HANGZHOU, China, May 24, 2022 /PRNewswire/ -- Youdao, Inc.
("Youdao" or the "Company") (NYSE: DAO), a leading
technology-focused intelligent learning company in China, today announced its unaudited financial
results for the first quarter ended March
31, 2022.
First Quarter 2022 Financial
Highlights[1]
- Total net revenues were RMB1.2
billion (US$189.4 million),
representing a 26.6% increase from the same period in 2021.
- Net revenues from learning services were RMB826.0 million (US$130.3
million), representing a 36.1% increase from the same period
in 2021.
- Net revenues from smart devices were
RMB253.2 million (US$39.9 million), representing a 25.4% increase
from the same period in 2021.
- Net revenues from online marketing services were
RMB121.4 million (US$19.1 million), representing a 12.7% decrease
from the same period in 2021.
- Gross margin was 53.5%, compared to 52.4% for the
same period in 2021.
[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 is presented
on a continuing operations basis, unless otherwise specifically
stated.
|
"We are pleased to report our solid performance in the first
quarter of 2022 following the cessation of our K-9 academic AST
business at the end of December 2021,
with record-breaking revenues and overall gross margin, as well as
a significant improvement in operating loss," said Dr. Feng Zhou, Chief Executive Officer and a
Director of Youdao. "Our transition is smooth. We were able to grow
our smart devices and STEAM courses as originally planned. Our net
revenue was RMB1.2 billion, up 26.6%
year-over-year and 14.5% quarter-over-quarter, achieving new
record-high revenue. We also achieved new record in quarterly gross
margin with an overall gross margin of 53.5% in this quarter.
Furthermore, we narrowed operating loss by 49.6%
quarter-over-quarter to RMB125.1
million, from a loss of RMB248.3
million in Q4 2021, and by 41.6% year-over-year from a loss
of RMB214.3 million in Q1 2021. These
results amid a challenging macro environment clearly reflect our
strengthening fundamentals as well as the effectiveness of our
strategy."
"Looking ahead, we will continue to implement our strategy of
four growth pillars, i.e. smart devices, STEAM courses, vocational
education and education digitization. The first two, smart devices
and STEAM courses, are at a larger scale and already contribute a
significant portion of our business. The latter two are making good
progress in terms of product development and business model
validation. We expect to see challenges, including this new wave of
COVID pandemic in China. We will
endeavor to overcome them through our diversity of businesses,
large user bases and deep technical roots for innovation," Dr. Zhou
concluded.
First Quarter of 2022 Financial Results
Net Revenues
Net revenues for the first quarter of 2022 were RMB1.2 billion (US$189.4
million), representing a 26.6% increase from RMB948.0 million for the same period of 2021.
Net revenues from learning services were RMB826.0 million (US$130.3
million) for the first quarter of 2022, representing a 36.1%
increase from RMB607.0 million for
the same period of 2021. The year-over-year growth from learning
services was driven by the growth in active users compared
with the same period of 2021.
Net revenues from smart devices were RMB253.2 million (US$39.9
million) for the first quarter of 2022, representing a 25.4%
increase from RMB201.9 million for
the same period of 2021, primarily driven by the increase in sales
volume of Youdao Dictionary Pen in the first quarter of
2022.
Net revenues from online marketing services were RMB121.4 million (US$19.1
million) for the first quarter of 2022, representing a 12.7%
decrease from RMB139.1 million for
the same period of 2021. The decrease was mainly attributable
to the curtailed advertising budget of partial advertising
customers.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2022 was RMB641.8 million (US$101.2
million), representing a 29.3% increase from RMB496.4 million for the same period of 2021.
Gross margin increased to 53.5% for the first quarter of 2022 from
52.4% for the same period of 2021.
Gross margin for learning services increased to 63.9% for the
first quarter of 2022 from 63.4% for the same period of 2021.
Gross margin for smart devices decreased to 33.7% for the first
quarter of 2022 from 44.1% for the same period of 2021. The
decrease was due to more sales contributed from offline
distributors, which had lower gross margin.
Gross margin for online marketing services was 23.7% for the
first quarter of 2022, compared with 16.4% for the same period of
2021. The increase was mainly attributable to the improved
distribution of third parties' internet properties, which improved
gross margin over the same period of 2021.
Operating Expenses
Total operating expenses for the first quarter of 2022 were
RMB766.9 million (US$121.0 million), compared with RMB710.8 million for the same period of last
year.
Sales and marketing expenses for the first quarter of 2022 were
RMB506.4 million (US$79.9 million), representing a decrease of 7.7%
from RMB548.7 million for the same
period of 2021. This decrease was due to the reduction in marketing
expenditures in tutoring services in the first quarter of 2022 due
to the changing regulatory environment, and partially offset by the
increase in marketing expenditures in smart devices.
Research and development expenses for the first quarter of 2022
were RMB203.0 million (US$32.0 million), representing an increase of
59.0% from RMB127.7 million for the
same period of 2021. The increase was primarily due to higher
payroll-related expenses associated with a larger number of
development and technology professionals in smart devices and
education digitalization solutions sectors.
General and administrative expenses for the first quarter of
2022 were RMB57.6 million
(US$9.1 million), representing an
increase of 67.6% from RMB34.3
million for the same period of 2021. The increase was mainly
attributable to an increase in employee headcount and related
expenses in the first quarter of 2022.
Loss from Operations
Loss from operations for the first quarter of 2022 was
RMB125.1 million (US$19.7 million), compared with RMB214.3 million for the same period in 2021. The
margin of loss from operations was 10.4%, compared with 22.6% for
the same period of last year.
Net Loss from Continuing Operations Attributable to Youdao's
Ordinary Shareholders
Net loss from continuing operations attributable to Youdao's
ordinary shareholders for the first quarter of 2022 was
RMB95.4 million (US$15.1 million), compared with RMB219.3 million for the same period of last
year. Non-GAAP net loss from continuing operations attributable to
Youdao's ordinary shareholders for the first quarter of 2022 was
RMB70.9 million (US$11.2 million), compared with RMB204.8 million for the same period of last
year.
Basic and diluted net loss per American depositary shares
("ADSs") of the Company from continuing operations attributable to
ordinary shareholders for the first quarter of 2022 was
RMB0.77 (US$0.12), compared with RMB1.85 for the same period of 2021. Non-GAAP
basic and diluted net loss from continuing operations per ADS
attributable to ordinary shareholders was RMB0.57 (US$0.09),
compared with RMB1.73 for the same
period of 2021.
Balance Sheet
As of March 31, 2022, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB1.2
billion (US$183.0 million),
compared with RMB1.6 billion as of
December 31, 2021. For the first
quarter of 2022, net cash used in continuing operating activities
was RMB425.6 million (US$67.1 million), capital expenditures totaled
RMB6.5 million (US$1.0 million), and depreciation and
amortization expenses amounted to RMB8.2
million (US$1.3 million).
Youdao's ability to continue as a going concern is dependent on
management's ability to implement an effective business plan in
future periods in light of the changing regulatory environment,
generate operating cash flows and continue to be able to obtain
outside sources of financing as necessary for Youdao's future
development. As of the date of this release, Youdao has received
various financial support from the NetEase Group, including, among
others, RMB878.0 million short-term
loans and US$70.0 million long-term
loans with maturity dated March 31,
2024 drawn down under the US$300.0
million revolving loan facility. In support of Youdao's
future business, NetEase Group has agreed to provide financial
support for Youdao's continuing operations.
As of March 31, 2022, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's learning services, were
RMB729.5 million (US$115.1 million), compared with RMB1.1 billion as of December 31, 2021.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 7:00 a.m. Eastern
Time on Tuesday, May 24, 2022 (Beijing/Hong Kong Time: 7:00 p.m., Tuesday, May
24, 2022). 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:
|
8183251
|
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 May 31, 2022:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
8183251
|
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading technology-focused
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 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 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, amortization of intangible assets from business
combination, impairment of intangible assets from business
combination and impairment of long-term investments, adjusted for
GAAP to non-GAAP by reconciling items for the income/(loss)
attributable to noncontrolling interests. Non-GAAP net
income/(loss) from continuing operations attributable to the
Company's 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 does
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.
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 RMB6.3393 to US$1.00, the exchange rate on March 31, 2022 set forth in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or US$ 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: +86-10-8255-8163 ext. 89980
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 March
31,
|
|
As of March
31,
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
322,777
|
|
415,164
|
|
65,491
|
Time
deposits
|
268
|
|
273
|
|
43
|
Restricted
cash
|
749,770
|
|
738,234
|
|
116,454
|
Short-term
investments
|
503,831
|
|
6,124
|
|
966
|
Accounts
receivable, net
|
248,339
|
|
290,426
|
|
45,814
|
Inventories,
net
|
255,411
|
|
213,726
|
|
33,714
|
Amounts due
from NetEase Group
|
6,192
|
|
9,997
|
|
1,577
|
Prepayment and
other current assets
|
182,577
|
|
196,908
|
|
31,061
|
Assets held
for sale
|
497
|
|
-
|
|
-
|
Total current
assets
|
2,269,662
|
|
1,870,852
|
|
295,120
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property,
equipment and software, net
|
80,315
|
|
108,905
|
|
17,179
|
Operating
lease right-of-use assets, net
|
118,104
|
|
96,294
|
|
15,190
|
Long-term
investments
|
32,518
|
|
27,509
|
|
4,339
|
Goodwill
|
109,944
|
|
109,944
|
|
17,343
|
Other assets,
net
|
22,436
|
|
35,894
|
|
5,662
|
Assets held
for sale
|
1,088
|
|
-
|
|
-
|
Total non-current
assets
|
364,405
|
|
378,546
|
|
59,713
|
|
|
|
|
|
|
Total
assets
|
2,634,067
|
|
2,249,398
|
|
354,833
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficits
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payables
|
161,006
|
|
132,984
|
|
20,978
|
Payroll
payable
|
277,383
|
|
186,444
|
|
29,411
|
Amounts due to
NetEase Group
|
83,041
|
|
98,246
|
|
15,498
|
Contract
liabilities
|
1,065,639
|
|
729,468
|
|
115,071
|
Taxes
payable
|
53,323
|
|
28,696
|
|
4,527
|
Accrued
liabilities and other payables
|
515,567
|
|
598,812
|
|
94,460
|
Short-term
loans from NetEase Group
|
878,000
|
|
878,000
|
|
138,501
|
Total current
liabilities
|
3,033,959
|
|
2,652,650
|
|
418,446
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
lease liabilities
|
73,070
|
|
51,578
|
|
8,136
|
Long-term
loans from NetEase Group
|
255,028
|
|
349,151
|
|
55,077
|
Other
non-current liabilities
|
2,411
|
|
4,307
|
|
679
|
Total non-current
liabilities
|
330,509
|
|
405,036
|
|
63,892
|
|
|
|
|
|
|
Total
liabilities
|
3,364,468
|
|
3,057,686
|
|
482,338
|
|
|
|
|
|
|
Mezzanine
equity
|
78,592
|
|
78,895
|
|
12,445
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
Youdao's
shareholders' deficit
|
(807,067)
|
|
(884,206)
|
|
(139,480)
|
Noncontrolling
interests
|
(1,926)
|
|
(2,977)
|
|
(470)
|
Total
shareholders' deficit
|
(808,993)
|
|
(887,183)
|
|
(139,950)
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
2,634,067
|
|
2,249,398
|
|
354,833
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.3393 on the last
trading day of March
(March 31,
2022) 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
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2021
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(1)
|
Net
revenues:
|
|
|
|
|
|
|
|
|
Learning
services
|
|
606,960
|
|
579,259
|
|
826,011
|
|
130,300
|
Smart
devices
|
|
201,919
|
|
317,702
|
|
253,160
|
|
39,935
|
Online
marketing services
|
|
139,094
|
|
151,836
|
|
121,370
|
|
19,146
|
Total net
revenues
|
|
947,973
|
|
1,048,797
|
|
1,200,541
|
|
189,381
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(451,538)
|
|
(603,504)
|
|
(558,719)
|
|
(88,136)
|
Gross
profit
|
|
496,435
|
|
445,293
|
|
641,822
|
|
101,245
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses (2)
|
|
(548,744)
|
|
(420,437)
|
|
(506,385)
|
|
(79,880)
|
Research and
development expenses (2)
|
|
(127,698)
|
|
(170,245)
|
|
(202,980)
|
|
(32,019)
|
General and
administrative expenses (2)
|
|
(34,339)
|
|
(46,112)
|
|
(57,561)
|
|
(9,081)
|
Impairment of
intangible assets from business combination
|
|
-
|
|
(56,778)
|
|
-
|
|
-
|
Total operating
expenses
|
|
(710,781)
|
|
(693,572)
|
|
(766,926)
|
|
(120,980)
|
Loss from
operations
|
|
(214,346)
|
|
(248,279)
|
|
(125,104)
|
|
(19,735)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
3,074
|
|
3,012
|
|
2,034
|
|
321
|
Interest
expense
|
|
(7,617)
|
|
(8,428)
|
|
(8,585)
|
|
(1,354)
|
Others,
net
|
|
354
|
|
12,339
|
|
36,053
|
|
5,687
|
Loss before
tax
|
|
(218,535)
|
|
(241,356)
|
|
(95,602)
|
|
(15,081)
|
|
|
|
|
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(1,615)
|
|
556
|
|
(566)
|
|
(89)
|
Net loss
from continuing operations
|
|
(220,150)
|
|
(240,800)
|
|
(96,168)
|
|
(15,170)
|
Net
(loss)/income from discontinued operations
|
|
(106,508)
|
|
199,290
|
|
(6,105)
|
|
(963)
|
Net
loss
|
|
(326,658)
|
|
(41,510)
|
|
(102,273)
|
|
(16,133)
|
Net loss
attributable to noncontrolling interests
|
|
867
|
|
24,897
|
|
748
|
|
118
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(325,791)
|
|
(16,613)
|
|
(101,525)
|
|
(16,015)
|
Including:
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary shareholders
of
the
Company
|
|
(219,283)
|
|
(215,903)
|
|
(95,420)
|
|
(15,052)
|
Net
(loss)/income from discontinued operations attributable to
ordinary
shareholders
of the Company
|
|
(106,508)
|
|
199,290
|
|
(6,105)
|
|
(963)
|
|
|
|
|
|
|
|
|
|
Basic net
(loss)/income per ADS
|
|
(2.75)
|
|
(0.13)
|
|
(0.82)
|
|
(0.13)
|
-Continuing
operations
|
|
(1.85)
|
|
(1.75)
|
|
(0.77)
|
|
(0.12)
|
-Discontinued
operations
|
|
(0.90)
|
|
1.62
|
|
(0.05)
|
|
(0.01)
|
Diluted net
(loss)/income per ADS
|
|
(2.75)
|
|
(0.13)
|
|
(0.82)
|
|
(0.13)
|
-Continuing
operations
|
|
(1.85)
|
|
(1.75)
|
|
(0.77)
|
|
(0.12)
|
-Discontinued
operations
|
|
(0.90)
|
|
1.62
|
|
(0.05)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net (loss)/income per ADS
|
|
118,297,304
|
|
123,193,273
|
|
123,330,958
|
|
123,330,958
|
Shares used in
computing diluted net (loss)/income per ADS
|
|
118,297,304
|
|
123,193,273
|
|
123,330,958
|
|
123,330,958
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.3393 on the last
trading day of March
(March 31, 2022) as
set forth in the H.10 statistical release of the U.S. Federal
Reserve Board.
|
|
Note
2:
|
|
|
|
|
|
|
|
|
Share-based
compensation in each category:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
1,442
|
|
3,249
|
|
2,180
|
|
344
|
Sales and marketing
expenses
|
|
1,990
|
|
2,800
|
|
3,090
|
|
487
|
Research and
development expenses
|
|
7,395
|
|
8,735
|
|
8,862
|
|
1,398
|
General and
administrative expenses
|
|
3,648
|
|
5,449
|
|
5,384
|
|
850
|
|
|
|
|
|
|
|
|
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
UNAUDITED
ADDITIONAL INFORMATION
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2021
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
Learning
services
|
|
606,960
|
|
579,259
|
|
826,011
|
|
130,300
|
Smart
devices
|
|
201,919
|
|
317,702
|
|
253,160
|
|
39,935
|
Online
marketing services
|
|
139,094
|
|
151,836
|
|
121,370
|
|
19,146
|
Total net
revenues
|
|
947,973
|
|
1,048,797
|
|
1,200,541
|
|
189,381
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Learning
services
|
|
222,302
|
|
281,433
|
|
298,297
|
|
47,056
|
Smart
devices
|
|
112,914
|
|
219,703
|
|
167,804
|
|
26,470
|
Online
marketing services
|
|
116,322
|
|
102,368
|
|
92,618
|
|
14,610
|
Total cost of
revenues
|
|
451,538
|
|
603,504
|
|
558,719
|
|
88,136
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
Learning
services
|
|
63.4%
|
|
51.4%
|
|
63.9%
|
|
63.9%
|
Smart
devices
|
|
44.1%
|
|
30.8%
|
|
33.7%
|
|
33.7%
|
Online
marketing services
|
|
16.4%
|
|
32.6%
|
|
23.7%
|
|
23.7%
|
Total gross
margin
|
|
52.4%
|
|
42.5%
|
|
53.5%
|
|
53.5%
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
(RMB and USD in
thousands, except per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2021
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary
shareholders of
the Company
|
|
(219,283)
|
|
(215,903)
|
|
(95,420)
|
|
(15,052)
|
Add: share-based
compensation
|
|
14,475
|
|
20,233
|
|
19,516
|
|
3,079
|
amortization of intangible assets from business
combination
|
|
-
|
|
1,976
|
|
-
|
|
-
|
impairment of long-term investment
|
|
-
|
|
-
|
|
5,000
|
|
789
|
impairment of intangible assets from business
combination
|
|
-
|
|
56,778
|
|
-
|
|
-
|
Less: tax effects on
non-GAAP adjustments
|
|
-
|
|
(8,813)
|
|
-
|
|
-
|
GAAP
to non-GAAP reconciling items for the loss attributable to
noncontrolling
interests
|
|
-
|
|
(22,473)
|
|
-
|
|
-
|
Non-GAAP net loss
from continuing operations attributable to ordinary
shareholders of
the Company
|
|
(204,808)
|
|
(168,202)
|
|
(70,904)
|
|
(11,184)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
loss from continuing operations per ADS
|
|
(1.73)
|
|
(1.37)
|
|
(0.57)
|
|
(0.09)
|
Non-GAAP diluted net
loss from continuing operations per ADS
|
|
(1.73)
|
|
(1.37)
|
|
(0.57)
|
|
(0.09)
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-first-quarter-2022-unaudited-financial-results-301553557.html
SOURCE Youdao, Inc.