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Youdao, Inc. (DAO) 10-Year Financial Performance & Capital Metrics

DAO • • Industrial / General
Consumer DefensiveEducation & TrainingOnline Learning PlatformsEducational Technology & Content
AboutYoudao, Inc., an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools, which include Youdao and other dictionaries and translation tools; learning services consisting of tutoring, fee-based premium, and other services; STEAM courses, adult and vocational courses, and other courses, such as China University MOOC; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart Lamp, Youdao Pocket Translator, and Youdao Super Dictionary; education digitalization solutions comprising technologies and solutions licensed to schools or enterprise customers, such as Youdao Smart Learning Terminal, and Youdao Smart Cloud; and online marketing services. In addition, the company provides online courses comprising Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support to the variable interest entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.Show more
  • Revenue $5.71B +5.9%
  • EBITDA $180M +141.2%
  • Net Income $83M +115.2%
  • EPS (Diluted) 0.70 +115.5%
  • Gross Margin 48.85% -4.9%
  • EBITDA Margin 3.16% +138.9%
  • Operating Margin 2.65% +130.6%
  • Net Margin 1.46% +114.3%
  • ROE -
  • ROIC -
  • Debt/Equity -
  • Interest Coverage 2.04 +130.3%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Momentum leader: RS Rating 81 (top 19%)
  • ✓Strong 5Y sales CAGR of 34.4%
  • ✓Share count reduced 2.6% through buybacks
  • ✓Trading near 52-week high
  • ✓Efficient asset utilization: 3.1x turnover

✗Weaknesses

  • ✗Negative free cash flow

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-
5Y34.39%
3Y12.91%
TTM-2.27%

Profit (Net Income) CAGR

10Y-
5Y-
3Y-
TTM267.79%

EPS CAGR

10Y-
5Y-
3Y-
TTM269.91%

ROCE

10Y Avg-255.81%
5Y Avg-328.77%
3Y Avg-
Latest-

Peer Comparison

Educational Technology & Content
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Valuation
Per Share
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Quality & Returns
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Technical
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
LOPEGrand Canyon Education, Inc.5.03B180.0023.297.5%19.38%27.88%5.02%0.14
DAOYoudao, Inc.390.07M12.4717.815.89%4.07%
VSTAVasta Platform Limited79.21M4.960.8212.64%28.1%10.01%59.55%0.24
MYNDMynd.ai, Inc.20.22M0.44-0.02-35.35%-35.81%-124.42%2.64
CHGGChegg, Inc.96.16M0.88-0.11-13.78%-17.14%-52.54%52.26%2.61
YQ17 Education & Technology Group Inc.22.43M3.44-0.1410.67%-96.33%-39.99%0.03
JZJianzhi Education Technology Group Company Limited7.63M0.99-0.59-43.52%-24.83%-5.25%0.29
SKILSkillsoft Corp.86.45M9.87-0.66-4.02%-26.02%-33.66%13.42%6.28

Profit & Loss

Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+444.28M760.13M1.3B2.39B3.96B5.1B5.39B5.71B
Revenue Growth %-0.71%0.71%0.84%0.66%0.29%0.06%0.06%
Cost of Goods Sold+286.42M535.23M931.74M1.34B2B2.47B2.62B2.92B
COGS % of Revenue0.64%0.7%0.72%0.56%0.5%0.48%0.49%0.51%
Gross Profit+157.87M224.91M369.62M1.05B1.96B2.63B2.77B2.79B
Gross Margin %0.36%0.3%0.28%0.44%0.5%0.52%0.51%0.49%
Gross Profit Growth %-0.42%0.64%1.83%0.87%0.34%0.05%0.01%
Operating Expenses+284.64M452.59M968.92M1.85B2.84B3.42B3.23B2.64B
OpEx % of Revenue0.64%0.6%0.74%0.78%0.72%0.67%0.6%0.46%
Selling, General & Admin154.89M261.4M694.29M1.5B2.24B2.6B2.49B2.09B
SG&A % of Revenue0.35%0.34%0.53%0.63%0.56%0.51%0.46%0.37%
Research & Development129.74M191.2M274.62M351.87M599.51M817.91M743.26M547.65M
R&D % of Revenue0.29%0.25%0.21%0.15%0.15%0.16%0.14%0.1%
Other Operating Expenses00000000
Operating Income+-126.77M-227.68M-599.3M-804.98M-874.99M-788.29M-466.26M150.93M
Operating Margin %-0.29%-0.3%-0.46%-0.34%-0.22%-0.15%-0.09%0.03%
Operating Income Growth %--0.8%-1.63%-0.34%-0.09%0.1%0.41%1.32%
EBITDA+-123.52M-221.04M-588.75M-790.36M-851.26M-745.5M-436.83M180.13M
EBITDA Margin %-0.28%-0.29%-0.45%-0.33%-0.21%-0.15%-0.08%0.03%
EBITDA Growth %--0.79%-1.66%-0.34%-0.08%0.12%0.41%1.41%
D&A (Non-Cash Add-back)3.25M6.65M10.55M14.62M23.73M42.79M29.44M29.2M
EBIT-126M-167.72M-567.26M-723.13M-876.3M-692.28M-469.49M156.51M
Net Interest Income+-28.56M-28.93M-18.12M-5.38M-12.7M-33.27M-61.12M-70.15M
Interest Income222.26K9.07M12.03M24.13M18.54M13.13M8.35M3.97M
Interest Expense28.78M38M30.15M29.51M31.23M46.41M69.46M74.13M
Other Income/Expense-28.01M21.96M1.89M52.34M-32.54M49.6M-72.69M-68.54M
Pretax Income+-154.78M-205.72M-597.41M-752.64M-907.54M-738.68M-538.96M82.39M
Pretax Margin %-0.35%-0.27%-0.46%-0.32%-0.23%-0.14%-0.1%0.01%
Income Tax+5.03M11.73M2.43M2.77M6.56M14.09M11.09M6.09M
Effective Tax Rate %0.84%1.21%1.06%2.2%1.08%1%1.02%1.01%
Net Income+-130.22M-248.55M-635.68M-1.66B-982.76M-739.8M-549.86M83.38M
Net Margin %-0.29%-0.33%-0.49%-0.69%-0.25%-0.15%-0.1%0.01%
Net Income Growth %--0.91%-1.56%-1.61%0.41%0.25%0.26%1.15%
Net Income (Continuing)-159.81M-217.46M-599.83M-755.41M-914.1M-752.77M-550.04M76.29M
Discontinued Operations000-902.23M-98.97M-6.21M00
Minority Interest-243.08M888K936K997K76.67M57.81M57.63M50.65M
EPS (Diluted)+-1.35-2.12-6.30-15.54-7.36-6.55-4.530.70
EPS Growth %--0.57%-1.97%-1.47%0.53%0.11%0.31%1.15%
EPS (Basic)-1.35-2.12-6.30-15.54-7.36-6.55-4.530.70
Diluted Shares Outstanding98.81M98.81M95.45M112.86M121.65M112.86M121.38M118.17M
Basic Shares Outstanding98.81M98.81M95.45M112.86M121.65M112.86M121.38M117.45M
Dividend Payout Ratio--------

Balance Sheet

Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+144.98M595.07M2.03B1.85B2.27B1.87B1.3B1.49B
Cash & Short-Term Investments40.08M435.36M1.62B1.19B826.88M1.02B526.66M655.78M
Cash Only39.83M41.74M173.33M609.2M322.78M783.61M454.54M592.72M
Short-Term Investments250K393.63M1.45B585.26M504.1M232.43M72.13M63.06M
Accounts Receivable74.33M91.8M215.6M308.2M254.53M413.03M380.12M503.38M
Days Sales Outstanding61.0744.0860.4747.0923.4429.5525.7532.2
Inventory1.54M23.83M73.22M118.96M255.41M232.26M217.07M174.74M
Days Inventory Outstanding1.9716.2528.6932.3646.634.3330.2221.86
Other Current Assets26.14M38.18M90.11M130.82M871.1M141.66M112.47M53.43M
Total Non-Current Assets+16.87M24.55M56.55M218.68M364.4M406.18M366.24M327.63M
Property, Plant & Equipment13.34M18.38M48.42M151.5M198.42M170.52M159.93M115.22M
Fixed Asset Turnover33.30x41.37x26.87x15.77x19.98x29.92x33.69x49.52x
Goodwill0006.94M109.94M109.94M109.94M109.94M
Intangible Assets00000000
Long-Term Investments002M42.48M32.52M90.7M51.4M72.38M
Other Non-Current Assets3.53M6.17M6.13M24.7M165.99M35.02M44.98M30.08M
Total Assets+161.85M619.62M2.09B2.07B2.63B2.28B1.67B1.81B
Asset Turnover2.74x1.23x0.62x1.15x1.50x2.24x3.23x3.14x
Asset Growth %-2.83%2.37%-0.01%0.27%-0.14%-0.27%0.09%
Total Current Liabilities+1.12B1.3B1.76B3.39B3.03B3.18B3.1B2.95B
Accounts Payable38.18M71.77M110.8M208.53M244.05M351.16M159M145.15M
Days Payables Outstanding48.6648.9443.4156.7244.5251.9122.1418.15
Short-Term Debt878M878M878M878M878M878M878M878M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities9.28M21.37M23.65M318.35M366.41M352.68M0326.66M
Current Ratio0.13x0.46x1.15x0.55x0.75x0.59x0.42x0.50x
Quick Ratio0.13x0.44x1.11x0.51x0.66x0.52x0.35x0.45x
Cash Conversion Cycle14.3711.3945.7522.7325.5111.9833.8335.9
Total Non-Current Liabilities+0460.65M26.72M83.79M330.51M574.81M696.01M956.75M
Long-Term Debt0000255.03M522.35M630.36M913M
Capital Lease Obligations0021.21M79.75M73.07M43.63M49.34M25.57M
Deferred Tax Liabilities00000000
Other Non-Current Liabilities0460.65M5.52M4.04M2.41M8.83M16.31M18.19M
Total Liabilities1.12B1.76B1.79B3.48B3.36B3.75B3.8B3.9B
Total Debt+878M878M899.21M987.73M1.25B1.48B1.6B1.85B
Net Debt838.17M836.26M725.88M378.53M930.01M695.93M1.14B1.26B
Debt / Equity--2.99x-----
Debt / EBITDA-------10.30x
Net Debt / EBITDA-------7.01x
Interest Coverage-4.40x-5.99x-19.88x-27.28x-28.01x-16.99x-6.71x2.04x
Total Equity+-958M-1.14B301.03M-1.41B-730.4M-1.48B-2.13B-2.09B
Equity Growth %--0.19%1.26%-5.67%0.48%-1.02%-0.44%0.02%
Book Value per Share-9.69-11.553.15-12.47-6.00-13.09-17.54-17.68
Total Shareholders' Equity-714.92M-1.14B300.09M-1.41B-807.07M-1.54B-2.19B-2.14B
Common Stock41K58K72K74K80K80K80K80K
Retained Earnings-798.02M-1.28B-1.92B-3.67B-4.67B-5.4B-5.95B-5.86B
Treasury Stock00000-42.33M-171.99M-210.79M
Accumulated OCI0788K-12.74M-44.11M-49.9M-87.44M-100.54M-111.54M
Minority Interest-243.08M888K936K997K76.67M57.81M57.63M50.65M

Cash Flow

Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+-87.14M-100.33M-372.27M-321.56M-1.35B-603.12M-438.14M-67.91M
Operating CF Margin %-0.2%-0.13%-0.29%-0.13%-0.34%-0.12%-0.08%-0.01%
Operating CF Growth %--0.15%-2.71%0.14%-3.19%0.55%0.27%0.85%
Net Income-163.93M-209.29M-601.46M-1.75B-1.03B-745.88M-550.12M82.21M
Depreciation & Amortization3.33M6.4M10.58M15.46M30.1M42.21M29.64M0
Stock-Based Compensation5.29M6.18M25.07M36.42M72.2M70.71M30.8M22.6M
Deferred Taxes0000-8.96M000
Other Non-Cash Items118K-26.86M2.6M667.85M-545.58M-40.65M66.31M58.65M
Working Capital Changes68.06M123.25M190.93M712.05M132.19M70.49M-14.77M-231.37M
Change in Receivables-20.11M-15.52M-122.01M-69.21M24.84M-163.47M25.8M-121.85M
Change in Inventory-1.54M-22.29M-52.55M-54.65M-146.71M20M8.71M24.82M
Change in Payables8.84M14.61M28.12M78.63M12.45M121.35M-123.36M-13.85M
Cash from Investing+-10.84M-374M-1.08B760.97M47.07M125.82M125.57M-13.59M
Capital Expenditures-10.66M-13.96M-18.18M-36.85M-64.07M-69.76M-17.85M-11.79M
CapEx % of Revenue0.02%0.02%0.01%0.02%0.02%0.01%0%0%
Acquisitions--------
Investments--------
Other Investing70K1.98M2.05M925K6.49M-24.58M-5.05M42.68M
Cash from Financing+107.77M475.12M1.59B26.56M1.78B184.65M-18.94M228.51M
Debt Issued (Net)--------
Equity Issued (Net)--------
Dividends Paid00000000
Share Repurchases--------
Other Financing50.77M44.73M75.64M26.56M27.56M9.41M9.31M16.88M
Net Change in Cash--------
Free Cash Flow+-97.79M-114.29M-390.45M-358.42M-1.41B-672.88M-456M-79.7M
FCF Margin %-0.22%-0.15%-0.3%-0.15%-0.36%-0.13%-0.08%-0.01%
FCF Growth %--0.17%-2.42%0.08%-2.94%0.52%0.32%0.83%
FCF per Share-0.99-1.16-4.09-3.18-11.59-5.96-3.76-0.67
FCF Conversion (FCF/Net Income)0.67x0.40x0.59x0.19x1.37x0.82x0.80x-0.81x
Interest Paid26.85M28.58M29.79M28.6M28.57M39.41M63.36M94.2M
Taxes Paid3.77M1.74M4.84M8.37M9.69M9.41M12.72M11.67M

Key Ratios

Metric20172018201920202021202220232024
Return on Equity (ROE)---211.17%-----
Return on Invested Capital (ROIC)---124.55%--328.77%---
Gross Margin35.53%29.59%28.4%43.83%49.53%51.59%51.35%48.85%
Net Margin-29.31%-32.7%-48.85%-69.37%-24.79%-14.5%-10.2%1.46%
Debt / Equity--2.99x-----
Interest Coverage-4.40x-5.99x-19.88x-27.28x-28.01x-16.99x-6.71x2.04x
FCF Conversion0.67x0.40x0.59x0.19x1.37x0.82x0.80x-0.81x
Revenue Growth-71.09%71.2%83.57%65.93%28.7%5.63%5.89%

Revenue by Segment

201920202021202220232024
Learning Services--980.7M-3.15B2.75B
Learning Services Growth------12.73%
Tutoring Services---2.89B2.91B2.38B
Tutoring Services Growth----0.97%-18.17%
Online Marketing Services----1.33B1.97B
Online Marketing Services Growth-----48.28%
Smart Devices----909.19M903.67M
Smart Devices Growth------0.61%
Fee Based Premium Services92.26M144.95M-198.25M234.05M362.63M
Fee Based Premium Services Growth-57.11%--18.06%54.94%
Online Courses Services607.57M-----
Online Courses Services Growth------

Frequently Asked Questions

Valuation & Price

Youdao, Inc. (DAO) has a price-to-earnings (P/E) ratio of 17.8x. This is roughly in line with market averages.

Growth & Financials

Youdao, Inc. (DAO) reported $5.60B in revenue for fiscal year 2024. This represents a 1160% increase from $444.3M in 2017.

Youdao, Inc. (DAO) grew revenue by 5.9% over the past year. This is steady growth.

Yes, Youdao, Inc. (DAO) is profitable, generating $227.6M in net income for fiscal year 2024 (1.5% net margin).

Dividend & Returns

Youdao, Inc. (DAO) had negative free cash flow of $79.7M in fiscal year 2024, likely due to heavy capital investments.

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