Youdao Reports Second Quarter 2020 Unaudited Financial Results

Rhea-AI Summary

Youdao, Inc. (NYSE: DAO) reported impressive second-quarter 2020 results, with total net revenues reaching RMB623.3 million (US$88.2 million), a 93.1% increase year-over-year. Revenue from learning services surged by 190.0% to RMB520.1 million (US$73.6 million), driven by a 358.9% jump in K-12 paid student enrollments. Gross profit rose to RMB281.5 million (US$39.8 million), up 165.4%, improving gross margin to 45.2%. However, net loss attributable to shareholders increased to RMB257.8 million (US$36.5 million), reflecting a challenged operating environment. The company has a strong cash balance of RMB1.8 billion (US$253.4 million) supporting its growth initiatives.

Positive

• Total net revenues increased by 93.1% to RMB623.3 million (US$88.2 million).
• Net revenues from learning services surged by 190.0% to RMB520.1 million (US$73.6 million).
• K-12 paid student enrollments jumped by 358.9% year-over-year to 329,000.
• Gross profit rose by 165.4% to RMB281.5 million (US$39.8 million).
• Gross margin improved to 45.2%, up from 32.9% in Q2 2019.
• Cash and equivalents increased to RMB1.8 billion (US$253.4 million), strengthening liquidity.

Negative

• Net loss attributable to shareholders increased by 194.0% to RMB257.8 million (US$36.5 million).
• Operating loss margin widened to 45.4%, compared to 25.7% in the prior year.
• Net revenues from online marketing services decreased by 28.1% to RMB103.2 million (US$14.6 million).

HANGZHOU, China, Aug. 13, 2020 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), a leading intelligent learning company in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Financial Highlights

• Total net revenues were RMB623.3 million (US$88.2 million), a 93.1% increase from the same period in 2019.
  - Net revenues from learning services and products were RMB520.1 million (US$73.6 million), a 190.0% increase from the same period in 2019.
  - Net revenues from online marketing services were RMB103.2 million (US$14.6 million), a 28.1% decrease from the same period in 2019.
• Gross billings of online courses^[1] increased 223.2% year-over-year to RMB542.0 million (US$76.7 million) and gross billings of Youdao Premium Courses^[2] increased 214.5% year-over-year to RMB457.2 million (US$64.7 million).
• Gross margin was 45.2%, compared with 32.9% for the same period in 2019.
• Deferred revenue from online courses was RMB658.1 million (US$93.1 million), compared with RMB407.9 million as of December 31, 2019.

[1] Gross billings is a non-GAAP financial measure. Gross billings for a specific period refers to the total amount of consideration for Youdao's online courses sold on Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, net of the total amount of refunds, in such period. See "Non-GAAP Measures" and "Unaudited Reconciliation of GAAP and non-GAAP Results" at the end of this press release.

[2] Youdao Premium Courses are Youdao's flagship online learning offerings primarily focused on K-12 students, covering a wide spectrum of subject matters, learning goals and areas of interest.

Second Quarter 2020 Key Operating and Financial Data

	For the three months ended June 30
(in millions, RMB)		2019		2020				% of Change
Gross billings of online courses		167.7		542.0					223.2%
Gross billings of Youdao Premium Courses		145.4		457.2					214.5%
Paid student enrollments of Youdao Premium Courses (in thousands)		165.2		401.6					143.1%
K-12 paid student enrollments		71.7		329.0					358.9%
Adult paid student enrollments		93.5		72.6					-22.4%
Gross billings per paid student enrollment of Youdao Premium Courses (in RMB)		880		1,139					29.4%

 

"Our second quarter financial results reflect the rapid growth of our business and our solid and improving fundamentals. Driven by strong retention rates from our K-12 segment and marketing, gross billings from our online courses increased by 223.2% year-over-year to RMB542.0 million, with gross margins of 51.7% for our learning services, and our operating cash inflow reached approximately RMB93.0 million in the second quarter," said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.

"Our robust summer marketing campaign is ongoing, and we are seeing excellent traction, particularly in the growing number of popular K-12 courses. Along with additional brand awareness and student acquisition efforts, our focus in the second half of the year will be on further enriching content across our courses, intelligent learning devices and other education platforms and services, to better serve our increasing online student population and grow our business for a sustainable future," concluded Dr. Zhou.

Second Quarter 2020 Financial Results 

Net Revenues

Net revenues for the second quarter of 2020 were RMB623.3 million (US$88.2 million), a 93.1% increase from RMB322.8 million for the same period of 2019.

Net revenues from learning services and products were RMB520.1 million (US$73.6 million) for the second quarter of 2020, a 190.0% increase from RMB179.3 million for the same period of 2019. The year-over-year growth from learning services was primarily attributable to the increased revenues generated from online courses, which were further driven by a substantial increase in both K-12 paid student enrollments and gross billings per paid student enrollment of Youdao Premium Courses. K-12 paid student enrollments increased by 358.9% year-over-year to 329,000 in the second quarter of 2020. Gross billings per paid student enrollment of Youdao Premium Courses increased by 29.4% year-over-year to RMB1,139 in the second quarter of 2020. Revenue generated from Youdao's intelligent learning products increased by 250.3% year-over-year in the second quarter of 2020, mainly driven by a significant increase in sales volume of Youdao Dictionary Pen launched in August 2019.

Net revenues from online marketing services were RMB103.2 million (US$14.6 million) for the second quarter of 2020, a 28.1% decrease from RMB143.5 million for the same period in 2019. The decrease was mainly due to decreased demand from certain advertising customers.

Gross Profit and Gross Margin

Gross profit for the second quarter of 2020 was RMB281.5 million (US$39.8 million), a 165.4% increase from RMB106.1 million for the same period of 2019. Gross margin increased to 45.2% for the second quarter of 2020 from 32.9% for the same period of 2019.

Gross margin for learning services and products increased to 48.5% for the second quarter of 2020 from 29.5% for the same period of 2019, primarily attributable to improved gross margin in the online courses, which was further driven by improved economies of scale and the continuous optimization of Youdao's faculty compensation structure.

Gross margin for online marketing services was 28.5% for the second quarter of 2020, compared with 37.0% for the same period of 2019. The decrease was mainly attributable to increased distribution of advertisements through third parties' internet properties, which typically have a lower gross margin profile.

Operating Expenses

Total operating expenses for the second quarter of 2020 were RMB564.6 million (US$79.9 million), an increase of 198.5% compared with RMB189.2 million for the same period of last year.

Sales and marketing expenses for the second quarter of 2020 were RMB445.2 million (US$63.0 million), an increase of 264.4% compared with RMB122.2 million for the same period of 2019. This increase was mainly driven by enhanced sales and marketing efforts, as well as increased compensation expenses related to sales and marketing team expansion.

Research and development expenses for the second quarter of 2020 were RMB91.4 million (US$12.9 million), an increase of 62.3% compared with RMB56.3 million for the same period of 2019. The increase was primarily due to increased payroll-related expenses, rental and facility expenses associated with an increased number of course development and technology professionals, as well as share-based compensation expenses charged in the second quarter of 2020.

General and administrative expenses for the second quarter of 2020 were RMB28.0 million (US$4.0 million), an increase of 162.3% compared with RMB10.7 million for the same period of 2019. The increase was mainly attributable to increased payroll-related expenses, including share-based compensation expenses and fees paid to third-party professional service providers.

Loss from Operations

Loss from operations for the second quarter of 2020 was RMB283.0 million (US$40.1 million), compared with RMB83.1 million for the same period in 2019. The margin of loss from operations was 45.4%, compared with 25.7% for the same period of last year.

Net Loss Attributable to Youdao's Ordinary Shareholders

Net loss attributable to Youdao's ordinary shareholders for the second quarter of 2020 was RMB257.8 million (US$36.5 million), compared with RMB87.6 million for the same period of last year. Non-GAAP net loss attributable to Youdao's ordinary shareholders for the second quarter of 2020 was RMB250.5 million (US$35.5 million), compared with RMB86.2 million for the same period of last year.

Basic and diluted net loss per American Depositary Share ("ADS") attributable to ordinary shareholders for the second quarter of 2020 was RMB2.30 (US$0.33), compared with RMB0.95 for the same period of 2019. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB2.23 (US$0.32), compared with RMB0.94 for the same period of 2019.

Balance Sheet

As of June 30, 2020, Youdao's cash, cash equivalents, time deposits and short-term investments totaled RMB1.8 billion (US$253.4 million), compared with RMB1.6 billion as of December 31, 2019. The increase was primarily due to an increased amount of gross billings from operations. For the second quarter of 2020, net cash provided by operating activities was RMB93.0 million (US$13.2 million), capital expenditures totaled RMB4.2 million, and depreciation and amortization expenses amounted to RMB3.6 million.

As of June 30, 2020, the Company's contract liabilities, which mainly consist of deferred revenues generated from Youdao's online courses, were RMB711.5 million (US$100.7 million), an increase of 55.8% from RMB456.8 million as of December 31, 2019.

Conference Call

Youdao's management team will host a teleconference call with simultaneous webcast at 6:30 a.m. Eastern Time on Thursday, August 13, 2020 (Beijing/Hong Kong Time: 6:30 p.m., Thursday, August 13, 2020). Youdao's management will be on the call to discuss the financial results and answer questions.

Dial-in details for the earnings conference call are as follows:

United States (toll free):	+1-888-346-8982
International:	+1-412-902-4272
Mainland China (toll free):	400-120-1203
Hong Kong (toll free):	800-905-945
Hong Kong:	+852-3018-4992
Conference ID:	10146527

A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.youdao.com.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until August 20, 2020:

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	10146527

About Youdao, Inc. 

Youdao, Inc. (NYSE: DAO) is a leading intelligent learning company in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary, Youdao Cloudnote and Youdao Translation, Youdao now offers online courses covering a wide spectrum of age groups, subject matters, learning goals and areas of interest. In addition, Youdao has developed a variety of interactive learning apps and smart learning devices. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China.

For more information, please visit: http://ir.youdao.com.

Non-GAAP Measures

Youdao considers and uses non-GAAP financial measures, such as gross billings and non-GAAP net income/(loss) attributable to the Company's ordinary shareholders and non-GAAP basic and diluted earnings/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Youdao defines gross billings for a specific period as the total amount of consideration for online courses sold on Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, net of the total amount of refunds, in such period. The management uses gross billings as a performance measurement because the Company generally bills students for the entire course tuition at the time of sale of the courses and recognizes revenue proportionally over an average of the learning periods of different online courses. Youdao defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's ordinary shareholders excluding share-based compensation expenses. Non-GAAP net income/(loss) attributable to the Company's shareholders enables Youdao's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly does not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net income/(loss) attributable to the Company's ordinary shareholders. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP.  For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release.

The accompanying tables have more details on the reconciliations between our GAAP financial measures that are most directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure. 

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.0651 to US$1.00, the exchange rate on June 30, 2020 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Pei Du
Youdao, Inc.
Tel: +86-10-8255-8907
E-mail: IR@rd.netease.com

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com

In the United States:
The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com

 

 

YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(RMB and USD in thousands)
		As of December 31,		As of June 30,		As of June 30,
		2019		2020		2020
		RMB		RMB		USD(1)
Assets
Current assets:
Cash and cash equivalents		173,328		125,551		17,771
Time deposits		1,325,737		1,203,778		170,384
Short-term investments		121,126		461,230		65,283
Accounts receivable, net		200,675		229,342		32,461
Inventories, net		73,225		92,841		13,141
Amounts due from NetEase Group		14,930		7,311		1,035
Prepayment and other current assets		120,891		119,094		16,856
Total current assets		2,029,912		2,239,147		316,931
Non-current assets:
Property and equipment, net		24,551		30,600		4,331
Operating lease right-of-use assets, net		23,873		49,991		7,076
Other assets, net		8,128		22,033		3,118
Total non-current assets		56,552		102,624		14,525
Total assets		2,086,464		2,341,771		331,456
Liabilities and Shareholders' Equity/(Deficit)
Current liabilities:
Accounts payables		62,675		103,002		14,579
Payroll payable		94,488		98,411		13,929
Amounts due to NetEase Group		48,126		63,406		8,975
Contract liabilities		456,805		711,522		100,709
Taxes payable		25,977		69,965		9,903
Accrued liabilities and other payables		192,643		445,686		63,082
Short-term loans from NetEase Group		878,000		878,000		124,273
Total current liabilities		1,758,714		2,369,992		335,450
Non-current liabilities:
Long-term lease liabilities		21,206		38,410		5,437
Other non-current liabilities		5,517		4,776		676
Total non-current liabilities		26,723		43,186		6,113
Total liabilities		1,785,437		2,413,178		341,563
Shareholders' equity/(deficit):
Youdao's shareholders' equity/(deficit)		300,091		(72,888)		(10,317)
Noncontrolling interests		936		1,481		210
Total shareholders' equity/(deficit)		301,027		(71,407)		(10,107)
Total liabilities and shareholders' equity/(deficit)		2,086,464		2,341,771		331,456
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.0651 on the last trading day of June (June 30, 2020) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

 

YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(RMB and USD in thousands, except share and per ADS data)
		Three Months Ended								Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,		June 30,
		2019		2020		2020		2020		2019		2020
		RMB		RMB		RMB		USD(1)		RMB		RMB
Net revenues:
Learning services		154,685		388,978		433,697		61,386		271,724		822,675
Online marketing services		143,465		99,250		103,212		14,609		233,741		202,462
Learning products		24,662		53,160		86,381		12,226		43,078		139,541
Total net revenues		322,812		541,388		623,290		88,221		548,543		1,164,678
Cost of revenues(2):		(216,749)		(305,663)		(341,751)		(48,372)		(389,585)		(647,414)
Gross profit		106,063		235,725		281,539		39,849		158,958		517,264
Operating expenses:
Sales and marketing expenses (2)		(122,174)		(299,159)		(445,151)		(63,007)		(186,136)		(744,310)
Research and development expenses (2)		(56,318)		(84,099)		(91,423)		(12,940)		(111,184)		(175,522)
General and administrative expenses (2)		(10,667)		(28,463)		(27,978)		(3,960)		(23,784)		(56,441)
Total operating expenses		(189,159)		(411,721)		(564,552)		(79,907)		(321,104)		(976,273)
Loss from operations		(83,096)		(175,996)		(283,013)		(40,058)		(162,146)		(459,009)
Interest (expense)/income, net		(6,425)		123		(424)		(60)		(12,362)		(301)
Others, net		14,410		8,576		25,619		3,626		8,253		34,195
Loss before tax		(75,111)		(167,297)		(257,818)		(36,492)		(166,255)		(425,115)
Income tax expenses		(833)		(2,185)		(9)		(1)		(1,639)		(2,194)
Net loss		(75,944)		(169,482)		(257,827)		(36,493)		(167,894)		(427,309)
Net (income)/loss attributable to noncontrolling interests		(553)		58		21		3		(481)		79
Net loss attributable to the Company		(76,497)		(169,424)		(257,806)		(36,490)		(168,375)		(427,230)
Accretions of convertible redeemable preferred shares to redemption value		(11,053)		-		-		-		(21,156)		-
Net loss attributable to ordinary shareholders of the Company		(87,550)		(169,424)		(257,806)		(36,490)		(189,531)		(427,230)
Basic net loss per ADS		(0.95)		(1.52)		(2.30)		(0.33)		(2.06)		(3.81)
Diluted net loss per ADS		(0.95)		(1.52)		(2.30)		(0.33)		(2.06)		(3.81)
Shares used in computing basic net loss per ADS		92,000,000		111,767,756		112,277,976		112,277,976		92,000,000		112,022,872
Shares used in computing diluted net loss per ADS		92,000,000		111,767,756		112,277,976		112,277,976		92,000,000		112,022,872
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.0651 on the last trading day of June (June 30, 2020) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
Note 2:
Share-based compensation in each category:
Cost of revenues		758		1,168		1,043		148		907		2,211
Sales and marketing expenses		39		911		808		114		780		1,719
Research and development expenses		334		3,143		3,016		427		41		6,159
General and administrative expenses		218		2,347		2,394		339		399		4,741

 

 

YOUDAO, INC.
UNAUDITED ADDITIONAL INFORMATION
(RMB and USD in thousands)
		Three Months Ended								Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,		June 30,
		2019		2020		2020		2020		2019		2020
		RMB		RMB		RMB		USD		RMB		RMB
Net revenues
Learning services and products		179,347		442,138		520,078		73,612		314,802		962,216
Online marketing services		143,465		99,250		103,212		14,609		233,741		202,462
Total net revenues		322,812		541,388		623,290		88,221		548,543		1,164,678
Cost of revenues
Learning services and products		126,421		226,777		267,942		37,925		236,810		494,719
Online marketing services		90,328		78,886		73,809		10,447		152,775		152,695
Total cost of revenues		216,749		305,663		341,751		48,372		389,585		647,414
Gross margin
Learning services and products		29.5%		48.7%		48.5%		48.5%		24.8%		48.6%
Online marketing services		37.0%		20.5%		28.5%		28.5%		34.6%		24.6%
Total gross margin		32.9%		43.5%		45.2%		45.2%		29.0%		44.4%

 

 

YOUDAO, INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(RMB and USD in thousands, except per ADS data)
		Three Months Ended								Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,		June 30,
		2019		2020		2020		2020		2019		2020
		RMB		RMB		RMB		USD		RMB		RMB
Net revenues of online courses		129,425		355,800		394,596		55,851		228,233		750,396
Add: value-added tax		9,494		21,348		38,687		5,476		17,083		60,035
Add: ending deferred revenue		185,622		549,317		658,052		93,141		185,622		658,052
Less: beginning deferred revenue		(156,812)		(407,861)		(549,317)		(77,751)		(129,144)		(407,861)
Non-GAAP gross billings of online courses		167,729		518,604		542,018		76,717		301,794		1,060,622
Net revenues of Youdao Premium Courses		108,522		301,525		332,202		47,020		191,289		633,727
Add: value-added tax		8,230		18,092		33,044		4,677		14,362		51,136
Add: ending deferred revenue		157,184		470,668		562,643		79,637		157,184		562,643
Less: beginning deferred revenue		(128,538)		(344,111)		(470,668)		(66,619)		(109,105)		(344,111)
Non-GAAP gross billings of Youdao Premium Courses		145,398		446,174		457,221		64,715		253,730		903,395
Net loss attributable to ordinary shareholders of the Company		(87,550)		(169,424)		(257,806)		(36,490)		(189,531)		(427,230)
Add: share-based compensation		1,349		7,569		7,261		1,028		2,127		14,830
Non-GAAP net loss attributable to ordinary shareholders of the Company		(86,201)		(161,855)		(250,545)		(35,462)		(187,404)		(412,400)
Non-GAAP basic net loss per ADS		(0.94)		(1.45)		(2.23)		(0.32)		(2.04)		(3.68)
Non-GAAP diluted net loss per ADS		(0.94)		(1.45)		(2.23)		(0.32)		(2.04)		(3.68)

 

 

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SOURCE Youdao, Inc.

FAQ

What were Youdao's second quarter 2020 revenues?

Youdao reported total net revenues of RMB623.3 million (US$88.2 million) for the second quarter of 2020.

How did Youdao's K-12 student enrollments change in Q2 2020?

K-12 paid student enrollments increased by 358.9% year-over-year to 329,000 in the second quarter of 2020.

What was the net loss reported by Youdao for Q2 2020?

Youdao reported a net loss of RMB257.8 million (US$36.5 million) for the second quarter of 2020.

Did Youdao experience any changes in its gross profit margin in Q2 2020?

Yes, Youdao's gross margin improved to 45.2% in Q2 2020, compared to 32.9% in the same quarter of 2019.

What are Youdao's future growth initiatives after Q2 2020?

Youdao plans to focus on enriching content, expanding intelligent learning devices, and enhancing education platforms to support its growing online student population.