The EPS of Youdao Inc. (DAO) for Q4 2024 dropped significantly, as indicated by the latest report period, primarily due to decreased net revenues from its learning services1. Here are the details:
- Revenue Decline in Learning Services: Youdao's net revenues from learning services were RMB767.9 million (US$109.4 million), representing a 19.2% decrease from the same period in 20232. This decline is a significant factor in the overall EPS drop, as learning services are a crucial segment for the company.
- Gross Margin Impact: The gross margin for Youdao's learning services was 50.2% for Q4 2024, compared to 55.9% for the same period in 20232. This decline in gross margin further contributes to the reduced EPS, as gross margin is a key indicator of profitability.
In conclusion, the drop in Youdao's Q4 2024 EPS is primarily attributed to the decreased net revenues from learning services and the subsequent impact on gross margin.
4/8/2025 10:44am
