BEIJING, May 20 (Xinhua) — Netease Youdao (NYSE:DAO), one of China’s leading internet and online education services providers, reported its net revenue of 540 million yuan in the first quarter of 2020, according to the company’s unaudited financial results released on Wednesday morning.
Youdao’s net revenue in Q1 increased 139.8 percent compared with the first quarter of 2019, of which the revenues of learning services and products increased 226.4 percent year on year reaching 440 million yuan and accounting for over 80 percent of the total.
The growth from learning services was primarily attributable to the increased revenues generated from online courses which increased by 286.8 percent year on year to 520 million yuan and were further driven by strong growth in both K-12 (the publicly-supported school grades prior to college covering kindergarten and the 1st through the 12th grade) paid student enrollments and gross billing per paid student enrollments of Youdao Premium Courses.
K-12 paid student enrollments increased by 358.7 percent year on year to 153,000 and the gross billings per paid student enrollments of Youdao Premium Courses increased by 158.2 percent year on year to 1,619 yuan in the first quarter of 2020.
As the online education gains increasing popularity, the current market demand for high-quality online courses is growing. Youdao has achieved positive operating cash flow in Q1 and is well positioned to support its growth over the near- and long-term with high quality differentiated products and services, according to Zhou Feng, Chief Executive Officer and Director of NetEase Youdao.