Summary by Moomoo AI
Youdao reported Q2 2024 total net revenues of RMB1.3B ($181.9M), up 9.5% YoY, with online marketing services surging 68.4% to RMB511.2M. Learning services revenue declined 5.5% to RMB643.8M, while smart devices revenue fell 25% to RMB166.7M. Gross margin improved to 48.2% from 47.0% YoY.Operating loss narrowed significantly to RMB72.6M from RMB289.1M last year, with operating cash flow reaching an all-time high. The improvement was driven by reduced operating expenses across sales and marketing (-12.2%), R&D (-25.4%), and G&A (-36.1%). The company's strategic focus on digital content, online marketing, and AI-driven subscription services showed strong results.Looking ahead, management expects to achieve full-year positive operating income in the near future. The company maintains strong financial support from NetEase Group, including RMB878M in short-term loans and a US$126.5M long-term loan facility. As of June 30, Youdao had repurchased approximately 7.5M ADSs for US$33.8M under its share repurchase program.
