Youdao Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
HANGZHOU, China, Feb. 25, 2021 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), a leading intelligent learning company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights
-- Total net revenues were RMB1.1 billion (US$169.6 million), representing
a 169.7% increase from the same period in 2019.- Net revenues from
learning services were RMB731.6 million (US$112.1 million), representing
a 198.8% increase from the same period in 2019. - Net revenues from
learning products were RMB237.3 million (US$36.4 million), representing
a 253.8% increase from the same period in 2019. - Net revenues from
online marketing services were RMB137.8 million (US$21.1 million),
representing a 39.9% increase from the same period in 2019.
-- Gross billings of online courses([1]) increased by 222.8% year-over-year
to RMB1.1 billion (US$171.5 million) and gross billings of Youdao
Premium Courses([2]) increased by 268.8% year-over-year to RMB1.0
billion (US$158.8 million).
-- Gross margin was 47.5%, compared with 29.8% for the same period in 2019.
-- Deferred revenue from online courses was RMB1.4 billion (US$207.8
million), compared with RMB407.9 million as of December 31, 2019.
[1] Gross billings is a non-GAAP
financial measure. Gross billings for
a specific period refers to the total
amount of consideration for Youdao's
online courses sold on Youdao Premium
Courses, NetEase Cloud Classroom and
China University MOOC, net of the
total amount of refunds, in such
period. See "Non-GAAP Measures" and
"Unaudited Reconciliation of GAAP and
non-GAAP Results" at the end of this
press release.
[2] Youdao Premium Courses are Youdao's
flagship online learning offerings
primarily focused on K-12 students,
covering a wide spectrum of subject
matters, learning goals and areas of
interest.
Fourth Quarter 2020 Key Operating and Financial Data
---
For the three months
ended December 31
(in millions, RMB) 2019 2020
% of Change
---
Gross billings of online courses 346.7 1,119.3 222.8%
Gross billings of Youdao Premium Courses 281.0 1,036.4 268.8%
Paid student enrollments of Youdao Premium Courses (in thousands) 258.3 796.2 208.2%
K-12 paid student enrollments 161.1 659.2 309.3%
Adult paid student enrollments 97.2 137.0 40.8%
Gross billings per paid student enrollment of Youdao Premium Courses(in RMB) 1,088 1,302 19.7%
--- ---
Fiscal Year 2020 Financial Highlights
-- Total net revenues were RMB3.2 billion (US$485.4 million), representing
a 142.7% increase from 2019. - Net revenues from learning services were
RMB2.2 billion (US$330.2 million), representing a 207.9% increase from
2019. - Net revenues from learning products were RMB540.0 million
(US$82.8 million), representing a 255.1% increase from 2019. - Net
revenues from online marketing services were RMB472.9 million (US$72.5
million), representing a 4.4% increase from 2019.
-- Gross billings of online courses increased by 233.7% year-over-year to
RMB3.1 billion (US$480.5 million) and gross billings of Youdao Premium
Courses increased by 275.9% year-over-year to RMB2.8 billion (US$431.7
million).
-- Gross margin was 45.9%, compared with 28.4% for 2019.
Fiscal Year 2020 Key Operating and Financial Data
---
For the year ended
December 31
(in millions, RMB) 2019 2020 % of Change
Gross billings of online courses 939.5 3,135.4 233.7%
Gross billings of Youdao Premium Courses 749.4 2,816.8 275.9%
Paid student enrollments of Youdao
Premium Courses (in thousands) 833.4 2,096.9 151.6%
K-12 paid student enrollments 358.8 1,639.6 357.0%
Adult paid student enrollments 474.6 457.3 -3.6%
Gross billings per paid student
enrollment of Youdao Premium Courses
(in RMB) 899 1,343 49.4%
---
"2020 was a banner year for Youdao. We made great financial and operational strides across our business, closing the year with excellent top line growth and positive operating cash flow in Q1, Q2 and Q4," said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao. "Our learning services and learning products segments prospered in the fourth quarter, led by our robust K-12 segment. Total gross billings of online courses climbed to RMB1.1 billion in the fourth quarter, up by 223% year-over-year and 17% quarter-over-quarter. We also introduced our Youdao Dictionary Pen 3.0, driving our total learning products sales to RMB237.3 million in the fourth quarter, up by 254% year-over-year.
"Retention rates remain strong. We continue to invest in our business and make great endeavors to drive sustainable and healthy growth. As we move into 2021, we will continue to refine the content of our online courses, upgrade our online learning products, and offer better and more comprehensive user experiences for our customers," Dr. Zhou concluded.
Fourth Quarter 2020 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2020 were RMB1.1 billion (US$169.6 million), representing a 169.7% increase from RMB410.4 million for the same period of 2019.
Net revenues from learning services were RMB731.6 million (US$112.1 million) for the fourth quarter of 2020, representing a 198.8% increase from RMB244.8 million for the same period of 2019. The year-over-year growth from learning services was primarily attributable to the increased revenues generated from online courses, which were further driven by a substantial increase in both the paid student enrollments for K-12 courses of Youdao Premium Courses and gross billings per paid student enrollment of Youdao Premium Courses. The paid student enrollments for K-12 courses of Youdao Premium Courses increased by 309.3% year-over-year to 659,200 in the fourth quarter of 2020. Gross billings per paid student enrollment of Youdao Premium Courses increased by 19.7% year-over-year to RMB1,302 in the fourth quarter of 2020.
Net revenues from learning products were RMB237.3 million (US$36.4 million) for the fourth quarter of 2020, a 253.8% increase from RMB67.1 million for the same period in 2019, which was primarily driven by the substantially increased sales volume of Youdao Dictionary Pen.
Net revenues from online marketing services were RMB137.8 million (US$21.1 million) for the fourth quarter of 2020, representing a 39.9% increase from RMB98.5 million for the same period in 2019. The year-over-year increase in revenues from online marketing services was attributable to the increase in performance-based advertisement through third parties' internet properties.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2020 was RMB525.5 million (US$80.5 million), representing a 329.2% increase from RMB122.4 million for the same period of 2019. Gross margin increased to 47.5% for the fourth quarter of 2020 from 29.8% for the same period of 2019.
Gross margin for learning services increased to 53.9% for the fourth quarter of 2020 from 30.0% for the same period of 2019. The increase was due to improved economies of scale and the continuous optimization of Youdao's faculty compensation structure.
Gross margin for learning products increased to 39.5% for the fourth quarter of 2020 from 26.7% for the same period of 2019. The improvement was mainly attributable to the substantially increased sales volume of Youdao Dictionary Pen, which carry a higher gross margin profile than other learning products.
Gross margin for online marketing services was 26.9% for the fourth quarter of 2020, compared with 31.6% for the same period of 2019. The decrease was mainly attributable to the increase in performance-based advertisements through third parties' internet properties, which typically have a lower gross margin profile.
Operating Expenses
Total operating expenses for the fourth quarter of 2020 were RMB978.2 million (US$149.9 million), representing an increase of 199.7%, compared with RMB326.5 million for the same period of last year.
Sales and marketing expenses for the fourth quarter of 2020 were RMB804.8 million (US$123.3 million), representing an increase of 291.1%, compared with RMB205.8 million for the same period of 2019. This increase was mainly driven by intensified sales and marketing efforts associated with student acquisition and branding enhancement, as well as increased compensation expenses incurred due to the expansion of the sales and marketing team for Youdao's online courses.
Research and development expenses for the fourth quarter of 2020 were RMB128.1 million (US$19.6 million), representing an increase of 43.5%, compared with RMB89.3 million for the same period of 2019. The increase was primarily due to increased payroll-related expenses including share-based compensation expenses associated with an increased number of course development and technology professionals, as well as increased server and technical expenses due to the increased scale of online courses.
General and administrative expenses for the fourth quarter of 2020 were RMB45.4 million (US$7.0 million), representing an increase of 44.4%, compared with RMB31.4 million for the same period of 2019. The increase was mainly attributable to the increase in employee headcount and related expenses in the fourth quarter of 2020.
Loss from Operations
Loss from operations for the fourth quarter of 2020 was RMB452.8 million (US$69.4 million), compared with RMB204.0 million for the same period in 2019. The margin of loss from operations was 40.9%, compared with 49.7% for the same period of last year.
Net Loss Attributable to Youdao's Ordinary Shareholders
Net loss attributable to Youdao's ordinary shareholders for the fourth quarter of 2020 was RMB447.8 million (US$68.6 million), compared with RMB205.7 million for the same period of last year. Non-GAAP net loss attributable to Youdao's ordinary shareholders for the fourth quarter of 2020 was RMB433.1 million (US$66.4 million), compared with RMB186.1 million for the same period of last year.
Basic and diluted net loss per American Depositary Share ("ADS") attributable to ordinary shareholders for the fourth quarter of 2020 was RMB3.93 (US$0.60), compared with RMB1.95 for the same period of 2019. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB3.80 (US$0.58), compared with RMB1.76 for the same period of 2019.
Balance Sheet
As of December 31, 2020, Youdao's cash, cash equivalents, time deposits and short-term investments totaled RMB1.2 billion (US$183.1 million), compared with RMB1.6 billion as of December 31, 2019. For the fourth quarter of 2020, net cash provided by operating activities was RMB129.2 million (US$19.8 million), capital expenditures totaled RMB15.9 million (US$2.4 million), and depreciation and amortization expenses amounted to RMB4.8 million (US$0.7 million).
As of December 31, 2020, the Company's contract liabilities, which mainly consisted of deferred revenues generated from Youdao's online courses, were RMB1.4 billion (US$220.8 million), representing an increase of 215.3% from RMB456.8 million as of December 31, 2019.
Fiscal Year 2020 Financial Results
Net Revenues
Net revenues for 2020 were RMB3.2 billion (US$485.4 million), representing a 142.7% increase from RMB1.3 billion for 2019.
Net revenues from learning services were RMB2.2 billion (US$330.2 million) for 2020, representing a 207.9% increase from RMB699.8 million for 2019. The increase was primarily attributable to the increased revenues generated from online courses, which were further driven by a substantial increase in both the paid student enrollments for K-12 courses of Youdao Premium Courses and gross billings per paid student enrollment of Youdao Premium Courses. The paid student enrollments for K-12 courses of Youdao Premium Courses increased by 357.0% year-over-year to 1.6 million in 2020. Gross billings per paid student enrollment of Youdao Premium Courses increased by 49.4% year-over-year to RMB1,343 in 2020.
Net revenues from learning products were RMB540.0 million (US$82.8 million) for 2020, representing a 255.1% increase from RMB152.0 million for 2019. The increase was primarily attributable to the significant increase in sales volume of Youdao Dictionary Pen due to its growing popularity.
Net revenues from online marketing services were RMB472.9 million (US$72.5 million) for 2020, representing a 4.4% increase from RMB453.0 million for 2019.
Gross Profit and Gross Margin
Gross profit for 2020 was RMB1.5 billion (US$222.9 million), compared with RMB370.6 million for 2019. Gross margin for 2020 was 45.9%, compared with 28.4% for 2019.
Gross margin for learning services increased to 53.1% for 2020 from 26.7% for 2019, primarily attributable to improved economies of scale and faculty compensation structure optimization.
Gross margin for learning products increased to 34.1% for 2020 from 29.2% for 2019, primarily attributable to more revenue arising from the sales of Youdao Dictionary Pen, which carried a higher gross margin profile than other products.
Gross margin for online marketing services was 26.6% for 2020, compared with 30.8% for 2019. The decrease was mainly attributable to the distribution of advertisements through third parties' internet properties, which had a lower gross margin than last year.
Operating Expenses
Total operating expenses for 2020 were RMB3.3 billion (US$499.6 million), compared with RMB971.5 million for 2019.
Sales and marketing expenses for 2020 were RMB2.7 billion (US$413.3 million), compared with RMB622.9 million for 2019. The increase was mainly driven by intensified sales and marketing efforts associated with student acquisition and branding enhancement, as well as increased compensation expenses incurred by the expansion of the sales and marketing team for Youdao's online courses.
Research and development expenses for 2020 were RMB424.6 million (US$65.1 million), an increase of 54.2%, compared with RMB275.4 million for 2019. The increase was primarily due to increased payroll-related expenses including share-based compensation expenses, as well as rental and facility expenses associated with an increased number of course development and technology professionals.
General and administrative expenses for 2020 increased to RMB138.5 million (US$21.2 million) from RMB73.3 million for 2019. The increase was mainly attributable to increased payroll-related expenses, fees paid to third-party professional service providers and increased credit losses allowance on accounts receivable.
Loss from Operations
Loss from operations for 2020 was RMB1.8 billion (US$276.7 million), compared with RMB600.9 million for 2019. The margin of loss from operations was 57.0%, compared with 46.1% for 2019.
Net Loss Attributable to Youdao's Ordinary Shareholders
Net loss attributable to Youdao's ordinary shareholders for 2020 was RMB1.8 billion (US$268.6 million), compared with RMB637.4 million for 2019. Non-GAAP net loss attributable to Youdao's ordinary shareholders for 2020 was RMB1.7 billion (US$262.3 million), compared with RMB612.3 million for 2019.
Basic and diluted net loss per ADS attributable to ordinary shareholders for 2020 was RMB15.53 (US$2.38), compared with RMB6.68 for 2019. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB15.16 (US$2.32), compared with RMB6.42 for 2019.
Operating Cash Flow
For 2020, net cash used in operating activities was RMB321.6 million (US$49.3 million), capital expenditures totaled RMB36.9 million (US$5.6 million), and depreciation and amortization expenses amounted to RMB16.1 million (US$2.5 million).
Completion of public offering of ADSs
The Company completed a public offering of 7,000,000 ADSs with a total net proceeds of approximately US$232 million after deducting the underwriter commissions and relevant offering expenses in February 2021.
Change in Segment Reporting
To better reflect management's perspective and match the segment presentation with recent business developments, the Company changed its segment disclosure to separately report the results of its learning products business. As a result, since the fourth quarter of 2020 the Company has reported the following segments: learning services, learning products and online marketing services. The Company has retrospectively revised prior period segment information to conform to current period presentation. This change in segment reporting aligns with the manner in which the Company's chief operating decision maker ("CODM") currently receives and uses financial information to allocate resources and evaluate the performance of the Company's reporting segments.
Notes to Unaudited Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2020 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2020.
Adjustments to the financial statements may be identified when the audit work is completed, which could result in differences between the Company's audited financial statements and this preliminary unaudited financial information.
Conference Call
Youdao's management team will host a teleconference call with simultaneous webcast at 6:00 a.m. Eastern Time on Thursday, February 25, 2021 (Beijing/Hong Kong Time: 7:00 p.m., Thursday, February 25, 2021). Youdao's management will be on the call to discuss the financial results and answer questions.
Dial-in details for the earnings conference call are as follows:
United States (toll free):
+1-888-346-8982
International:
+1-412-902-4272
Mainland China (toll free):
400-120-1203
Hong Kong (toll free):
800-905-945
Hong Kong:
+852-3018-4992
Conference ID: 10151994
A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.youdao.com.
A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until March 4, 2021:
United States:
+1-877-344-7529
International:
+1-412-317-0088
Replay Access Code: 10151994
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading intelligent learning company in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary and Youdao Translation, Youdao now offers online courses covering a wide spectrum of age groups, subject matters, learning goals and areas of interest. In addition, Youdao has developed a variety of interactive learning apps and smart learning devices. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China.
For more information, please visit: http://ir.youdao.com.
Non-GAAP Measures
Youdao considers and uses non-GAAP financial measures, such as gross billings and non-GAAP net income/(loss) attributable to the Company's ordinary shareholders and non-GAAP basic and diluted earnings/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Youdao defines gross billings for a specific period as the total amount of consideration for online courses sold on Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, net of the total amount of refunds, in such period. The management uses gross billings as a performance measurement because the Company generally bills students for the entire course tuition at the time of sale of the courses and recognizes revenue proportionally over an average of the learning periods of different online courses. Youdao defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's ordinary shareholders excluding share-based compensation expenses. Non-GAAP net income/(loss) attributable to the Company's shareholders enables Youdao's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly does not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net income/(loss) attributable to the Company's ordinary shareholders. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release.
The accompanying tables have more details on the reconciliations between our GAAP financial measures that are most directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.5250 to US$1.00, the exchange rate on December 31, 2020 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8963
E-mail: IR@rd.netease.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(RMB and USD in thousands)
As of December 31,
As of December 31,
As of December 31,
2019 2020 2020
RMB
RMB
USD(1)
Assets
Current assets:
Cash and cash equivalents 173,328 609,199 93,364
Time deposits 1,325,737 263 40
Short-term investments 121,126 584,999 89,655
Accounts receivable, net 200,675 268,830 41,200
Inventories, net 73,225 148,662 22,783
Amounts due from NetEase Group 14,930 4,081 625
Prepayment and other current assets 120,891 235,532 36,098
Total current assets 2,029,912 1,851,566 283,765
Non-current assets:
Property and equipment, net 24,551 45,636 6,994
Operating lease right-of-use assets, net 23,873 105,865 16,225
Other assets, net 8,128 67,181 10,295
Total non-current assets 56,552 218,682 33,514
Total assets 2,086,464 2,070,248 317,279
Liabilities and Shareholders' Equity/(Deficit)
Current liabilities:
Accounts payables 62,675 141,304 21,656
Payroll payable 94,488 209,603 32,123
Amounts due to NetEase Group 48,126 67,230 10,303
Contract liabilities 456,805 1,440,489 220,765
Taxes payable 25,977 54,895 8,413
Accrued liabilities and other payables 192,643 602,044 92,267
Short-term loans from NetEase Group 878,000 878,000 134,559
Total current liabilities 1,758,714 3,393,565 520,086
Non-current liabilities:
Long-term lease liabilities 21,206 79,748 12,222
Other non-current liabilities 5,517 4,043 620
Total non-current liabilities 26,723 83,791 12,842
Total liabilities 1,785,437 3,477,356 532,928
Shareholders' equity/(deficit):
Youdao's shareholders' equity/(deficit) 300,091 (1,408,105) (215,802)
Noncontrolling interests 936 997 153
Total shareholders' equity/(deficit) 301,027 (1,407,108) (215,649)
Total liabilities and shareholders' equity/(deficit) 2,086,464 2,070,248 317,279
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB6.5250 on the last trading
day of December (December 31, 2020) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(RMB and USD in thousands, except share and per ADS data)
Three Months Ended Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
December 31,
2019 2020 2020 2020 2019 2020
RMB
RMB
RMB
USD(1)
RMB
RMB
Net revenues:
Learning services 244,846 600,350 731,644 112,130 699,826 2,154,669
Learning products 67,067 163,106 237,315 36,370 152,044 539,962
Online marketing services 98,519 132,585 137,837 21,124 453,013 472,884
Total net revenues 410,432 896,041 1,106,796 169,624 1,304,883 3,167,515
Cost of revenues (2): (288,002) (484,488) (581,327) (89,092) (934,261) (1,713,229)
Gross profit 122,430 411,553 525,469 80,532 370,622 1,454,286
Operating expenses:
Sales and marketing expenses (2) (205,773) (1,147,927) (804,781) (123,338) (622,884) (2,697,018)
Research and development expenses (2) (89,254) (120,991) (128,080) (19,629) (275,367) (424,593)
General and administrative expenses (2) (31,433) (36,639) (45,379) (6,955) (73,289) (138,459)
Total operating expenses (326,460) (1,305,557) (978,240) (149,922) (971,540) (3,260,070)
Loss from operations (204,030) (894,004) (452,771) (69,390) (600,918) (1,805,784)
Interest (expense)/income, net (1,736) (1,217) (4,173) (640) (18,169) (5,691)
Others, net 2,872 17,352 9,505 1,457 20,064 61,052
Loss before tax (202,894) (877,869) (447,439) (68,573) (599,023) (1,750,423)
Income tax benefit/(expense) 9 (240) (495) (76) (2,432) (2,929)
Net loss (202,885) (878,109) (447,934) (68,649) (601,455) (1,753,352)
Net loss/(income) attributable to noncontrolling interests 887 304 180 28 (48) 563
Net loss attributable to the Company (201,998) (877,805) (447,754) (68,621) (601,503) (1,752,789)
Accretions of convertible redeemable preferred shares to redemption value (3,684) (35,893)
Net loss attributable to ordinary shareholders of the Company (205,682) (877,805) (447,754) (68,621) (637,396) (1,752,789)
Basic net loss per ADS (1.95) (7.73) (3.93) (0.60) (6.68) (15.53)
Diluted net loss per ADS (1.95) (7.73) (3.93) (0.60) (6.68) (15.53)
Shares used in computing basic net loss per ADS 105,671,559 113,495,422 113,898,308 113,898,308 95,445,982 112,864,452
Shares used in computing diluted net loss per ADS 105,671,559 113,495,422 113,898,308 113,898,308 95,445,982 112,864,452
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB6.5250 on the last trading day of December (December 31,
2020) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
Note 2:
Share-based compensation in each category:
Cost of revenues 2,960 1,665 2,016 309 4,407 5,892
Sales and marketing expenses 1,419 2,071 2,078 318 2,107 5,868
Research and development expenses 8,371 5,418 9,321 1,429 9,432 20,898
General and administrative expenses 6,826 2,917 1,262 193 9,128 8,920
YOUDAO, INC.
UNAUDITED ADDITIONAL INFORMATION
(RMB and USD in thousands)
Three Months Ended Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
December 31,
2019 2020 2020 2020 2019 2020
RMB
RMB
RMB
USD
RMB
RMB
Net revenues
Learning services 244,846 600,350 731,644 112,130 699,826 2,154,669
Learning products 67,067 163,106 237,315 36,370 152,044 539,962
Online marketing services 98,519 132,585 137,837 21,124 453,013 472,884
Total net revenues 410,432 896,041 1,106,796 169,624 1,304,883 3,167,515
Cost of revenues
Learning services 171,502 276,568 337,033 51,653 513,060 1,010,364
Learning products 49,132 114,469 143,545 21,999 107,609 355,970
Online marketing services 67,368 93,451 100,749 15,440 313,592 346,895
Total cost of revenues 288,002 484,488 581,327 89,092 934,261 1,713,229
Gross margin
Learning services 30.0% 53.9% 53.9% 53.9% 26.7% 53.1%
Learning products 26.7% 29.8% 39.5% 39.5% 29.2% 34.1%
Online marketing services 31.6% 29.5% 26.9% 26.9% 30.8% 26.6%
Total gross margin 29.8% 45.9% 47.5% 47.5% 28.4% 45.9%
YOUDAO, INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(RMB and USD in thousands, except per ADS data)
Three Months Ended Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
December 31,
2019 2020 2020 2020 2019 2020
RMB
RMB
RMB
USD
RMB
RMB
Net revenues of online courses 215,946 567,044 692,279 106,096 607,568 2,009,719
Add: value-added tax 19,627 54,083 63,356 9,710 53,178 177,474
Add: ending deferred revenue 407,861 992,393 1,356,041 207,822 407,861 1,356,041
Less: beginning deferred revenue (296,693) (658,052) (992,393) (152,091) (129,144) (407,861)
Non-GAAP gross billings of online courses 346,741 955,468 1,119,283 171,537 939,463 3,135,373
Net revenues of Youdao Premium Courses 164,125 496,508 617,706 94,668 471,943 1,747,941
Add: value-added tax 15,906 49,643 58,663 8,990 42,416 159,442
Add: ending deferred revenue 344,111 893,517 1,253,527 192,111 344,111 1,253,527
Less: beginning deferred revenue (243,128) (562,643) (893,517) (136,937) (109,105) (344,111)
Non-GAAP gross billings of Youdao Premium Courses 281,014 877,025 1,036,379 158,832 749,365 2,816,799
Net loss attributable to ordinary shareholders of the Company (205,682) (877,805) (447,754) (68,621) (637,396) (1,752,789)
Add: share-based compensation 19,576 12,071 14,677 2,249 25,074 41,578
Non-GAAP net loss attributable to ordinary shareholders of the (186,106) (865,734) (433,077) (66,372) (612,322) (1,711,211)
Company
Non-GAAP basic net loss per ADS (1.76) (7.63) (3.80) (0.58) (6.42) (15.16)
Non-GAAP diluted net loss per ADS (1.76) (7.63) (3.80) (0.58) (6.42) (15.16)
View original content:http://www.prnewswire.com/news-releases/youdao-reports-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results-301235313.html
SOURCE Youdao, Inc.
