YOUDAO Reports Q2 FY2023 Earnings Results on June 30, 2023
August 26, 2023
🌥️Earnings Overview
On June 30, 2023, YOUDAO ($NYSE:DAO) announced their earnings results for the second quarter of Fiscal Year 2023. Total revenue for the quarter amounted to CNY 1206.6 million, a 26.2% increase from the same period in the previous year. Net income for Q2 FY2023 was CNY -303.2 million, a considerable improvement from -453.9 million the year before.
Price History
On June 30, 2023, YOUDAO reported its earnings results for the second quarter of FY2023. The stock opened at $3.8 and closed at $3.7, down by 2.4% from its prior closing price of 3.8. This marks a decrease in the stock’s performance for the week. Despite this decrease, the company maintains a solid outlook for the fiscal year and believes that the current results reflect its commitment to providing quality services and products to its customers. YOUDAO has continued to invest heavily in research and development, which has allowed it to maintain its competitive edge in the industry. YOUDAO management also noted that the company has made substantial progress on its strategic initiatives, which has resulted in new product offerings and increased revenue.
Additionally, the company has reported strong earnings growth for the quarter, signaling a strong financial position for the next fiscal year. Overall, YOUDAO reports positive results for the second quarter of FY2023 and is optimistic about the future of the company and its shareholders. Investors should keep an eye on YOUDAO’s upcoming releases and announcements to see how the company continues to fare in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Youdao. More…
| Total Revenues | Net Income | Net Margin |
| 5.23k | -675.13 | -12.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Youdao. More…
| Operations | Investing | Financing |
| -603.12 | 125.82 | 184.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Youdao. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.85k | 3.88k | -16.81 |
Key Ratios Snapshot
Some of the financial key ratios for Youdao are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 39.6% | – | -11.7% |
| FCF Margin | ROE | ROA |
| -12.9% | 19.9% | -20.7% |
Analysis
At GoodWhale, we conducted an analysis of YOUDAO‘s fundamentals. According to our Star Chart, YOUDAO has a low health score of 1/10. This indicates that it is less likely to safely ride out any crisis without the risk of bankruptcy due to weak cashflows and debt. As such, we would not recommend this company for investors who are looking for stability. In terms of other fundamentals, YOUDAO is strong in growth, but weak in assets, dividends, and profitability. Based on these factors, we classify YOUDAO as a ‘cheetah’ type of company – one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this information, we believe that investors who are looking for high growth potential, and who are comfortable with an element of risk, may be interested in YOUDAO. However, those looking for a stable investment should look elsewhere. More…
Peers
In recent years, there has been intense competition between Youdao Inc and its competitors, Mobio Technologies Inc, SEMrush Holdings Inc, and Thecoo Inc. While each company has its own strengths and weaknesses, Youdao Inc has consistently managed to come out on top, due in part to its innovative products and cutting-edge technology.
– Mobio Technologies Inc ($NYSE:SEMR)
SEMrush is a digital marketing toolkit that provides businesses with insights and data regarding their online visibility. The company has a market cap of 1.35 billion as of 2022 and a return on equity of -4.46%. The company’s products and services enable businesses to track their SEO progress, monitor their competitors, and optimize their online visibility. SEMrush also offers a suite of tools for social media marketing, content marketing, and paid advertising.
– SEMrush Holdings Inc ($TSE:4255)
The company’s market cap is 2.63B as of 2022. The company’s ROE is -6.79%. The company operates in the healthcare industry.
Summary
YOUDAO‘s financial performance in Q2 FY2023 was impressive, with total revenue increasing by 26.2%, and net income improving significantly from last year’s -453.9 million to -303.2 million. Investors will be pleased with this result, and may consider investing in YOUDAO to capitalize on future potential growth. The company’s ability to drive revenue growth despite the pandemic highlights its success in its core business operations, and will likely be seen as a positive sign for future performance.
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