Youdao, Inc. · NYSE:DAO
Youdao — Q4 2022 Earnings Presentation
17 slides from Youdao's earnings presentation, Feb 23, 2023
Slide 1: 4Q22 Investor Presentation
4Q22 Investor Presentation Investor Relations, February 23, 2023
Slide 2: This presentation contains forward-looking statements
This presentation 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: Record-High Net Revenues in 4Q22
Record-High Net Revenues in 4Q22 (RMB Millions) (RMB Millions) 31.4% 1,600 1,600 1,454.0 1,454.0 70.0% 9.0% 1,400 1,400 1,333.8 20.5% 38.6% 1,200 1,200 1,106.8 285.0 1,048.8 1,000 22.6% 1,000 251.5 855.3 800 800 1,454.0 600 600 1,048.8 400 400 855.3 200 200 0 0 4Q20 4Q21 4Q22 4Q20 4Q21 4Q22 Net Reve
Slide 5: Gross Margin
Gross Margin 60% 53.5% 54.2% 53.3% 52.4% 52.6% 51.0% 50% 46.7% 42.5% 42.8% 40% 30% 20% 10% 0% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Gross Margin-Continuing Operations
Slide 6: First-Ever Quarterly Income from Operations in 4Q22
First-Ever Quarterly Income from Operations in 4Q22 (RMB Millions) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 100 24.7 0 (100) (125.1) (200) (214.3) (225.7) (219.0) (256.2) (254.9) (248.3) (300) (400) (500) (455.2)
Slide 7: Record-High Net Revenues from Smart Devices in 4Q22
Record-High Net Revenues from Smart Devices in 4Q22 (RMB Millions) 600 50% 46.2% 44.1% 43.0% 40.4% 500 39.5% 40% 33.7% 33.7% 407.0 400 30.8% 30.6% 356.5 30% 317.7 300 254.5 253.2 237.3 239.9 206.3 20% 201.9 200 10% 100 0 0% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Revenues from Smart Devices
Slide 8: Updated with 5 millions professional terms in 16 professional fields
• Multiple-line scanning • Updated with 5 millions professional terms in 16 professional fields • 100+ languages translation • Equipped with Youdao’s self-developed dictionary pen OS (Operating System) • Synergy with Youdao Cloudnote: providing audio-text transcript
Slide 9: Strong Sales Performance
Strong Sales Performance • After we entered the field of education tablets in Q3, the compound monthly growth rate of sales 100%+ units reached 100%+ • For the first three months after we launched the Learning Pad X10, its compound monthly growth rate of sales units reached nearly 2x that of the Aug
Slide 10: Net revenues from Learning Services
(RMB Millions) 1,200 70% 65.0% 63.9% 64.5% 64.1% 63.4% 58.8% 55.9% 60% 1,000 52.2% 51.4% 888.5 826.0 806.3 50% 800 647.5 40% 607.0 607.7 600 579.3 563.6 480.2 30% 400 20% 200 10% 0 0% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net revenues from Learning Services Gross Margin of Learning Services
Slide 11: Solid Sales Performance
Solid Sales Performance For 2 consecutive quarters: • Net revenues from digital content services could RMB cover the cost and operating expenses RMB 600m+ 400m+ • Gross margin: 60%+ 3Q22 4Q22
Slide 12: Youdao Literature – Creative Writing
Youdao Literature – Creative Writing Co-developed by Youdao and Minecraft Education Edition, providing： • 7 immersive scenarios • 21+ creative techniques • 28 high-end creative writing materials Enhance learners’ interaction and improve creative writing ability
Slide 13: Gross billings: increase 50%+ year-over-year in 4Q22
• Released the Champion Class of Youdao Go in 4Q22 • Create a learning path starting from entry level to advanced level, followed by Champion level classes • Gross billings: increase 50%+ year-over-year in 4Q22 • Retention rate of the advanced-level class: 70%+ in 4Q22
Slide 14: Postgraduate Entrance Exam Courses
AI Analysis Postgraduate Entrance Exam Courses 15 Years 300 Thousands 100 Thousands Historical Data for Universities Individuals Data and Majors Experience • Gross billings: increased nearly triple digits year-over-year in AI-based Mini App for Target Consulting 4Q22 AI Targeting • An upgraded and c
Slide 15: Summary of Key Financial Information (in RMB'000)
Summary of Key Financial Information (in RMB'000) Key balance sheet items December 31, 2022 December 31, 2021 Cash Assets* 1,016,909 1,576,646 Accounts Receivable, Net 405,139 248,339 Inventories, Net 232,260 255,411 Total Current Assets 1,869,973 2,269,662 Total Assets 2,276,156 2,634,067 Contract
Slide 16: 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 4Q21 3Q22 4Q22 Net Revenue 1,048,797 1,402,434 1,453,982 Learning Services 579,259 888,493 806,270 Smart Devices 317,702 356,480 406,956 Online Marketing Services 151,836 157,461 240,756 Cost of Reve
Slide 17: THANK YOU
THANK YOU