Youdao(NYSE: DAO) yesterday announced its unaudited financial results for the second quarter ended June 30, 2020. The report shows that the total net revenues were RMB623.3 million (US$88.2 million), a 93.1% increase from the same period in 2019. Net revenues from learning services and products were highlighted, which were RMB520.1 million (US$73.6 million), a 190.0% increase year-on-year. Zhou Feng, CEO of NetEase Youdao, believes that the third quarter will be the crucial time pivot for expanding more paid users.

According to the report, gross billings of Youdao Premium Courses(有道精品课), Youdao’s flagship online learning offerings primarily focused on K-12 students, increased 214.5% year-over-year to RMB457.2 million (US$64.7 million). It is the reason why NetEase Youdao’s learning services and product revenue can maintain rapid growth.

For Youdao’s intelligent learning products, the revenue increased by 250.3% year-over-year in the second quarter of 2020, mainly driven by a significant increase in sales volume of Youdao Dictionary Pen launched in August 2019. And Youdao has enhanced branding that sales and marketing expenses for Q2 2020 were RMB445.2 million (US$63.0 million), an increase of 264.4% compared with RMB122.2 million for the same period of 2019.

“Our robust summer marketing campaign is ongoing, and we are seeing excellent traction, particularly in the growing number of popular K-12 courses. Along with additional brand awareness and student acquisition efforts, our focus in the second half of the year will be on further enriching content across our courses, intelligent learning devices, and other education platforms and services, to better serve our increasing online student population and grow our business for a sustainable future,” said Zhou Feng.