Sina science and technology news in the morning of November 21, Beijing timeNetEaseYoudao released an unaudited earnings announcement for the third quarter of 2019, which showed that 2019Q3's net income was 350 million, up 98 per cent from a year earlier. Of this total, the net income from learning products and services was 230 million, an increase of 142% over the same period last year.

NetEase YoudaoCEO Zhou Feng said: "We still focus on course quality, strengthen the polishing of top star courses, expand the category of disciplines, and promote the continuous growth of online courses through a sound teaching and research system."

"the newly launched quality courses for children by youdao are becoming more and more popular. Learning smart hardware products has also achieved faster-than-expected growth, which we believe is an integral part of the students' learning experience. " "We will continue to invest in technological innovation in smart learning to make the learning experience more participatory and interactive," Zhou said. Sync will also invest in getting students for online courses. We will give full play to the resource advantage of our own large-scale traffic pool to promote business growth through more effective customer acquisition. "

Net income

NetEase, Inc youdao's net income in the third quarter of 2019 was 345.9 million, compared with 174.4 million in the same period last year, an increase of 98.4% year-on-year.

NetEase, Inc youdao's net income from learning products and services in the third quarter of 2019 was 225.2 million, compared with 93.2 million in the same period last year, an increase of 141.6% over the same period last year. Thanks to the strong growth in the number of users of K12 courses and the increase in unit prices per capita.

Gross profit and gross profit margin

NetEase, Inc youdao made a gross profit of 89.2 million in the third quarter of 2019, compared with 40.6 million in the same period last year.

NetEase, Inc youdao's gross profit margin in the third quarter of 2019 was 25.8%, compared with 23.3% in the same period last year.

NetEase, Inc youdao made a gross profit margin of 27.5% for learning products and services in the third quarter of 2019, compared with 9.2% in the same period last year. Mainly due to the expansion of business scale and the optimization of teachers' salary structure, the growth of economic scale has been realized.

Online course operation and financial data

NetEase, Inc youdao online course sales in the third quarter of 2019 were 290.9 million, an increase of 139.8% over the same period last year.

NetEase, Inc youdao sales of Youdao, Inc boutique courses in the third quarter of 2019 were 214.6 million, an increase of 104.6% over the same period last year.

NetEase, Inc youdao paid 237100 people for Youdao, Inc's high-quality courses in the third quarter of 2019, compared with 172200 in the same period last year, an increase of 37.7% over the same period last year.

NetEase, Inc youdao 12 paid 92700 people in the third quarter of 2019, compared with 33200 in the same period last year, an increase of 179.2% over the same period last year

NetEase, Inc youdao in the third quarter of 2019, the per capita unit price of Youdao, Inc high-quality courses was 905 yuan, compared with 609 yuan in the same period last year, an increase of 48.6 percent over the same period last year.

Intelligent hardware

NetEase, Inc youdao sales revenue of learning smart hardware increased by 707% in the third quarter of 2019 compared with the same period last year. Thanks to the substantial increase in sales of youdao dictionary pens and youdao translation king, these products are widely loved by users because of their excellent product quality.

Operating expenses

Total operating expenses were 324 million, compared with 126.2 million in the same period last year.

Marketing and sales costs were 231 million, compared with 65 million in the same period last year. The main reason is the increase in investment in customer acquisition and the increase in expenditure related to brand investment, sales and marketing staff compensation.

The cost of product research and development is 74.9 million, compared with 5270 in the same period last year, an increase of 42.1% over the same period last year. It is mainly due to the increase in the number of professional and technical personnel in curriculum development and related salary expenditure.

The general administrative expenses were 18.1 million, compared with 8.5 million in the same period last year. It is mainly due to the increase in the number and salary level of administrative staff.

Assets and liabilities

As of September 30, youdao's cash, cash equivalents, fixed deposits and short-term investments totaled 160.3 million yuan. As of December 31, 18, the figure was 435.4 million yuan. The main reason for the decrease is the continuous investment in day-to-day operations, including access to traffic and brand building.

As of September 30, the company's deferred income balance, mainly composed of contract debts, was 343.6 million yuan, an increase of 93.5% from 177.5 million yuan on 31 December.

Among them, the deferred income of online courses is 296.7 million as of September 30, 2019. Deferred income as of December 31, 2018 was 129.1 million