Youdao, Inc. Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Youdao, Inc. has an operating margin of 2.6%, meaning the company retains $3 of operating profit per $100 of revenue. This below-average margin results in a low score of 13/100, suggesting thin profitability after operating expenses. This is up from -8.6% the prior year.
Youdao, Inc.'s revenue grew a modest 1.5% year-over-year to $770.7M. This slow but positive growth earns a score of 33/100.
Youdao, Inc.'s current ratio of 0.50 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 0/100, which could limit financial flexibility.
While Youdao, Inc. generated -$9.3M in operating cash flow, capex of $1.6M consumed most of it, leaving -$10.9M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Youdao, Inc. passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Youdao, Inc. generates $-0.90 in operating cash flow (-$9.3M OCF vs $10.3M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Youdao, Inc. earns $2.0 in operating income for every $1 of interest expense ($20.4M vs $10.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
This page shows Youdao, Inc. (DAO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Youdao, Inc. generated $770.7M in revenue in fiscal year 2024. This represents an increase of 1.5% from the prior year.
Youdao, Inc.'s EBITDA was $24.4M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 139.6% from the prior year.
Youdao, Inc. generated -$10.9M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 83.0% from the prior year.
Youdao, Inc. reported $10.3M in net income in fiscal year 2024. This represents an increase of 113.3% from the prior year.
Youdao, Inc. earned $0.10 per diluted share (EPS) in fiscal year 2024. This represents an increase of 115.6% from the prior year.
Youdao, Inc. held $81.2M in cash against $0 in long-term debt as of fiscal year 2024.
Youdao, Inc. had 118M shares outstanding in fiscal year 2024. This represents a decrease of 1.3% from the prior year.
Youdao, Inc.'s gross margin was 48.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 2.5 percentage points from the prior year.
Youdao, Inc.'s operating margin was 2.6% in fiscal year 2024, reflecting core business profitability. This is up 11.3 percentage points from the prior year.
Youdao, Inc.'s net profit margin was 1.3% in fiscal year 2024, showing the share of revenue converted to profit. This is up 11.5 percentage points from the prior year.
Youdao, Inc. invested $74.0M in research and development in fiscal year 2024. This represents a decrease of 29.3% from the prior year.
Youdao, Inc. spent $8.5M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 52.5% from the prior year.
Youdao, Inc. invested $1.6M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 35.8% from the prior year.
DAO Income Statement
| Metric | Q4'24 | Q4'23 | Q4'22 | Q4'21 | Q4'20 | Q3'20 | Q4'19 |
|---|---|---|---|---|---|---|---|
| Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EPS (Diluted) | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
DAO Balance Sheet
| Metric | Q4'24 | Q4'23 | Q4'22 | Q4'21 | Q4'20 | Q3'20 | Q4'19 |
|---|---|---|---|---|---|---|---|
| Total Assets | $248.6M+5.9% | $234.7M-28.9% | $330.0M-20.2% | $413.3M+30.3% | $317.3M+12.5% | $282.1M-5.9% | $299.7M |
| Current Assets | $203.7M+11.2% | $183.1M-32.5% | $271.1M-23.9% | $356.2M+25.5% | $283.8M+9.1% | $260.0M-10.8% | $291.6M |
| Cash & Equivalents | $81.2M+26.8% | $64.0M-43.7% | $113.6M+124.3% | $50.7M-45.7% | $93.4M+713.0% | $11.5M-53.9% | $24.9M |
| Inventory | $23.9M-21.7% | $30.6M-9.2% | $33.7M-16.0% | $40.1M+75.9% | $22.8M+68.3% | $13.5M+28.7% | $10.5M |
| Accounts Receivable | $57.4M+15.0% | $49.9M-15.1% | $58.7M+50.7% | $39.0M-5.4% | $41.2M-16.3% | $49.2M+70.8% | $28.8M |
| Goodwill | $15.1M-2.7% | $15.5M-2.9% | $15.9M-7.6% | $17.3M | N/A | N/A | N/A |
| Total Liabilities | $534.8M0.0% | $534.6M-1.8% | $544.2M+3.1% | $528.0M-0.9% | $532.9M+25.4% | $425.1M+65.8% | $256.5M |
| Current Liabilities | $403.7M-7.5% | $436.5M-5.3% | $460.9M-3.2% | $476.1M-8.5% | $520.1M+25.4% | $414.9M+64.2% | $252.6M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | -$286.2M+6.2% | -$305.2M-36.5% | -$223.5M-76.1% | -$126.9M+41.1% | -$215.6M-50.7% | -$143.1M-430.9% | $43.2M |
| Retained Earnings | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
DAO Cash Flow Statement
| Metric | Q4'24 | Q4'23 | Q4'22 | Q4'21 | Q4'20 | Q3'20 | Q4'19 |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | N/A | N/A | N/A | N/A | $17.1M | N/A | N/A |
| Capital Expenditures | N/A | N/A | N/A | N/A | $2.6M | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | $14.5M | N/A | N/A |
| Investing Cash Flow | N/A | N/A | N/A | N/A | $66.4M | N/A | N/A |
| Financing Cash Flow | N/A | N/A | N/A | N/A | $1.3M | N/A | N/A |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
DAO Financial Ratios
| Metric | Q4'24 | Q4'23 | Q4'22 | Q4'21 | Q4'20 | Q3'20 | Q4'19 |
|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Ratio | 0.50+0.1 | 0.42-0.2 | 0.59-0.2 | 0.75+0.2 | 0.55-0.1 | 0.63-0.5 | 1.15 |
| Debt-to-Equity | -1.87-0.1 | -1.75+0.7 | -2.43+1.7 | -4.16-1.7 | -2.47+0.5 | -2.97-8.9 | 5.93 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Note: Shareholder equity is negative (-$286.2M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.50), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Youdao, Inc.'s annual revenue?
Youdao, Inc. (DAO) reported $770.7M in total revenue for fiscal year 2024. This represents a 1.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Youdao, Inc.'s revenue growing?
Youdao, Inc. (DAO) revenue grew by 1.5% year-over-year, from $759.1M to $770.7M in fiscal year 2024.
Is Youdao, Inc. profitable?
Yes, Youdao, Inc. (DAO) reported a net income of $10.3M in fiscal year 2024, with a net profit margin of 1.3%.
What is Youdao, Inc.'s earnings per share (EPS)?
Youdao, Inc. (DAO) reported diluted earnings per share of $0.10 for fiscal year 2024. This represents a 115.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Youdao, Inc.'s EBITDA?
Youdao, Inc. (DAO) had EBITDA of $24.4M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Youdao, Inc.'s gross margin?
Youdao, Inc. (DAO) had a gross margin of 48.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Youdao, Inc.'s operating margin?
Youdao, Inc. (DAO) had an operating margin of 2.6% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Youdao, Inc.'s net profit margin?
Youdao, Inc. (DAO) had a net profit margin of 1.3% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Youdao, Inc.'s free cash flow?
Youdao, Inc. (DAO) generated -$10.9M in free cash flow during fiscal year 2024. This represents a 83.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Youdao, Inc.'s operating cash flow?
Youdao, Inc. (DAO) generated -$9.3M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Youdao, Inc.'s total assets?
Youdao, Inc. (DAO) had $248.6M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Youdao, Inc.'s capital expenditures?
Youdao, Inc. (DAO) invested $1.6M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Youdao, Inc. spend on research and development?
Youdao, Inc. (DAO) invested $74.0M in research and development during fiscal year 2024.
Does Youdao, Inc. buy back shares?
Yes, Youdao, Inc. (DAO) spent $8.5M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Youdao, Inc. have outstanding?
Youdao, Inc. (DAO) had 118M shares outstanding as of fiscal year 2024.
What is Youdao, Inc.'s current ratio?
Youdao, Inc. (DAO) had a current ratio of 0.50 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.
What is Youdao, Inc.'s debt-to-equity ratio?
Youdao, Inc. (DAO) had a debt-to-equity ratio of -1.87 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Youdao, Inc.'s return on assets (ROA)?
Youdao, Inc. (DAO) had a return on assets of 4.2% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Youdao, Inc.'s cash runway?
Based on fiscal year 2024 data, Youdao, Inc. (DAO) had $81.2M in cash against an annual operating cash burn of $9.3M. This gives an estimated cash runway of approximately 105 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
Why is Youdao, Inc.'s debt-to-equity ratio negative or unusual?
Youdao, Inc. (DAO) has negative shareholder equity of -$286.2M as of fiscal year 2024, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Youdao, Inc.'s Piotroski F-Score?
Youdao, Inc. (DAO) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Youdao, Inc.'s earnings high quality?
Youdao, Inc. (DAO) has an earnings quality ratio of -0.90x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Youdao, Inc. cover its interest payments?
Youdao, Inc. (DAO) has an interest coverage ratio of 2.0x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Youdao, Inc.?
Youdao, Inc. (DAO) scores 12 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.