Youdao Reports Q4 2024 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
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Should l Buy DAO?
Source: seekingalpha
- Revenue Growth: Youdao reported a non-GAAP EPADS of $0.07 for Q4 2024, with revenue of $223.7 million, reflecting a 16.8% year-over-year increase and beating market expectations by $3.32 million, indicating strong performance in the education services sector.
- Learning Services Revenue: Net revenues from learning services reached RMB 727.2 million (approximately $104.0 million), representing a 17.7% increase from the same period in 2024, highlighting sustained demand for online learning and strengthening the company's market position.
- Decline in Smart Devices Revenue: Net revenues from smart devices were RMB 176.5 million (approximately $25.2 million), a 26.6% decrease year-over-year, indicating challenges in this segment that could impact overall profitability.
- Strong Online Marketing Services: Net revenues from online marketing services amounted to RMB 660.9 million (approximately $94.5 million), a 37.2% increase year-over-year, showcasing enhanced competitiveness in digital marketing, which may drive future growth.
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Analyst Views on DAO
About DAO
Youdao Inc is a holding company principally engaged in the intelligent learning business, providing a variety of learning content, applications and solutions. The Company primarily operates its businesses through three segments. Learning Services segment mainly provides digital content services, science, technology, engineering, the arts and mathematics (STEAM) courses, and adult and vocational courses through the Youdao Lingshi, Youdao Literature, Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC and others. Smart Devices segment mainly develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. The Company also provides education digitalization solutions, including Youdao Smart Learning Terminal, Youdao Smart Cloud, and Youdao Sports. Online Marketing Services segment mainly offers online marketing services, including performance-based advertising services and brand advertising services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Learning Services Revenue: Net revenues from learning services reached RMB 727.2 million (approximately $104.0 million), representing a 17.7% increase from the same period in 2024, highlighting sustained demand for online learning and strengthening the company's market position.
- Decline in Smart Devices Revenue: Net revenues from smart devices were RMB 176.5 million (approximately $25.2 million), a 26.6% decrease year-over-year, indicating challenges in this segment that could impact overall profitability.
- Strong Online Marketing Services: Net revenues from online marketing services amounted to RMB 660.9 million (approximately $94.5 million), a 37.2% increase year-over-year, showcasing enhanced competitiveness in digital marketing, which may drive future growth.
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- Learning Services Revenue: Net revenues from learning services reached RMB 727.2 million (approximately $104.0 million), representing a 17.7% increase from the same period in 2024, highlighting sustained demand for online learning and strengthening the company's market position.
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- Decline in Smart Devices: Net revenues from smart devices were RMB 176.5 million (approximately $25.2 million), a 26.6% decrease year-over-year, primarily due to weakened demand for smart learning devices, highlighting challenges in this segment.
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- Participation Instructions: Interested investors can join the call by dialing 1-914-202-3258 and providing conference ID: 10052758, ensuring they stay updated on the latest company developments.
- Replay Availability: A replay of the call will be accessible by dialing 1-855-883-1031 and entering PIN: 10052758, available until February 18, 2026, allowing those unable to attend live to catch up on the discussion.
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