HANGZHOU, China, Feb. 25, 2021 /PRNewswire/ -- Youdao, Inc.
("Youdao" or the "Company") (NYSE: DAO), a leading intelligent
learning company in China, today
announced its unaudited financial results for the fourth quarter
and fiscal year ended December 31,
2020.
Fourth Quarter 2020 Financial Highlights
- Total net revenues were RMB1.1
billion (US$169.6 million),
representing a 169.7% increase from the same period in 2019.
- Net revenues from learning services were RMB731.6 million (US$112.1
million), representing a 198.8% increase from the same
period in 2019.
- Net revenues from learning products were RMB237.3 million (US$36.4
million), representing a 253.8% increase from the same
period in 2019.
- Net revenues from online marketing services were
RMB137.8 million (US$21.1 million), representing a 39.9% increase
from the same period in 2019.
- Gross billings of online courses[1]
increased by 222.8% year-over-year to RMB1.1
billion (US$171.5 million) and
gross billings of Youdao Premium Courses[2] increased by
268.8% year-over-year to RMB1.0
billion (US$158.8
million).
- Gross margin was 47.5%, compared with 29.8% for the
same period in 2019.
- Deferred revenue from online courses was
RMB1.4 billion (US$207.8 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.
|
Fourth Quarter
2020 Key Operating and Financial Data
|
|
For the three
months
ended December 31
|
|
|
(in millions,
RMB)
|
2019
|
|
2020
|
|
% of
Change
|
Gross billings of
online courses
|
346.7
|
|
1,119.3
|
|
222.8%
|
|
Gross billings of
Youdao Premium Courses
|
281.0
|
|
1,036.4
|
|
268.8%
|
|
|
|
|
|
Paid student
enrollments of Youdao Premium Courses (in
thousands)
|
258.3
|
|
796.2
|
|
208.2%
|
K-12
paid student enrollments
|
161.1
|
|
659.2
|
|
309.3%
|
Adult paid
student enrollments
|
97.2
|
|
137.0
|
|
40.8%
|
|
|
|
|
|
Gross billings per
paid student enrollment of Youdao Premium Courses(in
RMB)
|
1,088
|
|
1,302
|
|
19.7%
|
|
|
|
|
Fiscal Year 2020 Financial Highlights
- Total net revenues were RMB3.2
billion (US$485.4 million),
representing a 142.7% increase from 2019.
- Net revenues from learning services were RMB2.2 billion (US$330.2
million), representing a 207.9% increase from 2019.
- Net revenues from learning products were RMB540.0 million (US$82.8
million), representing a 255.1% increase from 2019.
- Net revenues from online marketing services were
RMB472.9 million (US$72.5 million), representing a 4.4% increase
from 2019.
- Gross billings of online
courses increased by 233.7% year-over-year to
RMB3.1 billion (US$480.5 million) and gross billings of
Youdao Premium Courses increased by 275.9% year-over-year to
RMB2.8 billion (US$431.7 million).
- Gross margin was 45.9%, compared with 28.4% for
2019.
Fiscal Year 2020
Key Operating and Financial Data
|
|
For the year
ended
December 31
|
|
|
(in millions,
RMB)
|
2019
|
|
2020
|
|
% of
Change
|
Gross billings of
online courses
|
939.5
|
|
3,135.4
|
|
233.7%
|
|
|
|
|
|
|
Gross billings of
Youdao Premium Courses
|
749.4
|
|
2,816.8
|
|
275.9%
|
|
|
|
|
|
|
Paid student
enrollments of Youdao Premium
Courses (in thousands)
|
833.4
|
|
2,096.9
|
|
151.6%
|
K-12
paid student enrollments
|
358.8
|
|
1,639.6
|
|
357.0%
|
Adult paid
student enrollments
|
474.6
|
|
457.3
|
|
-3.6%
|
|
|
|
|
|
|
Gross billings per
paid student enrollment of Youdao Premium Courses (in
RMB)
|
899
|
|
1,343
|
|
49.4%
|
"2020 was a banner year for Youdao. We made great financial and
operational strides across our business, closing the year with
excellent top line growth and positive operating cash flow in Q1,
Q2 and Q4," said Dr. Feng Zhou,
Chief Executive Officer and Director of Youdao. "Our learning
services and learning products segments prospered in the fourth
quarter, led by our robust K-12 segment. Total gross billings of
online courses climbed to RMB1.1
billion in the fourth quarter, up by 223% year-over-year and
17% quarter-over-quarter. We also introduced our Youdao Dictionary
Pen 3.0, driving our total learning
products sales to RMB237.3
million in the fourth quarter, up by 254%
year-over-year.
"Retention rates remain strong. We continue to invest in our
business and make great endeavors
to drive sustainable and healthy growth. As we move into 2021, we
will continue to refine the content of our online courses, upgrade
our online learning products, and offer better and more comprehensive user experiences for
our customers," Dr. Zhou concluded.
Fourth Quarter 2020 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2020 were RMB1.1 billion (US$169.6
million), representing a 169.7% increase from RMB410.4 million for the same period of 2019.
Net revenues from learning services were RMB731.6 million (US$112.1
million) for the fourth quarter of 2020, representing a
198.8% increase from RMB244.8 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
309.3% year-over-year to 659,200 in the fourth quarter of 2020.
Gross billings per paid student enrollment of Youdao Premium
Courses increased by 19.7% year-over-year to RMB1,302 in the fourth quarter of 2020.
Net revenues from learning products were RMB237.3 million (US$36.4
million) for the fourth quarter of 2020, a 253.8% increase
from RMB67.1 million for the same
period in 2019, which was primarily driven by the substantially
increased sales volume of Youdao Dictionary Pen.
Net revenues from online marketing services were RMB137.8 million (US$21.1
million) for the fourth quarter of 2020, representing a
39.9% increase from RMB98.5 million
for the same period in 2019. The year-over-year increase in
revenues from online marketing services was attributable to the
increase in performance-based advertisement through third parties'
internet properties.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2020 was RMB525.5 million (US$80.5
million), representing a 329.2% increase from RMB122.4 million for the same period of 2019.
Gross margin increased to 47.5% for the fourth quarter of 2020 from
29.8% for the same period of 2019.
Gross margin for learning services increased to 53.9% for the
fourth quarter of 2020 from 30.0% for the same period of 2019. The
increase was due to improved economies of scale and the continuous
optimization of Youdao's faculty compensation structure.
Gross margin for learning products increased to 39.5% for the
fourth quarter of 2020 from 26.7% for the same period of 2019. The
improvement was mainly attributable to the substantially increased
sales volume of Youdao Dictionary Pen, which carry a higher gross
margin profile than other learning products.
Gross margin for online marketing services was 26.9% for the
fourth quarter of 2020, compared with 31.6% for the same period of
2019. The decrease was mainly attributable to the increase in
performance-based advertisements through third parties' internet
properties, which typically have a lower gross margin profile.
Operating Expenses
Total operating expenses for the fourth quarter of 2020 were
RMB978.2 million (US$149.9 million), representing an increase of
199.7%, compared with RMB326.5
million for the same period of last year.
Sales and marketing expenses for the fourth quarter of 2020 were
RMB804.8 million (US$123.3 million), representing an increase of
291.1%, compared with RMB205.8
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, as well as
increased compensation expenses incurred due to the expansion of
the sales and marketing team for Youdao's online courses.
Research and development expenses for the fourth quarter of 2020
were RMB128.1 million (US$19.6 million), representing an increase of
43.5%, compared with RMB89.3 million
for the same period of 2019. The increase was primarily due to
increased payroll-related expenses including share-based
compensation expenses associated with an increased number of course
development and technology professionals, as well as increased
server and technical expenses due to the increased scale of online
courses.
General and administrative expenses for the fourth quarter of
2020 were RMB45.4 million
(US$7.0 million), representing an
increase of 44.4%, compared with RMB31.4 million for the same period of 2019. The
increase was mainly attributable to the increase in employee
headcount and related expenses in the fourth quarter of 2020.
Loss from Operations
Loss from operations for the fourth quarter of 2020 was
RMB452.8 million (US$69.4 million), compared with RMB204.0 million for the same period in 2019. The
margin of loss from operations was 40.9%, compared with 49.7% 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
fourth quarter of 2020 was RMB447.8
million (US$68.6 million),
compared with RMB205.7 million for
the same period of last year. Non-GAAP net loss attributable to
Youdao's ordinary shareholders for the fourth quarter of 2020 was
RMB433.1 million (US$66.4 million), compared with RMB186.1 million for the same period of last
year.
Basic and diluted net loss per American Depositary Share ("ADS")
attributable to ordinary shareholders for the fourth quarter of
2020 was RMB3.93 (US$0.60), compared with RMB1.95 for the same period of 2019. Non-GAAP
basic and diluted net loss per ADS attributable to ordinary
shareholders was RMB3.80 (US$0.58), compared with RMB1.76 for the same period of 2019.
Balance Sheet
As of December 31, 2020, Youdao's
cash, cash equivalents, time deposits and short-term investments
totaled RMB1.2 billion (US$183.1 million), compared with RMB1.6 billion as of December 31, 2019. For the fourth quarter of
2020, net cash provided by operating activities was RMB129.2 million (US$19.8
million), capital expenditures totaled RMB15.9 million (US$2.4
million), and depreciation and amortization expenses
amounted to RMB4.8 million
(US$0.7 million).
As of December 31, 2020, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's online courses, were RMB1.4 billion (US$220.8
million), representing an increase of 215.3% from
RMB456.8 million as of December 31, 2019.
Fiscal Year 2020 Financial Results
Net Revenues
Net revenues for 2020 were RMB3.2
billion (US$485.4 million),
representing a 142.7% increase from RMB1.3
billion for 2019.
Net revenues from learning services were RMB2.2 billion (US$330.2
million) for 2020, representing a 207.9% increase from
RMB699.8 million for 2019. The
increase 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
357.0% year-over-year to 1.6 million in 2020. Gross billings per
paid student enrollment of Youdao Premium Courses increased by
49.4% year-over-year to RMB1,343 in
2020.
Net revenues from learning products were RMB540.0 million (US$82.8
million) for 2020, representing a 255.1% increase from
RMB152.0 million for 2019. The
increase was primarily attributable to the significant increase in
sales volume of Youdao Dictionary Pen due to its growing
popularity.
Net revenues from online marketing services were RMB472.9 million (US$72.5
million) for 2020, representing a 4.4% increase from
RMB453.0 million for 2019.
Gross Profit and Gross Margin
Gross profit for 2020 was RMB1.5
billion (US$222.9 million),
compared with RMB370.6 million for
2019. Gross margin for 2020 was 45.9%, compared with 28.4% for
2019.
Gross margin for learning services increased to 53.1% for 2020
from 26.7% for 2019, primarily attributable to improved economies
of scale and faculty compensation structure optimization.
Gross margin for learning products increased to 34.1% for 2020
from 29.2% for 2019, primarily attributable to more revenue arising
from the sales of Youdao Dictionary Pen, which carried a higher
gross margin profile than other products.
Gross margin for online marketing services was 26.6% for 2020,
compared with 30.8% for 2019. The decrease was mainly attributable
to the distribution of advertisements through third parties'
internet properties, which had a lower gross margin than last
year.
Operating Expenses
Total operating expenses for 2020 were RMB3.3 billion (US$499.6
million), compared with RMB971.5
million for 2019.
Sales and marketing expenses for 2020 were RMB2.7 billion (US$413.3
million), compared with RMB622.9
million for 2019. The increase was mainly driven by
intensified sales and marketing efforts associated with student
acquisition and branding enhancement, as well as increased
compensation expenses incurred by the expansion of the sales and
marketing team for Youdao's online courses.
Research and development expenses for 2020 were RMB424.6 million (US$65.1
million), an increase of 54.2%, compared with RMB275.4 million for 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 2020 increased to
RMB138.5 million (US$21.2 million) from RMB73.3 million for 2019. The increase was mainly
attributable to increased payroll-related expenses, fees paid to
third-party professional service providers and increased credit
losses allowance on accounts receivable.
Loss from Operations
Loss from operations for 2020 was RMB1.8
billion (US$276.7 million),
compared with RMB600.9 million for
2019. The margin of loss from operations was 57.0%, compared with
46.1% for 2019.
Net Loss Attributable to Youdao's Ordinary
Shareholders
Net loss attributable to Youdao's ordinary shareholders for 2020
was RMB1.8 billion (US$268.6 million), compared with RMB637.4 million for 2019. Non-GAAP net loss
attributable to Youdao's ordinary shareholders for 2020 was
RMB1.7 billion (US$262.3 million), compared with RMB612.3 million for 2019.
Basic and diluted net loss per ADS attributable to ordinary
shareholders for 2020 was RMB15.53
(US$2.38), compared with RMB6.68 for 2019. Non-GAAP basic and diluted net
loss per ADS attributable to ordinary shareholders was RMB15.16 (US$2.32),
compared with RMB6.42 for 2019.
Operating Cash Flow
For 2020, net cash used in operating activities was RMB321.6 million (US$49.3
million), capital expenditures totaled RMB36.9 million (US$5.6
million), and depreciation and amortization expenses
amounted to RMB16.1 million
(US$2.5 million).
Completion of public offering of ADSs
The Company completed a public offering of 7,000,000 ADSs with a
total net proceeds of approximately US$232
million after deducting the underwriter commissions and
relevant offering expenses in February
2021.
Change in Segment Reporting
To better reflect management's perspective and match the segment
presentation with recent business developments, the Company changed
its segment disclosure to separately report the results of its
learning products business. As a result, since the fourth quarter
of 2020 the Company has reported the following segments: learning
services, learning products and online marketing services. The
Company has retrospectively revised prior period segment
information to conform to current period presentation. This change
in segment reporting aligns with the manner in which the Company's
chief operating decision maker ("CODM") currently receives and uses
financial information to allocate resources and evaluate the
performance of the Company's reporting segments.
Notes to Unaudited Financial Information
The unaudited financial information disclosed in this press
release is preliminary. The audit of the financial statements and
related notes to be included in the Company's annual report on Form
20-F for the year ended December 31,
2020 is still in progress. In addition, because an audit of
the Company's internal controls over financial reporting in
connection with section 404 of the Sarbanes-Oxley Act of 2002 has
not yet been completed, the Company makes no representation as to
the effectiveness of those internal controls as of the end of
fiscal year 2020.
Adjustments to the financial statements may be identified when
the audit work is completed, which could result in differences
between the Company's audited financial statements and this
preliminary unaudited financial information.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 6:00 a.m. Eastern
Time on Thursday, February 25, 2021 (Beijing/Hong Kong Time: 7:00 p.m., Thursday, February 25,
2021). 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:
|
10151994
|
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 4, 2021:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
10151994
|
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
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 RMB6.5250 to US$1.00, the exchange rate on December 31, 2020 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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:
Jeffrey 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 December
31,
|
|
As of December
31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
173,328
|
|
609,199
|
|
93,364
|
Time
deposits
|
|
1,325,737
|
|
263
|
|
40
|
Short-term
investments
|
|
121,126
|
|
584,999
|
|
89,655
|
Accounts
receivable, net
|
|
200,675
|
|
268,830
|
|
41,200
|
Inventories,
net
|
|
73,225
|
|
148,662
|
|
22,783
|
Amounts due
from NetEase Group
|
|
14,930
|
|
4,081
|
|
625
|
Prepayment and
other current assets
|
|
120,891
|
|
235,532
|
|
36,098
|
Total current
assets
|
|
2,029,912
|
|
1,851,566
|
|
283,765
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
24,551
|
|
45,636
|
|
6,994
|
Operating
lease right-of-use assets, net
|
|
23,873
|
|
105,865
|
|
16,225
|
Other assets,
net
|
|
8,128
|
|
67,181
|
|
10,295
|
Total non-current
assets
|
|
56,552
|
|
218,682
|
|
33,514
|
|
|
|
|
|
|
|
Total
assets
|
|
2,086,464
|
|
2,070,248
|
|
317,279
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity/(Deficit)
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payables
|
|
62,675
|
|
141,304
|
|
21,656
|
Payroll
payable
|
|
94,488
|
|
209,603
|
|
32,123
|
Amounts due to
NetEase Group
|
|
48,126
|
|
67,230
|
|
10,303
|
Contract
liabilities
|
|
456,805
|
|
1,440,489
|
|
220,765
|
Taxes
payable
|
|
25,977
|
|
54,895
|
|
8,413
|
Accrued
liabilities and other payables
|
|
192,643
|
|
602,044
|
|
92,267
|
Short-term
loans from NetEase Group
|
|
878,000
|
|
878,000
|
|
134,559
|
Total current
liabilities
|
|
1,758,714
|
|
3,393,565
|
|
520,086
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
lease liabilities
|
|
21,206
|
|
79,748
|
|
12,222
|
Other
non-current liabilities
|
|
5,517
|
|
4,043
|
|
620
|
Total non-current
liabilities
|
|
26,723
|
|
83,791
|
|
12,842
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,785,437
|
|
3,477,356
|
|
532,928
|
|
|
|
|
|
|
|
Shareholders'
equity/(deficit):
|
|
|
|
|
|
|
Youdao's
shareholders' equity/(deficit)
|
|
300,091
|
|
(1,408,105)
|
|
(215,802)
|
Noncontrolling
interests
|
|
936
|
|
997
|
|
153
|
Total
shareholders' equity/(deficit)
|
|
301,027
|
|
(1,407,108)
|
|
(215,649)
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity/(deficit)
|
|
2,086,464
|
|
2,070,248
|
|
317,279
|
|
|
|
|
|
|
|
Note 1:
|
|
|
|
|
|
|
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.5250 on the last trading
day of December (December 31, 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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
244,846
|
|
600,350
|
|
731,644
|
|
112,130
|
|
699,826
|
|
2,154,669
|
Learning
products
|
|
67,067
|
|
163,106
|
|
237,315
|
|
36,370
|
|
152,044
|
|
539,962
|
Online
marketing services
|
|
98,519
|
|
132,585
|
|
137,837
|
|
21,124
|
|
453,013
|
|
472,884
|
Total net
revenues
|
|
410,432
|
|
896,041
|
|
1,106,796
|
|
169,624
|
|
1,304,883
|
|
3,167,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2):
|
|
(288,002)
|
|
(484,488)
|
|
(581,327)
|
|
(89,092)
|
|
(934,261)
|
|
(1,713,229)
|
Gross
profit
|
|
122,430
|
|
411,553
|
|
525,469
|
|
80,532
|
|
370,622
|
|
1,454,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses (2)
|
|
(205,773)
|
|
(1,147,927)
|
|
(804,781)
|
|
(123,338)
|
|
(622,884)
|
|
(2,697,018)
|
Research and
development expenses (2)
|
|
(89,254)
|
|
(120,991)
|
|
(128,080)
|
|
(19,629)
|
|
(275,367)
|
|
(424,593)
|
General and
administrative expenses (2)
|
|
(31,433)
|
|
(36,639)
|
|
(45,379)
|
|
(6,955)
|
|
(73,289)
|
|
(138,459)
|
Total operating
expenses
|
|
(326,460)
|
|
(1,305,557)
|
|
(978,240)
|
|
(149,922)
|
|
(971,540)
|
|
(3,260,070)
|
Loss from
operations
|
|
(204,030)
|
|
(894,004)
|
|
(452,771)
|
|
(69,390)
|
|
(600,918)
|
|
(1,805,784)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
(expense)/income, net
|
|
(1,736)
|
|
(1,217)
|
|
(4,173)
|
|
(640)
|
|
(18,169)
|
|
(5,691)
|
Others,
net
|
|
2,872
|
|
17,352
|
|
9,505
|
|
1,457
|
|
20,064
|
|
61,052
|
Loss before
tax
|
|
(202,894)
|
|
(877,869)
|
|
(447,439)
|
|
(68,573)
|
|
(599,023)
|
|
(1,750,423)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
|
9
|
|
(240)
|
|
(495)
|
|
(76)
|
|
(2,432)
|
|
(2,929)
|
Net
loss
|
|
(202,885)
|
|
(878,109)
|
|
(447,934)
|
|
(68,649)
|
|
(601,455)
|
|
(1,753,352)
|
Net
loss/(income) attributable to noncontrolling interests
|
|
887
|
|
304
|
|
180
|
|
28
|
|
(48)
|
|
563
|
Net loss
attributable to the Company
|
|
(201,998)
|
|
(877,805)
|
|
(447,754)
|
|
(68,621)
|
|
(601,503)
|
|
(1,752,789)
|
Accretions of convertible redeemable preferred shares to
redemption value
|
|
(3,684)
|
|
-
|
|
-
|
|
-
|
|
(35,893)
|
|
-
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(205,682)
|
|
(877,805)
|
|
(447,754)
|
|
(68,621)
|
|
(637,396)
|
|
(1,752,789)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS
|
|
(1.95)
|
|
(7.73)
|
|
(3.93)
|
|
(0.60)
|
|
(6.68)
|
|
(15.53)
|
Diluted net loss per
ADS
|
|
(1.95)
|
|
(7.73)
|
|
(3.93)
|
|
(0.60)
|
|
(6.68)
|
|
(15.53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net loss per ADS
|
|
105,671,559
|
|
113,495,422
|
|
113,898,308
|
|
113,898,308
|
|
95,445,982
|
|
112,864,452
|
Shares used in
computing diluted net loss per ADS
|
|
105,671,559
|
|
113,495,422
|
|
113,898,308
|
|
113,898,308
|
|
95,445,982
|
|
112,864,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
1:
|
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.5250 on the last trading day of
December (December 31,
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
|
|
2,960
|
|
1,665
|
|
2,016
|
|
309
|
|
4,407
|
|
5,892
|
Sales and marketing
expenses
|
|
1,419
|
|
2,071
|
|
2,078
|
|
318
|
|
2,107
|
|
5,868
|
Research and
development expenses
|
|
8,371
|
|
5,418
|
|
9,321
|
|
1,429
|
|
9,432
|
|
20,898
|
General and
administrative expenses
|
|
6,826
|
|
2,917
|
|
1,262
|
|
193
|
|
9,128
|
|
8,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
244,846
|
|
600,350
|
|
731,644
|
|
112,130
|
|
699,826
|
|
2,154,669
|
Learning
products
|
|
67,067
|
|
163,106
|
|
237,315
|
|
36,370
|
|
152,044
|
|
539,962
|
Online
marketing services
|
|
98,519
|
|
132,585
|
|
137,837
|
|
21,124
|
|
453,013
|
|
472,884
|
Total net
revenues
|
|
410,432
|
|
896,041
|
|
1,106,796
|
|
169,624
|
|
1,304,883
|
|
3,167,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
171,502
|
|
276,568
|
|
337,033
|
|
51,653
|
|
513,060
|
|
1,010,364
|
Learning
products
|
|
49,132
|
|
114,469
|
|
143,545
|
|
21,999
|
|
107,609
|
|
355,970
|
Online
marketing services
|
|
67,368
|
|
93,451
|
|
100,749
|
|
15,440
|
|
313,592
|
|
346,895
|
Total cost of
revenues
|
|
288,002
|
|
484,488
|
|
581,327
|
|
89,092
|
|
934,261
|
|
1,713,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
30.0%
|
|
53.9%
|
|
53.9%
|
|
53.9%
|
|
26.7%
|
|
53.1%
|
Learning
products
|
|
26.7%
|
|
29.8%
|
|
39.5%
|
|
39.5%
|
|
29.2%
|
|
34.1%
|
Online
marketing services
|
|
31.6%
|
|
29.5%
|
|
26.9%
|
|
26.9%
|
|
30.8%
|
|
26.6%
|
Total gross
margin
|
|
29.8%
|
|
45.9%
|
|
47.5%
|
|
47.5%
|
|
28.4%
|
|
45.9%
|
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,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
online courses
|
|
215,946
|
|
567,044
|
|
692,279
|
|
106,096
|
|
607,568
|
|
2,009,719
|
Add: value-added
tax
|
|
19,627
|
|
54,083
|
|
63,356
|
|
9,710
|
|
53,178
|
|
177,474
|
Add: ending deferred
revenue
|
|
407,861
|
|
992,393
|
|
1,356,041
|
|
207,822
|
|
407,861
|
|
1,356,041
|
Less: beginning
deferred revenue
|
|
(296,693)
|
|
(658,052)
|
|
(992,393)
|
|
(152,091)
|
|
(129,144)
|
|
(407,861)
|
Non-GAAP gross
billings of online courses
|
|
346,741
|
|
955,468
|
|
1,119,283
|
|
171,537
|
|
939,463
|
|
3,135,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
Youdao Premium Courses
|
|
164,125
|
|
496,508
|
|
617,706
|
|
94,668
|
|
471,943
|
|
1,747,941
|
Add: value-added
tax
|
|
15,906
|
|
49,643
|
|
58,663
|
|
8,990
|
|
42,416
|
|
159,442
|
Add: ending deferred
revenue
|
|
344,111
|
|
893,517
|
|
1,253,527
|
|
192,111
|
|
344,111
|
|
1,253,527
|
Less: beginning
deferred revenue
|
|
(243,128)
|
|
(562,643)
|
|
(893,517)
|
|
(136,937)
|
|
(109,105)
|
|
(344,111)
|
Non-GAAP gross
billings of Youdao Premium Courses
|
|
281,014
|
|
877,025
|
|
1,036,379
|
|
158,832
|
|
749,365
|
|
2,816,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(205,682)
|
|
(877,805)
|
|
(447,754)
|
|
(68,621)
|
|
(637,396)
|
|
(1,752,789)
|
Add: share-based
compensation
|
|
19,576
|
|
12,071
|
|
14,677
|
|
2,249
|
|
25,074
|
|
41,578
|
Non-GAAP net loss
attributable to ordinary shareholders of the
Company
|
|
(186,106)
|
|
(865,734)
|
|
(433,077)
|
|
(66,372)
|
|
(612,322)
|
|
(1,711,211)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
loss per ADS
|
|
(1.76)
|
|
(7.63)
|
|
(3.80)
|
|
(0.58)
|
|
(6.42)
|
|
(15.16)
|
Non-GAAP diluted net
loss per ADS
|
|
(1.76)
|
|
(7.63)
|
|
(3.80)
|
|
(0.58)
|
|
(6.42)
|
|
(15.16)
|
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content:http://www.prnewswire.com/news-releases/youdao-reports-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results-301235313.html
SOURCE Youdao, Inc.