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Youdao Inc (DAO)



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Upturn Advisory Summary
08/28/2025: DAO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $13.09
1 Year Target Price $13.09
5 | Strong Buy |
1 | Buy |
2 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -9.26% | Avg. Invested days 24 | Today’s Advisory WEAK BUY |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.07B USD | Price to earnings Ratio 33.07 | 1Y Target Price 13.09 |
Price to earnings Ratio 33.07 | 1Y Target Price 13.09 | ||
Volume (30-day avg) 8 | Beta 0.24 | 52 Weeks Range 3.00 - 11.82 | Updated Date 08/28/2025 |
52 Weeks Range 3.00 - 11.82 | Updated Date 08/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.27 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-14 | When - | Estimate -0.59 | Actual 0.1 |
Profitability
Profit Margin 4.05% | Operating Margin (TTM) 2.03% |
Management Effectiveness
Return on Assets (TTM) 11.19% | Return on Equity (TTM) - |
Valuation
Trailing PE 33.07 | Forward PE - | Enterprise Value 1211673912 | Price to Sales(TTM) 0.19 |
Enterprise Value 1211673912 | Price to Sales(TTM) 0.19 | ||
Enterprise Value to Revenue 1.54 | Enterprise Value to EBITDA 29.19 | Shares Outstanding 31280900 | Shares Floating 26257520 |
Shares Outstanding 31280900 | Shares Floating 26257520 | ||
Percent Insiders 4.35 | Percent Institutions 41.86 |
Upturn AI SWOT
Youdao Inc
Company Overview
History and Background
Youdao, Inc. was founded in 2006 as a subsidiary of NetEase, Inc. It initially focused on developing search engine technology. Over time, it expanded its offerings to include online education services and smart devices.
Core Business Areas
- Learning Services: Provides a wide range of online courses, including K-12, vocational, and adult education. Offers personalized learning experiences and high-quality educational content.
- Smart Devices: Develops and sells intelligent learning devices such as Youdao Dictionary Pen, Youdao Smart Lamp, and other educational hardware.
- Online Marketing Services: Offers marketing solutions to businesses through its platform, leveraging its user base and data analytics capabilities.
Leadership and Structure
Youdao is led by CEO Zhou Feng. It operates as a subsidiary of NetEase, benefitting from its parent company's resources and infrastructure.
Top Products and Market Share
Key Offerings
- Youdao Dictionary Pen: An AI-powered device that scans and translates text, provides definitions, and offers pronunciation guidance. A leading product in the smart learning device market. Competitors include Hanvon and Baidu. Precise market share data is limited, but Youdao is considered a market leader in China.
- Youdao Premium Courses: Online courses covering various subjects, including exam preparation, language learning, and professional skills development. Competitors include TAL Education and New Oriental Education & Technology Group. Revenue contribution is a significant portion of their learning services segment.
- Youdao Smart Lamp: An AI powered smart device that helps students with learning by providing accurate analysis and diagnosis of schoolwork. Competitors include Xiaodu and Baidu.
Market Dynamics
Industry Overview
The online education industry is experiencing rapid growth, driven by increasing demand for personalized learning and technological advancements. The smart device market is also expanding, fueled by the need for innovative learning tools.
Positioning
Youdao is positioned as a leading technology-driven education company, leveraging AI and data analytics to provide personalized and effective learning solutions. It benefits from the strong brand recognition of its parent company, NetEase.
Total Addressable Market (TAM)
The total addressable market for online education in China is estimated to be in the hundreds of billions of dollars. Youdao is well-positioned to capture a significant share of this market due to its innovative products and strong brand.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Innovative product development (AI and data-driven)
- Parent company support (NetEase)
- Large user base
- Diversified product portfolio
Weaknesses
- Heavy reliance on parent company
- Regulatory risks in China
- High marketing expenses
- Competition from larger players
- Dependence on Chinese market
Opportunities
- Expanding into new educational segments
- International expansion
- Developing new AI-powered learning tools
- Partnerships with educational institutions
- Increasing demand for personalized learning
Threats
- Intense competition
- Changing government regulations in China
- Economic slowdown
- Technological disruption
- Data security and privacy concerns
Competitors and Market Share
Key Competitors
- TAL
- EDU
- GOTU
Competitive Landscape
Youdao competes with established players in the online education and smart device markets. It differentiates itself through its technology-driven approach and personalized learning solutions. It faces pressure from TAL and EDU.
Growth Trajectory and Initiatives
Historical Growth: Youdao has experienced rapid growth in recent years, driven by the increasing demand for online education and smart learning devices.
Future Projections: Analyst estimates suggest continued growth for Youdao, although projections are subject to change based on market conditions and company performance.
Recent Initiatives: Recent initiatives include the launch of new AI-powered learning tools, expansion into new educational segments, and partnerships with educational institutions.
Summary
Youdao Inc. is a growing online education and smart learning device company with a strong brand and innovative products. While it faces competition and regulatory risks, its technology-driven approach and support from NetEase position it for continued growth. Investors should monitor regulatory changes and competition, but Youdao demonstrates innovative initiatives.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Financial data and market information are subject to change. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Youdao Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2019-10-25 | CEO & Director Mr. Feng Zhou | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 3750 | Website https://www.youdao.com |
Full time employees 3750 | Website https://www.youdao.com |
Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The learning services mainly include tutoring services and fee-based premium 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 also offers online knowledge tools, which include Youdao and other dictionaries and translation tools, as well as AI-based learning tools; STEAM courses through Youdao Premium Courses; adult courses through NetEase Cloud Classroom, such as foreign language, preparing for an exam, and picking up a new skill; and other courses consisting of China University MOOC courses. In addition, the company provides smart devices comprising Youdao Dictionary Pen, and Youdao Listening Pod, and Youdao Smart Learning Pad; education digitalization solutions, such as technologies and solutions licensed to schools or enterprise customers, including Youdao Smart Learning Terminal, Youdao Sports, and Youdao Smart Cloud; and online marketing services consisting of performance-based and brand advertising services. Further, it offers technical support to the variable interest entities (VIEs). The company was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.

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