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After selling the corkola, he needs this IPO.

via:虎嗅网     time:2019/10/1 18:00:49     readed:772

After the formal completion of the listing, Netease Youdao will become the first independent listed company under Netease.

Before the IPO, the controlling shareholder was NetEase, holding 66.2 percent of the shares, including 30.1 percent owned by NetEase founder Ding Lei and 20.6 percent owned by NetEase youdao CEO Zhou Feng, according to the IPO.

After the sale of koala and the introduction of Ali investment into the music, it will be more meaningful for them.

K12 is still the key word

At present, youdao's business can be divided into four categories, covering pre-school, primary and secondary schools, college students and even adults.

1. Application of learning tools including dictionary translation and writing tools.

2. Online courses, including youdao excellent course, NetEase Yun classroom and MOOC, of Chinese University, in which youdao excellent course focuses on serving K12 stage users;

3. Content-based interactive courses, including Tao Mathematics and Tao Music Reading, can enable students to interact with virtual teachers on mobile devices.

4. Intelligent hardware, including youdao smart pen, dictionary pen, translation egg and so on.

Youdao's four business sectors

In the IPO, youdao's financial data and business developments have been disclosed for the first time. While revenue is growing rapidly, youdao has not been able to avoid rising losses-the vast majority of K12educationThe common characteristics of an enterprise.

According to the prospectus, in the first half of 2019, Youdao's revenue was 548.5 million yuan, an increase of 67.7% over the previous year; its net loss was 168 million yuan, an increase of 103% over the same period last year's net loss of 82.8 million yuan; and its total revenue in 2018 was 731 million yuan, a net loss of 209 million yuan.

The revenue of Tao can be divided into two parts. Intelligent learning and online advertising. Intelligent learning includes online courses, learning hardware sales and so on. In the first half of 2019, the revenue of intelligent learning business was 314 million yuan, accounting for 57.4% of the total revenue, while the revenue of advertising business accounted for 42.6%.

The "smart learning" section is then split down, with the bulk of revenue being "online courses ". In the first half of 2019, NetEase Youdao's online course revenue rose to 230 million yuan from 160 million yuan in the same period last year, up 54.3 percent from the same period last year, accounting for 73.2 percent of the "smart learning" sector's revenue. In addition, the income of "other learning services" was 29.3 million yuan, and the income of intelligent hardware was 43.1 million yuan, an increase of 264.7% over the same period last year, mainly due to the sales growth of new products such as youdao translation king, dictionary pen and so on.

From the revenue structure, we can see that "K12" is still a good keyword.

According to the prospectus, the number of new registered users in the first half of this year for youdao boutique courses was 1.21 million, the number of paying users was 338000, and the conversion rate was 2.8 percent. Among them, the number of K12 paying users reached 105000, up 80.8% from the same period last year. In 2018, the registered users of youdao boutique courses were 2.14 million, the paying users were 643000, and the conversion rate was 3%. Among them, the K12 paying users were 126000, up 34.8% from the same period last year.

One CEO, Zhou Feng, once said at this year's media communication conference, "There are relatively large flow pools in Youdao, and the cost of online education business is dozens of percent lower than the industry average." That is to say, users accumulated through dictionary, translation and other tool applications can be regarded as potential customers of online education business.

The IPO disclosed that the MAU of all youdao products in the first half of 2019 exceeded 100 million. Among them, NetEase youdao dictionary MAU is 51.2 million, Youdao translator MAU is 2.51 million, Youdao cloud notes MAU is 5.3 million.

In order to go public, we have to move around for a year and a half.

NetEase for its education sector adjustment, overall planning is from 2018. Before that, NetEase owned NetEase youdao and NetEase Education Division, one in Beijing and the other in Hangzhou. The products of youdao are mainly tools, and the products of education department are mainly courses.

In April 17, 2018, he announced the completion of the first round of strategic financing, which was invested by Mu Hua investment, Jun joint capital investment, and post investment valuation of $1 billion 120 million, becoming the "unicorn" company. This is the first round of financing since it was born in 2006, and it has also become the third independent financing brand of the company.

In March 2019, Zhou Feng, CEO of Netease Youdao, confirmed at the media communication meeting that in the process of organizational upgrading and adjustment within Netease, Youdao and Netease Education Department had merged their businesses, that is, Netease decided to aggregate its investment in the field of education.

At the beginning of this year, Ding Lei proposed that "games, ecommerce, education, music" as NetEase's four strategic plans, "education" was first listed at the level of NetEase Group strategy, side by side in front of music, we can see NetEase's importance to the education sector, and the intention to separate youdao from the beginning of the first round of financing last year.

Since the beginning of this year, the abolition and adjustment of the internal business of the group has not stopped: selling comics, merging the educational sector and selling the corkola. If we say that "downsizing" is the purpose of NetEase, then in the key to losing the electricity business, IPO will bear more or less the expectations of the group and the strategic significance entrusted by Ding Lei.

For Youdao itself, the slogan "All In K12" has been shouting for a long time, but according to the data disclosed in the prospectus, both the number of paying customers and the total revenue of K12 business are relatively small. If you want to make the plate bigger, there is a need for capital replenishment from the IPO.

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