Youdao Q3 2025 Financial Report: AI-Driven Advertising Revenue Soars, Becoming the Largest Source of Income
Youdao (NYSE: DAO) reported unaudited Q3 2025 results showing continued profitability under its AI‑Native strategy and a stronger financial position. Net revenue was RMB 1.6 billion (≈US$200 million) and operating profit was RMB 28.3 million (≈US$3.93 million). Advertising revenue rose to RMB 0.74 billion (≈US$101 million), up 51.1% YoY, becoming the company's largest revenue segment. Operating profit for the first nine months increased by nearly 150% YoY, while operating cash outflow narrowed by 31.7% YoY. Overseas Youdao Ads revenue grew by >100% YoY, and the ad platform now connects with nearly 30 million influencers; an integrated campaign for Where Winds Meet generated over 500 million video views.
Youdao (NYSE: DAO) ha riportato risultati non auditati del terzo trimestre 2025 che mostrano redditività continua sotto la sua strategia AI‑Native e una posizione finanziaria più forte. Il fatturato netto è stato di RMB 1,6 miliardi (≈US$200 milioni) e l’utile operativo di RMB 28,3 milioni (≈US$3,93 milioni). Il fatturato pubblicitario è salito a RMB 0,74 miliardi (≈US$101 milioni), in crescita del 51,1% su base annua, diventando il più grande segmento di ricavo dell’azienda. L’utile operativo per i primi nove mesi è aumentato di quasi il 150% su base annua, mentre la fuoriuscita di cassa operativa si è ridotta di 31,7% su base annua. Il fatturato di Youdao Ads all’estero è cresciuto di 100% su base annua, e la piattaforma pubblicitaria ora si collega a quasi 30 milioni di influencer; una campagna integrata per Where Winds Meet ha generato oltre 500 milioni di visualizzazioni video.
Youdao (NYSE: DAO) informó resultados no auditados del tercer trimestre de 2025 que muestran rentabilidad continua bajo su estrategia AI‑Native y una posición financiera más sólida. Los ingresos netos fueron RMB 1,6 mil millones (≈US$200 millones) y la utilidad operativa fue RMB 28,3 millones (≈US$3,93 millones). Los ingresos por publicidad aumentaron a RMB 0,74 mil millones (≈US$101 millones), con un crecimiento interanual del 51,1%, convirtiéndose en el segmento de ingresos más grande de la empresa. La utilidad operativa de los primeros nueve meses aumentó en casi 150% interanual, mientras que la salida de efectivo operativo se redujo en 31,7% interanual. Los ingresos de Youdao Ads en el extranjero crecieron en 100% interanual, y la plataforma de anuncios ahora se conecta con casi 30 millones de influencers; una campaña integrada para Where Winds Meet generó más de 500 millones de visualizaciones de video.
Youdao (NYSE: DAO)는 AI‑Native 전략 아래 지속 가능한 수익성과 더 강한 재무 상태를 보여주는 2025년 3분기 비감사 실적을 발표했습니다. 순매출은 RMB 16억 위안(약 US$200백만), 영업이익은 RMB 2830만 위안(약 US$3.93백만)입니다. 광고 매출은 RMB 7,400만 위안(약 US$101백만)으로 상승했고, 전년 대비 51.1%의 증가를 기록하여 회사의 가장 큰 매출 부문이 되었습니다. 9개월간 영업이익은 거의 전년 동기 대비 150% 증가했고, 영업 현금흐름은 전년 동기 대비 31.7% 감소했습니다. 해외 Youdao Ads 매출은 전년 동기 대비 100% 증가했고, 광고 플랫폼은 이제 거의 300만명의 인플루언서와 연결됩니다; Where Winds Meet를 위한 통합 캠페인은 5억 뷰 이상의 영상 조회수를 창출했습니다.
Youdao (NYSE: DAO) a publié des résultats non audités du T3 2025 montrant une rentabilité continue sous sa stratégie AI‑Native et une position financière plus solide. Le chiffre d’affaires net s’est élevé à RMB 1,6 milliard (≈US$200 millions) et le résultat opérationnel à RMB 28,3 millions (≈US$3,93 millions). Le revenu publicitaire a augmenté à RMB 0,74 milliard (≈US$101 millions), soit une hausse de 51,1% sur un an, devenant le plus grand segment de revenus de l’entreprise. Le résultat opérationnel des neuf premiers mois a augmenté d’environ 150% sur un an, tandis que la sortie de trésorerie opérationnelle a été réduite de 31,7% sur un an. Les revenus Youdao Ads à l’étranger ont augmenté de 100% sur un an, et la plateforme publicitaire se connecte désormais à près de 30 millions d’influenceurs; une campagne intégrée pour Where Winds Meet a généré plus de 500 millions de vues vidéo.
Youdao (NYSE: DAO) meldete unbestätigte Ergebnisse des Q3 2025, die eine anhaltende Profitabilität unter der AI‑Native-Strategie und eine stärkere finanzielle Position zeigen. Der Nettoumsatz betrug RMB 1,6 Milliarden (ca. US$200 Millionen) und der operative Gewinn RMB 28,3 Millionen (ca. US$3,93 Millionen). Werbeumsatz stieg auf RMB 0,74 Milliarden (ca. US$101 Millionen), ein Anstieg von 51,1% YoY, und wurde damit zum größten Umsatzsegment des Unternehmens. Der operative Gewinn der ersten neun Monate stieg nahezu um 150% YoY, während der operative Cash-Outflow um 31,7% YoY zurückging. Overseas Youdao Ads-Umsatz wuchs um 100% YoY, und die Werbeplattform verbindet sich nun mit fast 30 Millionen Influencern; eine integrierte Kampagne für Where Winds Meet erzielte über 500 Millionen Videoaufrufe.
Youdao (NYSE: DAO) أعلن عن نتائج الربع الثالث 2025 غير المدققة التي تُظهر ربحية مستمرة تحت استراتيجيتها AI‑Native ووضعاً مالياً أقوى. بلغ الإيراد الصافي RMB 1.6 مليار (حوالي US$200 مليون) وبلغ الربح التشغيلي RMB 28.3 مليون (حوالي US$3.93 مليون). ارتفع إيراد الإعلانات إلى RMB 0.74 مليار (حوالي US$101 مليون)، بارتفاع 51.1% من سنة لأخرى، ليصبح أكبر قطاع إيرادات للشركة. زاد الربح التشغيلي للـ9 أشهر الأولى بنحو حوالي 150% من سنة لأخرى، بينما تقلص صافي التدفق النقدي التشغيلي بنحو 31.7% من سنة لأخرى. ارتفع إيراد Youdao Ads في الخارج بنسبة 100% من سنة لأخرى، والمنصة الإعلانية الآن تتصل بما يقرب من 30 مليون مؤثر؛ وقد حققت حملة متكاملة لـ Where Winds Meet أكثر من 500 مليون مشاهدة فيديو.
- Net revenue of RMB 1.6 billion in Q3 2025
- Operating profit of RMB 28.3 million in Q3 2025
- Operating profit for first nine months +~150% YoY
- Advertising revenue RMB 0.74 billion (+51.1% YoY)
- Overseas Youdao Ads revenue +>100% YoY
- Platform connects with nearly 30 million influencers; campaign reached 500M views
- None.
Insights
Youdao reports stronger profits and AI-driven advertising growth; advertising is now the largest revenue source.
In Q3 2025 Youdao reported
The business mechanism rests on two explicit capabilities: AI creative generation ("iMagicBox") that shortens production and placement cycles, and an "AI Ad Placement Optimizer" that supports end‑to‑end campaign decisions. The company also reports overseas ad revenue growth of over
Watch for continued quarterly profitability and the company's stated goal of annual operating cash‑flow breakeven; the next set of quarterly financials will confirm whether advertising momentum and international expansion translate into recurring, scalable margin improvements within the upcoming fiscal periods.
Q3 Financial and Operational Highlights:
- Net revenue was
RMB 1.6 billion (approx.US ).$200 million - Operating profit reached
RMB 28.3 million (approx.US ), with operating profit for the first three quarters increasing by nearly$3.93 million 150% year-over-year. - Operating cash outflow narrowed by
31.7% year-over-year, reflecting ongoing improvements in operational efficiency.
Advertising Becomes Youdao's Largest Revenue Segment
In Q3 2025, advertising revenue reached a record high of
Advertising revenue surpassed all other business segments for the first time, becoming the company's largest source of income. This leap was driven by the deep application of Youdao's proprietary AI technology across the entire advertising value chain:
- Intelligent Creative Generation: Youdao iMagicBox integrates capabilities such as image-to-video conversion and digital human presenters, directly connecting with global advertising systems to create a "production-placement" closed-loop that enhances efficiency and optimizes costs.
- AI-Driven Campaign Strategy: The AI Ad Placement Optimizer provides end-to-end decision support, from strategy development to post-campaign review, significantly improving return on investment.
Youdao Ads Supports Global Expansion
Youdao's overseas business reported strong performance in Q3 2025, with revenue growing by over
During the quarter, Youdao Ads introduced AI-driven and self-service enhancements to influencer (KOL) marketing. Through AI agents (AI-driven automation modules), the platform can automatically analyze customer requirements and recommend the most suitable influencers, while also generating a customized explanation for each recommendation. In addition, it provides real-time comment insights and sentiment analysis to help brands dynamically monitor campaign performance.
In supporting NetEase Games with the international promotion of its blockbuster title Where Winds Meet, the platform deployed an integrated marketing strategy that utilized AI-powered influencer collaboration, resulting in over 500 million video views.
Youdao's Chief Executive Officer Feng Zhou stated, "The Q3 performance validates the success of our AI-Native strategy. We will continue to deepen the innovative applications of the Confucius large model in learning and advertising scenarios. We remain confident in achieving sustained improvement in operating profit and annual operating cash-flow breakeven for the first time."
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SOURCE Youdao
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