Youdao, Inc. · NYSE:DAO
Youdao — Q2 2022 Earnings Presentation
17 slides from Youdao's earnings presentation, Aug 18, 2022
Slide 1: 2Q22 Investor Presentation
2Q22 Investor Presentation Investor Relations August 18, 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: Transition Empowered by Technology
4@iS youdao Transition Empowered by Technology
Slide 5: Smart Devices, STEAM Courses, Technology
Smart Devices STEAM Courses Technology Adult and Vocational Education Digitalization Education Courses Solutions
Slide 6: Tap and Check, AI Precision Learning, Post-Class AI Analysis
Tap and Check AI Precision Learning Function Post-Class AI-enabled Analysis The super-sensing optical system Based on Interactive Response AI analysis function could better allowed us to achieve the Technology (IRT), the difficulty of serve chess learners in the exclusive “Tap and Check” feature, pr
Slide 7: New Services and Devices
New Services and Devices 43% - New Services and Devices - Others 57% Youdao Youdao Chess Memory and Logic 2Q22 Net Revenue Youdao Youdao Note: New Services and Devices refer to the services Listening Pod Dictionary Pen X3s and devices released after the Double Reduction Policy.
Slide 8: Improved Operating Cashflow
Improved Operating Cashflow 1. Operating cash inflow of RMB 104 million in Q2 was the highest we have achieved in any second quarter period vs since our IPO. RMB249 million RMB104 million 2. It was mainly due to the strong sales cash outflow in 2Q21 cash inflow in 2Q22 performance of our new service
Slide 9: Over 3 Million Units, Ranking No.1
2018.06 Youdao Dictionary Pen 1 launched Over 3 Million Units Aggregated sales of Youdao Dictionary Pen series 2019.08 Youdao Dictionary Pen 2 launched 2020.06 Youdao Dictionary Pen 2 professional version Ranking No.1 3 Consecutive years launched The most sales volume and number of units sold in its
Slide 10: Ongoing Innovation Enriches Smart Devices Portfolios
Ongoing Innovation Enriches Smart Devices Portfolios Youdao Youdao Youdao Youdao Youdao Pocket Translator Super Dictionary Listening Pod Smart Light Smart Learning Pad 2017.12 2020.09 2021.09 2022.04 2022.08
Slide 11: Sales unit of Youdao Listening Pod
Sales unit of Youdao Listening Pod CQGR:240% 3Q21 4Q21 1Q22 2Q22 Youdao Listening Pod Ranking No.1 The most sales volume and number of units sold in its category in JD.com during Jun 18th Shopping Festival
Slide 12: Significant Potential of Market Size
Significant Potential of Market Size According to Frost & Sullivan, the market size of the smart learning products and education tablet (To C part) are expected to reach RMB145 billion and RMB26 billion in 2026. RMB Billion 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - 2020 2021 2022（E） 2023（E） 2024
Slide 13: STEAM Courses growth, Youdao Chess
70%+ STEAM Courses (The whole sector) 300%+ Youdao Chess (Blockbuster) The compound quarterly growth of gross billings post The compound quarterly growth of gross billings post Double Reduction Policy：70%+ Double Reduction Policy：300%+ CQGR:300%+ Youdao Youdao Youdao Weiqi Smart Light Chess Youdao Y
Slide 14: Confident in prospects for the second half
We are confident in our prospects for the second half of the year, bolstered by the support of our new products and services. We are on the right track, with the right technology, the right courses, and the right service offerings to advance technology-powered learning.
Slide 15: Summary of Key Financial Information (balance sheet)
Summary of Key Financial Information (in RMB'000) Key balance sheet items December 31, 2021 June30,2022 Cash assets* 1,576,646 1,260,007 Accounts receivable,net 248,339 335,911 Inventories,net 255,411 212,351 Total current assets 2,269,662 2,023,078 Total assets 2,634,067 2,438,144 Contract liabilit
Slide 16: Summary of Key Financial Information (income statement)
Summary of Key Financial Information (in RMB'000, except for percentages) Key income statement items 2Q21 1Q22 2Q22 Net revenue 979,949 1,200,541 956,225 • Learning services 607,680 826,011 563,601 • Smart devices 206,290 253,160 239,850 • Online marketing services 165,979 121,370 152,774 Cost of re
Slide 17: Thank You
THANK YOU