UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2023
Commission file number: 001-39087
Youdao, Inc.
(Exact Name of Registrant as Specified in Its Charter)
No. 399, Wangshang
Road, Binjiang District
Hangzhou 310051, People’s Republic of China
+86 0571-8985-2163
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form
40-F ☐
EXHIBIT INDEX
|
Exhibit No. |
|
Description |
| |
|
|
| 99.1 |
|
Press Release |
Signature
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
|
Youdao, Inc. |
| |
|
|
| |
|
|
| Date: |
August 24, 2023 |
|
By: |
/s/ Feng Zhou |
| |
|
|
|
Name: |
Feng Zhou |
| |
|
|
|
Title: |
Chief Executive Officer, Director |
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
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: youdao@thepiacentegroup.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
Youdao Reports Second Quarter 2023 Unaudited
Financial Results
Hangzhou, China – August 24, 2023 –
Youdao, Inc. (“Youdao” or the “Company”) (NYSE: DAO), an intelligent learning company with industry-leading technology
in China, today announced its unaudited financial results for the second quarter ended June 30, 2023.
Second Quarter 2023 Financial Highlights
| l | Total net revenues were RMB1.2 billion
(US$166.4 million), representing a 26.2% increase from the same period in 2022. |
| o | Net revenues from learning services were RMB680.9 million (US$93.9 million), representing a 20.8%
increase from the same period in 2022. |
| o | Net revenues from smart devices were RMB222.2 million (US$30.6 million), representing a 7.4% decrease
from the same period in 2022. |
| o | Net revenues from online marketing services were RMB303.6 million (US$41.9 million), representing
a 98.7% increase from the same period in 2022. |
| l | Gross margin was 47.0%, compared with
42.8% for the same period in 2022. |
“Driven by AI technology, we upgraded our
products and services in the second quarter, providing users with an enhanced experience and thereby improving our financial metrics.
Firstly, the continuous iteration and upgrade led to record-high sales of digital content services. Secondly, by empowering our advertising
business with AIGC, we ensured more precise targeting which helped our customers reach their desired audience faster and more accurately,
resulting in a historic high net revenues of RMB303.6 million from online marketing services. Moreover, the application of AI technology
reduced the production time of advertising materials and further increased user satisfaction. The positive progress of our business in
the second quarter led to a year-over-year improvement in net revenues, loss from operations, and operating cash flow for this quarter
and the first half of the year,” said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.
“Looking ahead, the demand from users for
better learning products and services will continue to evolve. We will continue to leverage our strengths in content, user understanding,
and technological capabilities to continuously create high-quality products. We
will focus on helping users enhance their learning efficiency and effectiveness, further empowering personalized instruction,” Dr.
Zhou concluded.
Second
Quarter 2023 Financial Results1
Net Revenues
Net revenues for the second quarter of 2023 were
RMB1.2 billion (US$166.4 million), representing a 26.2% increase from RMB956.2 million for the same period of 2022.
Net revenues from learning services were RMB680.9
million (US$93.9 million) for the second quarter of 2023, representing a 20.8% increase from RMB563.6 million for the same period of 2022.
The year-over-year growth from learning services was primarily driven by the strong sales performance of digital content services compared
with the same period of 2022.
Net revenues from smart devices were RMB222.2
million (US$30.6 million) for the second quarter of 2023, representing a 7.4% decrease from RMB239.9 million for the same period of 2022,
primarily due to the decreased demands for intelligent learning products in the second quarter of 2023.
Net revenues from online marketing services were
RMB303.6 million (US$41.9 million) for the second quarter of 2023, representing a 98.7% increase from RMB152.8 million for the same period
of 2022, mainly attributable to the increased demands for performance-based advertisements through third parties’ internet properties.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2023 was
RMB567.2 million (US$78.2 million), representing a 38.4% increase from RMB409.7 million for the same period of 2022. Gross margin increased
to 47.0% for the second quarter of 2023 from 42.8% for the same period of 2022.
Gross margin for learning services was 57.4% for
the second quarter of 2023, compared with 52.2% for the same period of 2022. The increase was primarily attributable to the significant
increase in revenues from learning services, improved economics of scale and ongoing optimization of Youdao’s faculty compensation
structure.
Gross margin for smart devices increased to 35.8%
for the second quarter of 2023 from 30.6% for the same period of 2022. The increase was mainly attributable to the popularity of Youdao
Dictionary Pen X5 which carries a higher gross margin than other products.
Gross margin for online marketing services increased
to 31.9% for the second quarter of 2023, from 27.7% for the same period of 2022. The increase was mainly attributable to improved gross
margin profile of performance-based advertisements through third parties’ internet properties compare with the same period of last
year.
Operating Expenses
Total operating expenses for the second quarter
of 2023 were RMB856.3 million (US$118.1 million), which was stable compared with RMB864.9 million for the same period of last year.
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. The financial information and non-GAAP financial information included in this press release are presented on a continuing
operations basis, unless otherwise specifically stated.
Sales and marketing expenses for the second quarter
of 2023 were RMB587.7 million (US$81.0 million), compared with RMB596.0 million for the same period of 2022.
Research and development expenses for the second
quarter of 2023 were RMB205.1 million (US$28.3 million), compared with RMB208.4 million for the same period of 2022.
General and administrative expenses for the second
quarter of 2023 were RMB63.6 million (US$8.8 million), compared with RMB60.5 million for the same period of 2022.
Loss from Operations
As a result of the foregoing, loss from operations
for the second quarter of 2023 was RMB289.1 million (US$39.9 million), compared with RMB455.2 million for the same period in 2022. The
margin of loss from operations was 24.0%, compared with 47.6% 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 second quarter of 2023 was RMB299.2 million (US$41.3 million), compared with RMB453.9
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 2023 was RMB283.6 million (US$39.1 million), compared with RMB435.8 million for the same period of last year.
Basic and diluted net loss from continuing operations
per American depositary share (“ADS”) attributable to ordinary shareholders for the second quarter of 2023 was RMB2.45 (US$0.34),
compared with RMB3.67 for the same period of 2022. Non-GAAP basic and diluted net loss from continuing operations per ADS attributable
to ordinary shareholders was RMB2.32 (US$0.32), compared with RMB3.52 for the same period of 2022.
Other Information
As of June 30, 2023, Youdao’s cash, cash
equivalents, restricted cash, time deposits and short-term investments totaled RMB680.0 million (US$93.8 million), compared with RMB1.0
billion as of December 31, 2022. For the second quarter of 2023, net cash provided by continuing operating activities was RMB133.0 million
(US$18.3 million), capital expenditures totaled RMB6.6 million (US$0.9 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$80.0 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. In August 2023, the Company and the NetEase Group have both approved a proposed amendment
to the aforementioned US$300.0 million revolving loan facility to extend the maturity date of the facility, including the loans already
drawn from it, until March 31, 2027.
As of June 30, 2023, the Company’s contract
liabilities, which mainly consisted of deferred revenues generated from Youdao’s learning services, were RMB1.2 billion (US$167.3
million), compared with RMB1.1 billion as of December 31, 2022.
Share Repurchase Program
On November 17, 2022, the Company announced that
its board of directors had authorized the Company to adopt a share repurchase program in accordance with applicable laws and regulations
for up to US$20.0 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months.
As of the date of this release, the Company has
accumulatively repurchased an aggregate of approximately 2.8 million ADSs for approximately US$15.0 million in the open market under the
share repurchase program.
The
Company today announced that its board of directors has approved an amendment to the foregoing program to increase the total authorized
repurchase amount by an additional US$20.0 million. Repurchases under such share repurchase program 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.
Conference Call
Youdao’s management team will host a teleconference
call with simultaneous webcast at 6:00 a.m. Eastern Time on Thursday, August 24, 2023 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, August
24, 2023). 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: |
1068580 |
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 31, 2023:
| United States: |
+1-877-344-7529 |
| International: |
+1-412-317-0088 |
| Replay Access Code: |
1068580 |
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is an intelligent learning
company with industry-leading technology 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 net 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 investments. Non-GAAP
net income/(loss) from continuing operations attributable to the Company’s ordinary 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.
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 table has more details on the
reconciliation between our GAAP financial measures that are mostly 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 RMB7.2513 to US$1.00, the exchange rate on June 30, 2023 set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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. The announced results of the second quarter of 2023 are preliminary and subject to adjustments.
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.
YOUDAO,
INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(RMB and USD in thousands)
| | |
As of December 31, | |
As of June 30, | |
As of June 30, |
| | |
2022 | |
2023 | |
2023 |
| | |
RMB | |
RMB | |
USD (1) |
| Assets | |
| |
| |
|
| Current assets: | |
| |
| |
|
| Cash and cash equivalents | |
| 783,611 | | |
| 657,881 | | |
| 90,726 | |
| Time deposits | |
| 273 | | |
| 277 | | |
| 38 | |
| Restricted cash | |
| 873 | | |
| 307 | | |
| 42 | |
| Short-term investments | |
| 232,152 | | |
| 21,549 | | |
| 2,972 | |
| Accounts receivable, net | |
| 405,139 | | |
| 375,682 | | |
| 51,809 | |
| Inventories | |
| 232,260 | | |
| 182,710 | | |
| 25,197 | |
| Amounts due from NetEase Group | |
| 7,888 | | |
| 11,000 | | |
| 1,517 | |
| Prepayment and other current assets | |
| 207,777 | | |
| 193,379 | | |
| 26,668 | |
| Total current assets | |
| 1,869,973 | | |
| 1,442,785 | | |
| 198,969 | |
| | |
| | | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property, equipment and software, net | |
| 92,116 | | |
| 81,186 | | |
| 11,196 | |
| Operating lease right-of-use assets, net | |
| 78,405 | | |
| 86,291 | | |
| 11,900 | |
| Long-term investments | |
| 90,703 | | |
| 87,443 | | |
| 12,059 | |
| Goodwill | |
| 109,944 | | |
| 109,944 | | |
| 15,162 | |
| Other assets, net | |
| 35,015 | | |
| 38,419 | | |
| 5,298 | |
| Total non-current assets | |
| 406,183 | | |
| 403,283 | | |
| 55,615 | |
| | |
| | | |
| | | |
| | |
| Total assets | |
| 2,276,156 | | |
| 1,846,068 | | |
| 254,584 | |
| | |
| | | |
| | | |
| | |
| Liabilities, Mezzanine Equity and Shareholders' Deficit | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payables | |
| 282,354 | | |
| 129,499 | | |
| 17,859 | |
| Payroll payable | |
| 266,340 | | |
| 236,659 | | |
| 32,637 | |
| Amounts due to NetEase Group | |
| 68,809 | | |
| 63,536 | | |
| 8,762 | |
| Contract liabilities | |
| 1,067,285 | | |
| 1,212,819 | | |
| 167,255 | |
| Taxes payable | |
| 50,908 | | |
| 58,190 | | |
| 8,025 | |
| Accrued liabilities and other payables | |
| 564,922 | | |
| 666,693 | | |
| 91,940 | |
| Short-term loans from NetEase Group | |
| 878,000 | | |
| 878,000 | | |
| 121,082 | |
| Long-term loans from NetEase Group - current (2) | |
| - | | |
| 578,064 | | |
| 79,719 | |
| Total current liabilities | |
| 3,178,618 | | |
| 3,823,460 | | |
| 527,279 | |
| | |
| | | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Long-term lease liabilities | |
| 43,635 | | |
| 46,258 | | |
| 6,379 | |
| Long-term loans from NetEase Group (2) | |
| 522,345 | | |
| - | | |
| - | |
| Other non-current liabilities | |
| 8,832 | | |
| 12,014 | | |
| 1,657 | |
| Total non-current liabilities | |
| 574,812 | | |
| 58,272 | | |
| 8,036 | |
| | |
| | | |
| | | |
| | |
| Total liabilities | |
| 3,753,430 | | |
| 3,881,732 | | |
| 535,315 | |
| | |
| | | |
| | | |
| | |
| Mezzanine equity | |
| 64,571 | | |
| 60,692 | | |
| 8,370 | |
| | |
| | | |
| | | |
| | |
| Shareholders' deficit: | |
| | | |
| | | |
| | |
| Youdao's shareholders' deficit | |
| (1,535,089 | ) | |
| (2,087,684 | ) | |
| (287,905 | ) |
| Noncontrolling interests | |
| (6,756 | ) | |
| (8,672 | ) | |
| (1,196 | ) |
| Total shareholders' deficit | |
| (1,541,845 | ) | |
| (2,096,356 | ) | |
| (289,101 | ) |
| | |
| | | |
| | | |
| | |
| Total liabilities, mezzanine equity and shareholders’ deficit | |
| 2,276,156 | | |
| 1,846,068 | | |
| 254,584 | |
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is
based on the noon buying rate of USD1.00=RMB7.2513 on the last trading day of June (June 30, 2023) as set forth in the H.10 statistical release of the
U.S. Federal Reserve Board.
Note 2:
The outstanding balance of long-term loans from NetEase Group, with
maturity dated March 31, 2024, was classified as current liabilities as of June 30, 2023.
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, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD (1) | |
RMB | |
RMB |
| Net revenues: | |
| |
| |
| |
| |
| |
|
| Learning services | |
| 563,601 | | |
| 732,421 | | |
| 680,920 | | |
| 93,903 | | |
| 1,389,612 | | |
| 1,413,341 | |
| Smart devices | |
| 239,850 | | |
| 212,749 | | |
| 222,157 | | |
| 30,637 | | |
| 493,010 | | |
| 434,906 | |
| Online marketing services | |
| 152,774 | | |
| 218,100 | | |
| 303,557 | | |
| 41,862 | | |
| 274,144 | | |
| 521,657 | |
| Total net revenues | |
| 956,225 | | |
| 1,163,270 | | |
| 1,206,634 | | |
| 166,402 | | |
| 2,156,766 | | |
| 2,369,904 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues (2) | |
| (546,498 | ) | |
| (561,420 | ) | |
| (639,459 | ) | |
| (88,185 | ) | |
| (1,105,217 | ) | |
| (1,200,879 | ) |
| Gross profit | |
| 409,727 | | |
| 601,850 | | |
| 567,175 | | |
| 78,217 | | |
| 1,051,549 | | |
| 1,169,025 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Sales and marketing expenses (2) | |
| (595,997 | ) | |
| (565,205 | ) | |
| (587,651 | ) | |
| (81,041 | ) | |
| (1,102,382 | ) | |
| (1,152,856 | ) |
| Research and development expenses (2) | |
| (208,411 | ) | |
| (182,830 | ) | |
| (205,076 | ) | |
| (28,281 | ) | |
| (411,391 | ) | |
| (387,906 | ) |
| General and administrative expenses (2) | |
| (60,532 | ) | |
| (49,606 | ) | |
| (63,579 | ) | |
| (8,768 | ) | |
| (118,093 | ) | |
| (113,185 | ) |
| Total operating expenses | |
| (864,940 | ) | |
| (797,641 | ) | |
| (856,306 | ) | |
| (118,090 | ) | |
| (1,631,866 | ) | |
| (1,653,947 | ) |
| Loss from operations | |
| (455,213 | ) | |
| (195,791 | ) | |
| (289,131 | ) | |
| (39,873 | ) | |
| (580,317 | ) | |
| (484,922 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 3,769 | | |
| 2,294 | | |
| 2,154 | | |
| 297 | | |
| 5,803 | | |
| 4,448 | |
| Interest expense | |
| (10,102 | ) | |
| (15,763 | ) | |
| (17,087 | ) | |
| (2,356 | ) | |
| (18,687 | ) | |
| (32,850 | ) |
| Others, net | |
| 1,567 | | |
| 6,378 | | |
| 5,730 | | |
| 790 | | |
| 37,620 | | |
| 12,108 | |
| Loss before tax | |
| (459,979 | ) | |
| (202,882 | ) | |
| (298,334 | ) | |
| (41,142 | ) | |
| (555,581 | ) | |
| (501,216 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| (553 | ) | |
| (3,201 | ) | |
| (4,890 | ) | |
| (675 | ) | |
| (1,119 | ) | |
| (8,091 | ) |
| Net loss from continuing operations | |
| (460,532 | ) | |
| (206,083 | ) | |
| (303,224 | ) | |
| (41,817 | ) | |
| (556,700 | ) | |
| (509,307 | ) |
| Net loss from discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (6,105 | ) | |
| - | |
| Net loss | |
| (460,532 | ) | |
| (206,083 | ) | |
| (303,224 | ) | |
| (41,817 | ) | |
| (562,805 | ) | |
| (509,307 | ) |
| Net loss attributable to noncontrolling interests | |
| 6,646 | | |
| 1,730 | | |
| 4,065 | | |
| 561 | | |
| 7,394 | | |
| 5,795 | |
| Net loss attributable to ordinary shareholders of the Company | |
| (453,886 | ) | |
| (204,353 | ) | |
| (299,159 | ) | |
| (41,256 | ) | |
| (555,411 | ) | |
| (503,512 | ) |
| Including: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss from continuing operations attributable to ordinary shareholders of the Company | |
| (453,886 | ) | |
| (204,353 | ) | |
| (299,159 | ) | |
| (41,256 | ) | |
| (549,306 | ) | |
| (503,512 | ) |
| Net loss from discontinued operations attributable to ordinary shareholders of the Company | |
| - | | |
| - | | |
| - | | |
| - | | |
| (6,105 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net loss per ADS | |
| (3.67 | ) | |
| (1.67 | ) | |
| (2.45 | ) | |
| (0.34 | ) | |
| (4.50 | ) | |
| (4.12 | ) |
| -Continuing operations | |
| (3.67 | ) | |
| (1.67 | ) | |
| (2.45 | ) | |
| (0.34 | ) | |
| (4.45 | ) | |
| (4.12 | ) |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.05 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted net loss per ADS | |
| (3.67 | ) | |
| (1.67 | ) | |
| (2.45 | ) | |
| (0.34 | ) | |
| (4.50 | ) | |
| (4.12 | ) |
| -Continuing operations | |
| (3.67 | ) | |
| (1.67 | ) | |
| (2.45 | ) | |
| (0.34 | ) | |
| (4.45 | ) | |
| (4.12 | ) |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.05 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Shares used in computing basic net los per ADS | |
| 123,703,353 | | |
| 122,268,844 | | |
| 122,247,009 | | |
| 122,247,009 | | |
| 123,518,179 | | |
| 122,257,874 | |
| Shares used in computing diluted net loss per ADS | |
| 123,703,353 | | |
| 122,268,844 | | |
| 122,247,009 | | |
| 122,247,009 | | |
| 123,518,179 | | |
| 122,257,874 | |
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is
based on the noon buying rate of USD1.00=RMB7.2513 on the last trading day of June (June 30, 2023) 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 | |
| 1,775 | | |
| 1,259 | | |
| 1,049 | | |
| 145 | | |
| 3,955 | | |
| 2,308 | |
| Sales and marketing expenses | |
| 3,451 | | |
| 1,131 | | |
| 2,416 | | |
| 333 | | |
| 6,541 | | |
| 3,547 | |
| Research and development expenses | |
| 8,428 | | |
| 4,785 | | |
| 5,618 | | |
| 774 | | |
| 17,290 | | |
| 10,403 | |
| General and administrative expenses | |
| 4,448 | | |
| 3,321 | | |
| 3,261 | | |
| 450 | | |
| 9,832 | | |
| 6,582 | |
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, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD | |
RMB | |
RMB |
| | |
| |
| |
| |
| |
| |
|
| Net revenues | |
| |
| |
| |
| |
| |
|
| Learning services | |
| 563,601 | | |
| 732,421 | | |
| 680,920 | | |
| 93,903 | | |
| 1,389,612 | | |
| 1,413,341 | |
| Smart devices | |
| 239,850 | | |
| 212,749 | | |
| 222,157 | | |
| 30,637 | | |
| 493,010 | | |
| 434,906 | |
| Online marketing services | |
| 152,774 | | |
| 218,100 | | |
| 303,557 | | |
| 41,862 | | |
| 274,144 | | |
| 521,657 | |
| Total net revenues | |
| 956,225 | | |
| 1,163,270 | | |
| 1,206,634 | | |
| 166,402 | | |
| 2,156,766 | | |
| 2,369,904 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Learning services | |
| 269,491 | | |
| 278,125 | | |
| 290,155 | | |
| 40,013 | | |
| 567,788 | | |
| 568,280 | |
| Smart devices | |
| 166,503 | | |
| 128,588 | | |
| 142,544 | | |
| 19,658 | | |
| 334,307 | | |
| 271,132 | |
| Online marketing services | |
| 110,504 | | |
| 154,707 | | |
| 206,760 | | |
| 28,514 | | |
| 203,122 | | |
| 361,467 | |
| Total cost of revenues | |
| 546,498 | | |
| 561,420 | | |
| 639,459 | | |
| 88,185 | | |
| 1,105,217 | | |
| 1,200,879 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross margin | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Learning services | |
| 52.2 | % | |
| 62.0 | % | |
| 57.4 | % | |
| 57.4 | % | |
| 59.1 | % | |
| 59.8 | % |
| Smart devices | |
| 30.6 | % | |
| 39.6 | % | |
| 35.8 | % | |
| 35.8 | % | |
| 32.2 | % | |
| 37.7 | % |
| Online marketing services | |
| 27.7 | % | |
| 29.1 | % | |
| 31.9 | % | |
| 31.9 | % | |
| 25.9 | % | |
| 30.7 | % |
| Total gross margin | |
| 42.8 | % | |
| 51.7 | % | |
| 47.0 | % | |
| 47.0 | % | |
| 48.8 | % | |
| 49.3 | % |
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, |
| | |
2022 | |
2023 | |
2023 | |
2023 | |
2022 | |
2023 |
| | |
RMB | |
RMB | |
RMB | |
USD | |
RMB | |
RMB |
| | |
| |
| |
| |
| |
| |
|
| Net loss from continuing operations attributable to ordinary shareholders of the Company | |
| (453,886 | ) | |
| (204,353 | ) | |
| (299,159 | ) | |
| (41,256 | ) | |
| (549,306 | ) | |
| (503,512 | ) |
| Add: share-based compensation | |
| 18,102 | | |
| 10,496 | | |
| 12,344 | | |
| 1,702 | | |
| 37,618 | | |
| 22,840 | |
| impairment of long-term investments | |
| - | | |
| - | | |
| 3,240 | | |
| 447 | | |
| 5,000 | | |
| 3,240 | |
| Non-GAAP net loss from continuing operations attributable to ordinary shareholders of the Company | |
| (435,784 | ) | |
| (193,857 | ) | |
| (283,575 | ) | |
| (39,107 | ) | |
| (506,688 | ) | |
| (477,432 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP basic net loss from continuing operations per ADS | |
| (3.52 | ) | |
| (1.59 | ) | |
| (2.32 | ) | |
| (0.32 | ) | |
| (4.10 | ) | |
| (3.91 | ) |
| Non-GAAP diluted net loss from continuing operations per ADS | |
| (3.52 | ) | |
| (1.59 | ) | |
| (2.32 | ) | |
| (0.32 | ) | |
| (4.10 | ) | |
| (3.91 | ) |
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