HANGZHOU, China, Aug. 18,
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 second quarter
ended June 30, 2022.
Second Quarter 2022 Financial
Highlights[1]
- Total net revenues were RMB956.2
million (US$142.8 million),
representing a 2.4% decrease from the same period in 2021.
- Net revenues from learning services were RMB563.6 million (US$84.1
million), representing a 7.3% decrease from the same period
in 2021.
- Net revenues from smart devices were RMB239.9 million (US$35.8
million), representing a 16.3% increase from the same period
in 2021.
- Net revenues from online marketing services were
RMB152.8 million (US$22.8 million), representing an 8.0% decrease
from the same period in 2021.
- Gross margin was 42.8%, compared to 51.0% for the same
period in 2021.
"Despite the short-term challenges by the pandemic, our business
demonstrated resilience. On one hand, operating cash inflow
reached
RMB104 million in Q2, mainly due to the strong sales
performance of our new services and smart
devices. On the other hand, we
narrowed our net loss to RMB461
million in Q2, a 12.3% improvement year-over-year,"
said Dr. Feng Zhou, Chief Executive
Officer and a Director of Youdao.
"We recently launched a series of new products, such as Youdao
Dictionary Pen X5 and Youdao Smart Learning Pad, as well as new
products in STEAM courses and vocational education courses. We have
completed the transformation of our business and products in
response to regulatory changes last year and entered a new stage of
organic growth. Looking ahead, we will stick to upgrading products
and services with the support of technology and innovation,
navigate the short-term macro challenges, build up and strengthen
the long-term franchise. We are on the right track and confident in
the second half of this year boosted by the new products and
services," Dr. Zhou concluded.
[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.
|
Second Quarter of 2022 Financial Results
Net Revenues
Net revenues for the second quarter of 2022 were RMB956.2 million (US$142.8
million), representing a 2.4% decrease from RMB979.9 million for the same period of 2021.
Net revenues from learning services were RMB563.6 million (US$84.1
million) for the second quarter of 2022, representing a 7.3%
decrease from RMB607.7 million for
the same period of 2021. The decrease was mainly attributable to
the decline in revenues from adult courses resulting from the
decrease in demand due to the resurgence of COVID-19.
Net revenues from smart devices were RMB239.9 million (US$35.8
million) for the second quarter of 2022, representing a
16.3% increase from RMB206.3 million
for the same period of 2021, primarily driven by the popularity of
the newly launched products since last year.
Net revenues from online marketing services were RMB152.8 million (US$22.8
million) for the second quarter of 2022, representing an
8.0% decrease from RMB166.0 million
for the same period of 2021. The decrease was mainly attributable
to the curtailed advertising budgets of partial advertising
customers.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2022 was RMB409.7 million (US$61.2
million), representing an 18.1% decrease from RMB500.2 million for the same period of 2021.
Gross margin decreased to 42.8% for the second quarter of 2022 from
51.0% for the same period of 2021.
Gross margin for learning services decreased to 52.2% for the
second quarter of 2022 from 58.8% for the same period of 2021. The
decrease was mainly resulted from the decline in economic scales
due to the decreased learning revenues in the second quarter of
2022.
Gross margin for smart devices decreased to 30.6% for the second
quarter of 2022 from 43.0% for the same period of 2021. The
decrease was due to a larger proportion of sales contributed from
offline distributors, which have a lower gross margin.
Gross margin for online marketing services was 27.7% for the
second quarter of 2022, compared with 32.7% for the same period of
2021. The decrease was mainly attributable to the increased portion
in performance-based advertisements through third parties' internet
properties, which typically have a lower gross margin profile.
Operating Expenses
Total operating expenses for the second quarter of 2022 were
RMB864.9 million (US$129.1 million), compared with RMB755.1 million for the same period of last
year.
Sales and marketing expenses for the second quarter of 2022 were
RMB596.0 million (US$89.0 million), representing an increase of
7.4% from RMB555.1 million for the
same period of 2021. This increase was due to the growth in
compensation expenses of the expanded sales and marketing team for
learning services and smart devices.
Research and development expenses for the second quarter of 2022
were RMB208.4 million (US$31.1 million), representing an increase of
42.9% from RMB145.8 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.
General and administrative expenses for the second quarter of
2022 were RMB60.5 million
(US$9.0 million), representing an
increase of 11.6% from RMB54.2
million for the same period of 2021. The increase was mainly
attributable to the increased provision for the credit losses
allowance on the receivables, which was RMB6.9 million in the second quarter of 2022,
compared to RMB3.4 million for the
same period of 2021.
Loss from Operations
Loss from operations for the second quarter of 2022 was
RMB455.2 million (US$68.0 million), compared with RMB254.9 million for the same period in 2021. The
margin of loss from operations was 47.6%, compared with 26.0% 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 second quarter of 2022 was
RMB453.9 million (US$67.8 million), compared with RMB234.9 million for the same period of last
year. Non-GAAP net loss from continuing operations attributable to
Youdao's ordinary shareholders for the second quarter of 2022 was
RMB435.8 million (US$65.1 million), compared with RMB215.0 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 second quarter of 2022 was
RMB3.67 (US$0.55), compared with RMB1.92 for the same period of 2021. Non-GAAP
basic and diluted net loss from continuing operations per ADS
attributable to ordinary shareholders was RMB3.52 (US$0.53),
compared with RMB1.76 for the same
period of 2021.
Balance Sheet
As of June 30, 2022, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB1.3
billion (US$188.1 million),
compared with RMB1.6 billion as of
December 31, 2021. For the second
quarter of 2022, net cash provided by continuing operating
activities was RMB104.2 million
(US$15.6 million), capital
expenditures totaled RMB46.7 million
(US$7.0 million), and depreciation
and amortization expenses amounted to RMB10.7 million (US$1.6
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. 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 June 30, 2022, the Company's
contract liabilities, which mainly consisted of deferred revenues
generated from Youdao's learning services, were RMB1.1 billion (US$168.1
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 6:00 a.m. Eastern
Time on Thursday, August 18, 2022 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, August 18, 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:
|
5366490
|
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 August 25, 2022:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
5366490
|
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 and impairment of long-term investment. 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 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.
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 RMB6.6981 to US$1.00, the exchange rate on June 30, 2022 set forth in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or US$ 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 June
30,
|
|
As of June
30,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
USD (1)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
322,777
|
|
687,191
|
|
102,595
|
Time
deposits
|
|
268
|
|
273
|
|
41
|
Restricted
cash
|
|
749,770
|
|
551,472
|
|
82,333
|
Short-term
investments
|
|
503,831
|
|
21,071
|
|
3,146
|
Accounts receivable,
net
|
|
248,339
|
|
335,911
|
|
50,150
|
Inventories,
net
|
|
255,411
|
|
212,351
|
|
31,703
|
Amounts due from
NetEase Group
|
|
6,192
|
|
16,609
|
|
2,480
|
Prepayment and other
current assets
|
|
182,577
|
|
198,200
|
|
29,589
|
Assets held for
sale
|
|
497
|
|
-
|
|
-
|
Total current
assets
|
|
2,269,662
|
|
2,023,078
|
|
302,037
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property, equipment and
software, net
|
|
80,315
|
|
108,928
|
|
16,263
|
Operating lease
right-of-use assets, net
|
|
118,104
|
|
88,453
|
|
13,206
|
Long-term
investments
|
|
32,518
|
|
70,542
|
|
10,532
|
Goodwill
|
|
109,944
|
|
109,944
|
|
16,414
|
Other assets,
net
|
|
22,436
|
|
37,199
|
|
5,554
|
Assets held for
sale
|
|
1,088
|
|
-
|
|
-
|
Total non-current
assets
|
|
364,405
|
|
415,066
|
|
61,969
|
|
|
|
|
|
|
|
Total
assets
|
|
2,634,067
|
|
2,438,144
|
|
364,006
|
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficit
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payables
|
|
161,006
|
|
151,812
|
|
22,665
|
Payroll
payable
|
|
277,383
|
|
228,248
|
|
34,077
|
Amounts due to NetEase
Group
|
|
83,041
|
|
67,009
|
|
10,004
|
Contract
liabilities
|
|
1,065,639
|
|
1,126,065
|
|
168,117
|
Taxes
payable
|
|
53,323
|
|
28,959
|
|
4,323
|
Accrued liabilities and
other payables
|
|
515,567
|
|
697,050
|
|
104,068
|
Short-term loans from
NetEase Group
|
|
878,000
|
|
878,000
|
|
131,082
|
Total current
liabilities
|
|
3,033,959
|
|
3,177,143
|
|
474,336
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term lease
liabilities
|
|
73,070
|
|
48,536
|
|
7,246
|
Long-term loans from
NetEase Group
|
|
255,028
|
|
469,798
|
|
70,139
|
Other non-current
liabilities
|
|
2,411
|
|
14,095
|
|
2,104
|
Total non-current
liabilities
|
|
330,509
|
|
532,429
|
|
79,489
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,364,468
|
|
3,709,572
|
|
553,825
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
78,592
|
|
73,475
|
|
10,970
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
Youdao's shareholders'
deficit
|
|
(807,067)
|
|
(1,340,700)
|
|
(200,162)
|
Noncontrolling
interests
|
|
(1,926)
|
|
(4,203)
|
|
(627)
|
Total shareholders'
deficit
|
|
(808,993)
|
|
(1,344,903)
|
|
(200,789)
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
|
2,634,067
|
|
2,438,144
|
|
364,006
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.6981 on the last trading day of June
(June 30, 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (1)
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
607,680
|
|
826,011
|
|
563,601
|
|
84,143
|
|
1,214,640
|
|
1,389,612
|
Smart
devices
|
|
206,290
|
|
253,160
|
|
239,850
|
|
35,809
|
|
408,209
|
|
493,010
|
Online marketing
services
|
|
165,979
|
|
121,370
|
|
152,774
|
|
22,809
|
|
305,073
|
|
274,144
|
Total net
revenues
|
|
979,949
|
|
1,200,541
|
|
956,225
|
|
142,761
|
|
1,927,922
|
|
2,156,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(479,738)
|
|
(558,719)
|
|
(546,498)
|
|
(81,590)
|
|
(931,276)
|
|
(1,105,217)
|
Gross
profit
|
|
500,211
|
|
641,822
|
|
409,727
|
|
61,171
|
|
996,646
|
|
1,051,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses (2)
|
|
(555,050)
|
|
(506,385)
|
|
(595,997)
|
|
(88,980)
|
|
(1,103,794)
|
|
(1,102,382)
|
Research and
development expenses (2)
|
|
(145,803)
|
|
(202,980)
|
|
(208,411)
|
|
(31,115)
|
|
(273,501)
|
|
(411,391)
|
General and
administrative expenses (2)
|
|
(54,234)
|
|
(57,561)
|
|
(60,532)
|
|
(9,038)
|
|
(88,573)
|
|
(118,093)
|
Total operating
expenses
|
|
(755,087)
|
|
(766,926)
|
|
(864,940)
|
|
(129,133)
|
|
(1,465,868)
|
|
(1,631,866)
|
Loss from
operations
|
|
(254,876)
|
|
(125,104)
|
|
(455,213)
|
|
(67,962)
|
|
(469,222)
|
|
(580,317)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,735
|
|
2,034
|
|
3,769
|
|
563
|
|
9,809
|
|
5,803
|
Interest
expense
|
|
(7,764)
|
|
(8,585)
|
|
(10,102)
|
|
(1,508)
|
|
(15,381)
|
|
(18,687)
|
Others, net
|
|
23,366
|
|
36,053
|
|
1,567
|
|
234
|
|
23,720
|
|
37,620
|
Loss before
tax
|
|
(232,539)
|
|
(95,602)
|
|
(459,979)
|
|
(68,673)
|
|
(451,074)
|
|
(555,581)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(2,999)
|
|
(566)
|
|
(553)
|
|
(83)
|
|
(4,614)
|
|
(1,119)
|
Net loss from
continuing operations
|
|
(235,538)
|
|
(96,168)
|
|
(460,532)
|
|
(68,756)
|
|
(455,688)
|
|
(556,700)
|
Net loss from
discontinued operations
|
|
(289,496)
|
|
(6,105)
|
|
-
|
|
-
|
|
(396,004)
|
|
(6,105)
|
Net
loss
|
|
(525,034)
|
|
(102,273)
|
|
(460,532)
|
|
(68,756)
|
|
(851,692)
|
|
(562,805)
|
Net loss attributable
to noncontrolling interests
|
|
681
|
|
748
|
|
6,646
|
|
992
|
|
1,548
|
|
7,394
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(524,353)
|
|
(101,525)
|
|
(453,886)
|
|
(67,764)
|
|
(850,144)
|
|
(555,411)
|
Including:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary shareholders of
the
Company
|
|
(234,857)
|
|
(95,420)
|
|
(453,886)
|
|
(67,764)
|
|
(454,140)
|
|
(549,306)
|
Net loss from
discontinued operations attributable to ordinary shareholders of
the
Company
|
|
(289,496)
|
|
(6,105)
|
|
-
|
|
-
|
|
(396,004)
|
|
(6,105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS
|
|
(4.29)
|
|
(0.82)
|
|
(3.67)
|
|
(0.55)
|
|
(7.07)
|
|
(4.50)
|
-Continuing
operations
|
|
(1.92)
|
|
(0.77)
|
|
(3.67)
|
|
(0.55)
|
|
(3.77)
|
|
(4.45)
|
-Discontinued
operations
|
|
(2.37)
|
|
(0.05)
|
|
-
|
|
-
|
|
(3.30)
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per
ADS
|
|
(4.29)
|
|
(0.82)
|
|
(3.67)
|
|
(0.55)
|
|
(7.07)
|
|
(4.50)
|
-Continuing
operations
|
|
(1.92)
|
|
(0.77)
|
|
(3.67)
|
|
(0.55)
|
|
(3.77)
|
|
(4.45)
|
-Discontinued
operations
|
|
(2.37)
|
|
(0.05)
|
|
-
|
|
-
|
|
(3.30)
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net loss per ADS
|
|
122,332,306
|
|
123,330,958
|
|
123,703,353
|
|
123,703,353
|
|
120,325,943
|
|
123,518,179
|
Shares used in
computing diluted net loss per ADS
|
|
122,332,306
|
|
123,330,958
|
|
123,703,353
|
|
123,703,353
|
|
120,325,943
|
|
123,518,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of
USD1.00=RMB6.6981
on the last trading day of June
(June 30, 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
|
|
1,815
|
|
2,180
|
|
1,775
|
|
265
|
|
3,257
|
|
3,955
|
Sales and marketing
expenses
|
|
3,053
|
|
3,090
|
|
3,451
|
|
515
|
|
5,043
|
|
6,541
|
Research and
development expenses
|
|
10,004
|
|
8,862
|
|
8,428
|
|
1,259
|
|
17,399
|
|
17,290
|
General and
administrative expenses
|
|
4,962
|
|
5,384
|
|
4,448
|
|
664
|
|
8,610
|
|
9,832
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED ADDITIONAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
607,680
|
|
826,011
|
|
563,601
|
|
84,143
|
|
1,214,640
|
|
1,389,612
|
Smart
devices
|
|
206,290
|
|
253,160
|
|
239,850
|
|
35,809
|
|
408,209
|
|
493,010
|
Online marketing
services
|
|
165,979
|
|
121,370
|
|
152,774
|
|
22,809
|
|
305,073
|
|
274,144
|
Total net
revenues
|
|
979,949
|
|
1,200,541
|
|
956,225
|
|
142,761
|
|
1,927,922
|
|
2,156,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
250,422
|
|
298,297
|
|
269,491
|
|
40,234
|
|
472,724
|
|
567,788
|
Smart
devices
|
|
117,671
|
|
167,804
|
|
166,503
|
|
24,858
|
|
230,585
|
|
334,307
|
Online marketing
services
|
|
111,645
|
|
92,618
|
|
110,504
|
|
16,498
|
|
227,967
|
|
203,122
|
Total cost of
revenues
|
|
479,738
|
|
558,719
|
|
546,498
|
|
81,590
|
|
931,276
|
|
1,105,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
58.8 %
|
|
63.9 %
|
|
52.2 %
|
|
52.2 %
|
|
61.1 %
|
|
59.1 %
|
Smart
devices
|
|
43.0 %
|
|
33.7 %
|
|
30.6 %
|
|
30.6 %
|
|
43.5 %
|
|
32.2 %
|
Online marketing
services
|
|
32.7 %
|
|
23.7 %
|
|
27.7 %
|
|
27.7 %
|
|
25.3 %
|
|
25.9 %
|
Total gross
margin
|
|
51.0 %
|
|
53.5 %
|
|
42.8 %
|
|
42.8 %
|
|
51.7 %
|
|
48.8 %
|
YOUDAO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
(RMB and USD in
thousands, except per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary shareholders of
the
Company
|
|
(234,857)
|
|
(95,420)
|
|
(453,886)
|
|
(67,764)
|
|
(454,140)
|
|
(549,306)
|
|
Add: share-based
compensation
|
|
19,834
|
|
19,516
|
|
18,102
|
|
2,703
|
|
34,309
|
|
37,618
|
|
impairment of long-term investment
|
|
-
|
|
5,000
|
|
-
|
|
-
|
|
-
|
|
5,000
|
|
Non-GAAP net loss
from continuing operations attributable to ordinary
shareholders of the Company
|
|
(215,023)
|
|
(70,904)
|
|
(435,784)
|
|
(65,061)
|
|
(419,831)
|
|
(506,688)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net loss
from continuing operations per ADS
|
|
(1.76)
|
|
(0.57)
|
|
(3.52)
|
|
(0.53)
|
|
(3.49)
|
|
(4.10)
|
|
Non-GAAP diluted net
loss from continuing operations per ADS
|
|
(1.76)
|
|
(0.57)
|
|
(3.52)
|
|
(0.53)
|
|
(3.49)
|
|
(4.10)
|
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-second-quarter-2022-unaudited-financial-results-301608345.html
SOURCE Youdao, Inc.