HANGZHOU, China, Nov. 16, 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 third quarter
ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Total net revenues were RMB1.4
billion (US$215.3 million),
representing a 54.8% increase from the same period in 2020.
- Net revenues from learning services were RMB995.7 million (US$154.5
million), representing a 65.9% increase from the same period
in 2020.
- Net revenues from learning products were RMB254.5 million (US$39.5
million), representing a 56.0% increase from the same period
in 2020.
- Net revenues from online marketing services were
RMB137.0 million (US$21.3 million), representing a 3.4% increase
from the same period in 2020.
- Gross billings[1] decreased by 33.9%
year-over-year to RMB631.6 million
(US$98.0 million) and gross billings
of Youdao Premium Courses[2] decreased by 34.6%
year-over-year to RMB573.5 million
(US$89.0 million).
- Gross margin was 56.6%, compared with 45.9% for the same
period in 2020.
[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 tutoring services
sold mainly 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 tutoring service offerings primarily focused on K-12
students, covering a wide spectrum of subject matters, learning
goals and areas of interest.
|
Third Quarter 2021 Key Operating and Financial Data
|
For the three
months
ended September 30
|
|
|
|
(in millions,
RMB)
|
2020
|
|
2021
|
|
% of
Change
|
|
Gross
billings
|
955.5
|
|
631.6
|
|
-33.9%
|
|
Gross billings of
Youdao Premium Courses
|
877.0
|
|
573.5
|
|
-34.6%
|
|
Paid student
enrollments of Youdao Premium
Courses (in thousands)
|
623.5
|
|
368.7
|
|
-40.9%
|
|
Gross billings per
paid student enrollment of Youdao Premium Courses (in RMB)
|
1,406
|
|
1,555
|
|
10.6%
|
|
"In the third quarter of this year, our four core pillars,
namely learning products, vocational education courses, STEAM
courses and education digitization solutions, had strong momentum.
We have been making great endeavors to improve the learning
efficiency of our users. Besides, we are also taking steps to
further fulfil our commitment to society," said Dr. Feng Zhou, Chief Executive Officer and Director
of Youdao.
"Youdao has always been dedicated to complying with laws and
regulations. As previously disclosed, we plan to dispose of our
academic AST business as part of our efforts to comply with
regulatory requirements. We will continue to adapt our business to
the evolving regulatory environment and drive long-term sustainable
growth through innovative technologies and products," Dr. Zhou
concluded.
Third Quarter 2021 Financial Results
Net Revenues
Net revenues for the third quarter of 2021 were RMB1.4 billion (US$215.3
million), representing a 54.8% increase from RMB896.0 million for the same period of 2020.
Net revenues from learning services were RMB995.7 million (US$154.5
million) for the third quarter of 2021, representing a 65.9%
increase from RMB600.4 million for
the same period of 2020. The year-over-year growth from learning
services was primarily attributable to increased revenues from
tutoring services, which were further driven by the growth in paid
student enrollments during the period in the second quarter of
2021.
Net revenues from learning products were RMB254.5 million (US$39.5
million) for the third quarter of 2021, representing a 56.0%
increase from RMB163.1 million for
the same period of 2020, primarily driven by the substantial
increase in sales volume of Youdao Dictionary Pen in the third
quarter of 2021.
Net revenues from online marketing services were RMB137.0 million (US$21.3
million) for the third quarter of 2021, representing a 3.4%
increase from RMB132.6 million for
the same period of 2020.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2021 was RMB785.6 million (US$121.9
million), representing a 90.9% increase from RMB411.6 million for the same period of 2020.
Gross margin increased to 56.6% for the third quarter of 2021 from
45.9% for the same period of 2020.
Gross margin for learning services increased to 66.2% for the
third quarter of 2021 from 53.9% for the same period of 2020. The
increase was driven by improved economies of scale and ongoing
optimization of Youdao's faculty compensation structure.
Gross margin for learning products increased to 33.7% for the
third quarter of 2021 from 29.8% for the same period of 2020. The
improvement was mainly attributable to the substantial rise in
sales volume of Youdao Dictionary Pen 3.0, which carries a higher
gross margin than other learning products.
Gross margin for online marketing services was 29.2% for the
third quarter of 2021, compared with 29.5% for the same period of
2020.
Operating Expenses
Total operating expenses for the third quarter of 2021 were
RMB914.9 million (US$142.0 million), representing a decrease of
29.9%, compared with RMB1.3 billion
for the same period of last year.
Sales and marketing expenses for the third quarter of 2021 were
RMB650.2 million (US$100.9 million), representing a decrease of
43.4% from RMB1.1 billion for the
same period of 2020. This decrease was due to the reduction in
marketing expenditures in K-12 tutoring services in the third
quarter of 2021 due to the changing regulatory environment as
previously disclosed.
Research and development expenses for the third quarter of 2021
were RMB193.3 million (US$30.0 million), representing an increase of
59.7% from RMB121.0 million for the
same period of 2020. The increase was primarily due to higher
payroll-related expenses associated with a larger number of course
development and technology professionals.
General and administrative expenses for the third quarter of
2021 were RMB71.4 million
(US$11.1 million), representing an
increase of 94.8% from RMB36.6
million for the same period of 2020. The increase was mainly
attributable to an increase in employee headcount and related
expenses in the third quarter of 2021.
Loss from Operations
Loss from operations for the third quarter of 2021 was
RMB129.3 million (US$20.1 million), compared with RMB894.0 million for the same period in 2020. The
margin of loss from operations was 9.3%, compared with 99.8% 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 2021 was RMB128.9
million (US$20.0 million),
compared with RMB877.8 million for
the same period last year. Non-GAAP net loss attributable to
Youdao's ordinary shareholders for the third quarter of 2021 was
RMB101.0 million (US$15.7 million), compared with RMB865.7 million for the same period last
year.
Basic and diluted net loss per American Depositary Share ("ADS")
attributable to ordinary shareholders for the third quarter of 2021
was RMB1.05 (US$0.16), compared with RMB7.73 for the same period of 2020. Non-GAAP
basic and diluted net loss per ADS attributable to ordinary
shareholders was RMB0.82 (US$0.13), compared with RMB7.63 for the same period of 2020.
Balance Sheet
As of September 30, 2021, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB1.3
billion (US$201.7 million),
compared with RMB1.2 billion as of
December 31, 2020. For the third
quarter of 2021, net cash used in operating activities was
RMB628.7 million (US$97.6 million), capital expenditures totaled
RMB22.1 million (US$3.4 million), and depreciation and
amortization expenses amounted to RMB7.7
million (US$1.2 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. Since its formation, Youdao has received various
financial support from the NetEase Group, among others, currently
including a RMB878.0 million
short-term loan and US$300.0 million
revolving loan facility. In support of Youdao's future business,
NetEase Group has agreed that the short-term loan will be
automatically extended for a period of eleven months each time upon
Youdao's prior written request.
As of September 30, 2021, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's tutoring services, were
RMB1.1 billion (US$175.8 million), compared with RMB1.4 billion as of December 31, 2020.
Update on Disposition of Academic AST Business
As previously disclosed, Youdao plans to dispose of its
after-school tutoring services for academic subjects included in
China's compulsory education
system (the "Academic AST Business"), as part of its efforts to
fully comply with applicable PRC regulatory requirements. Youdao
currently expects the transaction to be completed by the end of
2021, subject to execution of the definitive agreements and
regulatory approval. There can be no assurance regarding the
ultimate timing of the proposed transaction or that the transaction
will be completed. In the third quarter of 2021, revenues from
Youdao's Academic AST Business accounted for approximately 25% of
its total revenues.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 6:00 a.m. Eastern
Time on Tuesday, November 16, 2021 (Beijing/Hong Kong Time: 7:00 p.m., Tuesday,
November 16, 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:
|
10161838
|
A live and archived webcast of the conference call will be
available on the Company's investor relations website at
http://ir.youdao.com.
A replay of the conference call will be accessible by phone one
hour after the conclusion of the live call at the following
numbers, until November 23, 2021:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
10161838
|
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 tutoring courses sold mainly
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 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,
amortization of intangible assets from business combination,
impairment on long-term investments, adjustment for GAAP to
non-GAAP reconciling items for the income/(loss) attributable to
noncontrolling interests, and income tax effects of above GAAP to
non-GAAP reconciling items. 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 these
items, 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. 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 RMB6.4434 to US$1.00, the exchange rate on September 30, 2021 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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 September
30,
|
|
As of September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
609,199
|
|
493,709
|
|
76,622
|
Time
deposits
|
|
263
|
|
292,111
|
|
45,335
|
Restricted
cash
|
|
-
|
|
396,042
|
|
61,465
|
Short-term
investments
|
|
584,999
|
|
117,673
|
|
18,263
|
Accounts
receivable, net
|
|
268,830
|
|
244,844
|
|
37,999
|
Inventories,
net
|
|
148,662
|
|
267,451
|
|
41,508
|
Amounts due
from NetEase Group
|
|
4,081
|
|
3,792
|
|
589
|
Prepayment and
other current assets
|
|
235,532
|
|
204,615
|
|
31,755
|
Total current
assets
|
|
1,851,566
|
|
2,020,237
|
|
313,536
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
45,636
|
|
80,035
|
|
12,421
|
Operating
lease right-of-use assets, net
|
|
105,865
|
|
140,968
|
|
21,878
|
Other assets,
net
|
|
67,181
|
|
210,926
|
|
32,735
|
Total non-current
assets
|
|
218,682
|
|
431,929
|
|
67,034
|
|
|
|
|
|
|
|
Total
assets
|
|
2,070,248
|
|
2,452,166
|
|
380,570
|
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficits
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payables
|
|
141,304
|
|
116,931
|
|
18,147
|
Payroll
payable
|
|
209,603
|
|
173,889
|
|
26,987
|
Amounts due to
NetEase Group
|
|
67,230
|
|
106,489
|
|
16,527
|
Contract
liabilities
|
|
1,440,489
|
|
1,132,744
|
|
175,799
|
Taxes
payable
|
|
54,895
|
|
25,196
|
|
3,910
|
Accrued
liabilities and other payables
|
|
602,044
|
|
627,013
|
|
97,312
|
Short-term
loans from NetEase Group
|
|
878,000
|
|
878,000
|
|
136,263
|
Total current
liabilities
|
|
3,393,565
|
|
3,060,262
|
|
474,945
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
lease liabilities
|
|
79,748
|
|
94,565
|
|
14,676
|
Other
non-current liabilities
|
|
4,043
|
|
11,894
|
|
1,846
|
Total non-current
liabilities
|
|
83,791
|
|
106,459
|
|
16,522
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,477,356
|
|
3,166,721
|
|
491,467
|
|
|
|
|
|
|
|
Mezzanine
equity(2)
|
|
-
|
|
102,886
|
|
15,968
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
Youdao's
shareholders' deficit
|
|
(1,408,105)
|
|
(816,118)
|
|
(126,660)
|
Noncontrolling
interests
|
|
997
|
|
(1,323)
|
|
(205)
|
Total
shareholders' deficit
|
|
(1,407,108)
|
|
(817,441)
|
|
(126,865)
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
|
2,070,248
|
|
2,452,166
|
|
380,570
|
|
|
|
|
|
|
|
Note
1:
|
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.4434 on the last trading
day of
September (September 30, 2021) as set forth in the H.10 statistical
release of the U.S. Federal Reserve Board.
|
|
|
|
|
|
|
|
Note
2:
|
Representing
redeemable noncontrolling interest arising from business
acquisition.
|
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,
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
RMB
|
|
RMB
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
600,350
|
|
921,138
|
|
995,739
|
|
154,536
|
|
1,423,025
|
|
2,915,731
|
|
Learning
products
|
|
163,106
|
|
206,290
|
|
254,513
|
|
39,500
|
|
302,647
|
|
662,722
|
|
Online
marketing services
|
|
132,585
|
|
165,979
|
|
137,040
|
|
21,268
|
|
335,047
|
|
442,113
|
|
Total net
revenues
|
|
896,041
|
|
1,293,407
|
|
1,387,292
|
|
215,304
|
|
2,060,719
|
|
4,020,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(484,488)
|
|
(616,661)
|
|
(601,741)
|
|
(93,389)
|
|
(1,131,902)
|
|
(1,790,817)
|
|
Gross
profit
|
|
411,553
|
|
676,746
|
|
785,551
|
|
121,915
|
|
928,817
|
|
2,229,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses (2)
|
|
(1,147,927)
|
|
(973,239)
|
|
(650,205)
|
|
(100,910)
|
|
(1,892,237)
|
|
(2,507,316)
|
|
Research and
development expenses (2)
|
|
(120,991)
|
|
(180,029)
|
|
(193,278)
|
|
(29,996)
|
|
(296,513)
|
|
(528,387)
|
|
General and
administrative expenses (2)
|
|
(36,639)
|
|
(67,850)
|
|
(71,368)
|
|
(11,076)
|
|
(93,080)
|
|
(188,572)
|
|
Total operating
expenses
|
|
(1,305,557)
|
|
(1,221,118)
|
|
(914,851)
|
|
(141,982)
|
|
(2,281,830)
|
|
(3,224,275)
|
|
Loss from
operations
|
|
(894,004)
|
|
(544,372)
|
|
(129,300)
|
|
(20,067)
|
|
(1,353,013)
|
|
(994,526)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,626
|
|
6,735
|
|
5,959
|
|
925
|
|
21,851
|
|
15,768
|
|
Interest
expense
|
|
(7,843)
|
|
(7,764)
|
|
(7,835)
|
|
(1,216)
|
|
(23,369)
|
|
(23,216)
|
|
Others,
net
|
|
17,352
|
|
23,366
|
|
614
|
|
95
|
|
51,547
|
|
24,334
|
|
Loss before
tax
|
|
(877,869)
|
|
(522,035)
|
|
(130,562)
|
|
(20,263)
|
|
(1,302,984)
|
|
(977,640)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(240)
|
|
(2,999)
|
|
(2,590)
|
|
(402)
|
|
(2,434)
|
|
(7,204)
|
|
Net
loss
|
|
(878,109)
|
|
(525,034)
|
|
(133,152)
|
|
(20,665)
|
|
(1,305,418)
|
|
(984,844)
|
|
Net loss
attributable to noncontrolling interests
|
|
304
|
|
681
|
|
4,254
|
|
660
|
|
383
|
|
5,802
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(877,805)
|
|
(524,353)
|
|
(128,898)
|
|
(20,005)
|
|
(1,305,035)
|
|
(979,042)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS
|
|
(7.73)
|
|
(4.29)
|
|
(1.05)
|
|
(0.16)
|
|
(11.60)
|
|
(8.08)
|
|
Diluted net loss per
ADS
|
|
(7.73)
|
|
(4.29)
|
|
(1.05)
|
|
(0.16)
|
|
(11.60)
|
|
(8.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net loss per ADS
|
|
113,495,422
|
|
122,332,306
|
|
122,715,264
|
|
122,715,264
|
|
112,517,299
|
|
121,131,136
|
|
Shares used in
computing diluted net loss per ADS
|
|
113,495,422
|
|
122,332,306
|
|
122,715,264
|
|
122,715,264
|
|
112,517,299
|
|
121,131,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
1:
|
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB6.4434 on the last trading
day of September (September 30, 2021) 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
|
|
1,665
|
|
2,496
|
|
1,843
|
|
286
|
|
3,876
|
|
6,220
|
|
Sales and marketing
expenses
|
|
2,071
|
|
3,610
|
|
3,241
|
|
503
|
|
3,790
|
|
9,410
|
|
Research and
development expenses
|
|
5,418
|
|
11,179
|
|
8,588
|
|
1,333
|
|
11,577
|
|
28,202
|
|
General and
administrative expenses
|
|
2,917
|
|
6,548
|
|
6,799
|
|
1,055
|
|
7,658
|
|
18,503
|
|
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,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
600,350
|
|
921,138
|
|
995,739
|
|
154,536
|
|
1,423,025
|
|
2,915,731
|
Learning
products
|
|
163,106
|
|
206,290
|
|
254,513
|
|
39,500
|
|
302,647
|
|
662,722
|
Online
marketing services
|
|
132,585
|
|
165,979
|
|
137,040
|
|
21,268
|
|
335,047
|
|
442,113
|
Total net
revenues
|
|
896,041
|
|
1,293,407
|
|
1,387,292
|
|
215,304
|
|
2,060,719
|
|
4,020,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
276,568
|
|
387,345
|
|
336,108
|
|
52,163
|
|
673,331
|
|
1,066,632
|
Learning
products
|
|
114,469
|
|
117,671
|
|
168,637
|
|
26,172
|
|
212,425
|
|
399,222
|
Online
marketing services
|
|
93,451
|
|
111,645
|
|
96,996
|
|
15,054
|
|
246,146
|
|
324,963
|
Total cost of
revenues
|
|
484,488
|
|
616,661
|
|
601,741
|
|
93,389
|
|
1,131,902
|
|
1,790,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
53.9%
|
|
57.9%
|
|
66.2%
|
|
66.2%
|
|
52.7%
|
|
63.4%
|
Learning
products
|
|
29.8%
|
|
43.0%
|
|
33.7%
|
|
33.7%
|
|
29.8%
|
|
39.8%
|
Online
marketing services
|
|
29.5%
|
|
32.7%
|
|
29.2%
|
|
29.2%
|
|
26.5%
|
|
26.5%
|
Total gross
margin
|
|
45.9%
|
|
52.3%
|
|
56.6%
|
|
56.6%
|
|
45.1%
|
|
55.5%
|
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,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
tutoring services
|
|
567,044
|
|
884,163
|
|
948,608
|
|
147,222
|
|
1,317,440
|
|
2,795,817
|
Add:
value-added tax
|
|
54,083
|
|
61,257
|
|
39,052
|
|
6,061
|
|
114,118
|
|
146,084
|
ending deferred revenue
|
|
992,393
|
|
1,292,672
|
|
994,937
|
|
154,412
|
|
992,393
|
|
994,937
|
Less: beginning
deferred revenue
|
|
(658,052)
|
|
(1,155,891)
|
|
(1,292,672)
|
|
(200,620)
|
|
(407,861)
|
|
(1,356,041)
|
deferred revenue from acquired subsidiaries
|
|
-
|
|
-
|
|
(58,295)
|
|
(9,047)
|
|
-
|
|
(58,295)
|
Non-GAAP gross
billings
|
|
955,468
|
|
1,082,201
|
|
631,630
|
|
98,028
|
|
2,016,090
|
|
2,522,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
Youdao Premium Courses
|
|
496,508
|
|
820,532
|
|
886,057
|
|
137,514
|
|
1,130,235
|
|
2,605,509
|
Add:
value-added tax
|
|
49,643
|
|
58,004
|
|
35,763
|
|
5,550
|
|
100,779
|
|
135,738
|
ending deferred revenue
|
|
893,517
|
|
1,200,300
|
|
910,285
|
|
141,274
|
|
893,517
|
|
910,285
|
Less: beginning
deferred revenue
|
|
(562,643)
|
|
(1,054,107)
|
|
(1,200,300)
|
|
(186,284)
|
|
(344,111)
|
|
(1,253,527)
|
deferred revenue from acquired subsidiaries
|
|
-
|
|
-
|
|
(58,295)
|
|
(9,047)
|
|
-
|
|
(58,295)
|
Non-GAAP gross
billings of Youdao Premium Courses
|
|
877,025
|
|
1,024,729
|
|
573,510
|
|
89,007
|
|
1,780,420
|
|
2,339,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(877,805)
|
|
(524,353)
|
|
(128,898)
|
|
(20,005)
|
|
(1,305,035)
|
|
(979,042)
|
Add: share-based
compensation
|
|
12,071
|
|
23,833
|
|
20,471
|
|
3,177
|
|
26,901
|
|
62,335
|
amortization of intangible assets from business
combination
|
|
-
|
|
-
|
|
996
|
|
155
|
|
-
|
|
996
|
impairment on long-term investments
|
|
-
|
|
-
|
|
7,000
|
|
1,086
|
|
-
|
|
7,000
|
Less: tax effects on
non-GAAP adjustments
|
|
-
|
|
-
|
|
(149)
|
|
(23)
|
|
-
|
|
(149)
|
GAAP
to non-GAAP reconciling items for the
loss attributable
to noncontrolling interests
|
|
|
|
|
|
(381)
|
|
(59)
|
|
-
|
|
(381)
|
Non-GAAP net loss
attributable to ordinary shareholders of the Company
|
|
(865,734)
|
|
(500,520)
|
|
(100,961)
|
|
(15,669)
|
|
(1,278,134)
|
|
(909,241)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
loss per ADS
|
|
(7.63)
|
|
(4.09)
|
|
(0.82)
|
|
(0.13)
|
|
(11.36)
|
|
(7.51)
|
Non-GAAP diluted net
loss per ADS
|
|
(7.63)
|
|
(4.09)
|
|
(0.82)
|
|
(0.13)
|
|
(11.36)
|
|
(7.51)
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-third-quarter-2021-unaudited-financial-results-301425034.html
SOURCE Youdao, Inc.