Youdao Inc. (DAO) stock prices were up by 1.55% as of the market closing on August 30th, 2021. This brought the price per share up to USD$10.48 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 6.30%, bringing it up to USD$11.14.
DAO Stock Reports Strong Q2 2021
The second quarter of fiscal 2021 saw DAO stock launch its self-developed Intelligence Practice Systems. The platform serves to comprehensively and seamlessly integrate teaching and research with advanced technology. This is hoped to result in the quick customization of learning paths for students, thereby improving their learning outcomes. The company is also firmly committed to the fulfillment of its social responsibilities, such as providing relief in response to the recent floods in Henan Province. The company collaborated with public welfare institutions to facilitate the provision of post-disaster reconstruction and instructor support for 10 to 15 schools and kindergartens.
Adapting to Changing Regulations
The Chinese government recently released statements in regard to the further reduction of student burden in relation to homework and off-campus tutoring for compulsory education. In response, DAO stock has seen growth stem from its non-AST business, which includes learning products, STEAM courses, adult education, and education digitization solutions.While the company’s K-12 business is expected to be materially affected by heightened regulatory requirements, DAO stock is keen to adapt accordingly. With a focus on remaining compliant with regulatory requirements, the company is allocating resources to drive sustainable growth in the long run through innovative technologies and products.
DAO Stock’s Revenue Reports
Net revenues for the second quarter of fiscal 2021 came out to USD$200.3 million, representing a significant 107.5% year over year increase. Net revenues generated from learning services were up 112.4% year over year to hit USD$142.7 million in Q2 2021. The yearly difference was largely attributable to increases revenues from online courses. These increases, in turn, were driven by increases in paid student enrollments for Youdao Premium Courses. Paid student enrollment for adult courses of Youdao Premium Courses were up by 70.3%.
Future Outlook for DAO Stock
The company reported a promising quarter, consolidated by the strength of its Q2 2021 financial reports. DAO stock is keen to continue adapting to the changing Chinese economic landscape, with investors hopeful in management’s ability to effectively allocate resources. This is hoped to translate into consistent and organic growth over the long term.
