Youdao, Inc. NYSE: DAO
Phone: +86-0571-89852163Web url: www.youdao.comAddress: No. 399 Wangshang Road, Binjiang District, Hangzhou 310051, China
Sector :Online Education
Industry :Internet
Sub-Industry :Intelligent Learning

Youdao Inc. (NYSE: DAO) is one of the leading intelligent learning companies in China. The company provides online education tools and services, interactive learning apps, and smart learning devices.

Youdao Information launched in 2006 as part of Chinese tech giant NetEase Inc. (Nasdaq: NTES) and delivered online services centered on content, community, communication, and commerce. The company gained early popularity for its flagship knowledge tool, Youdao Dictionary. The app counted 51.2 million monthly active users (MAUs) in the first half of 2019, which made it the largest language app in China in terms of users, according to Frost & Sullivan. The early success of Youdao Dictionary has enabled the company to attract a massive user base, build a strong brand, and expand into a broad range of products and services addressing lthe ifelong learning needs of pre-school, K-12, and college students as well as adult learners.

The technology-driven company has extended its suite of services to online courses Youdao Premium Courses for K-12, NetEase Cloud Classroom for adults, and China University MOOC for college students and adults. Youdao also operates an app for notetaking, Youdao Cloudnote, and sells smart devices including Smart Pen and Pocket Translator. In 2016, the company delved into developing interactive learning apps and now offers a portfolio of apps catering to various learning needs of studetns from various age groups.

In October 2019, Youdao debuted in an initial public offering on the New York Stock Exchange, raising $220.2 million through the listing and the concurrent private placement. Offered at $17 per share, its stock traded at $27.61 per American depositary share as of mid-September 2020.

This year, as the Covid-19 outbreak raised the value of digital learning tools, Youdao has seen significant improvment in its financial performance. For the first quarter, the education provider reported a 140% revenue increase; the comapny achieved positive net operating cash flow of $7 million.

For the second quarter of 2020, Youdao posted $88.2 million in revenue, a 93% increase year-over-year. In particular, sales from learning services and products increased 190% from the same period of 2019. The company attributed the growth to online courses, which were further driven by a substantial increase in both K-12 paid student enrollments and gross billings per paid student. Youdao Premium Courses. K-12 paid student enrollments increased by 358.9% year-over-year to 329,000 in the second quarter of 2020. 

Most recently, Youdao issued an update on July and August, showing paid student enrollments for K-12 courses of Youdao Premium Courses amounted to over 460,000, up 500% compared to the corresponding period of 2019. The company has boosted its sales and marketing efforts to fuel long-term growth.

“Youdao” stands for “the path connecting questions and answers” and “making profits in a proper way” in Chinese.

IR CONTACTS
In China:

Pei Du

Youdao, Inc.

Tel: +86-10-8255-8907

E-mail: IR@rd.netease.com

In the United States:

Selina Cheng

Head of Equity Research

Tel: +1650-799-7109

E-mail: info@capitalwatch.com