"We achieved sound and sustainable growth in the first quarter this year with a record net revenues of CNY 1.3 billion. Our margins are also greatly improving with our gross profit margin and operating loss margin reaching the best levels since our public listing," Dr. Feng Zhou, CEO and Director of Youdao.
Total net revenues were CNY1.3 billion an increase of 147.5% compared to the same period last year.
Net revenues from learning services were CNY 998.9 million, representing a 156.8% increase from the same period in 2020.
Net revenues from learning products were CNY 201.9 million, up 279.8% compared to the same period in 2020.
Net revenues from online marketing services were CNY 139.1 million, representing a 40.1% increase from the same period in 2020.
Gross billings of online courses were recorded up 55.9% year-on-year reaching CNY 808.7 million whereas gross billings of Youdao Premium Courses increased by 66.2% year-on-year to CNY 741.5 million.
The gross margin was 57.3%, compared with 43.5% for the same period in 2020.
Total operating expenses for the first quarter of 2021 were CNY 1.1 billion, representing an increase of 164.3%, compared with CNY 411.7 million for the same period of last year.
Sales and marketing expenses for the first quarter of 2021 were CNY 883.9 million, representing an increase of 195.5% from CNY 299.2 million for the same period of 2020.