Youdao Reports Third Quarter 2024 Unaudited Financial Results

Financial Highlights - Total net revenues for Q3 2024 were RMB1.6 billion (US$224.1 million), a 2.2$109.4 million) [1][2] - Net revenues from smart devices increased by 25.2% year-over-year to RMB315.3 million (US$44.9 million) [1][2] - Net revenues from online marketing services increased by 45.6$69.7 million) [1][2] - Gross margin for Q3 2024 was 50.2%, down from 55.9% in Q3 2023 [1][3] Profitability and Operations - Income from operations for Q3 2024 was RMB107.3 million (US$15.3 million), compared to a loss of RMB57.7 million in Q3 2023 [5] - Net income attributable to ordinary shareholders for Q3 2024 was RMB86.3 million (US$12.3 million), compared to a net loss of RMB102.9 million in Q3 2023 [5] - Non-GAAP net income attributable to ordinary shareholders for Q3 2024 was RMB88.7 million (US$12.6 million), compared to a non-GAAP net loss of RMB67.3 million in Q3 2023 [5][8] Operating Expenses - Total operating expenses for Q3 2024 were RMB682.2 million (US$97.2 million), down from RMB917.3 million in Q3 2023 [4] - Sales and marketing expenses decreased by 22.9% year-over-year to RMB519.6 million (US$74.0 million) [4] - Research and development expenses decreased by 36.2$17.0 million) [4] Cash and Financial Support - As of September 30, 2024, total cash and cash equivalents were RMB489.4 million (US$69.7 million), down from RMB527.1 million at the end of 2023 [6] - NetEase Group has agreed to provide financial support for ongoing operations, including RMB878.0 million in short-term loans and US$128.4 million in long-term loans [6] Share Repurchase Program - The company has repurchased approximately 7.5 million ADSs for around US$33.8 million under its share repurchase program [7]