Analyst from Huatai Securities's questions to Youdao Inc (DAO) leadership • Q1 2025
Question
An analyst from Huatai Securities asked about the possibility of achieving profitability in Q2 2025, noting that Q2 was the only unprofitable quarter in the previous year.
Answer
VP of Finance Wayne Li acknowledged that Q2 is historically unprofitable due to seasonal revenue weakness and summer marketing campaigns. While not committing to Q2 profitability, he stated the company expects to reduce Q2's operating loss on a year-over-year basis by maintaining strategic priorities and optimizing costs. He attributed sustained profitability improvements to a focus on high-margin services, AI-driven efficiency, and disciplined cost control.