Youdao Reports Q1 2025 Financial Results with Significant Profit Growth

Youdao ( (DAO) ) just unveiled an announcement.

On May 15, 2025, Youdao, Inc. announced its unaudited financial results for the first quarter of 2025, revealing a total net revenue of RMB1.3 billion, a 6.7% decrease from the previous year. Despite the decline in revenue, the company achieved a significant increase in income from operations, up 247.7% year-over-year, driven by improved profitability and strategic market expansions. The company also reported a substantial increase in net income attributable to ordinary shareholders, showcasing its resilience and operational efficiency amid a challenging market environment.

The most recent analyst rating on (DAO) stock is a Hold with a $8.10 price target. To see the full list of analyst forecasts on Youdao stock, see the DAO Stock Forecast page.

Spark’s Take on DAO Stock

According to Spark, TipRanks’ AI Analyst, DAO is a Neutral.

Youdao’s stock score reflects a blend of financial challenges and opportunities. While financial performance shows operational improvements, significant leverage and cash flow issues present risks. The technical analysis suggests potential for a reversal from recent declines, but valuation concerns due to a high P/E ratio could limit upside. The strategic focus on AI and profitability highlighted in the earnings call provides a promising outlook, though revenue declines remain a concern.

To see Spark’s full report on DAO stock, click here.

More about Youdao

Youdao, Inc. is an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals. The company focuses on enhancing user experience and profitability through innovative AI-driven products and services.

Average Trading Volume: 157,010

Technical Sentiment Signal: Buy

Current Market Cap: $1.08B

For an in-depth examination of DAO stock, go to TipRanks’ Stock Analysis page.