Youdao, Inc. announced its unaudited financial results for the third quarter ended September 30, 2024, reporting net revenues of RMB1.6 billion (US$224.1 million), a 2.2% increase from the same period in 2023. The company achieved an income from operations of RMB107.3 million (US$15.3 million), marking its first profitable third quarter and setting a new quarterly record for operating income, a significant improvement from a loss of RMB57.7 million in Q3 2023.
Growth was primarily fueled by online marketing services, which saw net revenues surge by 45.6% year-over-year to RMB489.4 million, driven by RTA and KOL advertising and investments in AI technology. Smart devices also contributed positively, with net revenues increasing by 25.2% year-over-year to RMB315.3 million due to newly launched products. AI-driven subscription services experienced over 150% year-over-year growth in total sales, benefiting from new AI translation upgrades and AI simultaneous interpretation functionality.
Despite a 19.2% year-over-year decrease in learning services revenue to RMB767.9 million, attributed to a strategic focus on higher ROI engagements, the segment's financial health improved. Total operating expenses were reduced to RMB682.2 million, down from RMB917.3 million in Q3 2023, reflecting decreased marketing, R&D, and G&A expenditures. The company also reported net income attributable to ordinary shareholders of RMB86.3 million, a substantial improvement from a net loss of RMB102.9 million in the prior year period.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.