HANGZHOU, China, Aug. 31, 2021 /PRNewswire/ -- Youdao, Inc.
("Youdao" or the "Company") (NYSE: DAO), a leading intelligent
learning company in China, today
announced its unaudited financial results for the second quarter
ended June 30, 2021.
Second Quarter 2021 Financial Highlights
- Total net revenues were RMB1.3
billion (US$200.3 million),
representing a 107.5% increase from the same period in 2020.
- Net revenues from learning services were RMB921.1 million (US$142.7
million), representing a 112.4% increase from the same
period in 2020.
- Net revenues from learning products were RMB206.3 million (US$32.0
million), representing a 138.8% increase from the same
period in 2020.
- Net revenues from online marketing services were
RMB166.0 million (US$25.7 million), representing a 60.8% increase
from the same period in 2020.
- Gross billings of online
courses[1] increased by 99.7%
year-over-year to RMB1.1 billion
(US$167.6 million) and gross
billings of Youdao Premium Courses[2]
increased by 124.1% year-over-year to RMB1.0 billion (US$158.7 million).
- Gross margin was 52.3%, compared with 45.2% for the
same period in 2020.
- Deferred revenue from online courses was
RMB1.3 billion (US$200.2 million) as of June 30, 2021, compared with RMB1.4 billion as of December 31, 2020.
[1] Gross billings is a non-GAAP
financial measure. Gross billings for a specific period refers
to the total amount of consideration for Youdao's online courses
sold mainly on Youdao Premium Courses, NetEase Cloud
Classroom and China University MOOC, net of the total amount
of refunds, in such period. See "Non-GAAP Measures" and "Unaudited
Reconciliation of GAAP and non-GAAP Results" at the end
of this press release.
|
[2] Youdao Premium Courses are
Youdao's online learning offerings primarily focused on K-12
students, covering a wide spectrum of subject matters, learning
goals and areas of interest.
|
Second Quarter 2021 Key Operating and Financial Data
|
For the three
months
ended June 30
|
|
|
|
(in millions,
RMB)
|
2020
|
|
2021
|
|
% of
Change
|
|
Gross billings of
online courses
|
542.0
|
|
1,082.2
|
|
99.7%
|
|
Gross billings of
Youdao Premium Courses
|
457.2
|
|
1,024.7
|
|
124.1%
|
|
Paid student
enrollments of Youdao Premium
Courses (in thousands)
|
401.6
|
|
919.5
|
|
129.0%
|
|
Gross billings per
paid student enrollment of Youdao
Premium Courses (in RMB)
|
1,139
|
|
1,114
|
|
-2.1%
|
|
"We believe technology can empower education. In the second
quarter, we launched our self-developed Intelligent Practice
System, a platform that deeply and seamlessly integrates teaching
and research with advanced technology and can quickly customize
learning paths for students, significantly improving their learning
outcomes. In addition, we also remain firmly committed to
fulfilling our social responsibilities. For instance, in response
to the recent floods in Henan
Province, Youdao joined hands with public welfare
institutions to provide post-disaster reconstruction and instructor
support for 10 to 15 schools and kindergartens, which are expected
to cover at least 10,000 students in the affected areas," said Dr.
Feng Zhou, Chief Executive Officer
and Director of Youdao.
"Youdao has always been committed to complying with laws and
regulations. After the PRC government released opinions on further
reducing student burden regarding homework and off-campus tutoring
for compulsory education, we see four pillars of growth in our
non-AST business, including learning products, STEAM courses, adult
education and education digitization solutions. As previously
disclosed, although our K-12 businesses are expected to be
materially affected by heightened regulatory requirements, we will
continue to adapt our business to the changing regulatory
environment and drive sustainable growth in the long run through
innovative technologies and products. As a leading intelligent
learning company, we will continue leveraging advanced technology
to empower education," Dr. Zhou concluded.
Second Quarter 2021 Financial Results
Net Revenues
Net revenues for the second quarter of 2021 were RMB1.3 billion (US$200.3
million), representing a 107.5% increase from RMB623.3 million for the same period of 2020.
Net revenues from learning services were RMB921.1 million (US$142.7
million) for the second quarter of 2021, representing a
112.4% increase from RMB433.7 million
for the same period of 2020. The year-over-year growth from
learning services was primarily attributable to increased revenues
from online courses, which were further driven by increases in paid
student enrollments for Youdao Premium Courses. Paid student
enrollments for adult courses of Youdao Premium Courses increased
by 70.3% and accounted for 13.4% of paid student enrollments for
Premium Courses in the second quarter of 2021.
Net revenues from learning products were RMB206.3 million (US$32.0
million) for the second quarter of 2021, representing a
138.8% increase from RMB86.4 million
for the same period of 2020, primarily driven by the substantial
increase in Youdao Dictionary Pen sales volume.
Net revenues from online marketing services were RMB166.0 million (US$25.7
million) for the second quarter of 2021, representing a
60.8% increase from RMB103.2 million
for the same period of 2020. The year-over-year increase in
revenues from online marketing services was attributable to the
increase in the sales of performance-based advertisements through
third parties' internet properties.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2021 was RMB676.7 million (US$104.8
million), representing a 140.4% increase from RMB281.5 million for the same period of 2020.
Gross margin increased to 52.3% for the second quarter of 2021 from
45.2% for the same period of 2020.
Gross margin for learning services increased to 57.9% for the
second quarter of 2021 from 51.7% for the same period of 2020. The
increase was driven by improved economies of scale and ongoing
optimization of Youdao's faculty compensation structure.
Gross margin for learning products increased to 43.0% for the
second quarter of 2021 from 32.4% for the same period of 2020. The
improvement was mainly attributable to the substantial rise in
sales volume of Youdao Dictionary Pen 3.0, which carried a higher
gross margin than other learning products.
Gross margin for online marketing services was 32.7% for the
second quarter of 2021, compared with 28.5% for the same period of
2020. The increase was mainly attributable to higher sales of
performance-based advertisements through third parties' internet
properties, which had an improved gross margin profile over last
year.
Operating Expenses
Total operating expenses for the second quarter of 2021 were
RMB1.2 billion (US$189.1 million), representing an increase of
116.3%, compared with RMB564.6
million for the same period of last year.
Sales and marketing expenses for the second quarter of 2021 were
RMB973.2 million (US$150.7 million), representing an increase of
118.6% from RMB445.2 million for the
same period of 2020. This increase was mainly driven by intensified
sales and marketing efforts associated with our learning services
and products, as well as increased compensation expenses incurred
due to the expansion of the sales and marketing team.
Research and development expenses for the second quarter of 2021
were RMB180.0 million (US$27.9 million), representing an increase of
96.9% from RMB91.4 million for the
same period of 2020. The increase was primarily due to higher
payroll-related expenses including share-based compensation
expenses associated with a larger number of course development and
technology professionals.
General and administrative expenses for the second quarter of
2021 were RMB67.9 million
(US$10.5 million), representing an
increase of 142.5% from RMB28.0
million for the same period of 2020. The increase was mainly
attributable to an increase in employee headcount and related
expenses in the second quarter of 2021.
Loss from Operations
Loss from operations for the second quarter of 2021 was
RMB544.4 million (US$84.3 million), compared with RMB283.0 million for the same period in 2020. The
margin of loss from operations was 42.1%, compared with 45.4% for
the same period of last year.
Net Loss Attributable to Youdao's Ordinary
Shareholders
Net loss attributable to Youdao's ordinary shareholders for the
second quarter of 2021 was RMB524.4
million (US$81.2 million),
compared with RMB257.8 million for
the same period last year. Non-GAAP net loss attributable to
Youdao's ordinary shareholders for the second quarter of 2021 was
RMB500.5 million (US$77.5 million), compared with RMB250.5 million for the same period last
year.
Basic and diluted net loss per American Depositary Share ("ADS")
attributable to ordinary shareholders for the second quarter of
2021 was RMB4.29 (US$0.66), compared with RMB2.30 for the same period of 2020. Non-GAAP
basic and diluted net loss per ADS attributable to ordinary
shareholders was RMB4.09 (US$0.63), compared with RMB2.23 for the same period of 2020.
Balance Sheet
As of June 30, 2021, Youdao's
cash, cash equivalents, restricted cash, time deposits and
short-term investments totaled RMB1.9
billion (US$294.4 million),
compared with RMB1.2 billion as of
December 31, 2020. For the second
quarter of 2021, net cash used in operating activities was
RMB249.1 million (US$38.6 million), capital expenditures totaled
RMB12.1 million (US$1.9 million), and depreciation and
amortization expenses amounted to RMB5.7
million (US$0.9 million).
Youdao's ability to continue as a going concern is dependent on
management's ability to implement an effective business plan in
future periods in light of the changing regulatory environment,
generate operating cash flows and continue to be able to obtain
outside sources of financing as necessary for Youdao's future
development. Since its formation, Youdao has received various
financial support from the NetEase Group, including currently a
RMB878.0 million short-term loan and
US$300.0 million revolving loan
facility. In support of Youdao's future business, NetEase Group has
agreed that the short-term loan will be automatically extended for
a period of eleven months each time upon Youdao's prior written
request.
As of June 30, 2021, the Company's
contract liabilities, which mainly consisted of deferred revenues
generated from Youdao's online courses, were RMB1.4 billion (US$213.1
million), compared with RMB1.4
billion as of December 31,
2020.
Update on PRC Regulatory Policy
As previously disclosed, Youdao's business, financial condition
and corporate structure are expected to be materially affected in
future periods by the changing regulatory environment primarily in
China's K-12 education industry,
although the magnitude of the impact remains uncertain at this
time.
NetEase Share Purchase Program for
Youdao's ADSs
Youdao's controlling shareholder,
NetEase, Inc. ("NetEase"), today announced that it has adopted a
share purchase program of up to US$50.0
million of Youdao's outstanding ADSs for a period not to
exceed 36 months beginning on September 2,
2021. Under the terms of this program, NetEase may purchase
Youdao's ADSs in open-market transactions on the New York Stock
Exchange. The purchase program may be suspended or discontinued by
NetEase at any time.
Conference Call
Youdao's management team will host a teleconference call with
simultaneous webcast at 7:00 a.m. Eastern
Time on Tuesday, August 31, 2021 (Beijing/Hong Kong Time: 7:00 p.m., Tuesday, August 31, 2021).
Youdao's management will be on the call to discuss the
financial results and answer questions.
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
+1-888-346-8982
|
International:
|
+1-412-902-4272
|
Mainland China (toll
free):
|
400-120-1203
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Conference
ID:
|
10159712
|
A live and archived webcast of the conference call will be
available on the Company's investor relations website at
http://ir.youdao.com.
A replay of the conference call will be accessible by phone one
hour after the conclusion of the live call at the following
numbers, until September 7, 2021:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
10159712
|
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading intelligent learning
company in China dedicated to
developing and using technologies to provide learning content,
applications and solutions to users of all ages. Building on the
popularity of its online knowledge tools such as Youdao Dictionary
and Youdao Translation, Youdao now offers online courses covering a
wide spectrum of age groups, subject matters, learning goals and
areas of interest. In addition, Youdao has developed a variety of
interactive learning apps and smart learning devices. Youdao was
founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX:
9999), a leading internet technology company in China.
For more information, please visit: http://ir.youdao.com.
Non-GAAP Measures
Youdao considers and uses non-GAAP financial measures, such as
gross billings and non-GAAP net income/(loss) attributable to the
Company's ordinary shareholders and non-GAAP basic and diluted
earnings/(loss) per ADS, as supplemental metrics in reviewing and
assessing its operating performance and formulating its business
plan. The presentation of non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
accounting principles generally accepted in the United States of America ("U.S.
GAAP").
Youdao defines gross billings for a specific period as the total
amount of consideration for online courses sold mainly
on Youdao Premium Courses, NetEase Cloud
Classroom and China University MOOC, net of the total amount
of refunds, in such period. The management uses gross billings as a
performance measurement because the Company generally bills
students for the entire course tuition at the time of sale of the
courses and recognizes revenue proportionally over an average of
the learning periods of different online courses. Youdao defines
non-GAAP net income/(loss) attributable to the Company's ordinary
shareholders as net income/(loss) attributable to the Company's
ordinary shareholders excluding share-based compensation expenses.
Non-GAAP net income/(loss) attributable to the Company's
shareholders enables Youdao's management to assess its operating
results without considering the impact of share-based compensation
expenses, which are non-cash charges. Youdao believes that these
non-GAAP financial measures provide useful information to investors
in understanding and evaluating the Company's current operating
performance and prospects in the same manner as management does, if
they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. Non-GAAP financial
measures have limitations as analytical tools, which possibly does
not reflect all items of expense that affect our operations.
Share-based compensation expenses have been and may continue to be
incurred in our business and are not reflected in the presentation
of non-GAAP net income/(loss) attributable to the Company's
ordinary shareholders. In addition, the non-GAAP financial measures
Youdao uses may differ from the non-GAAP measures uses by other
companies, including peer companies, and therefore their
comparability may be limited.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from or as a substitute for
the financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Unaudited Reconciliation
of GAAP and non-GAAP Results" set forth at the end of this
release.
The accompanying tables have more details on the reconciliations
between our GAAP financial measures that are most directly
comparable to non-GAAP financial measures. Youdao encourages you to
review its financial information in its entirety and not rely on a
single financial measure.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars ("US$") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to US$ were made at the rate of RMB6.4566 to US$1.00, the exchange rate on June 30, 2021 set forth in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or US$ amounts referred could be
converted into US$ or RMB, as the case may be, at any particular
rate or at all.
Safe Harbor Statement
This press release 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-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. The Company may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding such risks, uncertainties or factors is
included in the Company's filings with the SEC. All information
provided in this press release is as of the date of this press
release, and the Company does not undertake any duty to update such
information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
YOUDAO,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of June
30,
|
|
As of June
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
609,199
|
|
829,641
|
|
128,495
|
Time
deposits
|
|
263
|
|
911,142
|
|
141,118
|
Restricted
cash
|
|
-
|
|
40,662
|
|
6,298
|
Short-term
investments
|
|
584,999
|
|
119,156
|
|
18,455
|
Accounts
receivable, net
|
|
268,830
|
|
306,144
|
|
47,416
|
Inventories,
net
|
|
148,662
|
|
271,727
|
|
42,085
|
Amounts due
from NetEase Group
|
|
4,081
|
|
5,244
|
|
812
|
Prepayment and
other current assets
|
|
235,532
|
|
192,148
|
|
29,759
|
Total current
assets
|
|
1,851,566
|
|
2,675,864
|
|
414,438
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
45,636
|
|
62,072
|
|
9,614
|
Operating
lease right-of-use assets, net
|
|
105,865
|
|
138,900
|
|
21,513
|
Other assets,
net
|
|
67,181
|
|
103,112
|
|
15,970
|
Total non-current
assets
|
|
218,682
|
|
304,084
|
|
47,097
|
|
|
|
|
|
|
|
Total
assets
|
|
2,070,248
|
|
2,979,948
|
|
461,535
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payables
|
|
141,304
|
|
74,421
|
|
11,526
|
Payroll
payable
|
|
209,603
|
|
252,667
|
|
39,133
|
Amounts due to
NetEase Group
|
|
67,230
|
|
103,092
|
|
15,967
|
Contract
liabilities
|
|
1,440,489
|
|
1,376,033
|
|
213,120
|
Taxes
payable
|
|
54,895
|
|
25,747
|
|
3,988
|
Accrued
liabilities and other payables
|
|
602,044
|
|
885,737
|
|
137,183
|
Short-term
loans from NetEase Group
|
|
878,000
|
|
878,000
|
|
135,985
|
Total current
liabilities
|
|
3,393,565
|
|
3,595,697
|
|
556,902
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
lease liabilities
|
|
79,748
|
|
93,538
|
|
14,487
|
Other
non-current liabilities
|
|
4,043
|
|
3,341
|
|
518
|
Total non-current
liabilities
|
|
83,791
|
|
96,879
|
|
15,005
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,477,356
|
|
3,692,576
|
|
571,907
|
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
|
Youdao's
shareholders' deficit
|
|
(1,408,105)
|
|
(712,077)
|
|
(110,287)
|
Noncontrolling
interests
|
|
997
|
|
(551)
|
|
(85)
|
Total
shareholders' deficit
|
|
(1,407,108)
|
|
(712,628)
|
|
(110,372)
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' deficit
|
|
2,070,248
|
|
2,979,948
|
|
461,535
|
|
|
|
|
|
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.4566 on the last
trading day of June
(June 30, 2021) as set forth in the H.10 statistical release of the
U.S. Federal Reserve Board.
|
YOUDAO,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(RMB and USD in
thousands, except share and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(1)
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
433,697
|
|
998,854
|
|
921,138
|
|
142,666
|
|
822,675
|
|
1,919,992
|
Learning
products
|
|
86,381
|
|
201,919
|
|
206,290
|
|
31,950
|
|
139,541
|
|
408,209
|
Online
marketing services
|
|
103,212
|
|
139,094
|
|
165,979
|
|
25,707
|
|
202,462
|
|
305,073
|
Total net
revenues
|
|
623,290
|
|
1,339,867
|
|
1,293,407
|
|
200,323
|
|
1,164,678
|
|
2,633,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(2)
|
|
(341,751)
|
|
(572,415)
|
|
(616,661)
|
|
(95,509)
|
|
(647,414)
|
|
(1,189,076)
|
Gross
profit
|
|
281,539
|
|
767,452
|
|
676,746
|
|
104,814
|
|
517,264
|
|
1,444,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses (2)
|
|
(445,151)
|
|
(883,872)
|
|
(973,239)
|
|
(150,736)
|
|
(744,310)
|
|
(1,857,111)
|
Research and
development expenses (2)
|
|
(91,423)
|
|
(155,080)
|
|
(180,029)
|
|
(27,883)
|
|
(175,522)
|
|
(335,109)
|
General and
administrative expenses (2)
|
|
(27,978)
|
|
(49,354)
|
|
(67,850)
|
|
(10,507)
|
|
(56,441)
|
|
(117,204)
|
Total operating
expenses
|
|
(564,552)
|
|
(1,088,306)
|
|
(1,221,118)
|
|
(189,126)
|
|
(976,273)
|
|
(2,309,424)
|
Loss from
operations
|
|
(283,013)
|
|
(320,854)
|
|
(544,372)
|
|
(84,312)
|
|
(459,009)
|
|
(865,226)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
7,340
|
|
3,074
|
|
6,735
|
|
1,042
|
|
15,225
|
|
9,809
|
Interest
expense
|
|
(7,764)
|
|
(7,617)
|
|
(7,764)
|
|
(1,202)
|
|
(15,526)
|
|
(15,381)
|
Others,
net
|
|
25,619
|
|
354
|
|
23,366
|
|
3,619
|
|
34,195
|
|
23,720
|
Loss before
tax
|
|
(257,818)
|
|
(325,043)
|
|
(522,035)
|
|
(80,853)
|
|
(425,115)
|
|
(847,078)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(9)
|
|
(1,615)
|
|
(2,999)
|
|
(464)
|
|
(2,194)
|
|
(4,614)
|
Net
loss
|
|
(257,827)
|
|
(326,658)
|
|
(525,034)
|
|
(81,317)
|
|
(427,309)
|
|
(851,692)
|
Net loss
attributable to noncontrolling interests
|
|
21
|
|
867
|
|
681
|
|
105
|
|
79
|
|
1,548
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(257,806)
|
|
(325,791)
|
|
(524,353)
|
|
(81,212)
|
|
(427,230)
|
|
(850,144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS
|
|
(2.30)
|
|
(2.75)
|
|
(4.29)
|
|
(0.66)
|
|
(3.81)
|
|
(7.07)
|
Diluted net loss per
ADS
|
|
(2.30)
|
|
(2.75)
|
|
(4.29)
|
|
(0.66)
|
|
(3.81)
|
|
(7.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net loss per ADS
|
|
112,277,976
|
|
118,297,304
|
|
122,332,306
|
|
122,332,306
|
|
112,022,872
|
|
120,325,943
|
Shares used in
computing diluted net loss per ADS
|
|
112,277,976
|
|
118,297,304
|
|
122,332,306
|
|
122,332,306
|
|
112,022,872
|
|
120,325,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.4566 on the last
trading day of June (June 30, 2021) as set forth in the H.10
statistical release of the U.S. Federal Reserve Board.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
2:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
1,043
|
|
1,881
|
|
2,496
|
|
387
|
|
2,211
|
|
4,377
|
Sales and marketing
expenses
|
|
808
|
|
2,559
|
|
3,610
|
|
559
|
|
1,719
|
|
6,169
|
Research and
development expenses
|
|
3,016
|
|
8,435
|
|
11,179
|
|
1,731
|
|
6,159
|
|
19,614
|
General and
administrative expenses
|
|
2,394
|
|
5,156
|
|
6,548
|
|
1,014
|
|
4,741
|
|
11,704
|
YOUDAO,
INC.
|
UNAUDITED
ADDITIONAL INFORMATION
|
(RMB and USD in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
433,697
|
|
998,854
|
|
921,138
|
|
142,666
|
|
822,675
|
|
1,919,992
|
Learning
products
|
|
86,381
|
|
201,919
|
|
206,290
|
|
31,950
|
|
139,541
|
|
408,209
|
Online
marketing services
|
|
103,212
|
|
139,094
|
|
165,979
|
|
25,707
|
|
202,462
|
|
305,073
|
Total net
revenues
|
|
623,290
|
|
1,339,867
|
|
1,293,407
|
|
200,323
|
|
1,164,678
|
|
2,633,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
209,530
|
|
343,179
|
|
387,345
|
|
59,992
|
|
396,763
|
|
730,524
|
Learning
products
|
|
58,412
|
|
112,914
|
|
117,671
|
|
18,225
|
|
97,956
|
|
230,585
|
Online
marketing services
|
|
73,809
|
|
116,322
|
|
111,645
|
|
17,292
|
|
152,695
|
|
227,967
|
Total cost of
revenues
|
|
341,751
|
|
572,415
|
|
616,661
|
|
95,509
|
|
647,414
|
|
1,189,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
|
51.7%
|
|
65.6%
|
|
57.9%
|
|
57.9%
|
|
51.8%
|
|
62.0%
|
Learning
products
|
|
32.4%
|
|
44.1%
|
|
43.0%
|
|
43.0%
|
|
29.8%
|
|
43.5%
|
Online
marketing services
|
|
28.5%
|
|
16.4%
|
|
32.7%
|
|
32.7%
|
|
24.6%
|
|
25.3%
|
Total gross
margin
|
|
45.2%
|
|
57.3%
|
|
52.3%
|
|
52.3%
|
|
44.4%
|
|
54.8%
|
YOUDAO,
INC.
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
(RMB and USD in
thousands, except per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
online courses
|
|
394,596
|
|
963,046
|
|
884,163
|
|
136,939
|
|
750,396
|
|
1,847,209
|
Add: value-added
tax
|
|
38,687
|
|
45,775
|
|
61,257
|
|
9,488
|
|
60,035
|
|
107,032
|
Add: ending deferred
revenue
|
|
658,052
|
|
1,155,891
|
|
1,292,672
|
|
200,209
|
|
658,052
|
|
1,292,672
|
Less: beginning
deferred revenue
|
|
(549,317)
|
|
(1,356,041)
|
|
(1,155,891)
|
|
(179,025)
|
|
(407,861)
|
|
(1,356,041)
|
Non-GAAP gross
billings of online courses
|
|
542,018
|
|
808,671
|
|
1,082,201
|
|
167,611
|
|
1,060,622
|
|
1,890,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues of
Youdao Premium Courses
|
|
332,202
|
|
898,920
|
|
820,532
|
|
127,084
|
|
633,727
|
|
1,719,452
|
Add: value-added
tax
|
|
33,044
|
|
41,971
|
|
58,004
|
|
8,984
|
|
51,136
|
|
99,975
|
Add: ending deferred
revenue
|
|
562,643
|
|
1,054,107
|
|
1,200,300
|
|
185,903
|
|
562,643
|
|
1,200,300
|
Less: beginning
deferred revenue
|
|
(470,668)
|
|
(1,253,527)
|
|
(1,054,107)
|
|
(163,260)
|
|
(344,111)
|
|
(1,253,527)
|
Non-GAAP gross
billings of Youdao Premium Courses
|
|
457,221
|
|
741,471
|
|
1,024,729
|
|
158,711
|
|
903,395
|
|
1,766,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders of the Company
|
|
(257,806)
|
|
(325,791)
|
|
(524,353)
|
|
(81,212)
|
|
(427,230)
|
|
(850,144)
|
Add: share-based
compensation
|
|
7,261
|
|
18,031
|
|
23,833
|
|
3,691
|
|
14,830
|
|
41,864
|
Non-GAAP net loss
attributable to ordinary shareholders of the Company
|
|
(250,545)
|
|
(307,760)
|
|
(500,520)
|
|
(77,521)
|
|
(412,400)
|
|
(808,280)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net
loss per ADS
|
|
(2.23)
|
|
(2.60)
|
|
(4.09)
|
|
(0.63)
|
|
(3.68)
|
|
(6.72)
|
Non-GAAP diluted net
loss per ADS
|
|
(2.23)
|
|
(2.60)
|
|
(4.09)
|
|
(0.63)
|
|
(3.68)
|
|
(6.72)
|
View original
content:https://www.prnewswire.com/news-releases/youdao-reports-second-quarter-2021-unaudited-financial-results-301365806.html
SOURCE Youdao, Inc.