HANGZHOU, China, Nov. 17,
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 third quarter
ended September 30, 2022.
Third Quarter 2022 Financial
Highlights[1]
- Total net revenues were RMB1.4
billion (US$197.2 million),
representing a 35.0% increase from the same period in 2021.
- Net revenues from learning services were RMB888.5 million (US$124.9
million), representing a 37.2% increase from the same period
in 2021.
- Net revenues from smart devices were RMB356.5 million (US$50.1
million), representing a 40.1% increase from the same period
in 2021.
- Net revenues from online marketing services were
RMB157.5 million (US$22.1 million), representing a 14.9% increase
from the same period in 2021.
- Gross margin was 54.2%, compared to 52.6% for the
same period in 2021.
"We achieved record-high revenues of RMB1.4 billion in Q3, up 35.0% year-over-year,
mainly due to our continuous innovation in learning services and
smart devices. Since the beginning of this year, we have launched
five new smart devices for various consumer learning scenarios. The
success of our newly-designed products, such as the Youdao
Dictionary Pen X5 and Youdao Smart Learning Pad, has infused
confidence in our ability to generate return on investment through
continuous innovation. We help our customers learn even better
through more innovative products and services," said Dr.
Feng Zhou, Chief Executive Officer
and a Director of Youdao.
"Our transition from regulatory changes last year is mostly
finished. Despite the many obstacles and the uncertain macro
environment, we are seizing the bigger picture opportunity to
evolve and make advancements in our company that solidify our
sustainable growth over the long term," 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.
|
Third Quarter 2022 Financial Results
Net Revenues
Net revenues for the third quarter of 2022 were RMB1.4 billion (US$197.2
million), representing a 35.0% increase from RMB1.0 billion for the same period of 2021.
Net revenues from learning services were RMB888.5 million (US$124.9
million) for the third quarter of 2022, representing a 37.2%
increase from RMB647.5 million for
the same period of 2021. The year-over-year growth was primarily
driven by the strong sales performance from the new services
initiated after the implementation of the "Double Reduction"
Policy.
Net revenues from smart devices were RMB356.5 million (US$50.1
million) for the third quarter of 2022, representing a 40.1%
increase from RMB254.5 million for
the same period of 2021, primarily driven by the popularity of
Youdao's newly launched products, such as the Youdao
Dictionary Pen X5.
Net revenues from online marketing services were RMB157.5 million (US$22.1
million) for the third quarter of 2022, representing a 14.9%
increase from RMB137.0 million for
the same period of 2021. The year-over-year increase in revenues
from online marketing services was mainly attributable to the
increase in performance-based advertisements through third parties'
internet properties.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2022 was RMB760.2 million (US$106.9
million), representing a 39.0% increase from RMB546.9 million for the same period of 2021.
Gross margin increased to 54.2% for the third quarter of 2022 from
52.6% for the same period of 2021.
Gross margin for learning services was 64.5% for the third
quarter of 2022, compared with 65.0% for the same period of
2021.
Gross margin for smart devices increased to 40.4% for the third
quarter of 2022 from 33.7% for the same period of 2021. The
improvement was mainly attributable to the popularity of Youdao's
newly launched Youdao Dictionary Pen X5, which carries a higher
gross margin than other products.
Gross margin for online marketing services was 27.1% for the
third quarter of 2022, compared with 29.2% for the same period of
2021. 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 third quarter of 2022 were
RMB979.2 million (US$137.7 million), compared with RMB772.6 million for the same period of last
year.
Sales and marketing expenses for the third quarter of 2022 were
RMB709.8 million (US$99.8 million), representing an increase of
28.3% from RMB553.4 million for the
same period of 2021. This increase was mainly driven by increasing
sales and marketing efforts associated with Youdao's learning
services and smart devices.
Research and development expenses for the third quarter of 2022
were RMB212.9 million (US$29.9 million), representing an increase of
30.1% from RMB163.6 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 third quarter of
2022 were RMB56.5 million
(US$7.9 million), compared with
RMB55.6 million for the same period
of 2021.
Loss from Operations
Loss from operations for the third quarter of 2022 was
RMB219.0 million (US$30.8 million), compared with RMB225.7 million for the same period in 2021. The
margin of loss from operations was 15.6%, compared with 21.7% 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 third quarter of 2022 was
RMB183.9 million (US$25.9 million), compared with RMB225.3 million for the same period of last
year. Non-GAAP net loss from continuing operations attributable to
Youdao's ordinary shareholders for the third quarter of 2022 was
RMB164.4 million (US$23.1 million), compared with RMB200.2 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 third quarter of 2022 was
RMB1.49 (US$0.21), compared with RMB1.84 for the same period of 2021. Non-GAAP
basic and diluted net loss from continuing operations per ADS
attributable to ordinary shareholders was RMB1.33 (US$0.19),
compared with RMB1.63 for the same
period of 2021.
Balance Sheet
As of September 30, 2022, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB953.1
million (US$134.0 million),
compared with RMB1.6 billion as of
December 31, 2021. For the third
quarter of 2022, net cash used in continuing operating activities
was RMB294.1 million (US$41.3 million), capital expenditures totaled
RMB12.7 million (US$1.8 million), and depreciation and
amortization expenses amounted to RMB11.6
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.
As of September 30, 2022, the
Company's contract liabilities, which mainly consisted of deferred
revenues generated from Youdao's learning services, were
RMB996.5 million (US$140.1 million), compared with RMB1.1 billion as of December 31, 2021.
Share Repurchase Program
The Company today also announced that its board of directors has
authorized the Company to adopt a share repurchase program in the
near future in accordance with applicable laws and regulations for
up to US$20 million of its Class A
ordinary shares (including in the form of ADSs) during a period of
up to 36 months.
Repurchases under the Company's share repurchase program, if
adopted, may be made from time to time on the open market at
prevailing market prices, in open-market transactions, privately
negotiated transactions or block trades, and/or through other
legally permissible means, depending on market conditions and in
accordance with the applicable rules and regulations. The timing
and conditions of the share repurchases will be subject to various
factors including the requirements under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange
Act of 1934, as amended.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 5:00 a.m. Eastern
Time on Thursday, November 17, 2022 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, November 17, 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:
|
7502413
|
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 24, 2022:
United States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
7502413
|
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 long-term investments, income tax
effects of above GAAP to non-GAAP reconciling items, and adjustment
for GAAP to non-GAAP 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 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 RMB7.1135 to US$1.00, the exchange rate on September 30, 2022 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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 September
30,
|
|
As of September
30,
|
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
USD
(1)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
322,777
|
|
712,115
|
|
100,108
|
|
Time
deposits
|
|
268
|
|
273
|
|
38
|
|
Restricted
cash
|
|
749,770
|
|
219,456
|
|
30,851
|
|
Short-term
investments
|
|
503,831
|
|
21,215
|
|
2,982
|
|
Accounts receivable,
net
|
|
248,339
|
|
332,331
|
|
46,718
|
|
Inventories,
net
|
|
255,411
|
|
170,393
|
|
23,953
|
|
Amounts due from
NetEase Group
|
|
6,192
|
|
7,388
|
|
1,039
|
|
Prepayment and other
current assets
|
|
182,577
|
|
212,605
|
|
29,888
|
|
Assets held for
sale
|
|
497
|
|
-
|
|
-
|
|
Total current
assets
|
|
2,269,662
|
|
1,675,776
|
|
235,577
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, equipment and
software, net
|
|
80,315
|
|
104,884
|
|
14,744
|
|
Operating lease
right-of-use assets, net
|
|
118,104
|
|
80,822
|
|
11,362
|
|
Long-term
investments
|
|
32,518
|
|
67,032
|
|
9,423
|
|
Goodwill
|
|
109,944
|
|
109,944
|
|
15,456
|
|
Other assets,
net
|
|
22,436
|
|
38,288
|
|
5,382
|
|
Assets held for
sale
|
|
1,088
|
|
-
|
|
-
|
|
Total non-current
assets
|
|
364,405
|
|
400,970
|
|
56,367
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,634,067
|
|
2,076,746
|
|
291,944
|
|
|
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders' Deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payables
|
|
161,006
|
|
179,756
|
|
25,270
|
|
Payroll
payable
|
|
277,383
|
|
176,003
|
|
24,742
|
|
Amounts due to NetEase
Group
|
|
83,041
|
|
74,476
|
|
10,470
|
|
Contract
liabilities
|
|
1,065,639
|
|
996,535
|
|
140,091
|
|
Taxes
payable
|
|
53,323
|
|
52,889
|
|
7,435
|
|
Accrued liabilities and
other payables
|
|
515,567
|
|
626,256
|
|
88,038
|
|
Short-term loans from
NetEase Group
|
|
878,000
|
|
878,000
|
|
123,427
|
|
Total current
liabilities
|
|
3,033,959
|
|
2,983,915
|
|
419,473
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term lease
liabilities
|
|
73,070
|
|
43,476
|
|
6,112
|
|
Long-term loans from
NetEase Group
|
|
255,028
|
|
496,986
|
|
69,865
|
|
Other non-current
liabilities
|
|
2,411
|
|
17,604
|
|
2,475
|
|
Total non-current
liabilities
|
|
330,509
|
|
558,066
|
|
78,452
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,364,468
|
|
3,541,981
|
|
497,925
|
|
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
78,592
|
|
72,959
|
|
10,256
|
|
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
|
Youdao's shareholders'
deficit
|
|
(807,067)
|
|
(1,532,313)
|
|
(215,410)
|
|
Noncontrolling
interests
|
|
(1,926)
|
|
(5,881)
|
|
(827)
|
|
Total shareholders'
deficit
|
|
(808,993)
|
|
(1,538,194)
|
|
(216,237)
|
|
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
|
2,634,067
|
|
2,076,746
|
|
291,944
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of USD1.00=RMB7.1135 on the last trading
day of September (September 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
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
(1)
|
|
RMB
|
|
RMB
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
647,522
|
|
563,601
|
|
888,493
|
|
124,902
|
|
1,862,162
|
|
2,278,105
|
|
|
Smart
devices
|
|
254,513
|
|
239,850
|
|
356,480
|
|
50,113
|
|
662,722
|
|
849,490
|
|
|
Online marketing
services
|
|
137,040
|
|
152,774
|
|
157,461
|
|
22,136
|
|
442,113
|
|
431,605
|
|
|
Total net
revenues
|
|
1,039,075
|
|
956,225
|
|
1,402,434
|
|
197,151
|
|
2,966,997
|
|
3,559,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(492,176)
|
|
(546,498)
|
|
(642,254)
|
|
(90,287)
|
|
(1,423,452)
|
|
(1,747,471)
|
|
|
Gross
profit
|
|
546,899
|
|
409,727
|
|
760,180
|
|
106,864
|
|
1,543,545
|
|
1,811,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses (2)
|
|
(553,407)
|
|
(595,997)
|
|
(709,769)
|
|
(99,778)
|
|
(1,657,201)
|
|
(1,812,151)
|
|
|
Research and
development expenses (2)
|
|
(163,627)
|
|
(208,411)
|
|
(212,926)
|
|
(29,933)
|
|
(437,128)
|
|
(624,317)
|
|
|
General and
administrative expenses (2)
|
|
(55,612)
|
|
(60,532)
|
|
(56,520)
|
|
(7,944)
|
|
(144,185)
|
|
(174,613)
|
|
|
Total operating
expenses
|
|
(772,646)
|
|
(864,940)
|
|
(979,215)
|
|
(137,655)
|
|
(2,238,514)
|
|
(2,611,081)
|
|
|
Loss from
operations
|
|
(225,747)
|
|
(455,213)
|
|
(219,035)
|
|
(30,791)
|
|
(694,969)
|
|
(799,352)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
5,959
|
|
3,769
|
|
4,033
|
|
567
|
|
15,768
|
|
9,836
|
|
|
Interest
expense
|
|
(7,835)
|
|
(10,102)
|
|
(12,277)
|
|
(1,726)
|
|
(23,216)
|
|
(30,964)
|
|
|
Others, net
|
|
614
|
|
1,567
|
|
40,058
|
|
5,631
|
|
24,334
|
|
77,678
|
|
|
Loss before
tax
|
|
(227,009)
|
|
(459,979)
|
|
(187,221)
|
|
(26,319)
|
|
(678,083)
|
|
(742,802)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(2,590)
|
|
(553)
|
|
1,108
|
|
156
|
|
(7,204)
|
|
(11)
|
|
|
Net loss from
continuing operations
|
|
(229,599)
|
|
(460,532)
|
|
(186,113)
|
|
(26,163)
|
|
(685,287)
|
|
(742,813)
|
|
|
Net income/(loss)
from discontinued operations
|
|
96,447
|
|
-
|
|
-
|
|
-
|
|
(299,557)
|
|
(6,105)
|
|
|
Net
loss
|
|
(133,152)
|
|
(460,532)
|
|
(186,113)
|
|
(26,163)
|
|
(984,844)
|
|
(748,918)
|
|
|
Net loss attributable
to noncontrolling interests
|
|
4,254
|
|
6,646
|
|
2,194
|
|
308
|
|
5,802
|
|
9,588
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(128,898)
|
|
(453,886)
|
|
(183,919)
|
|
(25,855)
|
|
(979,042)
|
|
(739,330)
|
|
|
Including:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary shareholders of
the
Company
|
|
(225,345)
|
|
(453,886)
|
|
(183,919)
|
|
(25,855)
|
|
(679,485)
|
|
(733,225)
|
|
|
Net income/(loss) from
discontinued operations attributable to ordinary
shareholders of the Company
|
|
96,447
|
|
-
|
|
-
|
|
-
|
|
(299,557)
|
|
(6,105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss)/income
per ADS
|
|
(1.05)
|
|
(3.67)
|
|
(1.49)
|
|
(0.21)
|
|
(8.08)
|
|
(5.98)
|
|
|
-Continuing
operations
|
|
(1.84)
|
|
(3.67)
|
|
(1.49)
|
|
(0.21)
|
|
(5.61)
|
|
(5.93)
|
|
|
-Discontinued
operations
|
|
0.79
|
|
-
|
|
-
|
|
-
|
|
(2.47)
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
(loss)/income per ADS
|
|
(1.05)
|
|
(3.67)
|
|
(1.49)
|
|
(0.21)
|
|
(8.08)
|
|
(5.98)
|
|
|
-Continuing
operations
|
|
(1.84)
|
|
(3.67)
|
|
(1.49)
|
|
(0.21)
|
|
(5.61)
|
|
(5.93)
|
|
|
-Discontinued
operations
|
|
0.79
|
|
-
|
|
-
|
|
-
|
|
(2.47)
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net (loss)/income per ADS
|
|
122,715,264
|
|
123,703,353
|
|
123,767,013
|
|
123,767,013
|
|
121,131,136
|
|
123,602,039
|
|
|
Shares used in
computing diluted net (loss)/income per ADS
|
|
122,715,264
|
|
123,703,353
|
|
123,767,013
|
|
123,767,013
|
|
121,131,136
|
|
123,602,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of
Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate of
USD1.00=RMB7.1135
on the last trading day of
September (September 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
|
|
1,356
|
|
1,775
|
|
798
|
|
112
|
|
4,613
|
|
4,753
|
|
|
Sales and marketing
expenses
|
|
2,678
|
|
3,451
|
|
2,879
|
|
405
|
|
7,721
|
|
9,420
|
|
|
Research and
development expenses
|
|
7,641
|
|
8,428
|
|
7,586
|
|
1,066
|
|
25,040
|
|
24,876
|
|
|
General and
administrative expenses
|
|
5,984
|
|
4,448
|
|
4,801
|
|
675
|
|
14,594
|
|
14,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
647,522
|
|
563,601
|
|
888,493
|
|
124,902
|
|
1,862,162
|
|
2,278,105
|
Smart
devices
|
|
254,513
|
|
239,850
|
|
356,480
|
|
50,113
|
|
662,722
|
|
849,490
|
Online marketing
services
|
|
137,040
|
|
152,774
|
|
157,461
|
|
22,136
|
|
442,113
|
|
431,605
|
Total net
revenues
|
|
1,039,075
|
|
956,225
|
|
1,402,434
|
|
197,151
|
|
2,966,997
|
|
3,559,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
226,543
|
|
269,491
|
|
315,086
|
|
44,294
|
|
699,267
|
|
882,874
|
Smart
devices
|
|
168,637
|
|
166,503
|
|
212,365
|
|
29,854
|
|
399,222
|
|
546,672
|
Online marketing
services
|
|
96,996
|
|
110,504
|
|
114,803
|
|
16,139
|
|
324,963
|
|
317,925
|
Total cost of
revenues
|
|
492,176
|
|
546,498
|
|
642,254
|
|
90,287
|
|
1,423,452
|
|
1,747,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
65.0 %
|
|
52.2 %
|
|
64.5 %
|
|
64.5 %
|
|
62.4 %
|
|
61.2 %
|
Smart
devices
|
|
33.7 %
|
|
30.6 %
|
|
40.4 %
|
|
40.4 %
|
|
39.8 %
|
|
35.6 %
|
Online marketing
services
|
|
29.2 %
|
|
27.7 %
|
|
27.1 %
|
|
27.1 %
|
|
26.5 %
|
|
26.3 %
|
Total gross
margin
|
|
52.6 %
|
|
42.8 %
|
|
54.2 %
|
|
54.2 %
|
|
52.0 %
|
|
50.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to ordinary shareholders of
the Company
|
|
(225,345)
|
|
(453,886)
|
|
(183,919)
|
|
(25,855)
|
|
(679,485)
|
|
(733,225)
|
|
|
Add: share-based
compensation
|
|
17,659
|
|
18,102
|
|
16,064
|
|
2,258
|
|
51,968
|
|
53,682
|
|
|
amortization of intangible assets from business
combination
|
|
996
|
|
-
|
|
-
|
|
-
|
|
996
|
|
-
|
|
|
impairment of long-term investments
|
|
7,000
|
|
-
|
|
3,500
|
|
492
|
|
7,000
|
|
8,500
|
|
|
Less: tax effects on
non-GAAP adjustments
|
|
(149)
|
|
-
|
|
-
|
|
-
|
|
(149)
|
|
-
|
|
|
GAAP
to non-GAAP reconciling items for the loss attributable to
noncontrolling
interests
|
|
(381)
|
|
-
|
|
-
|
|
-
|
|
(381)
|
|
-
|
|
|
Non-GAAP net loss
from continuing operations attributable to ordinary
shareholders of the Company
|
|
(200,220)
|
|
(435,784)
|
|
(164,355)
|
|
(23,105)
|
|
(620,051)
|
|
(671,043)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net loss
from continuing operations per ADS
|
|
(1.63)
|
|
(3.52)
|
|
(1.33)
|
|
(0.19)
|
|
(5.12)
|
|
(5.43)
|
|
|
Non-GAAP diluted net
loss from continuing operations per ADS
|
|
(1.63)
|
|
(3.52)
|
|
(1.33)
|
|
(0.19)
|
|
(5.12)
|
|
(5.43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-third-quarter-2022-unaudited-financial-results-301681194.html
SOURCE Youdao, Inc.