Bose An's questions to Youdao Inc (DAO) leadership • Q2 2025
Question
Bose An from Huatai Securities questioned whether the company would revise its target for achieving operating cash flow breakeven, given the Q2 decline.
Answer
VP of Finance Wayne Li affirmed that the annual target for operating cash flow breakeven remains unchanged. He attributed the Q2 decline to a business mix shift towards online marketing services, where cash collection lags profit recognition. He highlighted that significant H1 profitability improvements are expected to drive long-term cash flow enhancement.