Youdao, Inc. Stock Price, News & Analysis

Youdao launched the Youdao Dictionary Pen X7 at the World AI Conference on July 4, 2024, in Shanghai. This device is a key step in AI-integrated tutoring, featuring an in-built camera and access to a 72 million-word database for efficient language learning and translation. The Dictionary Pen X7 utilizes Ziyue, China's first educational large language model (LLM), and offers comprehensive educational support across subjects like Chinese, math, and physics.

Additionally, Youdao showcased other innovations such as the Youdao Listening Pod E6 Pro, Hi Echo—the first digital human language coach—and Youdao Fun Sports, an intelligent sports terminal. Hi Echo, which now includes IELTS speaking preparation, has surpassed one million users. Youdao Translation, boasting over one billion users, introduced AI-enhanced features for translation and productivity. The LLM Ziyue's applications now extend beyond education into healthcare, media, and more, underscoring Youdao's commitment to AI-driven innovation.

Youdao (NYSE: DAO), an intelligent learning company in China, announced its unaudited financial results for Q1 2024. Total net revenues rose 19.7% YoY to RMB1.4 billion (US$192.8 million). Revenue from online marketing services surged by 125.9%, while learning services and smart devices saw declines of 2.0% and 14.8%, respectively. Gross margin decreased to 49.0%, down from 51.7% in Q1 2023. Operating expenses dropped significantly by 18.3%. The company reported a net income of RMB12.4 million (US$1.7 million) compared to a loss of RMB204.4 million in Q1 2023. As of March 31, 2024, cash and short-term investments totaled RMB326.0 million (US$45.2 million). The company executed a share repurchase program, buying back approximately 6.6 million ADSs worth US$30.4 million.

NetEase (NASDAQ: NTES and HKEX: 9999) reported an increase in net revenues of 7.2% YoY to RMB26.9 billion (US$3.7 billion) for Q1 2024. Games and related services saw a 7.0% rise, reaching RMB21.5 billion (US$3.0 billion). Youdao's net revenues grew by 19.7% to RMB1.4 billion (US$192.8 million), and Cloud Music posted a 3.6% increase, hitting RMB2.0 billion (US$281.1 million). Gross profit was up by 14.2% YoY to RMB17.0 billion (US$2.4 billion), but operating expenses surged by 22.4% to RMB9.4 billion (US$1.3 billion). Net income attributable to shareholders was RMB7.6 billion (US$1.1 billion), while non-GAAP net income was RMB8.5 billion (US$1.2 billion). Basic net income per share stood at US$0.33 (US$1.65 per ADS), with non-GAAP basic net income at US$0.37 (US$1.84 per ADS).

Key operational highlights included continued success in established game franchises, strong performances from new game releases, and expanded regional launches. NetEase renewed its publishing agreement with Blizzard and enhanced its collaboration with Microsoft Gaming. Youdao achieved its first sequential quarter of positive net income, and Cloud Music focused on its core business, implementing a comprehensive product upgrade.

NetEase showcased over 40 game franchises and products at its 2024 annual product launch event on May 20 in Hangzhou, China. The 120-minute online event highlighted a diversified range of gaming offerings across various genres and platforms. Key announcements included new game titles like 'Where Winds Meet,' 'NARAKA: BLADEPOINT Mobile,' 'Once Human,' 'Ashfall,' and 'Lost Light.' NetEase also revealed plans for expansions, crossovers, and new events for established titles such as 'Fantasy Westward Journey,' 'Westward Journey,' 'Justice,' 'Eggy Party,' 'Racing Master,' and 'Identity V.' Additionally, the event featured insights into ongoing collaborations with global partners, including behind-the-scenes stories from the producer of 'Marvel Snap.'

NetEase, a leading internet and game services provider, will report its financial results for the 2024 first quarter on May 23, 2024. The earnings call will take place at 7:00 a.m. Eastern Time on the same day. Interested parties can participate by dialing 1-914-202-3258 with conference ID: 10038664. A replay will be available by dialing 1-855-883-1031 and entering PIN: 10038664. The webcast and replay will be accessible on NetEase's Investor Relations website.

Youdao, Inc. will report its first quarter 2024 financial results on May 23. The earnings teleconference call will take place at 6:00 a.m. ET on the same day. Youdao's management will discuss the results and answer questions.