The earnings call presented a mixed view. Record operating income and significant growth in AI-driven subscription services and smart devices were key highlights. However, these were offset by declines in net revenue and learning services, along with reduced gross margins. The positive developments were substantial but did not fully counterbalance the negative trends.

Company Guidance -

Q2 2025

During Youdao's first quarter 2025 earnings call, the company reported significant strides in profitability and strategic advancements despite a 6.7% decline in net revenues to RMB 1.3 billion. Operating income reached a Q1 record of RMB 104 million, marking a 247.7% year-over-year increase. The company's AI native strategy led to the launch of new products, including Confucius-o1, an open-source reasoning model, and the AI-powered Youdao MagicBox. The Learning Services segment saw a 16.1% revenue decline, narrowing the previous quarter's decline by 5 percentage points, with digital content services generating RMB 410.8 million. The Smart Devices segment grew by 5.1% year-over-year to RMB 190.5 million, while online marketing services posted a 2.6% increase to RMB 505.4 million. Gross margin for online marketing services was 30.5%, with future stabilization expected between 25% to 35%. Operating cash outflow improved, narrowing by 34.7% to RMB 255.5 million. The company aims for sustained profit growth and operating cash flow breakeven for the full year 2025.

Record Operating Income

Operating income reached a Q1 record of RMB 104.0 million, surging 247.7% year-over-year.

AI Product Developments

Launched Confucius-o1, an open-source reasoning model, and Youdao MagicBox, an AI-powered ad creative suite.

Growth in AI-Driven Subscription Services

AI-driven subscription services generated nearly RMB 70 million in Q1 sales, growing over 40% year-over-year.

Smart Devices Revenue Growth

Smart Devices segment delivered RMB 190.5 million in Q1 revenues, representing a 5.1% year-over-year growth.

Strong Market Reception for Youdao SpaceOne

Initial inventory of Youdao SpaceOne sold out within 10 days, contributing to over 20% year-over-year growth in dictionary pen revenue.

Net Income Surge

Net income attributable to ordinary shareholders was RMB 76.7 million, an increase of over 6x from the same period of last year.

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
Aug 14, 2025	2025 (Q2)	>-0.01 / -	-0.118	―	―	―
May 15, 2025	2025 (Q1)	0.03 / 0.01	0.014	0.00% (0.00)
Feb 20, 2025	2024 (Q4)	0.07 / 0.10	0.065	48.94% (+0.03)
Nov 14, 2024	2024 (Q3)	0.03 / 0.10	-0.118	187.06% (+0.22)
Aug 22, 2024	2024 (Q2)	-0.13 / -0.12	-0.341	65.31% (+0.22)	―
May 23, 2024	2024 (Q1)	-0.05 / 0.01	-0.107	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	-0.207	42.95% (+0.09)	―
Aug 24, 2023	2023 (Q2)	-0.37 / -0.34	-0.511	33.24% (+0.17)	―
May 25, 2023	2023 (Q1)	-0.24 / -0.11	-0.114	6.10% (<+0.01)

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
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%
Aug 22, 2024	$3.68	$3.35	-8.97%

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 Inc Adr Class A (DAO) report earnings?

Youdao Inc Adr Class A (DAO) is schdueled to report earning on Aug 14, 2025, After Close (Confirmed).

What is Youdao Inc Adr Class A (DAO) earnings time?

Youdao Inc Adr Class A (DAO) earnings time is at Aug 14, 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 (Q2) is >-0.01.

Become an Expert with TipRanks Premium

What am I Missing?

Make informed decisions based on Top Analysts' activity

Know what industry insiders are buying

Get actionable alerts from top Wall Street Analysts

Find out before anyone else which stock is going to shoot up

Get powerful stock screeners & detailed portfolio analysis

Subscribe Now See Plans & Pricing