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Netease Youdao stopped its K9 business and invested more in intelligent hardware and quality courses

via:新浪科技     time:2021/11/16 23:22:32     readed:83

Author/Lu Hanzhi & NBSP;

Netease Youdao's latest quarterly financial results show how online education companies are making a sharp turn: reduce marketing, increase research and development, increase investment in intelligent hardware and quality courses.

On November 16, netease Youdao announced its third quarter financial results. In the third quarter, Youdao's net income reached 1.387 billion yuan, up 54.8 percent year on year, according to the earnings report.

By business, net income of netease Youdao Learning service reached 996 million yuan in the third quarter, up 65.9% year on year. Net revenue of learning products reached 255 million yuan, up 56.0% year on year. Net revenue of online marketing services was 137 million yuan, up 3.4% year on year.

At the same time, netease Youdao net loss in the third quarter narrowed year-on-year. Under American GENERAL accounting Standards, youdao's net loss attributable to shareholders of listed companies was 129 million yuan, a year-on-year decrease of 85.3%; Non-gaap net loss attributable to common shareholders was $101 million, a decrease of 88.3% year on year.

The narrower loss was related to lower operating expenses. Total operating expenses in the third quarter were 915 million yuan, down 29.9 percent year on year, according to the earnings report. Sales and marketing expenses were 650 million yuan, down 43.4% year on year, which Youdao said was due to lower marketing and promotion expenses for its K12 coaching business in the third quarter. In addition, research and development expenses were $193 million in the third quarter, an increase of 59.7% over the same period last year, mainly due to increased investment in course development and technical professionals. Youdao said during the reporting period, netease Youdao business health significantly improved.

Youdao's third-quarter financial results also reflect changes in the business income structure of online education companies after the introduction of the double reduction policy. In the third quarter, Netease Youdao's online course revenue was affected, with sales falling 33.9% year on year to 632 million yuan, and sales and paid visits of compulsory education disciplinary training business both down nearly 70% year on year. Among them, the course revenue of Youdao Elite Decreased by 34.6% year on year, and the number of paying students of Youdao Elite decreased by 40.9% year on year.

On November 16, Netease Youdao announced that it will officially terminate its disciplinary training business for compulsory education on December 31.

In terms of transformation, zhou Feng, CEO of Netease Youdao, said that intelligent learning hardware, quality education, adult education and education informatization will become the pillars of future growth when the second quarter financial results were released.

In the third quarter, Youdao expanded the contents of intelligent learning hardware products, and also launched youdao Listening Treasure, a new hardware product focused on solving students' listening and speaking problems. Netease Youdao Adult education business plan will officially launch a new category of courses in the fourth quarter, related to vocational education.

On the other hand, other online education companies in the industry are also actively transforming into intelligent hardware, adult courses, quality courses and other aspects. In August, Zebra App launched AI finger reader, and Doushen launched Doushen Language book to provide users with teaching content, materials, methods and tools developed by Doushen. In September, little ape launched the little ape intelligent exercise book.

'There was little competition in smart learning hardware last year, but this year it is very competitive,' Zhou Feng said on a third-quarter earnings call. "Since July, we have embarked on a new growth trajectory. In the future, we will devote resources to corporate social responsibility as we conduct our business in compliance."

translate engine: Youdao

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