HANGZHOU,
China, Nov. 19, 2020
/PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE:
DAO), a leading intelligent learning company in China, today announced its unaudited financial
results for the third quarter ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Total net revenues were RMB896.0 million (US$132.0
million), a 159.0% increase from the same period in
2019.
- Net revenues from learning services and products were
RMB763.5 million (US$112.4 million), a 239.1% increase from the
same period in 2019.
- Net revenues from online marketing services were
RMB132.6 million (US$19.5 million), a 9.8% increase from the same
period in 2019.
- Gross billings of online
courses[1] increased 228.4%
year-over-year to RMB955.5 million (US$140.7 million) and gross billings of
Youdao Premium Courses[2] increased 308.6%
year-over-year to RMB877.0 million (US$129.2 million).
- Gross margin was 45.9%, compared with 25.8% for the
same period in 2019.
- Deferred revenue from online courses was
RMB992.4 million (US$146.2 million), compared with
RMB407.9 million as of
December 31, 2019.
[1] Gross billings is a non-GAAP
financial measure. Gross billings for a specific period refers
to the total amount of consideration for Youdao's online courses
sold on Youdao Premium Courses, NetEase Cloud Classroom and
China University MOOC, net of the total amount of refunds, in such
period. See "Non-GAAP Measures" and "Unaudited Reconciliation of
GAAP and non-GAAP Results" at the end of this press
release.
|
[2] Youdao Premium Courses are
Youdao's flagship online learning offerings primarily focused on
K-12 students, covering a wide spectrum of subject matters,
learning goals and areas of interest.
|
Third Quarter 2020 Key Operating and Financial Data
|
For the three
months ended September 30
|
|
|
|
(in millions,
RMB)
|
2019
|
|
|
|
2020
|
|
|
|
% of
Change
|
|
Gross billings of
online courses
|
290.9
|
|
|
|
955.5
|
|
|
|
228.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross billings of
Youdao Premium Courses
|
214.6
|
|
|
|
877.0
|
|
|
|
308.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid student enrollments
of Youdao Premium Courses (in thousands)
|
237.1
|
|
|
|
623.5
|
|
|
|
163.0%
|
|
|
K-12 paid
student enrollments
|
92.7
|
|
|
|
498.7
|
|
|
|
437.9%
|
|
|
Adult paid student
enrollments
|
144.4
|
|
|
|
124.8
|
|
|
|
-13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross billings per
paid student enrollment of Youdao Premium Courses (in RMB)
|
905
|
|
|
|
1,406
|
|
|
|
55.4%
|
|
|
"Significant increases in our K-12 Youdao Premium Course
enrollments drove our robust top-line growth in the third quarter,"
said Dr. Feng Zhou, Chief Executive
Officer and Director of Youdao. "With core operating and financial
improvements to our business and increased marketing, our online
courses reached RMB955.5 million in
gross billings, and gross margin of learning services expanded to
53.9% in the third quarter, up from just 26.7% a year ago. We also
continue to lead the market in intelligent learning devices, with
sales accelerating to RMB163.1
million, primarily from the K-12 population.
"As the online education market quickly gets more expansive and
more competitive, our unique product matrix, comprising online
courses, intelligent devices, and learning apps, enables us to
better address customer needs in innovative ways and to achieve
organic growth. We will continue to scale, delivering high quality
products and services to more students, to propel our long-term
growth." Dr. Zhou concluded.
Third Quarter 2020 Financial Results
Net Revenues
Net revenues for the third quarter of 2020 were RMB896.0 million (US$132.0
million), a 159.0% increase from RMB345.9 million for the same period of 2019.
Net revenues from learning services and products were
RMB763.5 million (US$112.4 million) for the third quarter of 2020,
a 239.1% increase from RMB225.2
million for the same period of 2019. The year-over-year
growth from learning services was primarily attributable to the
increased revenues generated from online courses, which were
further driven by a substantial increase in both the paid student
enrollments for K-12 courses of Youdao Premium Courses and gross
billings per paid student enrollment of Youdao Premium Courses. The
paid student enrollments for K-12 courses of Youdao Premium Courses
increased by 437.9% year-over-year to 498,700 in the third quarter
of 2020. Gross billings per paid student enrollment of Youdao
Premium Courses increased by 55.4% year-over-year to RMB1,406 in the third quarter of 2020. Revenues
generated from Youdao's intelligent learning products also
increased by 289.3% year-over-year to RMB163.1 million (US$24.0
million) in the third quarter of 2020, which was primarily
driven by the expanded sales volume of Youdao Dictionary Pen.
Net revenues from online marketing services were RMB132.6 million (US$19.5
million) for the third quarter of 2020, a 9.8% increase from
RMB120.8 million for the same period
in 2019.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2020 was RMB411.6 million (US$60.6
million), a 361.2% increase from RMB89.2 million for the same period of 2019.
Gross margin increased to 45.9% for the third quarter of 2020 from
25.8% for the same period of 2019.
Gross margin for learning services and products increased to
48.8% for the third quarter of 2020 from 27.5% for the same period
of 2019, primarily attributable to improved gross margin in online
courses, which was positively impacted by improved economies of
scale and the continuous optimization of Youdao's faculty
compensation structure.
Gross margin for online marketing services was 29.5% for the
third quarter of 2020, compared with 22.6% for the same period of
2019. The increase was mainly attributable to more revenue
generated from brand advertising services, which carry a higher
gross margin profile.
Operating Expenses
Total operating expenses for the third quarter of 2020 were
RMB1.3 billion (US$192.3 million), representing an increase of
303.0%, compared with RMB324.0
million for the same period of last year.
Sales and marketing expenses for the third quarter of 2020 were
RMB1.1 billion (US$169.1 million), representing an increase of
397.0%, compared with RMB231.0
million for the same period of 2019. This increase was
mainly driven by intensified sales and marketing efforts associated
with student acquisition and branding enhancement during Youdao's
summer campaign, as well as increased compensation expenses related
to the expansion of the sales and marketing team for Youdao's
online courses.
Research and development expenses for the third quarter of 2020
were RMB121.0 million (US$17.8 million), representing an increase of
61.5%, compared with RMB74.9 million
for the same period of 2019. The increase was primarily due to
increased payroll-related expenses including share-based
compensation expenses, as well as rental and facility expenses
associated with an increased number of course development and
technology professionals.
General and administrative expenses for the third quarter of
2020 were RMB36.6 million
(US$5.4 million), representing an
increase of 102.7%, compared with RMB18.1 million for the same period of 2019. The
increase was mainly attributable to increased payroll-related
expenses including share-based compensation expenses charged
in the third quarter of 2020.
Loss from Operations
Loss from operations for the third quarter of 2020 was
RMB894.0 million (US$131.7 million), compared with RMB234.7 million for the same period in 2019. The
margin of loss from operations was 99.8%, compared with 67.9% for
the same period of last year.
Net Loss Attributable to Youdao's Ordinary
Shareholders
Net loss attributable to Youdao's ordinary shareholders for the
third quarter of 2020 was RMB877.8
million (US$129.3 million),
compared with RMB242.2 million for
the same period of last year. Non-GAAP net loss attributable to
Youdao's ordinary shareholders for the third quarter of 2020 was
RMB865.7 million (US$127.5 million), compared with RMB238.8 million for the same period of last
year.
Basic and diluted net loss per American Depositary Share ("ADS")
attributable to ordinary shareholders for the third quarter of 2020
was RMB7.73 (US$1.14), compared with RMB2.63 for the same period of 2019. Non-GAAP
basic and diluted net loss per ADS attributable to ordinary
shareholders was RMB7.63 (US$1.12), compared with RMB2.60 for the same period of 2019.
Balance Sheet
As of September 30, 2020, Youdao's
cash, cash equivalents, time deposits and short-term investments
totaled RMB1.1 billion (US$166.9 million), compared with RMB1.6 billion as of December 31, 2019. The decrease was primarily
attributable to more payment made due to increased sales and
marketing activities during the summer campaign. For the third
quarter of 2020, net cash used in operating activities was
RMB593.4 million (US$87.4 million), capital expenditures totaled
RMB12.1 million (US$1.8 million), and depreciation and
amortization expenses amounted to RMB4.3
million (US$0.6 million).
As of September 30, 2020, the
Company's contract liabilities, which mainly consist of deferred
revenues generated from Youdao's online courses, were RMB1.1 billion (US$156.9
million), representing an increase of 133.3% from
RMB456.8 million as of December 31, 2019.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 6:00 a.m. Eastern
Time on Thursday, November 19, 2020 (Beijing/Hong Kong Time: 7:00 p.m., Thursday,
November 19, 2020). 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:
|
10149588
|
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 26, 2020:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
10149588
|
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading intelligent learning
company 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,
Youdao Cloudnote and Youdao Translation, Youdao now offers online
courses covering a wide spectrum of age groups, subject matters,
learning goals and areas of interest. In addition, Youdao has
developed a variety of interactive learning apps and smart learning
devices. 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
gross billings and non-GAAP net income/(loss) attributable to the
Company's ordinary shareholders and non-GAAP basic and diluted
earnings/(loss) 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 gross billings for a specific period as the total
amount of consideration for online courses sold on Youdao
Premium Courses, NetEase Cloud Classroom and China
University MOOC, net of the total amount of refunds, in such
period. The management uses gross billings as a performance
measurement because the Company generally bills students for the
entire course tuition at the time of sale of the courses and
recognizes revenue proportionally over an average of the learning
periods of different online courses. Youdao defines non-GAAP net
income/(loss) attributable to the Company's ordinary shareholders
as net income/(loss) attributable to the Company's ordinary
shareholders excluding share-based compensation expenses. Non-GAAP
net income/(loss) attributable to the Company's shareholders
enables Youdao's management to assess its operating results without
considering the impact of share-based compensation expenses, which
are non-cash charges. 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 does
not reflect all items of expense that affect our operations.
Share-based compensation expenses have been and may continue to be
incurred in our business and are not reflected in the presentation
of non-GAAP net income/(loss) attributable to the Company's
ordinary shareholders. 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.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from or as a substitute for
the financial information prepared and presented in accordance with
GAAP. 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 tables have more details on the reconciliations
between our GAAP financial measures that are most 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 RMB6.7896 to US$1.00, the exchange rate on September 30, 2020 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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. 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:
Regina Wang
Youdao, Inc.
Tel: +86-10-8255-8963
E-mail: IR@rd.netease.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
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 September
30,
|
|
As of September
30,
|
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
173,328
|
|
77,975
|
|
11,484
|
|
Time
deposits
|
|
1,325,737
|
|
817,475
|
|
120,401
|
|
Short-term
investments
|
|
121,126
|
|
237,418
|
|
34,968
|
|
Accounts
receivable, net
|
|
200,675
|
|
334,329
|
|
49,241
|
|
Inventories,
net
|
|
73,225
|
|
91,938
|
|
13,541
|
|
Amounts due
from NetEase Group
|
|
14,930
|
|
5,728
|
|
844
|
|
Prepayment and
other current assets
|
|
120,891
|
|
200,584
|
|
29,544
|
|
Total current
assets
|
|
2,029,912
|
|
1,765,447
|
|
260,023
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
24,551
|
|
39,488
|
|
5,816
|
|
Operating
lease right-of-use assets, net
|
|
23,873
|
|
83,463
|
|
12,293
|
|
Other assets,
net
|
|
8,128
|
|
26,776
|
|
3,943
|
|
Total non-current
assets
|
|
56,552
|
|
149,727
|
|
22,052
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,086,464
|
|
1,915,174
|
|
282,075
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity/(Deficit)
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payables
|
|
62,675
|
|
119,175
|
|
17,553
|
|
Payroll
payable
|
|
94,488
|
|
97,045
|
|
14,293
|
|
Amounts due to
NetEase Group
|
|
48,126
|
|
38,116
|
|
5,614
|
|
Contract
liabilities
|
|
456,805
|
|
1,065,563
|
|
156,940
|
|
Taxes
payable
|
|
25,977
|
|
35,501
|
|
5,229
|
|
Accrued
liabilities and other payables
|
|
192,643
|
|
583,497
|
|
85,940
|
|
Short-term
loans from NetEase Group
|
|
878,000
|
|
878,000
|
|
129,315
|
|
Total current
liabilities
|
|
1,758,714
|
|
2,816,897
|
|
414,884
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term
lease liabilities
|
|
21,206
|
|
65,279
|
|
9,615
|
|
Other
non-current liabilities
|
|
5,517
|
|
4,394
|
|
647
|
|
Total non-current
liabilities
|
|
26,723
|
|
69,673
|
|
10,262
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,785,437
|
|
2,886,570
|
|
425,146
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity/(deficit):
|
|
|
|
|
|
|
|
Youdao's
shareholders' equity/(deficit)
|
|
300,091
|
|
(972,573)
|
|
(143,244)
|
|
Noncontrolling interests
|
|
936
|
|
1,177
|
|
173
|
|
Total
shareholders' equity/(deficit)
|
|
301,027
|
|
(971,396)
|
|
(143,071)
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity/(deficit)
|
|
2,086,464
|
|
1,915,174
|
|
282,075
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.7896 on the last
trading
day of September (September 30, 2020) 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,
|
|
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
RMB
|
|
RMB
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
183,256
|
|
433,697
|
|
600,350
|
|
88,422
|
|
454,980
|
|
1,423,025
|
|
|
Online
marketing services
|
|
120,753
|
|
103,212
|
|
132,585
|
|
19,528
|
|
354,494
|
|
335,047
|
|
|
Learning
products
|
|
41,899
|
|
86,381
|
|
163,106
|
|
24,023
|
|
84,977
|
|
302,647
|
|
|
Total net
revenues
|
|
345,908
|
|
623,290
|
|
896,041
|
|
131,973
|
|
894,451
|
|
2,060,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues(2):
|
|
(256,674)
|
|
(341,751)
|
|
(484,488)
|
|
(71,357)
|
|
(646,259)
|
|
(1,131,902)
|
|
|
Gross
profit
|
|
89,234
|
|
281,539
|
|
411,553
|
|
60,616
|
|
248,192
|
|
928,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses (2)
|
|
(230,975)
|
|
(445,151)
|
|
(1,147,927)
|
|
(169,073)
|
|
(417,111)
|
|
(1,892,237)
|
|
|
Research and
development expenses (2)
|
|
(74,929)
|
|
(91,423)
|
|
(120,991)
|
|
(17,820)
|
|
(186,113)
|
|
(296,513)
|
|
|
General and
administrative expenses (2)
|
|
(18,072)
|
|
(27,978)
|
|
(36,639)
|
|
(5,396)
|
|
(41,856)
|
|
(93,080)
|
|
|
Total operating
expenses
|
|
(323,976)
|
|
(564,552)
|
|
(1,305,557)
|
|
(192,289)
|
|
(645,080)
|
|
(2,281,830)
|
|
|
Loss from
operations
|
|
(234,742)
|
|
(283,013)
|
|
(894,004)
|
|
(131,673)
|
|
(396,888)
|
|
(1,353,013)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
(expense)/income, net
|
|
(4,071)
|
|
(424)
|
|
(1,217)
|
|
(179)
|
|
(16,433)
|
|
(1,518)
|
|
|
Others,
net
|
|
8,939
|
|
25,619
|
|
17,352
|
|
2,556
|
|
17,192
|
|
51,547
|
|
|
Loss before
tax
|
|
(229,874)
|
|
(257,818)
|
|
(877,869)
|
|
(129,296)
|
|
(396,129)
|
|
(1,302,984)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
(802)
|
|
(9)
|
|
(240)
|
|
(35)
|
|
(2,441)
|
|
(2,434)
|
|
|
Net
loss
|
|
(230,676)
|
|
(257,827)
|
|
(878,109)
|
|
(129,331)
|
|
(398,570)
|
|
(1,305,418)
|
|
|
Net
(income)/loss attributable to noncontrolling interests
|
|
(454)
|
|
21
|
|
304
|
|
44
|
|
(935)
|
|
383
|
|
|
Net loss
attributable to the Company
|
|
(231,130)
|
|
(257,806)
|
|
(877,805)
|
|
(129,287)
|
|
(399,505)
|
|
(1,305,035)
|
|
|
Accretions of
convertible redeemable preferred shares to redemption
value
|
|
(11,053)
|
|
-
|
|
-
|
|
-
|
|
(32,209)
|
|
-
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(242,183)
|
|
(257,806)
|
|
(877,805)
|
|
(129,287)
|
|
(431,714)
|
|
(1,305,035)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS
|
|
(2.63)
|
|
(2.30)
|
|
(7.73)
|
|
(1.14)
|
|
(4.69)
|
|
(11.60)
|
|
|
Diluted net loss per
ADS
|
|
(2.63)
|
|
(2.30)
|
|
(7.73)
|
|
(1.14)
|
|
(4.69)
|
|
(11.60)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net loss per ADS
|
|
92,000,000
|
|
112,277,976
|
|
113,495,422
|
|
113,495,422
|
|
92,000,000
|
|
112,517,299
|
|
|
Shares used in
computing diluted net loss per ADS
|
|
92,000,000
|
|
112,277,976
|
|
113,495,422
|
|
113,495,422
|
|
92,000,000
|
|
112,517,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.7896 on the last
trading day of September (September 30, 2020)
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
|
|
540
|
|
1,043
|
|
1,665
|
|
245
|
|
1,447
|
|
3,876
|
|
|
Sales and marketing
expenses
|
|
(92)
|
|
808
|
|
2,071
|
|
305
|
|
688
|
|
3,790
|
|
|
Research and
development expenses
|
|
1,020
|
|
3,016
|
|
5,418
|
|
798
|
|
1,061
|
|
11,577
|
|
|
General and
administrative expenses
|
|
1,903
|
|
2,394
|
|
2,917
|
|
430
|
|
2,302
|
|
7,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services and products
|
|
225,155
|
|
520,078
|
|
763,456
|
|
112,445
|
|
539,957
|
|
1,725,672
|
Online
marketing services
|
|
120,753
|
|
103,212
|
|
132,585
|
|
19,528
|
|
354,494
|
|
335,047
|
Total net
revenues
|
|
345,908
|
|
623,290
|
|
896,041
|
|
131,973
|
|
894,451
|
|
2,060,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services and products
|
|
163,225
|
|
267,942
|
|
391,037
|
|
57,593
|
|
400,035
|
|
885,756
|
Online
marketing services
|
|
93,449
|
|
73,809
|
|
93,451
|
|
13,764
|
|
246,224
|
|
246,146
|
Total cost of
revenues
|
|
256,674
|
|
341,751
|
|
484,488
|
|
71,357
|
|
646,259
|
|
1,131,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services and products
|
|
27.5%
|
|
48.5%
|
|
48.8%
|
|
48.8%
|
|
25.9%
|
|
48.7%
|
Online
marketing services
|
|
22.6%
|
|
28.5%
|
|
29.5%
|
|
29.5%
|
|
30.5%
|
|
26.5%
|
Total gross
margin
|
|
25.8%
|
|
45.2%
|
|
45.9%
|
|
45.9%
|
|
27.7%
|
|
45.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
online courses
|
|
163,389
|
|
394,596
|
|
567,044
|
|
83,517
|
|
391,622
|
|
1,317,440
|
Add: value-added
tax
|
|
16,468
|
|
38,687
|
|
54,083
|
|
7,966
|
|
33,551
|
|
114,118
|
Add: ending deferred
revenue
|
|
296,693
|
|
658,052
|
|
992,393
|
|
146,164
|
|
296,693
|
|
992,393
|
Less: beginning
deferred revenue
|
|
(185,622)
|
|
(549,317)
|
|
(658,052)
|
|
(96,921)
|
|
(129,144)
|
|
(407,861)
|
Non-GAAP gross
billings of online courses
|
|
290,928
|
|
542,018
|
|
955,468
|
|
140,726
|
|
592,722
|
|
2,016,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
Youdao Premium Courses
|
|
116,529
|
|
332,202
|
|
496,508
|
|
73,128
|
|
307,818
|
|
1,130,235
|
Add: value-added
tax
|
|
12,148
|
|
33,044
|
|
49,643
|
|
7,312
|
|
26,510
|
|
100,779
|
Add: ending deferred
revenue
|
|
243,128
|
|
562,643
|
|
893,517
|
|
131,601
|
|
243,128
|
|
893,517
|
Less: beginning
deferred revenue
|
|
(157,184)
|
|
(470,668)
|
|
(562,643)
|
|
(82,868)
|
|
(109,105)
|
|
(344,111)
|
Non-GAAP gross
billings of Youdao Premium Courses
|
|
214,621
|
|
457,221
|
|
877,025
|
|
129,173
|
|
468,351
|
|
1,780,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(242,183)
|
|
(257,806)
|
|
(877,805)
|
|
(129,287)
|
|
(431,714)
|
|
(1,305,035)
|
Add: share-based
compensation
|
|
3,371
|
|
7,261
|
|
12,071
|
|
1,778
|
|
5,498
|
|
26,901
|
Non-GAAP net loss
attributable to ordinary shareholders of the
Company
|
|
(238,812)
|
|
(250,545)
|
|
(865,734)
|
|
(127,509)
|
|
(426,216)
|
|
(1,278,134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
loss per ADS
|
|
(2.60)
|
|
(2.23)
|
|
(7.63)
|
|
(1.12)
|
|
(4.63)
|
|
(11.36)
|
Non-GAAP diluted net
loss per ADS
|
|
(2.60)
|
|
(2.23)
|
|
(7.63)
|
|
(1.12)
|
|
(4.63)
|
|
(11.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/youdao-reports-third-quarter-2020-unaudited-financial-results-301176796.html
SOURCE Youdao, Inc.