杰富瑞在报告中强调，网易有道的AI能力在数字内容服务、在线营销和AI订阅服务等不同细分市场中重要性越来越强。二季度网易有道推出“新一代AI全科学习助手”有道小P，该产品支持全学段、全学科答疑，提供AI查词、AI翻译功能，带动了AI订阅收入迅速增长。同时网易有道营销费用成本控制也在意料之内，并已取得显著成效。Jefferies Financial has released a new report stating that it maintains a "buy" rating on Netease Youdao, a domestic education technology company, with a target price of $6.2.
Intelligent Finance and Economics APP learned that Jefferies Financial, an internationally renowned investment bank, recently released a new report stating that it maintains a "buy" rating on Netease Youdao (DAO.US), a domestic education technology company, with a target price of $6.2. The report states that Netease Youdao's revenue and profits in the second quarter exceeded expectations, and it is expected that Netease Youdao will achieve operating profit for the full year with Non-GAAP in the future.
On August 22nd, Netease Youdao released the unaudited financial report for the second quarter of 2024. The financial report shows that Netease Youdao's net income in the second quarter reached 1.322 billion yuan, a year-on-year increase of 9.5%, and the gross profit reached 0.6368 billion yuan, a year-on-year increase of 12.3%. Among them, the operating cash inflow reached a record breaking 0.2502 billion yuan, a year-on-year increase of 88.2%, and the operating loss narrowed significantly by 74.9% compared to the same period last year. In the first half of this year, Netease Youdao achieved a net income of 2.71 billion yuan, a year-on-year increase of 14.5%. While maintaining revenue growth, major financial indicators such as operating loss and operating cash flow have also improved significantly year-on-year, further enhancing the overall profitability of the company.
Jefferies Financial emphasized in the report that Netease Youdao's AI capabilities are becoming increasingly important in various sub-markets such as digital content services, online marketing, and AI subscription services. In the second quarter, Netease Youdao launched the "Next Generation AI General Learning Assistant" Youdao Xiaop, which supports questions and answers in all subjects and provides AI word search and AI translation functions, driving rapid growth in AI subscription revenue. At the same time, Netease Youdao's control of marketing expenses has been within expectations and has achieved significant results.
Youdao CEO Zhou Feng said, "At the beginning of this year, we have defined our operational strategy focusing on digital content services, AI subscription services, and online marketing services. In the past six months, we have witnessed the positive results brought by the close integration of large-scale model technology and the company's business. This not only promotes comprehensive business progress but also significantly improves major financial indicators. Looking ahead, we are confident in the broad prospects of AI+Education. We will spare no effort to promote the application of large-scale models and use technological innovation to support personalized education."
In addition, several domestic brokerages are bullish on Netease Youdao's full-year operating profit, and Huatai Securities continues to maintain a "buy" rating.
