Image Credits: VCG
Youdao (NYSE: DAO), an intelligent learning company in China, reported its unaudited financial results for the first quarter ended March 31, 2022. It’s the first financial report that Youdao announced following the cessation of our K-9 academic after school tutoring business at the end of December 2021.
Total net revenues were US$189.4 million, a 26.6% increase from the same period in 2021. Net revenues from learning services, smart devices, and online marketing services were US$130.3 million), US$39.9 million), and US$19.1 million.
Gross profit was US$101.2 million, representing a 29.3% increase from the same period of 2021. Gross margin was 53.5%, compared to 52.4% for the same period in 2021.
Total operating expenses were US$121.0 million, compared with RMB710.8 million for the same period of last year.
Expenses from sales and marketing, research and development, and general and administrative were US$79.9 million (7.7% decrease), US$32.0 million (59.0% increase), and US$9.1 million (67.6% increase).
Loss from operations was US$19.7 million. The margin of loss from operations was 10.4%, compared with 22.6% for the same period of last year.
As of March 31, 2022, Youdao’s cash, cash equivalents, restricted cash, time deposits and short-term investments totaled US$183.0 million.
“Looking ahead, we will continue to implement our strategy of four growth pillars, i.e. smart devices, STEAM courses, vocational education and education digitization. The first two, smart devices and STEAM courses, are at a larger scale and already contribute a significant portion of our business. The latter two are making good progress in terms of product development and business model validation,” said Zhou Feng, Chief Executive Officer and a Director of Youdao.
Founded in 2006 as a part of NetEase, Youdao now offers smart devices, STEAM courses, adult and vocational courses, and education digitalization solutions.