Today, Youdao announced last year's Q4 and annual reports. In the fourth quarter of last year, Youdao achieved a total revenue of RMB 1.5 billion (USD 208.5 million), an increase of 1.8% compared to the same period in 2022. Among them, the revenue from learning was RMB 784 million (USD 110.4 million), accounting for 2.8%, a decrease compared to the same period in 2022. The revenue from equipment was RMB 222.4 million (equivalent to USD 31.3 million), accounting for 45.3%, a decrease of 45.3% compared to the same period in 2022. The revenue from online marketing services was RMB 474.1 million (USD 66.8 million), an increase of 96.9% compared to the same period in 2022.
The company stated that in the fourth quarter of 2023, continuous efforts were made to simplify marketing channels, and the return on investment for intelligent learning products was very low. The year-on-year growth of online marketing service revenue is mainly attributable to the increased demand of third-party Internet assets for performance-based advertising.
The gross profit for the fourth quarter of 2023 was RMB 738.8 million (104.1 million US dollars), a decrease of 4.6% from RMB 774.7 million in the same period of 2022. The gross profit margin decreased from 53.3% in the same period of 2022 to 49.9% in the fourth quarter of 2023. The gross profit margin of smart devices decreased from 46.2% in the same period of 2022 to 38.3% in the fourth quarter of 2023, mainly due to a decrease in the revenue base of smart devices.
In addition, the gross profit margin of online marketing services increased from 29.2% in the same period of 2022 to 32.7% in the fourth quarter of 2023. The main reason for the growth is that compared with the same period last year, the gross margin of performance-based advertising launched through third-party Internet assets has increased.
The total operating expenses for the fourth quarter of 2023 were RMB 662.5 million (USD 93.3 million), compared to RMB 750 million in the same period last year. The sales and marketing expenses for the fourth quarter of 2023 were RMB 441.4 million (equivalent to USD 62.2 million), a decrease of 14.4% from RMB 515.9 million in the same period of 2022. This decline is attributed to a decrease in marketing spending on learning services and smart devices in the fourth quarter of 2023.
The R&D expenses for the fourth quarter of 2023 were RMB 168.1 million (equivalent to USD 23.7 million), a decrease of 6.3% from RMB 179.5 million in the same period of 2022. The main reason for the decline is the decrease in the number of R&D employees, which resulted in cost savings related to wages in the fourth quarter of 2023.
In other aspects, the net loss for the fourth quarter of 2023 was RMB 2.6 million (equivalent to USD 400000), and the net income for the same period in 2022 was RMB 3.8 million. The other net losses in the fourth quarter of 2023 mainly include impairment losses on long-term investments of RMB 10 million (equivalent to USD 1.4 million), partially offset by gains from government subsidies. The income for the same period last year mainly came from government subsidies.
The net income from continuing operations attributable to shareholders of Youdao's common stock in the fourth quarter of 2023 was RMB 56.5 million (equivalent to USD 8 million), compared to RMB 12.3 million in the same period of 2022; The non GAAP net income from continuing operations was RMB 69.3 million (equivalent to USD 9.8 million), compared to RMB 31.1 million in the same period of 2022.
Last year, Youdao's total revenue was RMB 5.4 billion (USD 759.1 million), an increase of 7.5% compared to 2022. Among them, the revenue from learning services was RMB 3.1 billion (USD 443.4 million), an increase of 2.1% compared to 2022. The revenue from smart devices was RMB 909.2 million (USD 128.1 million), a decrease of 27.6% compared to 2022. The revenue from online marketing services is RMB 1.3 billion (USD 187.6 million), which is equivalent to a 98.1% increase compared to 2022. The gross profit margin is 51.4%, which is unchanged from 51.6% in 2022.
As of December 31, 2023, Youdao's total cash, cash equivalents, restricted cash, term deposits, and short-term investments amounted to RMB 527.1 million (74.2 million US dollars), compared to RMB 1 billion as of December 31, 2022. In the fourth quarter of 2023, the net cash provided by continuing operating activities was RMB 160.6 million (equivalent to USD 22.6 million), and the total capital expenditure was RMB 5.9 million (USD 800000). The ability of Youdao to continue operating depends on the management's ability to implement effective business plans, generate operating cash flows, and continue to obtain external financing sources required for Youdao's future development in the constantly changing regulatory environment. In order to support Youdao's future business, NetEase Group has agreed to provide financial support for Youdao's continued operations. Currently, Youdao has received various financial support from NetEase Group, including a short-term loan of RMB 878 million and a long-term loan of USD 94 million with a maturity date of March 31, 2027, drawn based on a revolving loan limit of USD 300 million.
According to Zhou Feng, CEO and Director of Youdao, "Our financial performance in the fourth quarter of 2023 was robust, with operating revenue and cash inflows reaching historic highs. In terms of business operations, since the introduction of artificial intelligence writing improvements, we have efficiently provided over 25000 tailored suggestions. The integration of artificial intelligence technology has further enhanced our online marketing services, expanded the application of RTA (Real Time API) technology, and expanded our customer base, resulting in a historic high in net revenue for this segment, with a year-on-year growth of over 50% for five consecutive quarters. In addition, the launch of Mr. PAI Tutor, supported by our proprietary big language model Ziyue, has been well received by users." Positive review. In 2023, Youdao's fundamentals have been strengthened, and key financial indicators have improved year-on-year