | % | |
| 31.9 | % | |
| 31.9 | % | |
| 31.9 | % | |
| 26.3 | % | |
| 31.2 | % |
| Total gross margin | |
| 54.2 | % | |
| 47.0 | % | |
| 55.9 | % | |
| 55.9 | % | |
| 50.9 | % | |
| 51.9 | % |
| YOUDAO, INC. | |
| |
| |
| |
| |
| |
|
| UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |
|
| (RMB and USD in thousands, except per ADS data) | |
| |
|
| | |
| |
| |
| |
| |
| |
|
| | |
Three
Months Ended | |
Nine
Months Ended |
| | |
September 30, | |
June 30, | |
September 30, | |
September 30, | |
September 30, | |
September 30, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD | |
RMB | |
RMB |
| | |
| |
| |
| |
| |
| |
|
| Net loss from continuing operations attributable
to ordinary shareholders of the Company | |
| (183,919 | ) | |
| (299,159 | ) | |
| (102,905 | ) | |
| (14,104 | ) | |
| (733,225 | ) | |
| (606,417 | ) |
| Add: share-based compensation | |
| 16,064 | | |
| 12,344 | | |
| 5,155 | | |
| 707 | | |
| 53,682 | | |
| 27,995 | |
| impairment
of long-term investments | |
| 3,500 | | |
| 3,240 | | |
| 30,500 | | |
| 4,180 | | |
| 8,500 | | |
| 33,740 | |
| Non-GAAP net loss from continuing operations attributable
to ordinary shareholders of the Company | |
| (164,355 | ) | |
| (283,575 | ) | |
| (67,250 | ) | |
| (9,217 | ) | |
| (671,043 | ) | |
| (544,682 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP basic net loss from continuing operations per ADS | |
| (1.33 | ) | |
| (2.32 | ) | |
| (0.55 | ) | |
| (0.08 | ) | |
| (5.43 | ) | |
| (4.47 | ) |
| Non-GAAP diluted net loss from continuing operations per ADS | |
| (1.33 | ) | |
| (2.32 | ) | |
| (0.55 | ) | |
| (0.08 | ) | |
| (5.43 | ) | |
| (4.47 | ) |
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