On May 23rd, NetEase Youdao released its unaudited financial report for the first quarter of 2024. During the reporting period, benefiting from the dual drive of "AI" and "education", Youdao's performance exceeded market expectations and its business health significantly improved.
According to the financial report, NetEase Youdao's net revenue in the first quarter reached 1.39 billion yuan, a year-on-year increase of 19.7%; Operating profit achieved a quarterly profit of 30 million yuan, maintaining profitability for two consecutive quarters for the first time; Under non US GAAP, the net profit attributable to NetEase Youdao was RMB 20 million, turning losses into profits year-on-year; Operating cash outflows improved by 10.5% compared to the same period last year.
After launching the first education model in China, "Ziyue", NetEase Youdao has accelerated the commercial implementation of the big model in education and advertising scenarios. At the same time, Youdao continues to adhere to the strategy of high-quality content, providing users with high-quality and personalized learning content services.
In the first quarter, Youdao continued to leverage the advantages of AI technology to provide users with differentiated and personalized products and services. During the reporting period, Youdao Lingshi's products were upgraded and differentiated teaching methods were introduced to assist in individualized teaching. The comprehensive renewal rate of Youdao Lingshi exceeded 70%, reaching a historic high with a year-on-year growth of over 10%.
NetEase Youdao CEO Zhou Feng said, "We will focus on digital content services, online marketing services, and AI subscription services, and continue to utilize our AI capabilities and understanding of education to explore more application scenarios for the Confucius Education Model in education, advertising, and other fields. At the same time, we will accelerate the implementation of products and applications to better help users improve learning and work efficiency."