Youdao, Inc. · NYSE:DAO
Youdao — Q3 2022 Earnings Presentation
20 slides from Youdao's earnings presentation, Nov 17, 2022
Slide 1: 3Q22 Investor Presentation
3Q22 Investor Presentation Investor Relations, November 17, 2022
Slide 2: Forward-looking statements
This announcement 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-l
Slide 3: Youdao makes learning happen.
Youdao makes learning happen. We are a leading technology-focused intelligent learning company in China. Youdao was founded in 2006 as part of NetEase, a leading internet technology company in China, dedicated to providing online services centered around content, community, communication and commerc
Slide 4: Technology
Smart Devices STEAM Courses Technology Adult and Vocational Education Digitalization Education Courses Solutions
Slide 5: Record-High Net Revenues in 3Q22
Record-High Net Revenues in 3Q22 (RMB Millions) (RMB Millions) 56.5% 1,600 1,600 107.5% 1,402.4 1,387.3 1,402.4 1,400 1,400 1.1% 35.0% 1,200 1,200 348.2 1,039.1 54.8% 1,000 1,000 896.0 1,402.4 53.7% 800 800 220.0 676.0 1,039.1 600 600 400 400 676.0 200 200 0 0 3Q20 3Q21 3Q22 3Q20 3Q21 3Q22 Net Reven
Slide 6: Record-High Gross Margin in 3Q22
Record-High Gross Margin in 3Q22 60% 52.6% 53.5% 54.2% 52.4% 51.0% 50% 42.5% 42.8% 40% 30% 20% 10% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Gross Margin-Continuing Operations
Slide 7: Improvement in Loss from Operations in 3Q22
Improvement in Loss from Operations in 3Q22 (RMB Millions) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 0 0% -200 (125.1) -5% (214.3) (254.9) (225.7) (248.3) (219.0) -400 -10% (455.2) (15.6%) -600 -15% (10.4%) -800 -20% -1000 -25% (22.6%) (21.7%) (23.7%) -1200 (26.0%) -30% -35% -40% -45% (47.6%) -50% Loss fro
Slide 8: Smart Devices in 3Q22
in 3Q22 (RMB Millions) 44.1% 45% 43.0% 40.4% 450 40% 33.7% 33.7% 400 35% 30.8% 30.6% 356.5 350 30% 317.7 300 25% 254.5 253.2 250 239.9 206.3 20% 201.9 200 15% 150 10% 100 50 5% 0 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Net Revenues of Smart Devices Gross Margin of Smart Devices
Slide 9: 10x+ Net revenues from Youdao Dictionary Pen in the last 3 years
10x+ Net revenues from Youdao Dictionary Pen in the last 3 years Net revenues from Youdao Dictionary Pen could cover the cost and operating expenses in 3Q22 10x+ 3Q19 3Q20 3Q21 3Q22
Slide 10: Apps for Youdao Dictionary Pen OS
Apps for Youdao Dictionary Pen OS 定制专属词典笔 更多优质APP 助力高效学习 • RAZ Reading Camp • Ximalaya 「FM」 • Youdao Fun Reading • Kaishu Storytelling • NetEase Cloud Music • Youdao Cloudnote
Slide 11: Learning Dashboard function presents users' performances in real-time
Learning Dashboard function presents users’ performances in real-time Analyzing the work, distinguishing the users’ level of mastery and giving individualized suggestions 同步练习 视频讲解 个性化 作业试卷 学情看板 推题练习 Providing rich learning applications 考前真题 错题整理 and professional video tutorials
Slide 12: Learning Services net revenues and gross margin
(RMB Millions) 70% 65.0% 63.9% 64.5% 63.4% 1,000 58.8% 888.5 60% 900 52.2% 51.4% 826.0 800 50% 700 647.5 607.0 607.7 40% 600 579.3 563.6 500 30% 400 300 20% 200 10% 100 0 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Net Revenues of Learning Services Gross Margin of Learning Services
Slide 13: Digital content services sales and gross margin
Net revenues from digital content services could cover the cost and operating expenses Strong Sales Performance Improved Gross Margin 2Q22 3Q22 60%+ (Debut) 50%+ RMB200 million+ RMB400 million+ 2Q22 3Q22
Slide 14: We are optimistic about the prospect of STEAM courses
We are optimistic about the prospect of STEAM courses Youdao Youdao Youdao Youdao Youdao Weiqi Chess iCode Kada Fun Reading Youdao Drosophila Youdao Youdao Youdao Youdao Science Courses Kid’s Science Labs Art Courses iMusic Chinese Painting
Slide 15: Youdao's facilitation of Weiqi industry recognized by General Administration of Sport
Youdao‘s facilitation of Weiqi industry was highly recognized by the General Administration of Sport of China
Slide 16: Strategy and Gross billings
Strategy • Increase investments in graduate school entrance exams and vocational courses Gross billings • Graduate school entrance exam courses: up over 150% YoY in 3Q22 • Vocational courses: up over 200% YoY in 3Q22
Slide 17: Share repurchase program announcement
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 American depositary share
Slide 18: Summary of Key Financial Information (in RMB'000)
Summary of Key Financial Information (in RMB'000) Key balance sheet items September 30, 2022 December 31, 2021 Cash assets* 953,059 1,576,646 Accounts receivable, net 332,331 248,339 Inventories, net 170,393 255,411 Total current assets 1,675,776 2,269,662 Total assets 2,076,746 2,634,067 Contract l
Slide 19: Summary of Key Financial Information (in RMB'000, except for percentages)
Summary of Key Financial Information (in RMB'000, except for percentages) Key income statement items 3Q21 2Q22 3Q22 Net revenue 1,039,075 956,225 1,402,434 Learning services 647,522 563,601 888,493 Smart devices 254,513 239,850 356,480 Online marketing services 137,040 152,774 157,461 Cost of revenu
Slide 20: THANK YOU
THANK YOU