Youdao, Inc. announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, achieving a significant milestone with its first-ever full-year operating profit of RMB148.8 million (US$20.4 million) for 2024. This marks a substantial turnaround from an operating loss of RMB466.3 million in 2023, demonstrating improved financial health and operational efficiency.
For the full year 2024, net revenues increased by 4.4% to RMB5.6 billion (US$770.7 million), driven by a 48.3% year-over-year surge in online marketing services revenue to RMB2.0 billion. AI-driven subscription services also saw robust growth, with total sales exceeding RMB200 million for the year, representing an increase of over 130% year-over-year. The company's total operating expenses for 2024 decreased by 19.6% to RMB2.6 billion, contributing to the improved profitability.
In Q4 2024, Youdao reported an income from operations of RMB84.2 million (US$11.5 million), a 10.3% increase year-over-year, and net income attributable to ordinary shareholders of RMB83.0 million, up 47.0% year-over-year. The company also announced its 'AI Native' strategy, aiming to integrate AI more comprehensively across its business lines, including automating advertising platforms and introducing AI-driven tutoring for course customers. Management targets moderate revenue growth and accelerated profit growth for 2025.
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