Youdao Business Summary

Youdao, Inc. (DAO), a subsidiary of NetEase, operates as a leading AI-driven intelligent learning company in China, generating revenue through three core segments: Learning Services, Online Marketing Services, and Smart Devices. Learning Services, which achieved a significant profitability inflection in 2025, monetizes digital content, STEAM courses, and adult vocational training via subscription fees and tuition. Online Marketing Services provide performance-based advertising solutions leveraging AI-driven placement tools, while the Smart Devices segment develops proprietary hardware, including the Youdao Dictionary Pen and AI Learning Pads, integrated with the company’s "Ziyue" large language model. In a competitive landscape alongside TAL Education Group, New Oriental Education, and Gaotu Techedu, Youdao distinguishes itself through its "AI-native" hardware-software integration, positioning the firm as a technology-first leader in the digital education and productivity space. The company is led by Co-founder and CEO Dr. Feng Zhou, a computer science expert with a Ph.D. from UC Berkeley who previously spearheaded NetEase’s search operations. The executive team includes President Lei Jin and Senior Vice President Peng Su, both of whom possess extensive experience in technology operations and capital markets within the NetEase ecosystem. William Ding, the billionaire founder of NetEase, serves as Chairman, providing Youdao with significant institutional backing and strategic synergy with its parent company’s broader internet services. This leadership pedigree, characterized by technical academic backgrounds and long-term tenure within the NetEase group, underscores Youdao’s focus on leveraging advanced R&D to maintain its competitive edge in the evolving educational technology sector.