Youdao Reports Third Quarter 2022 Unaudited Financial Results

Rhea-AI Summary

Youdao, a technology-driven intelligent learning company in China, reported a significant growth in its Q3 2022 financial results. Total net revenues reached RMB1.4 billion (US$197.2 million), marking a 35.0% year-over-year increase. Key drivers included a 37.2% rise in learning services revenues (RMB888.5 million) and a 40.1% increase in smart devices revenues (RMB356.5 million). Gross profit also climbed to RMB760.2 million, with a gross margin of 54.2%. However, the company faced net losses of RMB183.9 million, albeit narrower than the previous year.

Positive

• Total net revenues increased by 35.0% to RMB1.4 billion.
• Learning services revenue rose by 37.2% to RMB888.5 million.
• Smart devices revenue surged by 40.1% to RMB356.5 million.
• Gross profit grew 39.0% to RMB760.2 million.
• Gross margin improved to 54.2%, up from 52.6% in Q3 2021.

Negative

• Net loss from continuing operations was RMB183.9 million.
• Operating expenses increased to RMB979.2 million, up from RMB772.6 million.
• Cash and equivalents decreased significantly to RMB953.1 million from RMB1.6 billion.

HANGZHOU, China, Nov. 17, 2022 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), a leading technology-focused intelligent learning company in China, today announced its unaudited financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Highlights^[1]

• Total net revenues were RMB1.4 billion (US$197.2 million), representing a 35.0% increase from the same period in 2021.
  - Net revenues from learning services were RMB888.5 million (US$124.9 million), representing a 37.2% increase from the same period in 2021.
  - Net revenues from smart devices were RMB356.5 million (US$50.1 million), representing a 40.1% increase from the same period in 2021.
  - Net revenues from online marketing services were RMB157.5 million (US$22.1 million), representing a 14.9% increase from the same period in 2021.
• Gross margin was 54.2%, compared to 52.6% for the same period in 2021.

"We achieved record-high revenues of RMB1.4 billion in Q3, up 35.0% year-over-year, mainly due to our continuous innovation in learning services and smart devices. Since the beginning of this year, we have launched five new smart devices for various consumer learning scenarios. The success of our newly-designed products, such as the Youdao Dictionary Pen X5 and Youdao Smart Learning Pad, has infused confidence in our ability to generate return on investment through continuous innovation. We help our customers learn even better through more innovative products and services," said Dr. Feng Zhou, Chief Executive Officer and a Director of Youdao.

"Our transition from regulatory changes last year is mostly finished. Despite the many obstacles and the uncertain macro environment, we are seizing the bigger picture opportunity to evolve and make advancements in our company that solidify our sustainable growth over the long term," Dr. Zhou concluded.

[1] As previously disclosed, in compliance with applicable regulatory requirements, the Company had ceased to offer the after-school tutoring services on academic subjects in China's compulsory education system (the "Academic AST Business") at the end of December 2021. The Academic AST Business met the criteria of discontinued operations. Retrospective adjustments to the historical statement of operations have also been made to provide a consistent basis of comparison for the financial results of the continuing operations. The financial information and non-GAAP financial information included in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

Third Quarter 2022 Financial Results

Net Revenues 

Net revenues for the third quarter of 2022 were RMB1.4 billion (US$197.2 million), representing a 35.0% increase from RMB1.0 billion for the same period of 2021.

Net revenues from learning services were RMB888.5 million (US$124.9 million) for the third quarter of 2022, representing a 37.2% increase from RMB647.5 million for the same period of 2021. The year-over-year growth was primarily driven by the strong sales performance from the new services initiated after the implementation of the "Double Reduction" Policy.

Net revenues from smart devices were RMB356.5 million (US$50.1 million) for the third quarter of 2022, representing a 40.1% increase from RMB254.5 million for the same period of 2021, primarily driven by the popularity of Youdao's newly launched products, such as the Youdao Dictionary Pen X5.

Net revenues from online marketing services were RMB157.5 million (US$22.1 million) for the third quarter of 2022, representing a 14.9% increase from RMB137.0 million for the same period of 2021. The year-over-year increase in revenues from online marketing services was mainly attributable to the increase in performance-based advertisements through third parties' internet properties.

Gross Profit and Gross Margin

Gross profit for the third quarter of 2022 was RMB760.2 million (US$106.9 million), representing a 39.0% increase from RMB546.9 million for the same period of 2021. Gross margin increased to 54.2% for the third quarter of 2022 from 52.6% for the same period of 2021.

Gross margin for learning services was 64.5% for the third quarter of 2022, compared with 65.0% for the same period of 2021.

Gross margin for smart devices increased to 40.4% for the third quarter of 2022 from 33.7% for the same period of 2021. The improvement was mainly attributable to the popularity of Youdao's newly launched Youdao Dictionary Pen X5, which carries a higher gross margin than other products.

Gross margin for online marketing services was 27.1% for the third quarter of 2022, compared with 29.2% for the same period of 2021. The decrease was mainly attributable to the increase in performance-based advertisements through third parties' internet properties, which typically have a lower gross margin profile.

Operating Expenses

Total operating expenses for the third quarter of 2022 were RMB979.2 million (US$137.7 million), compared with RMB772.6 million for the same period of last year.

Sales and marketing expenses for the third quarter of 2022 were RMB709.8 million (US$99.8 million), representing an increase of 28.3% from RMB553.4 million for the same period of 2021. This increase was mainly driven by increasing sales and marketing efforts associated with Youdao's learning services and smart devices.

Research and development expenses for the third quarter of 2022 were RMB212.9 million (US$29.9 million), representing an increase of 30.1% from RMB163.6 million for the same period of 2021. The increase was primarily due to higher payroll-related expenses associated with a larger number of development and technology professionals in smart devices and education digitalization solutions.

General and administrative expenses for the third quarter of 2022 were RMB56.5 million (US$7.9 million), compared with RMB55.6 million for the same period of 2021.

Loss from Operations

Loss from operations for the third quarter of 2022 was RMB219.0 million (US$30.8 million), compared with RMB225.7 million for the same period in 2021. The margin of loss from operations was 15.6%, compared with 21.7% for the same period of last year.

Net Loss from Continuing Operations Attributable to Youdao's Ordinary Shareholders

Net loss from continuing operations attributable to Youdao's ordinary shareholders for the third quarter of 2022 was RMB183.9 million (US$25.9 million), compared with RMB225.3 million for the same period of last year. Non-GAAP net loss from continuing operations attributable to Youdao's ordinary shareholders for the third quarter of 2022 was RMB164.4 million (US$23.1 million), compared with RMB200.2 million for the same period of last year.

Basic and diluted net loss per American depositary shares ("ADSs") of the Company from continuing operations attributable to ordinary shareholders for the third quarter of 2022 was RMB1.49 (US$0.21), compared with RMB1.84 for the same period of 2021. Non-GAAP basic and diluted net loss from continuing operations per ADS attributable to ordinary shareholders was RMB1.33 (US$0.19), compared with RMB1.63 for the same period of 2021.

Balance Sheet

As of September 30, 2022, Youdao's cash, cash equivalents, restricted cash, time deposits and short-term investments totaled RMB953.1 million (US$134.0 million), compared with RMB1.6 billion as of December 31, 2021. For the third quarter of 2022, net cash used in continuing operating activities was RMB294.1 million (US$41.3 million), capital expenditures totaled RMB12.7 million (US$1.8 million), and depreciation and amortization expenses amounted to RMB11.6 million (US$1.6 million). Youdao's ability to continue as a going concern is dependent on management's ability to implement an effective business plan in future periods in light of the changing regulatory environment, generate operating cash flows and continue to be able to obtain outside sources of financing as necessary for Youdao's future development. As of the date of this release, Youdao has received various financial support from the NetEase Group, including, among others, RMB878.0 million short-term loans and US$70.0 million long-term loans with maturity dated March 31, 2024 drawn down under the US$300.0 million revolving loan facility.

As of September 30, 2022, the Company's contract liabilities, which mainly consisted of deferred revenues generated from Youdao's learning services, were RMB996.5 million (US$140.1 million), compared with RMB1.1 billion as of December 31, 2021.

Share Repurchase Program

The Company today also announced that its board of directors has authorized the Company to adopt a share repurchase program in the near future in accordance with applicable laws and regulations for up to US$20 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months.

Repurchases under the Company's share repurchase program, if adopted, may be made from time to time on the open market at prevailing market prices, in open-market transactions, privately negotiated transactions or block trades, and/or through other legally permissible means, depending on market conditions and in accordance with the applicable rules and regulations. The timing and conditions of the share repurchases will be subject to various factors including the requirements under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Conference Call

Youdao's management team will host a teleconference call with simultaneous webcast at 5:00 a.m. Eastern Time on Thursday, November 17, 2022 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, November 17, 2022). 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:	7502413

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 November 24, 2022:

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	7502413

About Youdao, Inc. 

Youdao, Inc. (NYSE: DAO) is a leading technology-focused 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 and Youdao Translation, Youdao now offers smart devices, STEAM courses, adult and vocational courses, and education digitalization solutions. In addition, Youdao has developed a variety of interactive learning apps. 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 non-GAAP net income/(loss) from continuing operations attributable to the Company's ordinary shareholders and non-GAAP basic and diluted income/(loss) from continuing operations 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 non-GAAP net income/(loss) from continuing operations attributable to the Company's ordinary shareholders as net income/(loss) from continuing operations attributable to the Company's ordinary shareholders excluding share-based compensation expenses, amortization of intangible assets from business combination, impairment of long-term investments, income tax effects of above GAAP to non-GAAP reconciling items, and adjustment for GAAP to non-GAAP reconciling items for the income/(loss) attributable to noncontrolling interests. Non-GAAP net income/(loss) from continuing operations attributable to the Company's shareholders enables Youdao's management to assess its operating results without considering the impact of these items, which are non-cash charges in nature. 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 do not reflect all items of expense that affect our operations. 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 RMB7.1135 to US$1.00, the exchange rate on September 30, 2022 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
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 September 30,		As of September 30,
		2021		2022		2022
		RMB		RMB		USD (1)
Assets
Current assets:
Cash and cash equivalents		322,777		712,115		100,108
Time deposits		268		273		38
Restricted cash		749,770		219,456		30,851
Short-term investments		503,831		21,215		2,982
Accounts receivable, net		248,339		332,331		46,718
Inventories, net		255,411		170,393		23,953
Amounts due from NetEase Group		6,192		7,388		1,039
Prepayment and other current assets		182,577		212,605		29,888
Assets held for sale		497		-		-
Total current assets		2,269,662		1,675,776		235,577
Non-current assets:
Property, equipment and software, net		80,315		104,884		14,744
Operating lease right-of-use assets, net		118,104		80,822		11,362
Long-term investments		32,518		67,032		9,423
Goodwill		109,944		109,944		15,456
Other assets, net		22,436		38,288		5,382
Assets held for sale		1,088		-		-
Total non-current assets		364,405		400,970		56,367
Total assets		2,634,067		2,076,746		291,944
Liabilities, Mezzanine Equity and Shareholders' Deficit
Current liabilities:
Accounts payables		161,006		179,756		25,270
Payroll payable		277,383		176,003		24,742
Amounts due to NetEase Group		83,041		74,476		10,470
Contract liabilities		1,065,639		996,535		140,091
Taxes payable		53,323		52,889		7,435
Accrued liabilities and other payables		515,567		626,256		88,038
Short-term loans from NetEase Group		878,000		878,000		123,427
Total current liabilities		3,033,959		2,983,915		419,473
Non-current liabilities:
Long-term lease liabilities		73,070		43,476		6,112
Long-term loans from NetEase Group		255,028		496,986		69,865
Other non-current liabilities		2,411		17,604		2,475
Total non-current liabilities		330,509		558,066		78,452
Total liabilities		3,364,468		3,541,981		497,925
Mezzanine equity		78,592		72,959		10,256
Shareholders' deficit:
Youdao's shareholders' deficit		(807,067)		(1,532,313)		(215,410)
Noncontrolling interests		(1,926)		(5,881)		(827)
Total shareholders' deficit		(808,993)		(1,538,194)		(216,237)
Total liabilities, mezzanine equity and shareholders' deficit		2,634,067		2,076,746		291,944
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.1135 on the last trading day of September (September 30, 2022) 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								Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,		September 30,
		2021		2022		2022		2022		2021		2022
		RMB		RMB		RMB		USD (1)		RMB		RMB
Net revenues:
Learning services		647,522		563,601		888,493		124,902		1,862,162		2,278,105
Smart devices		254,513		239,850		356,480		50,113		662,722		849,490
Online marketing services		137,040		152,774		157,461		22,136		442,113		431,605
Total net revenues		1,039,075		956,225		1,402,434		197,151		2,966,997		3,559,200
Cost of revenues (2)		(492,176)		(546,498)		(642,254)		(90,287)		(1,423,452)		(1,747,471)
Gross profit		546,899		409,727		760,180		106,864		1,543,545		1,811,729
Operating expenses:
Sales and marketing expenses (2)		(553,407)		(595,997)		(709,769)		(99,778)		(1,657,201)		(1,812,151)
Research and development expenses (2)		(163,627)		(208,411)		(212,926)		(29,933)		(437,128)		(624,317)
General and administrative expenses (2)		(55,612)		(60,532)		(56,520)		(7,944)		(144,185)		(174,613)
Total operating expenses		(772,646)		(864,940)		(979,215)		(137,655)		(2,238,514)		(2,611,081)
Loss from operations		(225,747)		(455,213)		(219,035)		(30,791)		(694,969)		(799,352)
Interest income		5,959		3,769		4,033		567		15,768		9,836
Interest expense		(7,835)		(10,102)		(12,277)		(1,726)		(23,216)		(30,964)
Others, net		614		1,567		40,058		5,631		24,334		77,678
Loss before tax		(227,009)		(459,979)		(187,221)		(26,319)		(678,083)		(742,802)
Income tax (expense)/benefit		(2,590)		(553)		1,108		156		(7,204)		(11)
Net loss from continuing operations		(229,599)		(460,532)		(186,113)		(26,163)		(685,287)		(742,813)
Net income/(loss) from discontinued operations		96,447		-		-		-		(299,557)		(6,105)
Net loss		(133,152)		(460,532)		(186,113)		(26,163)		(984,844)		(748,918)
Net loss attributable to noncontrolling interests		4,254		6,646		2,194		308		5,802		9,588
Net loss attributable to ordinary shareholders of the Company		(128,898)		(453,886)		(183,919)		(25,855)		(979,042)		(739,330)
Including:
Net loss from continuing operations attributable to ordinary shareholders of the Company		(225,345)		(453,886)		(183,919)		(25,855)		(679,485)		(733,225)
Net income/(loss) from discontinued operations attributable to ordinary shareholders of the Company		96,447		-		-		-		(299,557)		(6,105)
Basic net (loss)/income per ADS		(1.05)		(3.67)		(1.49)		(0.21)		(8.08)		(5.98)
-Continuing operations		(1.84)		(3.67)		(1.49)		(0.21)		(5.61)		(5.93)
-Discontinued operations		0.79		-		-		-		(2.47)		(0.05)
Diluted net (loss)/income per ADS		(1.05)		(3.67)		(1.49)		(0.21)		(8.08)		(5.98)
-Continuing operations		(1.84)		(3.67)		(1.49)		(0.21)		(5.61)		(5.93)
-Discontinued operations		0.79		-		-		-		(2.47)		(0.05)
Shares used in computing basic net (loss)/income per ADS		122,715,264		123,703,353		123,767,013		123,767,013		121,131,136		123,602,039
Shares used in computing diluted net (loss)/income per ADS		122,715,264		123,703,353		123,767,013		123,767,013		121,131,136		123,602,039
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.1135 on the last trading day of September (September 30, 2022) 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		1,356		1,775		798		112		4,613		4,753
Sales and marketing expenses		2,678		3,451		2,879		405		7,721		9,420
Research and development expenses		7,641		8,428		7,586		1,066		25,040		24,876
General and administrative expenses		5,984		4,448		4,801		675		14,594		14,633

 

 

YOUDAO, INC.
UNAUDITED ADDITIONAL INFORMATION
(RMB and USD in thousands)
		Three Months Ended								Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,		September 30,
		2021		2022		2022		2022		2021		2022
		RMB		RMB		RMB		USD		RMB		RMB
Net revenues
Learning services		647,522		563,601		888,493		124,902		1,862,162		2,278,105
Smart devices		254,513		239,850		356,480		50,113		662,722		849,490
Online marketing services		137,040		152,774		157,461		22,136		442,113		431,605
Total net revenues		1,039,075		956,225		1,402,434		197,151		2,966,997		3,559,200
Cost of revenues
Learning services		226,543		269,491		315,086		44,294		699,267		882,874
Smart devices		168,637		166,503		212,365		29,854		399,222		546,672
Online marketing services		96,996		110,504		114,803		16,139		324,963		317,925
Total cost of revenues		492,176		546,498		642,254		90,287		1,423,452		1,747,471
Gross margin
Learning services		65.0 %		52.2 %		64.5 %		64.5 %		62.4 %		61.2 %
Smart devices		33.7 %		30.6 %		40.4 %		40.4 %		39.8 %		35.6 %
Online marketing services		29.2 %		27.7 %		27.1 %		27.1 %		26.5 %		26.3 %
Total gross margin		52.6 %		42.8 %		54.2 %		54.2 %		52.0 %		50.9 %

 

 

YOUDAO, INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(RMB and USD in thousands, except per ADS data)
		Three Months Ended								Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,		September 30,
		2021		2022		2022		2022		2021		2022
		RMB		RMB		RMB		USD		RMB		RMB
Net loss from continuing operations attributable to ordinary shareholders of the Company		(225,345)		(453,886)		(183,919)		(25,855)		(679,485)		(733,225)
Add: share-based compensation		17,659		18,102		16,064		2,258		51,968		53,682
amortization of intangible assets from business combination		996		-		-		-		996		-
impairment of long-term investments		7,000		-		3,500		492		7,000		8,500
Less: tax effects on non-GAAP adjustments		(149)		-		-		-		(149)		-
GAAP to non-GAAP reconciling items for the loss attributable to          noncontrolling interests		(381)		-		-		-		(381)		-
Non-GAAP net loss from continuing operations attributable to ordinary shareholders of the Company		(200,220)		(435,784)		(164,355)		(23,105)		(620,051)		(671,043)
Non-GAAP basic net loss from continuing operations per ADS		(1.63)		(3.52)		(1.33)		(0.19)		(5.12)		(5.43)
Non-GAAP diluted net loss from continuing operations per ADS		(1.63)		(3.52)		(1.33)		(0.19)		(5.12)		(5.43)

 

 

 

View original content:https://www.prnewswire.com/news-releases/youdao-reports-third-quarter-2022-unaudited-financial-results-301681194.html

SOURCE Youdao, Inc.

FAQ

What were Youdao's Q3 2022 earnings results?

Youdao reported net revenues of RMB1.4 billion, a 35.0% increase year-over-year, but a net loss of RMB183.9 million.

How much did Youdao's smart devices revenue increase in Q3 2022?

Youdao's smart devices revenue increased by 40.1% to RMB356.5 million.

What is the significance of Youdao's gross margin in Q3 2022?

Youdao's gross margin improved to 54.2%, indicating increased profitability compared to 52.6% in the same quarter last year.

What financial challenges did Youdao face in Q3 2022?

Youdao faced a net loss of RMB183.9 million and significant cash decrease, indicating financial challenges.

What actions is Youdao taking regarding its share repurchase program?

Youdao's board has authorized a share repurchase program for up to US$20 million over the next 36 months.