24/7 Market News Snapshot 14 August, 2025 – Youdao, Inc. American Depositary Shares, each representing one Class A Ordinary Share (NYSE:DAO)
DENVER, Colo., 14 August, 2025 (www.247marketnews.com) – (NYSE:DAO) are discussed in this article.
Youdao, Inc. (DAO) has experienced a significant market surge, evident as it opened today at $8.88 and is currently trading around $9.765, marking an approximate increase of 9.97% from its previous close. This uptick is underscored by a trading volume of 511.37K shares, indicating an increased investor interest and engagement. Analysts suggest that this bullish trend may reflect strong market sentiment potentially bolstered by the company’s recent financial performance.
In its second-quarter financial report for 2025, Youdao showcased its robust growth trajectory, achieving total net revenues of RMB 1.4 billion (approximately US$197.9 million), which represents a year-over-year increase of 7.2%. This positive growth was largely driven by a 2.2% rise in revenues from learning services, reaching RMB 657.8 million (US$91.8 million). Additionally, online marketing services revenues soared by 23.8%, totaling RMB 632.9 million (US$88.3 million). While the revenue from smart devices declined by 23.9%, the overall results highlight Youdao’s strategic pivot towards its AI-powered initiatives.
CEO Dr. Feng Zhou emphasized the impact of Youdao’s innovative releases, such as the Confucius 3 Large Language Model, which has enhanced its service offerings. Furthermore, the introduction of the AI Essay Grading function has significantly improved user engagement. The company also introduced the AI Ad Placement Optimizer to assist advertisers in refining their decision-making processes.
Importantly, Youdao reported its first profitable second quarter, with an operational income of RMB 28.8 million (US$4.0 million), a notable turnaround from the operational loss recorded last year. The net loss attributable to ordinary shareholders was reduced to RMB 17.8 million (US$2.5 million), reflecting substantial improvement. As Youdao advances its AI capabilities, it remains committed to enhancing productivity for users and providing enhanced value for its stakeholders amid the rapidly changing technological landscape.