Youdao’s revenue inches up on strong gains for its learning services
Online education company Youdao Inc. (DAO.US) on Thursday reported its revenue rose slightly in the second quarter, as strong gains for its learning services offset declines for its smart device and online marketing services divisions.
The company, controlled by gaming giant NetEase, said its revenue rose 3.5% to 1.5 billion yuan ($223 million) in the three months to June from 1.4 billion yuan a year earlier. Revenue from its learning services rose 20.9% to 796 million yuan, making up more than half of total revenue, driven by strong momentum for tutoring services. But revenue from smart devices fell 31.5% year-on-year to 86.8 million yuan, while marketing services fell 7.7% to 584 million yuan.
The company swung to the black with a 73.8 million yuan profit in the second quarter, reversing a 17.8 million yuan loss in the year-ago period. Its non-GAAP net income rose to 90.6 million yuan in the second quarter from 12.5 million yuan a year earlier. The company also announced that NetEase founder Ding Lei has resigned from his longtime position as a member of Youdao’s board for personal reasons.
Youdao shares rose 1.3% on Thursday after the results were announced. The stock is up 75% this year.
By Doug Young
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