Youdao, Inc. today announced its unaudited financial results for the second quarter ended June 30, 2022. Youdao Q2 total net revenues were RMB956.2 million (US$142.8 million), representing a 2.4% decrease from the same period in 2021.
Net revenues from learning services were RMB563.6 million (US$84.1 million), representing a 7.3% decrease from the same period in 2021.
Net revenues from smart devices were RMB239.9 million (US$35.8 million), representing a 16.3% increase from the same period in 2021.
Net revenues from online marketing services were RMB152.8 million (US$22.8 million), representing an 8.0% decrease from the same period in 2021.
Gross margin was 42.8%, compared to 51.0% for the same period in 2021.
"Despite the short-term challenges by the pandemic, our business demonstrated resilience. On one hand, operating cash inflow reached RMB104 million in Q2, mainly due to the strong sales performance of our new services and smart devices. On the other hand, we narrowed our net loss to RMB461 million in Q2, a 12.3% improvement year-over-year," said Dr. Feng Zhou, Chief Executive Officer and a Director of Youdao.
"We recently launched a series of new products, such as Youdao Dictionary Pen X5 and Youdao Smart Learning Pad, as well as new products in STEAM courses and vocational education courses. We have completed the transformation of our business and products in response to regulatory changes last year and entered a new stage of organic growth. Looking ahead, we will stick to upgrading products and services with the support of technology and innovation, navigate the short-term macro challenges, build up and strengthen the long-term franchise. We are on the right track and confident in the second half of this year boosted by the new products and services," Dr. Zhou concluded.