The earnings call highlighted strong financial performance with the first profitable second quarter and significant growth in online marketing services, especially in the gaming sector. However, there were challenges such as a decline in operating cash inflow and smart devices revenue. Despite these lowlights, the strategic focus on AI innovations and profitable growth suggests a positive outlook.

Company Guidance

In the Youdao 2025 Second Quarter Earnings Conference Call, the company reported significant financial improvements driven by strategic initiatives. The second quarter marked Youdao's first profitable quarter, with an operating income of RMB 28.8 million, a notable turnaround from a loss of RMB 72.6 million in the same period last year. Net revenues rose by 7.2% year-over-year to RMB 1.4 billion, though operating cash inflow declined by 26.1% due to a strategic scaling back of certain courses. Learning services revenues increased by 2.2% to RMB 657.8 million, while online marketing services surged 23.8% to RMB 632.9 million, bolstered by robust demand from the gaming industry and international markets. However, the smart devices segment saw a revenue decline of 23.9% to RMB 126.8 million. The company highlighted its AI-driven advancements, including the AI Essay Grading feature and the launch of Confucius 3-Math, which have driven user engagement and retention rates to over 75%. Despite a decrease in total gross profit by 4.3% year-over-year, Youdao reduced operating expenses significantly, resulting in a net loss of RMB 17.8 million, down from RMB 99.5 million the previous year, and a non-GAAP net income of RMB 12.5 million. The management expressed confidence in achieving operating cash flow breakeven for the year, supported by improvements in profitability and strategic investments in AI technology.

First Profitable Second Quarter

Youdao achieved its first profitable second quarter with an operating income of RMB 28.8 million compared to an operating loss of RMB 72.6 million in the same period last year.

Revenue Growth

Net revenues reached RMB 1.4 billion, a 7.2% increase year-over-year. Online Marketing Services net revenues grew by 23.8% year-over-year, driven by strong demand from the gaming industry and Chinese clients expanding overseas.

Successful Launch of New AI Features

The AI Essay Grading feature and other AI-driven services like Mr. P AI Tutor and Scholar AI have been launched, achieving high user retention rates and receiving positive feedback.

Gaming Ad Revenue Growth

Gaming ad revenue grew by more than 50% year-over-year, bolstered by collaborations with NetEase Games and other advertisers.

Youdao (DAO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

DAO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 13, 2025	2025 (Q3)	0.08 / -	0.103	―	―	―
Aug 14, 2025	2025 (Q2)	>-0.01 / -0.02	-0.119	82.35% (+0.10)
May 15, 2025	2025 (Q1)	0.03 / 0.09	0.014	540.00% (+0.08)
Feb 20, 2025	2024 (Q4)	0.07 / 0.10	0.066	48.94% (+0.03)
Nov 14, 2024	2024 (Q3)	0.03 / 0.10	-0.119	187.06% (+0.22)
Aug 22, 2024	2024 (Q2)	-0.13 / -0.12	-0.342	65.31% (+0.22)	―
May 23, 2024	2024 (Q1)	-0.05 / 0.01	-0.108	112.99% (+0.12)	―
Feb 29, 2024	2023 (Q4)	0.05 / 0.07	0.014	370.00% (+0.05)	―
Nov 16, 2023	2023 (Q3)	-0.12 / -0.12	-0.208	42.95% (+0.09)	―
Aug 24, 2023	2023 (Q2)	-0.37 / -0.34	-0.513	33.24% (+0.17)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DAO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 14, 2025	$8.88	$9.76	+9.91%
May 15, 2025	$8.68	$9.45	+8.87%
Feb 20, 2025	$10.43	$10.39	-0.38%
Nov 14, 2024	$4.83	$4.95	+2.48%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Youdao (DAO) report earnings?

Youdao (DAO) is schdueled to report earning on Nov 13, 2025, After Close (Confirmed).

What is Youdao (DAO) earnings time?

Youdao (DAO) earnings time is at Nov 13, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is DAO EPS forecast?

DAO EPS forecast for the fiscal quarter 2025 (Q3) is 0.08.

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