On November 14th, NetEase Youdao released its unaudited financial report for the third quarter of 2024. According to the financial report, NetEase Youdao's net revenue in the third quarter reached 1.57 billion yuan, a year-on-year increase of 2.2%; Among them, the operating profit was 110 million yuan, which was also the first time in history that a profit was achieved in the third quarter. Operating cash outflow narrowed to 85.4 million yuan, a year-on-year decrease of 71.0%.
During the reporting period, Youdao continued to focus on advantageous courses, with a net income of 770 million yuan from learning services. By reasonably controlling costs and expenses, the overall health of the business has been significantly improved. Among them, the net revenue of digital content services reached 510 million yuan, contributing considerable operating profits while covering costs and operating expenses. During the reporting period, under the dual wheel drive strategy of "AI+education", Youdao's products and services continued to upgrade and iterate, and AI commercialization achieved another breakthrough. The overall performance grew steadily, and the business health and operational efficiency continued to improve significantly.
NetEase Youdao CEO Zhou Feng said, "Looking ahead, we will be committed to improving user experience as our core goal and continuously optimizing the Confucius Education Model. At the same time, we will continue to deepen our cultivation in the fields of digital content services, AI subscription services, and intelligent hardware to create more value. In terms of advertising business, we will explore new growth points in the domestic market and seize new opportunities for Chinese enterprises to enter the international market. In terms of financial management, we will continue to adhere to stable operation and enhance the company's profitability
In addition, according to Zhou Feng, in the fourth quarter, NetEase Youdao will launch a new product that will integrate more large model functions, significantly improving the user experience.