Youdao : Fourth Quarter 2022 Earnings Conference Call (Investor Presentation)

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward- looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Youdao makes learning happen.

We are a leading technology-focused intelligent learning company in China. Youdao was founded in 2006 as part of NetEase, a leading internet technology company in China, dedicated to providing online services centered around content, community, communication and commerce.

Since its inception, Youdao has developed and used technologies to provide learning applications, content, devices and solutions to users of all ages. Today, for tens of millions of people, Youdao is the go-to destination for looking up a word, translating a foreign language, preparing for an exam, or picking up a new skill. Through technology, we enrich the lives of people of all ages every day, guiding them on their journey of pursuing knowledge and sharing ideas.

Youdao, Inc. has been listed on NYSE since 2019 under the symbol (NYSE：DAO).

Record-High Net Revenues in 4Q22

(RMB Millions)
1,600			70.0%		1,454.0
1,400
1,200					38.6%
			1,048.8
1,000			22.6%
	855.3
800
600
400
200
0
	4Q20		4Q21		4Q22

Net Revenues-Continuing Operations

(RMB Millions)

		31.4%
1,600
		9.0%	1,454.0
1,400		1,333.8
		20.5%
1,200	1,106.8	285.0
1,000	251.5
800
			1,454.0
600
		1,048.8

1. 855.3

0

4Q20

4Q21

4Q22

Net Revenues-Discontinued Operations

Net Revenues-Continuing Operations

Gross Margin

60%
		52.4%		52.6%		53.5%		54.2%	53.3%
		51.0%
50%	46.7%				42.5%		42.8%
40%
30%
20%
10%
0%
	4Q20	1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22
				Gross Margin-Continuing Operations