The following is a summary of the Youdao, Inc. (DAO) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Youdao, Inc. reported Q1 2024 net revenues of RMB 1.4 billion, representing a 19.7% YoY growth.

• The company showed a remarkable financial turnaround, with income from operations reaching RMB 29.9 million from a RMB 195.8 million loss in the same period of previous year.

• Learning services revenues were RMB 718 million, roughly on par with the previous year, and online marketing services segment reported a historic high of RMB 492.7 million in net revenues, which is a 125.9% YoY growth.

• Digital Content services saw 11% YoY growth with revenues of RMB 499.8 million but Smart Devices segment net revenues declined by 14.8% YoY to RMB 181.2 million.

Business Progress:

• Youdao Lingshi students' retention rate reached over 70% in the spring renewals, while AI-driven subscription services experienced rapid growth reaching RMB 50 million sales in Q1 2024, a YoY increase of over 140%.

• The firm plans to continue tech improvement and global KOL marketing expansion for their online marketing services and deepen their partnership with NetEase for future growth.

• Youdao, Inc. is poised to release the first all-subject AI tutor in China, 'Mr. P AI Tutor,' as a free mobile app in June.

• Despite a decrease in smart device sales, the company is focusing on operational efficiency and controlling operating costs, resulting in profitability for two consecutive quarters.

• The company has launched an app version of Mr. P AI Tutor and released new products like the A6 Pro Dictionary Pen, E6 Listening Pod, and X20 Learning Pad, while also preparing an innovative product pipeline for the new school year.

More details: Youdao IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.