Shares of Youdao Inc. (NYSE: DAO), the Chinese online education company, plummeted 5.39% in pre-market trading on Friday, following the release of its fourth-quarter and full-year 2024 earnings results. The stock's decline reflects the challenges faced by the company's learning services segment, which saw a significant revenue drop.
According to the earnings report, Youdao's net revenues from learning services in the fourth quarter decreased by 21.2% year-over-year to RMB 617.7 million ($84.6 million). The company attributed this decline to its strategic focus on a more selective customer acquisition approach, prioritizing higher return on investment engagements.
While Youdao achieved its first full-year operating profitability in 2024, with a net income of RMB 82.2 million ($11.3 million), the learning services segment remains a crucial component of the company's business. Youdao's CEO, Dr. Feng Zhou, acknowledged the challenges in the competitive landscape and business uncertainty, emphasizing the need to balance growth and profitability in the current economic environment.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。