Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Youdao, Inc. |
Entity Central Index Key | 0001781753 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 399, Wangshang Road, |
Entity Address, Address Line Two | Binjiang District |
Entity Address, City or Town | Hangzhou |
Entity Address, Postal Zip Code | 310051 |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-39087 |
Document Shell Company Report | false |
Document Registration Statement | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Feng Zhou |
Entity Address, Address Line One | No. 399, Wangshang Road, Binjiang District |
Entity Address, City or Town | Hangzhou |
Entity Address, Postal Zip Code | 310051 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 0571 |
Local Phone Number | 8985-2163 |
Contact Personnel Email Address | zf@rd.netease.com |
American depositary shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each ADS represents one Class A ordinary share, par value US$0.0001 per share |
Trading Symbol | DAO |
Security Exchange Name | NYSE |
Ordinary shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 125,969,446 |
Class A ordinary share [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 37,681,086 |
No Trading Symbol Flag | true |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NYSE |
Class B ordinary share [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 88,288,360 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 322,777 | $ 50,651 | ¥ 609,199 |
Time deposits | 268 | 42 | 263 |
Restricted cash (Note 2(j)) | 749,770 | 117,655 | |
Short-term investments | 503,831 | 79,062 | 584,999 |
Accounts receivable, net | 248,339 | 38,970 | 268,830 |
Inventories, net | 255,411 | 40,080 | 118,963 |
Amounts due from NetEase Group | 6,192 | 972 | 4,081 |
Prepayment and other current assets | 182,577 | 28,650 | 199,642 |
Assets held for sale (Note 2(c)) | 497 | 78 | 65,589 |
Total current assets | 2,269,662 | 356,160 | 1,851,566 |
Non-current assets: | |||
Property, equipment and software, net | 80,315 | 12,603 | 40,173 |
Operating lease right-of-use assets, net | 118,104 | 18,533 | 105,865 |
Long-term investments | 32,518 | 5,103 | 42,484 |
Goodwill (Note 5) | 109,944 | 17,253 | 6,938 |
Other assets, net | 22,436 | 3,520 | 17,759 |
Assets held for sale (Note 2(c)) | 1,088 | 171 | 5,463 |
Total non-current assets | 364,405 | 57,183 | 218,682 |
Total assets | 2,634,067 | 413,343 | 2,070,248 |
Current liabilities: | |||
Accounts payables (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB62,438 and RMB45,756 as of December 31, 2020 and 2021, respectively) | 161,006 | 25,265 | 141,304 |
Payroll payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB6,863 and RMB11,873 as of December 31, 2020 and 2021, respectively) | 277,383 | 43,527 | 209,603 |
Amounts due to NetEase Group (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB26,728 and RMB23,984 as of December 31, 2020 and 2021, respectively) | 83,041 | 13,031 | 67,230 |
Contract liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB842,296 and RMB1,011,734 as of December 31, 2020 and 2021, respectively) | 1,065,639 | 167,222 | 894,218 |
Taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB394 and RMB4,072 as of December 31, 2020 and 2021, respectively) | 53,323 | 8,368 | 54,895 |
Accrued liabilities and other payables (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB35,021 and RMB65,547 as of December 31, 2020 and 2021, respectively) | 515,567 | 80,904 | 602,044 |
Short-term loans from NetEase Group | 878,000 | 137,777 | 878,000 |
Liabilities held for sale (Note 2(c)) | 546,271 | ||
Total current liabilities | 3,033,959 | 476,094 | 3,393,565 |
Non-current liabilities: | |||
Long-term lease liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB223 and RMB15,803 as of December 31, 2020 and 2021, respectively) | 73,070 | 11,466 | 79,748 |
Other non-current liabilities | 2,411 | 378 | 4,043 |
Long-term loans from NetEase Group | 255,028 | 40,019 | |
Total non-current liabilities | 330,509 | 51,863 | 83,791 |
Total liabilities | 3,364,468 | 527,957 | 3,477,356 |
Commitments and contingencies (Note 19) | |||
Mezzanine equity: | |||
Redeemable noncontrolling interests (Note 5) | 78,592 | 12,333 | |
Total mezzanine equity | 78,592 | 12,333 | |
Shareholders' deficit: | |||
Additional paid-in capital | 3,913,946 | 614,184 | 2,309,963 |
Accumulated deficit | (4,700,000) | (733,012) | (3,674,034) |
Accumulated other comprehensive loss | (54,354) | (8,529) | (47,058) |
Statutory reserves | 4,456 | 699 | 2,950 |
Noncontrolling interests | (1,926) | (302) | 997 |
Total shareholders' deficit | (808,993) | (126,947) | (1,407,108) |
Total liabilities, mezzanine equity and shareholders' deficit | 2,634,067 | 413,343 | 2,070,248 |
Class A ordinary shares [Member] | |||
Shareholders' deficit: | |||
Ordinary shares | 24 | 4 | 18 |
Class B ordinary shares [Member] | |||
Shareholders' deficit: | |||
Ordinary shares | ¥ 56 | $ 9 | ¥ 56 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares |
Accounts payables | ¥ 161,006 | $ 25,265 | ¥ 141,304 |
Payroll payable | 277,383 | 43,527 | 209,603 |
Amounts due to NetEase Group | 83,041 | 13,031 | 67,230 |
Contract liabilities | 1,065,639 | 167,222 | 894,218 |
Taxes payable | 53,323 | 8,368 | 54,895 |
Accrued liabilities and other payables | 515,567 | 80,904 | 602,044 |
Long-term lease liabilities of the consolidated VIEs without recourse to the primary beneficiaries | ¥ 73,070 | $ 11,466 | ¥ 79,748 |
Ordinary shares issued | 123,267,785 | 123,267,785 | 114,729,466 |
Ordinary shares outstanding | 123,267,785 | 123,267,785 | 114,729,466 |
Class A ordinary shares [Member] | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||
Ordinary shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Ordinary shares issued | 34,979,425 | 34,979,425 | 25,597,106 |
Ordinary shares outstanding | 34,979,425 | 34,979,425 | 25,597,106 |
Class B ordinary shares [Member] | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||
Ordinary shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Ordinary shares issued | 88,288,360 | 88,288,360 | 89,132,360 |
Ordinary shares outstanding | 88,288,360 | 88,288,360 | 89,132,360 |
VIEs [Member] | |||
Accounts payables | ¥ | ¥ 45,756 | ¥ 62,438 | |
Payroll payable | ¥ | 11,873 | 6,863 | |
Amounts due to NetEase Group | ¥ | 23,984 | 26,728 | |
Contract liabilities | ¥ | 1,011,734 | 842,296 | |
Taxes payable | ¥ | 4,072 | 394 | |
Accrued liabilities and other payables | ¥ | 65,547 | 35,021 | |
Long-term lease liabilities of the consolidated VIEs without recourse to the primary beneficiaries | ¥ | ¥ 15,803 | ¥ 223 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues: (include transactions with related parties of RMB37,580, RMB29,293 and RMB23,790 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Net revenues | ¥ 4,015,794 | $ 630,166 | ¥ 2,526,806 | ¥ 1,207,410 |
Cost of revenues: (include transactions with related parties of RMB33,947, RMB115,231 and RMB83,901 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Cost of revenues | (2,026,956) | (318,074) | (1,419,369) | (872,365) |
Gross profit | 1,988,838 | 312,092 | 1,107,437 | 335,045 |
Operating expenses: | ||||
Sales and marketing expenses (include transactions with related parties of RMB10,432, RMB11,670 and RMB17,182 for the years ended December 31, 2019, 2020 and 2021, respectively) | (2,077,638) | (326,027) | (1,473,604) | (455,748) |
Research and development expenses (include transactions with related parties of RMB18,130, RMB24,699 and RMB32,839 for the years ended December 31, 2019, 2020 and 2021, respectively) | (607,373) | (95,310) | (372,184) | (269,895) |
General and administrative expenses (include transactions with related parties of RMB3,771, RMB11,887 and RMB9,264 for the years ended December 31, 2019, 2020 and 2021, respectively) | (190,297) | (29,862) | (113,106) | (69,242) |
Impairment of intangible assets from business combination (Note 5) | (56,778) | (8,911) | 0 | 0 |
Total operating expenses | (2,932,086) | (460,110) | (1,958,894) | (794,885) |
Loss from operations | (943,248) | (148,018) | (851,457) | (459,840) |
Interest income | 18,780 | 2,947 | 25,524 | 12,063 |
Interest expense (include interest expense charged by related parties of RMB30,232, RMB31,215 and RMB31,644 for the years ended December 31, 2019, 2020 and 2021, respectively) | (31,644) | (4,966) | (31,215) | (30,232) |
Others, net (Note 15) | 36,673 | 5,756 | 61,052 | 20,064 |
Loss before tax | (919,439) | (144,281) | (796,096) | (457,945) |
Income tax expenses | (6,648) | (1,043) | (2,929) | (2,432) |
Net loss from continuing operations | (926,087) | (145,324) | (799,025) | (460,377) |
Net loss from discontinued operations | (100,267) | (15,734) | (954,327) | (141,078) |
Net loss | (1,026,400) | (161,058) | (1,753,352) | (601,455) |
Net (income)/loss attributable to noncontrolling interests | 30,699 | 4,817 | 563 | (48) |
Net loss attributable to the Company | (995,655) | (156,241) | (1,752,789) | (601,503) |
Accretions of convertible redeemable preferred shares to redemption value (Note 14) | ¥ | (35,893) | |||
Net loss attributable to ordinary shareholders of the Company | (995,655) | (156,241) | (1,752,789) | (637,396) |
Including: | ||||
Net loss from continuing operations attributable to ordinary shareholders of the Company | (895,388) | (140,507) | (798,462) | (496,318) |
Net loss from discontinued operations attributable to ordinary shareholders of the Company | (100,267) | (15,734) | (954,327) | (141,078) |
Net loss | (1,026,400) | (161,058) | (1,753,352) | (601,455) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (7,296) | (1,145) | (32,531) | (15,023) |
Total other comprehensive loss | (7,296) | (1,145) | (32,531) | (15,023) |
Total comprehensive loss | (1,033,650) | (162,203) | (1,785,883) | (616,478) |
Comprehensive (income)/loss attributable to noncontrolling interests | 30,699 | 4,817 | 563 | (48) |
Comprehensive loss attributable to the Company | (1,002,951) | (157,386) | (1,785,320) | (616,526) |
Accretions of convertible redeemable preferred shares to redemption value (Note 14) | ¥ | (35,893) | |||
Comprehensive loss attributable to ordinary shareholders of the Company | ¥ (1,002,951) | $ (157,386) | ¥ (1,785,320) | ¥ (652,419) |
Net loss per ordinary share/ADS | ||||
Basic | (per share) | ¥ (8.18) | $ (1.28) | ¥ (15.53) | ¥ (6.68) |
-Continuing operations | (per share) | (7.36) | (1.15) | (7.07) | (5.20) |
-Discontinued operations | (per share) | (0.82) | (0.13) | (8.46) | (1.48) |
Diluted | (per share) | (8.18) | (1.28) | (15.53) | (6.68) |
-Continuing operations | (per share) | (7.36) | (1.15) | (7.07) | (5.20) |
-Discontinued operations | (per share) | ¥ (0.82) | $ (0.13) | ¥ (8.46) | ¥ (1.48) |
Weighted average number of ordinary shares/ADSs | ||||
Basic | shares | 121,650,907 | 121,650,907 | 112,864,452 | 95,445,982 |
Diluted | shares | 121,650,907 | 121,650,907 | 112,864,452 | 95,445,982 |
Learning services [Member] | ||||
Net revenues: (include transactions with related parties of RMB37,580, RMB29,293 and RMB23,790 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Net revenues | ¥ 2,441,421 | $ 383,112 | ¥ 1,513,960 | ¥ 602,353 |
Cost of revenues: (include transactions with related parties of RMB33,947, RMB115,231 and RMB83,901 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Cost of revenues | (980,700) | (153,893) | (716,504) | (451,164) |
Smart devices [Member] | ||||
Net revenues: (include transactions with related parties of RMB37,580, RMB29,293 and RMB23,790 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Net revenues | 980,424 | 153,850 | 539,962 | 152,044 |
Cost of revenues: (include transactions with related parties of RMB33,947, RMB115,231 and RMB83,901 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Cost of revenues | (618,925) | (97,123) | (355,970) | (107,609) |
Online marketing services [Member] | ||||
Net revenues: (include transactions with related parties of RMB37,580, RMB29,293 and RMB23,790 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Net revenues | 593,949 | 93,204 | 472,884 | 453,013 |
Cost of revenues: (include transactions with related parties of RMB33,947, RMB115,231 and RMB83,901 for the years ended December 31, 2019, 2020 and 2021, respectively) | ||||
Cost of revenues | ¥ (427,331) | $ (67,058) | ¥ (346,895) | ¥ (313,592) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related party transaction, net revenue | ¥ 23,790 | ¥ 29,293 | ¥ 37,580 |
Interest expense, related party | 31,644 | 31,215 | 30,232 |
Cost of revenues [Member] | |||
Related party transaction, cost of revenues | 83,901 | 115,231 | 33,947 |
Sales and marketing expenses [Member] | |||
Related party transaction, operating expenses | 17,182 | 11,670 | 10,432 |
Research and development expenses [Member] | |||
Related party transaction, operating expenses | 32,839 | 24,699 | 18,130 |
General and administrative expenses [Member] | |||
Related party transaction, operating expenses | ¥ 9,264 | ¥ 11,887 | ¥ 3,771 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | IPO [Member]CNY (¥) | Private placement [Member]CNY (¥) | Ordinary shares [Member]Class A ordinary shares [Member]CNY (¥)shares | Ordinary shares [Member]Class B ordinary shares [Member]CNY (¥)shares | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]IPO [Member]CNY (¥) | Additional paid-in capital [Member]Private placement [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated other comprehensive income/(loss) [Member]CNY (¥) | Non-controlling interests [Member]CNY (¥) | Pre-IPO ordinary shares [Member]CNY (¥)shares | NetEase [Member]CNY (¥) | NetEase [Member]Additional paid-in capital [Member]CNY (¥) |
Balance at Dec. 31, 2018 | ¥ (1,141,433) | ¥ 138,024 | ¥ 292 | ¥ (1,281,191) | ¥ 496 | ¥ 888 | ¥ 58 | |||||||||
Balance (Shares) at Dec. 31, 2018 | shares | 92,000,000 | |||||||||||||||
Loss for the year | (601,455) | (601,503) | 48 | |||||||||||||
Share-based compensation expenses | 25,074 | 25,074 | ||||||||||||||
Foreign currency translation adjustment | (15,023) | (15,023) | ||||||||||||||
Appropriation to statutory reserves | 1,494 | (1,494) | ||||||||||||||
Redesignation of Pre-IPO ordinary shares into Class A and Class B ordinary shares upon initial public offering ("IPO") | ¥ 2 | ¥ 56 | ¥ (58) | |||||||||||||
Redesignation of Pre-IPO ordinary shares into Class A and Class B ordinary shares upon initial public offering ("IPO") (shares) | shares | 2,867,640 | 89,132,360 | (92,000,000) | |||||||||||||
Share issuance upon IPO, net of issuance cost | ¥ 621,947 | ¥ 4 | ¥ 621,943 | |||||||||||||
Share issuance upon IPO, net of issuance cost (shares) | shares | 5,600,000 | |||||||||||||||
Share issuance upon concurrent private placement | ¥ 881,662 | ¥ 5 | ¥ 881,657 | |||||||||||||
Share issuance upon concurrent private placement (shares) | shares | 7,352,941 | |||||||||||||||
Conversion of convertible preferred shares into Class A shares upon IPO | ¥ 496,545 | ¥ 5 | ¥ 496,540 | |||||||||||||
Conversion of convertible preferred shares into Class A shares upon IPO (Shares) | shares | 6,814,815 | |||||||||||||||
Deemed contribution related to acquisition of businesses under common control | 69,603 | 69,603 | ||||||||||||||
Accretions of convertible redeemable preferred shares | (35,893) | (35,893) | ||||||||||||||
Balance at Dec. 31, 2019 | 301,027 | ¥ 16 | ¥ 56 | 2,232,841 | 1,786 | (1,920,081) | (14,527) | 936 | ||||||||
Balance (Shares) at Dec. 31, 2019 | shares | 22,635,396 | 89,132,360 | ||||||||||||||
Loss for the year | (1,753,352) | (1,752,789) | (563) | |||||||||||||
Share issuance pursuant to incentive plan | 37,606 | ¥ 2 | 37,604 | |||||||||||||
Share issuance pursuant to incentive plan (in shares) | shares | 2,961,710 | |||||||||||||||
Share-based compensation expenses | 41,578 | 41,578 | ||||||||||||||
Deemed distribution to NetEase | ¥ (2,060) | ¥ (2,060) | ||||||||||||||
Noncontrolling interests arising from business combination | 624 | 624 | ||||||||||||||
Foreign currency translation adjustment | (32,531) | (32,531) | ||||||||||||||
Appropriation to statutory reserves | 1,164 | (1,164) | ||||||||||||||
Balance at Dec. 31, 2020 | (1,407,108) | ¥ 18 | ¥ 56 | 2,309,963 | 2,950 | (3,674,034) | (47,058) | 997 | ||||||||
Balance (Shares) at Dec. 31, 2020 | shares | 25,597,106 | 89,132,360 | ||||||||||||||
Loss for the year | (998,578) | (995,655) | (2,923) | |||||||||||||
Share issuance pursuant to incentive plan | 24,550 | ¥ 1 | 24,549 | |||||||||||||
Share issuance pursuant to incentive plan (in shares) | shares | 1,538,319 | |||||||||||||||
Share-based compensation expenses | 84,983 | 84,983 | ||||||||||||||
Deemed distribution to NetEase | ¥ (4,171) | ¥ (4,171) | ||||||||||||||
Foreign currency translation adjustment | (7,296) | $ (1,145) | (7,296) | |||||||||||||
Appropriation to statutory reserves | 1,506 | (1,506) | ||||||||||||||
Share issuance upon follow-on offering, net of issuance cost (Note 13) | 1,498,627 | ¥ 5 | 1,498,622 | |||||||||||||
Share issuance upon follow-on offering, net of issuance cost (Note 13) (in shares) | shares | 7,000,000 | |||||||||||||||
Conversion of convertible preferred shares into Class A shares upon IPO (Shares) | shares | 844,000 | (844,000) | ||||||||||||||
Balance at Dec. 31, 2021 | ¥ (808,993) | $ (126,947) | ¥ 24 | ¥ 56 | ¥ 3,913,946 | ¥ 4,456 | ¥ (4,671,195) | ¥ (54,354) | ¥ (1,926) | |||||||
Balance (Shares) at Dec. 31, 2021 | shares | 34,979,425 | 88,288,360 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Cash flows from operating activities: | |||||
Net loss | ¥ (1,026,400) | $ (161,058) | ¥ (1,753,352) | ¥ (601,455) | |
Net loss from discontinued operations | (100,267) | (15,734) | (954,327) | (141,078) | |
Depreciation and amortization | 30,098 | 4,723 | 15,462 | 10,525 | |
Share-based compensation | 72,201 | 11,330 | 36,425 | 23,336 | |
Fair value changes of short-term investments | 668 | 105 | (873) | (793) | |
Allowance/(Reversal) for doubtful accounts/expected credit losses | (4,523) | (710) | 12,120 | 1,897 | |
Provision/(Reversal) of allowance for inventory | 10,176 | 1,597 | (3,162) | 3,162 | |
Impairment of long-term investments | 7,000 | 1,098 | |||
Impairment of intangible assets from business combination (Note 5) | 56,778 | 8,911 | 0 | 0 | |
Remeasured loss from previously held interest (Note 15) | 2,456 | 385 | |||
Deferred income taxes (Note 10) | (8,963) | (1,406) | |||
Unrealized exchange (gains)/loss | 1,391 | 217 | 16,252 | (1,783) | |
Others | 3,048 | 478 | 879 | 122 | |
Changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | 24,841 | 3,898 | (80,057) | (122,010) | |
Inventories | (146,709) | (23,022) | (54,647) | (40,484) | |
Prepayment and other current assets | 25,880 | 4,061 | (120,778) | (27,617) | |
Amounts due from NetEase Group | (2,111) | (331) | 10,849 | (3,690) | |
Operating lease right-of-use assets | 29,022 | 4,554 | 9,901 | 2,035 | |
Other assets | (6,327) | (993) | (6,670) | (6) | |
Contract liabilities | 115,462 | 18,119 | 545,814 | 183,783 | |
Accounts payables | 12,453 | 1,954 | 78,629 | 28,117 | |
Payroll payable | 85,423 | 13,405 | 68,249 | 20,917 | |
Taxes payable | (2,156) | (338) | 28,842 | 8,588 | |
Accrued liabilities and other payables | 34,344 | 5,389 | 249,703 | 87,260 | |
Amounts due to NetEase Group | 11,640 | 1,827 | 17,044 | 4,170 | |
Long-term lease liabilities | (47,939) | (7,523) | (33,351) | (4,702) | |
Other non-current liabilities | (1,632) | (255) | (1,474) | 5,517 | |
Net cash used in continuing operating activities | (623,566) | (97,851) | (9,868) | (282,033) | |
Net cash used in discontinued operating activities | (722,844) | (113,430) | (311,694) | (90,237) | |
Net cash used in operating activities | (1,346,400) | (211,281) | (321,562) | (372,270) | |
Cash flows from investing activities: | |||||
Purchases of short-term investments | (779,500) | (122,321) | (1,683,000) | (216,000) | |
Proceeds of maturities of short-term investments | 860,000 | 134,953 | 1,220,000 | 145,882 | |
Placements of time deposits | (897,916) | (140,903) | (20,663) | (1,522,270) | |
Proceeds from maturities of time deposits | 907,759 | 142,447 | 1,327,451 | 526,505 | |
Cash paid for business combinations, net of cash acquired (Note 5) | 43,216 | 6,782 | (6,398) | ||
Purchase of intangible assets | (596) | (94) | (29) | ||
Purchases of property, equipment and software | (63,477) | (9,961) | (30,770) | (18,081) | |
Proceeds from disposal of property, equipment and software | 2,114 | 332 | 925 | 2,054 | |
Impact on cash and cash equivalents from an entity disposed | (1,521) | (239) | |||
Payment for long-term investments | (27,380) | (4,297) | (40,490) | (2,000) | |
Net cash (used in)/provided by continuing investing activities | 42,699 | 6,699 | 767,055 | (1,083,939) | |
Net cash (used in)/provided by discontinued investing activities | 4,375 | 687 | (6,084) | (66) | |
Net cash (used in)/provided by investing activities | 47,074 | 7,386 | 760,971 | (1,084,005) | |
Cash flows from financing activities: | |||||
Proceeds from the issuance of IPO shares, net of issuance cost | 630,364 | ||||
Proceeds from concurrent private placement | 881,662 | ||||
Proceeds from the issuance of follow-on offering shares, net of issuance cost (Note 13) | 1,498,627 | 235,167 | |||
Payment of offering expenses | (7,909) | ||||
Funding from NetEase Group | 75,643 | ||||
Proceeds from long-term loans from NetEase Group | 257,522 | 40,411 | |||
Proceeds from issuance of ordinary shares pursuant to incentive plan | 27,564 | 4,326 | 34,468 | ||
Net cash provided by financing activities | [1] | 1,783,713 | 279,904 | 26,559 | 1,587,669 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21,029) | (3,300) | (30,097) | 196 | |
Net increase in cash, cash equivalents and restricted cash | 463,348 | 72,709 | 435,871 | 131,590 | |
Cash, cash equivalents and restricted cash at the beginning of the year | 609,199 | 95,597 | 173,328 | 41,738 | |
Cash, cash equivalents and restricted cash at the end of the year | 1,072,547 | 168,306 | 609,199 | 173,328 | |
Supplemental disclosures of cash flow information: | |||||
Cash paid for income tax expenses | 9,686 | 1,520 | 8,372 | 4,839 | |
Cash paid for interest expense | 28,567 | 4,483 | 28,597 | 29,786 | |
Non-cash investing and financing activities: | |||||
Accretions of convertible redeemable preferred shares to redemption value | 35,893 | ||||
Payables for offering expenses | ¥ 8,417 | ||||
Unpaid consideration for business combination (Note 12) | 5,129 | 805 | |||
Changes in accrued liabilities and other payables related to property, equipment and software addition | ¥ 5,531 | $ 868 | 7,068 | ||
Receivable from agent for issuance of ordinary shares pursuant to incentive plan | ¥ 3,138 | ||||
[1] | There was no financing activity from discontinued operations. |
Operations and Reorganization
Operations and Reorganization | 12 Months Ended |
Dec. 31, 2021 | |
Operations and Reorganization [Abstract] | |
Operations and Reorganization | 1. Operations and Reorganization (a) Principal activities and reorganization Youdao, Inc. (“Youdao” or the “Company”) was incorporated in the Cayman Islands on November 27, 2014. Youdao, Inc., its subsidiaries, consolidated variable interest entities (“VIEs”) and the VIEs’ subsidiaries, together are referred to as “the Group” or “Youdao Group”. NetEase, Inc. (the “Parent” or “NetEase”), its subsidiaries, consolidated VIEs and VIEs’ subsidiaries, other than Youdao Group, are collectively referred to herein as the “NetEase Group”. The Group provides a variety of learning content, applications and solutions, which covers a wide spectrum of topics and targets people from broad age groups for their lifelong learning needs through its websites and mobile applications. The Group generates its revenues from learning services, smart devices as well as online marketing services. The learning services mainly include tutoring services, fee-based As of December 31, 2021, the Company’s major subsidiaries and consolidated VIE are as follows: Place and year of incorporation Percentage Principal activities Subsidiaries Youdao (Hong Kong) Limited Hong Kong, China, 2016 100% Holding company Youdao Education Technology (Hong Kong) Limited Hong Kong, China, 2021 100% Providing sales of smart devices NetEase Youdao Information Technology (Beijing) Co., Ltd. (“Youdao Information”) Beijing, China, 2006 100% Providing sales of smart devices and solutions, technical support to the VIEs NetEase Youdao Information Technology (Hangzhou) Co., Hangzhou, China, 2019 100% Providing technical support to the VIEs NetEase Hangzhou, China, 2021 100% Providing sales of smart devices VIE Beijing Beijing, China, 2007 100% Providing online learning services as well as online marketing services Reorganization The Group started its business in 2006, through Youdao Information. Since the date of inception, Youdao Information was substantially owned by the NetEase Group and several employees and former employees of the Group, as noncontrolling shareholders, including Feng Zhou, Chief Executive Officer of the Company. Subsequently, in 2007, Youdao Computer was established as a Chinese domestic company with an internet content provider license under the applicable Chinese telecommunication laws. In 2016, Youdao, Inc.’s wholly owned subsidiary Youdao (Hong Kong) Limited was incorporated and then acquired the majority interests in Youdao Information. Additionally, Youdao Information, Youdao Computer and all its legal shareholders entered into a series of VIE agreements, through which Youdao Information became the primary beneficiary of Youdao Computer. As of 1 January 2019, the noncontrolling shareholders of Youdao Information has withdrew their shareholding interests in Youdao Information in exchange for their historical investment cost, and injected the proceeds received back to Youdao, Inc. for the same shareholding percentage as they previously held in Youdao Information. Youdao Information became wholly owned subsidiary of the Group. In May 2019, the Group acquired certain education businesses, including NetEase Cloud Classroom, China University MOOC and NetEase KADA from NetEase Group. Since these businesses were controlled by NetEase both before and after the acquisition, this transaction was accounted for as a business combination under common control. In accordance with ASC 805, Business Combination, In December 2020, the Group entered into agreements with NetEase to dispose Youdao Cloudnote business to an investee established by the Company and NetEase. Since the Youdao Cloudnote business was not material to the Group’s operations, the disposal did not represent a strategic shift with a major effect on the Group’s operations and financial results, and did not qualify as discontinued operation in accordance with ASC 205, Presentation of financial statements . Basis of presentation for reorganization There was no change in the basis of presentation of the financial statement resulting from these reorganization transactions. The assets and liabilities have been stated at historical carrying amounts. The Group has been operating as separated entities since inception, the allocation from NetEase Group for the expenses incurred by NetEase Group but related to the Group was not material. For the years ended December 31, 2019, 2020 and 2021, the allocation was related to the share-based compensation expenses from award plan of NetEase Group, amounting to RMB4,356, RMB2,682 and RMB1,043, respectively (Note 16). (b) VIE arrangements i) Contracts that give the Company effective control of the VIE Loan Agreements Each shareholder of Youdao Computer, William Lei Ding and Feng Zhou, entered into a loan agreement with Youdao Information under which, Youdao Information provided each of William Lei Ding and Feng Zhou with an interest-free loan in the principal amount of approximately RMB3.6 million and RMB1.4 million, respectively. These funds were used by each of William Lei Ding and Feng Zhou to pay the consideration to acquire his respective equity interest in Youdao Computer. Such loans can be repaid by transferring each of William Lei Ding and Feng Zhou’s respective equity interest in Youdao Computer to Youdao Information or its designee or through such other method as Youdao Information shall determine. The term of each of the Loan Agreements is 10 years from the date of loan agreement and will be automatically extended for a further 10-year term unless otherwise decided by Youdao Information. Exclusive Purchase Option Agreements Under the Exclusive Purchase Option Agreements entered into by Youdao Information, Youdao Computer and each of William Lei Ding and Feng Zhou, Youdao Computer granted Youdao Information an option to purchase all or a portion of the respective equity interests in Youdao Computer at a price equal to the original capital and any additional paid-in Shareholder Voting Right Trust Agreements Under the Shareholder Voting Right Trust Agreements between Youdao Information and each of William Lei Ding and Feng Zhou, respectively, each of William Lei Ding and Feng Zhou, agreed to irrevocably entrust a person designated by Youdao Information to represent him to exercise all the voting right and other shareholders’ rights to which he is entitled as a shareholder of Youdao Computer. Each Shareholder Voting Right Trust Agreement shall remain effective for as long as William Lei Ding and Feng Zhou, as applicable, remains a shareholder of Youdao Computer unless Youdao Information unilaterally terminates the agreement by written notice. Equity Pledge Agreements Each of William Lei Ding and Feng Zhou entered into an Equity Pledge Agreement with Youdao Information. Under such Equity Pledge Agreements, each of William Lei Ding and Feng Zhou pledged his respective equity interest in Youdao Computer to Youdao Information to secure his obligations under the applicable Loan Agreement, Exclusive Purchase Option Agreement, Shareholder Voting Right Trust Agreement, and Operating Agreement. Each of William Lei Ding and Feng Zhou further agreed not to transfer or pledge his respective equity interest in Youdao Computer without the prior written consent of Youdao Information. Each of the Equity Pledge Agreements will remain binding until the respective pledger, William Lei Ding or Feng Zhou, as the case may be, discharges all his obligations under the above-mentioned agreements. ii) Contracts that enable the Company to receive substantially all of the economic benefits from the VIE Operating Agreements Each of Youdao Computer, William Lei Ding and Feng Zhou agreed that, except for transactions in the ordinary course of business, Youdao Computer will not enter into any transaction that would materially affect the assets, liabilities, rights or operations of Youdao Computer without the prior written consent of Youdao Information. Youdao Information also agreed that it would provide performance guarantees and, at Youdao Information’s discretion, guarantee loans for working capital purposes to the extent required by Youdao Computer for its operations. As counter-guarantee, Youdao Computer agreed to pledge the account receivable in its operations and all of its assets to Youdao Information, which pledge has not been implemented as of the date of the report. Furthermore, each of William Lei Ding and Feng Zhou agreed that, upon instruction from Youdao Information, he would appoint Youdao Computer’s board members, president, chief financial officer and other senior executive officers. The term of each operating agreement is 20 years from the date of execution and can be extended with the written consent of Youdao Information. Cooperation Agreement Under this cooperation agreement, Youdao Information has agreed to provide the following services to Youdao Computer: • the development of computer software (including, but not limited to, producing online advertisement and distribution and maintenance of software) and technical support and maintenance for computer software operation; • the design, development, update and upgrade of platforms for online advertisement; and • the provision of technology support, including, but not limited to, server maintenance, development of server software and related maintenance and updates. Youdao Computer has agreed to share a portion of its monthly income (after tax and expenses) with Youdao Information in accordance with certain formulas as specified in Cooperation Agreement, the amount of which shall be determined according to the Cooperation Agreement, to the extent permitted by applicable PRC laws as proposed by the Youdao Information, resulting in a transfer of substantially all of the profits from the VIE to the Youdao Information. The VIE has incurred RMB478.8 million, RMB1,276.0 million and RMB2,092.2 million service fee to the Youdao Information for the years ended December 31, 2019, 2020 and 2021, respectively. The agreement was effective and will continue to be effective unless it is terminated by written notice of each party or, in case of a material breach of the agreement and by written notice of the non-breaching iii) Risks in relation to VIE structure The nominee shareholders of the VIEs are William Lei Ding, who is the chief executive officer, director and major shareholder of NetEase, the Company’s controlling shareholder, and Feng Zhou, who is the Chief Executive Officer of the Group. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIEs depend on these individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and the VIEs may not be aligned in the future. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced. The Group’s operations depend on the VIEs to honour their contractual agreements with the Group and the Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote. The Company believes that its contractual arrangements with the VIEs are in compliance with PRC (the People’s Republic of China) law and are legally enforceable. William Lei Ding and Feng Zhou have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if William Lei Ding and Feng Zhou were to reduce their interests in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. If the VIEs or their respective shareholder fails to perform their respective obligations under the current contractual arrangements, the Company may have to incur substantial costs and expend significant resources to enforce those arrangements and rely on legal remedies under Chinese laws. Because of the limited volume of published decisions and their non-binding In addition, many Chinese regulations are subject to extensive interpretive powers of governmental agencies and commissions, and there are substantial uncertainties regarding the interpretation and application of current and future Chinese laws and regulations. Accordingly, the Company cannot assure that Chinese regulatory authorities will not ultimately take a contrary view to its belief and will not take action to prohibit or restrict its business activities. The relevant regulatory authorities would have broad discretion in dealing with any deemed violations which may adversely impact the financial statements, operations and cash flows of the Company (including the restriction on the Company to carry out the business). If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could potentially: • revoke the Group’s business and operating licenses; • require the Group to discontinue or restrict operations; • restrict the Group’s right to collect revenues; • block the Group’s websites and mobile applications; • require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply • impose additional conditions or requirements with which the Group may not be able to comply; or • take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIEs or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs. The Group does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, its subsidiaries or the VIEs. In accordance with VIE contractual agreements, the Company (1) could exercise all shareholder’s rights of the VIEs and has power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company was considered as ultimate primary beneficiary of the VIEs and had consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. Therefore, the Company considers that there are no assets in the VIEs that can be used only to settle obligations of the VIEs, except for the registered capital of the VIEs amounting to approximately RMB15 million and RMB22 million, respectively, non-distributable There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements: As of December 31, 2020 2021 RMB RMB Assets Cash and cash equivalents 7,691 134,639 Restricted cash (Note 2(j)) — 749,770 Short-term investments 10,354 13,617 Accounts receivable, net 145,212 146,257 Inventories, net 26,556 48,477 Amounts due from NetEase Group and Youdao Group 1,243,125 442,286 Prepayment and other current assets 45,065 64,005 Assets held for sale 52,534 204 Total current assets 1,530,537 1,599,255 Property , and software 148 3,244 Operating lease right-of-use 988 26,320 Goodwill — 103,006 Other assets, net 45,496 36,405 Total non-current 46,632 168,975 Total assets 1,577,169 1,768,230 Liabilities Accounts payables 62,438 45,756 Payroll payable 6,863 11,873 Amounts due to NetEase Group and Youdao Group 26,728 504,605 Contract liabilities 842,296 1,011,734 Taxes payable 394 4,072 Accrued liabilities and other payables 35,021 65,547 Liabilities held for sale 546,271 — Total current liabilities 1,520,011 1,643,587 Long-term lease liabilities 223 15,803 Total non-current 223 15,803 Total liabilities 1,520,234 1,659,390 For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues: Third-party net revenues 900,263 1,792,962 2,750,610 Intra-Group net revenues — 552 941 Total net revenues 900,263 1,793,514 2,751,551 Cost and expenses: Third-party cost and expenses (358,318 ) (421,814 ) (561,272 ) Intra-Group cost and expenses related to technical consulting and related service s (540,830 ) (1,402,371 ) (2,221,199 ) Other intra-Group cost and expenses (2,235 ) (1,107 ) (10,673 ) Total cost and expenses (901,383 ) (1,825,292 ) (2,793,144 ) Net income/(loss) from continuing operations 2,066 20,483 (58,520 ) For the year ended December 31, 2019 2020 2021 RMB RMB RMB Cash flows from operating activities: Net cash provided by transactions with external parties 855,715 3,034,716 3,278,167 Net cash used in transactions with intra-Group companies related to technical consulting and related service s (805,129 ) (3,098,831 ) (2,409,300 ) Net cash provided by/(used in) other transactions with intra-Group companies 392 1,613 (699 ) Net cash provided by/(used in) operating activities 50,978 (62,502 ) 868,168 Cash flows from investing activities: Net cash (used in)/provided by transactions with external parties (67,118 ) 65,510 8,550 Net cash (used in)/provided by investing activities (67,118 ) 65,510 8,550 Cash flows from financing activities: Proceeds received from ordinary shareholders 10,000 — — Net cash provided by financing activities 10,000 — — Liquidity The Group incurred net losses of RMB601.5 million, RMB1,753.4 million and RMB1,026.4 million for the years ended December 31, 2019, 2020 and 2021, respectively. Net cash used in operating activities was RMB372.3 million, RMB321.6 million and RMB1,346.4 million for the years ended December 31, 2019, 2020 and 2021, respectively. Accumulated deficit was RMB3.7 billion and RMB4.7 billion as of December 31, 2020 and 2021, respectively. As of December 31, 2021, the Group was in a net current liability position of RMB764.3 million. The Group assesses its liquidity by its ability to generate cash from operating activities and attract additional capital and/or finance funding. Historically, the Group has relied principally on both operational sources of cash and non-operational Group in November 2021, NetEase Group will continue to provide financial support in the next twelve months from the date of issuance of financial statement. Refer to Note 20 for details of the Group’s relationship with NetEase Group for financing activities. In October 2019, the Company has completed its IPO on the New York Stock Exchange (“NYSE”) and the concurrent private placement (the “CPP”) to certain investment funds managed by Orbis Investment Management Limited follow-on |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Principles of consolidation Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant intercompany balances and transactions within the Group have been eliminated upon consolidation. (c) Discontinued operations The Group reports a disposal of its component or a group of its components as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Group’s operations and financial results. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. In the period that a discontinued operation is classified as held for sale, the assets and liabilities of the discontinued operation are presents separately in asset and liability sections, respectively, of the consolidated balance sheets and prior periods are presented on a comparative basis. In the consolidated statements of operations and comprehensive loss, the results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. Unless otherwise noted, discussion in the Notes to consolidated financial statements refers to the Group’s continuing operations. Refer to Note 3 for additional information. (d) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the learning period of the customers, fair value of assets and liabilities acquired in business combinations, assessment for impairment of long-lived assets, intangible assets and goodwill, lower of cost and net realizable value of inventories, valuation allowance of deferred tax assets, determination of the fair value of ordinary shares and convertible redeemable preferred shares, valuation and recognition of share-based compensation expenses. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. (e) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company is United States dollars (“US$” or “USD”). The functional currency of the Company’s PRC subsidiaries, VIEs, VIEs’ subsidiaries as well as one subsidiary incorporated in Hong Kong is RMB. The determination of the respective functional currencies based on the criteria of ASC 830, Foreign Currency Matters In the consolidated financial statements, the financial information of the Company has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet date. Net gains and losses resulting from foreign exchange transactions are included in others, net in the consolidated statements of operations and comprehensive loss. (f) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2021 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.3726, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. (g) Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation techniques are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, time deposits, restricted cash, short-term investments, accounts receivable, other receivables, amounts due from/to NetEase Group, accounts payables, contract liabilities, accrued liabilities and other payables, short-term loans and long-term loans from NetEase Group of which the carrying values approximate their fair value. Please see Note 18 for additional information. (h) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which have original maturities less than three months and are readily convertible to known amount of cash. (i) Time deposits Time deposits represent time deposits placed with banks with original maturities of three months or more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statements of operations and comprehensive loss during the periods presented. (j) Restricted cash Restricted cash represents cash deposits for the upfront tuition fee in the government custodian account required by the PRC government authorities. (k) Receivables, net The Group closely monitors the collection of its receivables and records a reserve for doubtful accounts against aged accounts and for specifically identified non-recoverable (l) Investments i) Short-term investments Short-term investments include investments in financial instruments with a variable interest rate indexed to performance of underlying assets. In accordance with ASC 825, Financial Instruments, ii) Long-term investments Long-term investments are comprised of equity investments in privately-held companies and limited partnership. For investments in ordinary shares or in-substance in-substance Investments in ordinary shares or in-substance Management regularly evaluates the impairment of the equity investments without readily determinable fair value and equity method investments at each balance sheet date, or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. For investments without readily determinable fair values, management performs a qualitative assessment of impairment indicators. If considered impaired, management estimates the fair value of the investment, and records an impairment in the consolidated statements of operations and comprehensive loss to the extent the carrying amount exceeds the fair value. For equity method investments, management considers if the investment is impaired when events or circumstances suggest the carrying amount may not be recoverable, and recognizes any impairment charge in the consolidated statements of operations and comprehensive loss for a decline in value that is determined to be other than temporary. (m) Inventories, net Inventories, consisting of smart devices and learning materials for tutoring services, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased, but has arrangements to return unsold goods with certain vendors. Write downs are recorded in cost of revenues in the consolidated statements of operations and comprehensive loss. (n) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range as follows: Servers and computers 3 years Furniture, fixtures, office and other equipment 3-10 Leasehold improvements The shorter of the useful life or term of the lease Software and others 3-5 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive loss. (o) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable assets acquired and the liabilities assumed in business combination. Goodwill is not amortized but is tested for impairment at the reporting unit level on an annual basis by the end of year, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under ASC 350-20-35, Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No impairment charge of goodwill was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. (p) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. The Group 2021. No impairment loss was recognized for the years ended December 31, and (q) Revenue recognition The Group adopted ASC 606, Revenue from Contracts with Customers Disaggregation of net revenues For the years ended December 31, 2019, 2020 and 2021, substantially all of the Group’s net revenues were generated in the PRC. The following table provides information about disaggregated revenue by types: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Learning services 602,353 1,513,960 2,441,421 Tutoring services 510,095 1,369,010 2,271,036 Fee-based 92,258 144,950 170,385 Smart devices 152,044 539,962 980,424 Online marketing services 453,013 472,884 593,949 Total net revenues 1,207,410 2,526,806 4,015,794 i) Learning services Tutoring services The Group offers various types of integrated learning services, which primarily cover a wide spectrum of topics and target people from broad age groups through its diverse offerings of tutoring courses, foreign languages, professional and interest education services as well as IT computer skills, etc. The Group’s tutoring services consist of online live streaming and other activities during the online live streaming period including teaching material, quiz banks, online chat rooms, summary of lessons after each class and interactions with both students and instructors. Once the online live streaming is completed, the Group also offers the customer a content playback service. With respect to the content playback service, the customer has unlimited access to previous live streaming courses for a specified period. The services of online live streaming, playback service, as well as the other activities provided mentioned above are highly interdependent and interrelated in the context of the contract and are only considered accessory services to the online live streaming courses and therefore are not distinct and are not sold standalone. Therefore, the Group’s tutoring services are accounted for as a single performance obligation. This performance obligation is satisfied over the learning period of the customers. Accordingly, the Group recognizes the revenues ratably over the estimated average learning period for different courses. The Group considers the average period that customers typically spend time on the courses and other learning behavior patterns to arrive at the best estimate for the estimated learning period for each course based on the estimated learning time customers spend on the courses and the expected number of times customers will take the courses. The Group’s tutoring services also consist of online pre-recorded The estimated weighted average duration of learning periods is approximately ranged from five to seven months for the years ended December 31, 2019, 2020 and 2021 for both live streaming courses and pre-recorded There is a refund policy provided to customers for tutoring services, depending on whether the course had commenced at the time of the refund request, the length of the course, the number of sessions that the student has taken, among other criteria. The Group determines the transaction price to be earned by estimating the refund liabilities based on historical refund ratio on a portfolio basis using the expected value method. The Group also provides discount coupons to its customers for use in purchases on tutoring services, which are treated as a reduction of revenue when the related transaction is recognized. Fee-based Fee-based Youdao Dictionary Youdao Smart Cloud ii) Smart devices The Group sells smart devices such as dictionary pens, translation devices to customers through retailers or distributors. The Group recognizes revenues when control of the goods is transferred to the customer, which generally occurs upon the delivery to the end customers as retailors or upon the delivery to distributors. Along with certain tutoring services, the Group also provides smart devices such as smart pens to facilitate customers’ learnings. For such situation, the Group has determined that the smart devices are a separate performance obligation under ASC 606, as customers can benefit from smart devices on their own and the Group’s promises to deliver smart devices is separately identifiable from tutoring services. The Group determines stand-alone selling price to each performance obligation in the approach of expected cost-plus margin. Revenue from smart devices is recognized when they are delivered to customers. iii) Online marketing services The Group derives its online marketing revenues principally from short-term contracts. The online marketing services with display period, the contracts may consist of multiple performance obligations with a typical term of less than three months. Each performance obligation generally represents different formats of advertisement, including but not limited to banners, text-links, videos, logos, buttons and rich media. In arrangements where the Group has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Group generally determines stand-alone selling prices based on the prices charged to customers. If the performance obligation has not been sold separately, the Group estimates the stand-alone selling price by taking into consideration of the pricing for advertising areas of the Group’s platform with a similar popularities and advertisements with similar formats and quoted prices from competitors as well as other market conditions. Considerations allocated to each performance obligation is recognized as revenue over the individual advertisement display period, on a straight-line basis, which is usually within three months. The Group also enters into cost-per-click The Group’s online marketing services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ internet properties, including web content, software, and mobile applications. The Group is the primary obligor to its advertisers as it is primarily responsible to the customers, bears inventory risk and has the discretion in establishing pricing. Payments made to operators of third-party internet properties are included in the traffic acquisition costs. Certain customers may receive volume rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume with reference to their historical results and reduce revenues recognized. Practical expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The effects of a significant financing component have not been adjusted for contracts which the Group expects, at contract inception, that the period between when the Group transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. (ii) The Group applied the portfolio approach in determining the learning period of the customers given that the effect of applying a portfolio approach to a group of students’ behaviors would not differ materially from considering each one of them individually. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract liabilities Contract liabilities refer to the deferred revenue and refund liabilities. Deferred revenue is relating to the learning tuition, online marketing services and fee-based premium services with fees received from customers for which the Group’s revenue recognition criteria have not been met. Revenue recognized that was included in the deferred revenue balance at January 1, 2020 and January 1, 2021 amounted to RMB438,839 and RMB854,342, respectively. As of December 31, 2021, the aggregate amount of transaction price allocated to unsatisfied performance obligations is RMB1,018.1 million Refund liabilities represent the consideration collected by the Group which it expects to refund to its customers according to refund policy. Refund liabilities are estimated based on the historical refund ratio for each of the revenue streams. The refund liabilities were not material, as of December 31, 2020 and 2021. In the event that the actual amount of refund made exceeds the estimation, such excessive amount will be deducted from net revenues. (r) Cost of revenues Cost of revenues primarily consists of the revenue sharing and payroll expenses to instructors and tutors, traffic acquisition costs, content costs, servers and bandwidth service fees and other direct costs of providing these services as well as costs of smart devices sold. (s) Sales and marketing expenses Sales and marketing expenses mainly consist of marketing and promotional expenses, payroll related expenses and third-party service fee for outsourced sales and marketing functions. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, advertising expenses were RMB323.6 million, RMB1,122.1 million and RMB1,393.3 million, respectively. (t) Research and development expenses Research and development expenses mainly consist of personnel related expenses and technology service costs incurred for the learning courses and its development, as well as development and enhancement of the Group’s websites and applications platforms. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. No costs incurred for development of learning content, products and advertising services have been capitalized because the period after the date technical feasibility is reached and the time when relevant products and services are marketed is historically short. (u) Share-based compensation The Group grants options to its employees, directors and consultants with performance conditions and service conditions. In accordance with ASC 718, Compensation-Stock Compensation The Group adopts the binomial option pricing model to determine the fair value of stock options. The determination of the fair value of stock options is affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk free interest rates and expected dividends. Prior to the Company’s IPO, the fair value of the ordinary shares is assessed using the income approach/discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Upon the completion of the IPO, the market price of the Company’s publicly traded ADSs is used as an indicator of fair value of ordinary shares for purposes of recording share-based compensation expenses. Share-based compensation expenses for share options granted with service conditions are recorded net of estimated forfeitures using graded-vesting method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service conditions and the occurrence of an IPO as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service conditions are recorded upon the completion of the IPO. In the fourth quarter of 2019, due to the completion of the IPO, the total expenses of RMB18.4 million were recorded accordingly. The Group also recognizes compensation expenses on restricted share units, or RSUs, granted by the Parent to the employees of the Group. RSUs are measured based on the fair market value of the underlying stock on the dates of grant. Share-based compensation expenses related are then recorded for the number of RSUs expected to vest on a graded-vesting basis, net of estimated forfeitures, over the requisite service period. (v) Employee benefits PRC Contribution Plan Full-time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and the VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB86,316, RMB68,002 and RMB222,690 for the years ended December 31, 2019, 2020 and 2021, respectively. (w) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step (x) Business combinations The Group accounts for its business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations If a business combination is under common control, the acquired assets and liabilities are recognized at their historical book value. The consolidated financial statements include the results of the acquired entities from the earliest date presented or, if more recent, from the date when the entities first came under common control, regardless of the date of the combination. Consolidated financial statements for prior years would also be retrospectively adjusted for periods during which the entities were under common control. In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. (y) Operating leases The Group has operating leases primarily for office space. The determination of whether an arrangement is a lease or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The Group elects not to apply the recognition requirements of ASC 842 to short-term leases. Variable lease payments are the payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Var |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | 3. Discontinued operations In September 2021, the Company’s Board of Directors approved a plan to dispose of its after-school tutoring services for academic subjects in China’s compulsory education system (the “Academic AST Business”) to an unaffiliated third party non-profit The disposal represented a strategic shift that had a major effect on the Group’s operations and financial results and was accounted for as discontinued operations. The Group has classified the historical financial results of Academic AST Business as discontinued operations in the Group’s consolidated statements of operations and comprehensive loss for all periods presented. Additionally, the related assets and liabilities associated with discontinued operations in the prior year consolidated balance sheets were classified as assets/liabilities held for sale to provide the comparable financial information. The following tables set forth the assets, liabilities classified as held for sale and statement of operations of discontinued operations which were included in the Group’s consolidated financial statements: As of December 31, 2020 2021 RMB RMB Inventories, net 29,699 204 Prepayment and other current assets 35,890 293 Total current assets 65,589 497 Property, equipment and software, net 5,463 1,088 Total non-current 5,463 1,088 Total assets 71,052 1,585 Contract liabilities 546,271 — Total current liabilities 546,271 — Total liabilities 546,271 — For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 97,473 640,709 1,338,563 Cost of revenues (61,896 ) (293,860 ) (421,190 ) Gross profit 35,577 346,849 917,373 Operating expenses: Sales and marketing expenses (167,136 ) (1,223,414 ) (862,153 ) Research and development expenses (5,472 ) (52,409 ) (97,521 ) General and administrative expense s (4,047 ) (25,353 ) (57,966 ) Total operating expenses (176,655 ) (1,301,176 ) (1,017,640 ) Loss from operations (141,078 ) (954,327 ) (100,267 ) Net loss from discontinued operations (141,078 ) (954,327 ) (100,267 ) |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2021 | |
Concentration and Risks [Abstract] | |
Concentration and Risks | 4. Concentration and Risks Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, time deposits, restricted cash and short-term investments. As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents, time deposits, restricted cash and short-term investments were held in major financial institutions located in Mainland China and Hong Kong, which management considered being of high credit quality. There were no revenues from customers which individually represent greater than 10% of the total net revenues for the years ended December 31, 2019, 2020 and 2021. There was one instructor, through whom the Group’s Group’s respectively as follows: For the year ended December 31, 2019 2020 2021 Instructor A 13 % 18 % * Instructor B * * 16 % * The percentage was below 10% for the year. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination [Abstract] | |
Business combinations | 5. Business Combinations In June 2020, the Group acquired 92.5% equity interest of a private company, which primarily provides kids programming courses to its users, with cash consideration of RMB7,700. Total consideration was paid by the Group in July 2020. The Group began to consolidate its financial statements from June 2020 and the remaining 7.5% equity interest was recognized as noncontrolling interests on the balance sheet upon the acquisition date. The goodwill was allocated to learning services segment. Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities assumed as follows: As of the acquisition date RMB Consideration 7,700 Noncontrolling interests 624 Total 8,324 Cash and cash equivalents 1,302 Other tangible assets 156 Liabilities assumed (72 ) Goodwill 6,938 Total 8,324 The acquisition above did not have a material impact on the Group’s consolidated financial statements, and, therefore, pro forma disclosures have not been presented. In May 2021, the Group acquired 100% equity interest of a private company, which primarily provides kids STEAM courses to its users, with cash consideration of RMB6,050. Total consideration was paid by the Group in June 2021. The Group obtained control and began to consolidate its financial statements from June 2021. The goodwill was allocated to learning services segment. Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities follows As of the acquisition date RMB Cash consideration 6,050 Total 6,050 Cash and cash equivalents 354 Other tangible assets 470 Liabilities assumed (11,869 ) Goodwill 17,095 Total 6,050 The acquisition above did not have a material impact on the Group’s consolidated financial statements, and, therefore, pro forma disclosures have not been presented. In 2020, the Group acquired equity interest with liquidation preference of a private company (the “Investee”), which primarily provides offline after-school tutoring services, with cash consideration of RMB30.0 million. The investment was accounted for using measurement alternative. In 2021, the Group acquired additional equity interest with consideration of million from previous shareholders, and subscribed newly issued shares of the Investee with consideration of million. As a result of these transactions, the Group acquired equity interest of the Investee and obtained control accordingly. The Group began to consolidate its financial statements following the completion of the transaction. The goodwill was allocated to learning services segment. Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities assumed as follows: As of the acquisition date Amortization Period RMB Cash consideration 122,000 Previously held equity interest 27,544 Redeemable noncontrolling interests 106,368 Total 255,912 Cash and cash equivalents 165,783 Other tangible assets 18,040 Identifiable intangible assets : Trademark 46,000 10 years Licenses 6,500 10 years Copyright 4,000 5 years Students base 3,250 3 years Deferred tax liabilities (8,963 ) Liabilities assumed (64,609 ) Goodwill 85,911 Total 255,912 The Group’s previously held equity interests in the acquired entity was remeasured to fair value at the acquisition date. For the year ended December 31, 2021, the Group recognized a net re-measurement loss of in others, net in the consolidated statement of operations and comprehensive loss. The Group Goodwill, which is non-deductible Amortization expenses and were RMB2,972 and , respectively, The acquisition above did not have a material impact on the Group’s consolidated financial statements, and, therefore, pro forma disclosures have not been presented. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | 6. Accounts Receivable, Net The following is a summary of accounts receivable as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accounts receivable, net: Accounts receivable 283,159 258,156 Allowance for expected credit losses: Balance at the beginning of the year (2,278 ) (14,329 ) Additional provision charged to expenses (12,051 ) 667 Write-off — 3,845 Balance at the end of the year (14,329 ) (9,817 ) 268,830 248,339 |
Prepayment and Other Current As
Prepayment and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepayment and Other Current Assets [Abstract] | |
Prepayment and Other Current Assets | 7. Prepayment and Other Current Assets The following is a summary of prepayment and other current assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Prepayment for promotion fees 44,575 42,696 Prepayment for value-added taxes 40,950 38,315 Deferred expenses for learning services 28,752 34,457 Prepayment for content fees 2,206 9,543 Deferred charges 8,857 8,745 Prepayment for rental expenses 4,900 7,247 Prepaid sales commission 1,158 2,263 Receivable for withholding individual income taxes of option exercise 39,371 1,700 Interest receivable 51 281 Prepaid insurance fee for directors and officers 5,329 — Others 23,493 37,330 Total 199,642 182,577 |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment, Net [Abstract] | |
Property, Equipment and Software, Net | 8. Property, Equipment and Software, Net Property, equipment and software, net as of December 31, 2020 and 2021 are as follows: As of December 31, 2020 2021 RMB RMB Servers and computers 68,895 84,425 Furniture, fixtures and office equipment 4,419 14,053 Leasehold improvements 6,723 38,120 Software and others 2,425 5,067 Total 82,462 141,665 Less: accumulated depreciation (42,289 ) (61,350 ) Net book value 40,173 80,315 Depreciation expenses recognized for the years ended December 31, 2019, 2020 and 2021 were RMB10,255, RMB13,853 and RMB21,068, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | 9. Leases The Group has operating leases for office space, with lease terms from within one year to around ten years. Additionally, certain lease agreements with NetEase Group contain variable payments, which are determined based on actual NetEase Group’s spaces occupied by the Group and are expensed as incurred and not included in the operating lease assets and liabilities. A summary related to operating leases as of December 31, 2020 and 2021 is a s As of December 31, 2020 2021 RMB RMB Operating lease right-of-use 105,865 118,104 Operating lease liabilities - current 29,982 46,688 Operating lease liabilities - non-current 79,748 73,070 Total operating lease liabilities 109,730 119,758 Weighted average remaining lease term 4.4 years 3.6 years Weighted average discount rate 4.10 % 3.99 % For the year ended 2019 2020 2021 RMB RMB RMB Operating lease expenses 1,885 5,924 25,449 Short-term lease expenses 2,493 2,306 3,381 Variable lease expenses 19,841 31,684 24,008 Total lease expenses 24,219 39,914 52,838 Cash paid for amounts included in the measurement of operating lease liabilities 658 12,431 37,756 Right-of-use 26,030 91,893 85,731 Lease liabilities decrease due to early termination — — 44,469 A summary of maturity of operating lease liabilities under the Group’s non-cancelable As of RMB 2022 47,525 2023 36,115 2024 16,314 2025 11,855 2026 10,651 Thereafter 3,200 Total operating lease liabilities 125,660 Less: interest (5,902 ) Present value of operating lease liabilities 119,758 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Taxation [Abstract] | |
Taxation | 10. Taxation (a) Sales tax Pursuant to the provision regulation of the PRC on Value-added tax (“VAT”) and its implementation rules, the Company’s subsidiaries and VIEs are generally subject to VAT at a rate of 6% from revenues earned from services provided or 17% from sales of general goods. Effective from May 1, 2018, the 17% VAT rate was reduced to 16% and effective from April 1, 2019, the 16% VAT rate was further reduced to 13%. Since January 2020, in accordance with the Announcement on Tax Policies to Support Prevention and Control of COVID-19 COVID-19, The Group is also subject to cultural development fee on the provision of advertising services in China. The applicable tax rate is 3% of the advertising revenue and subject to a 50% reduction which was effective from July 1, 2019. The cultural development fee on the provision of advertising services was exempted starting on January 1, 2020 until December 31, 2021 according to the Announcement on Tax and Fee Policies to Support the Film and Other Industries issued by the Ministry of Finance and STA on May 13, 2020 and Announcement of the Ministry of Finance and the State Taxation Administration on the Renewal of the Implementation of Some Tax Preferences in Response to the Epidemic (Announcement of the Ministry of Finance and the State Taxation Administration No. 7 of 2021) due to the breakout of COVID-19. (b) Income tax Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2019, 2020 and 2021: For the year ended 2019 2020 2021 RMB RMB RMB Current income tax expenses 2,432 2,929 15,611 Deferred tax benefit — — (8,963 ) Income tax expenses 2,432 2,929 6,648 Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company in the Cayman Islands to their shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong The subsidiary incorporated in Hong Kong was subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong before April 1, 2018. Starting from the financial year commencing on April 1, 2018, the two-tiered China Under the PRC Enterprise Income Tax Law, or EIT Law, the standard enterprise income tax rate (“EIT rate”) is 25%. Entities qualifying as High and New Technology Enterprises (“HNTE”) qualify for a preferential tax rate of 15% subject to a requirement that they re-apply Youdao Information was qualified as an HNTE in 2015 initially and extended the qualification in 2018 and 2021, and hence subject to a preferential tax rate of 15% since 2015 to 2023. As of December 31, 2021, Youdao Information was in an accumulative deficit position. In addition, Beijing Lingshi Ruifeng Education Technology Co., Ltd. was qualified as an HNTE and hence subject to a preferential tax rate of 15% since 2020 to 202 2 All other PRC incorporated entities of the Group were subject to a 25% income tax rate for all the periods presented. The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021: For the year ended 2019 2020 2021 Statutory income tax rate 25% 25% 25% Permanent differences 0% 3% 3% Tax effect of preferential tax treatment and tax difference of statutory rate in other jurisdictions (9% ) (11% ) (9% ) Change in valuation allowance (16% ) (17% ) (21% ) Effective income tax rate 0% 0% (2% ) (c) Deferred tax assets The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Deferred tax assets Net operating tax loss carry forwards 137,550 382,409 Advertising and promotion expenses in excess of deduction limit 315,708 334,697 Payroll and expense accrued 98,889 99,007 Others 2,085 3,612 Less: valuation allowance (554,232 ) (819,725 ) Total deferred tax assets, net — — The following table sets forth the movement of the valuation allowances for deferred tax assets for the periods presented: For the year ended 2020 2021 RMB RMB Balance as of January 1 252,069 554,232 Change of valuation allowance 302,163 265,493 Balance as of December 31 554,232 819,725 The tax losses of the Group expire over different time intervals depending on local jurisdiction. Certain HNTE entity’s expiration period for tax losses has been extended from five years to ten years in 2018, other entities’ expiration period for tax losses maintains as five years. Tax losses of Company’s subsidiary incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income. As of December 31, 2021, certain entities of the Group had net operating tax loss carry forwards as follows: RMB Loss expiring in 2022 — Loss expiring in 2023 139,448 Loss expiring in 2024 141,556 Loss expiring in 2025 188,518 Loss expiring in 2026 240,483 Loss expiring in 2027 112,069 Loss expiring in 2028 201,070 Loss expiring in 2029 230,257 Loss expiring in 2030 and thereafter 1,126,120 2,379,521 (d) Withholding income tax The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident To the extent that subsidiaries and VIEs of the Group have |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable [Abstract] | |
Taxes Payable | 11. Taxes Payable The following is a summary of taxes payable as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB VAT payable 3,325 30,582 Withholding individual income taxes for employees 48,692 14,724 Enterprise income taxes payable 2,503 7,656 Others 375 361 Total 54,895 53,323 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables [Abstract] | |
Accrued Liabilities and Other Payables | 12. Accrued Liabilities and Other Payables The following is a summary of accrued liabilities and other payables as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accrued marketing expenses 257,216 173,944 Accrued liabilities for learning services and online marketing services 136,605 141,521 Operating lease liabilities-current portion 29,982 46,688 Accrued technical expenses 24,000 29,890 Accrued administrative expenses 23,777 26,717 Accrued outside labor service fee 64,799 22,975 Payables for property, equipment and software 7,068 14,088 Deferred government grant 21,376 11,503 Warehousing and logistics fee 8,034 11,323 Accrued professional fee 11,811 10,177 Unpaid consideration for business combination — 5,129 Deposits payable to service providers 1,823 1,762 Others 15,553 19,850 Total 602,044 515,567 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Ordinary Shares [Abstract] | |
Ordinary Shares | 13. Ordinary Shares The Company was incorporated in the Cayman Islands on November 27, 2014 by NetEase. Upon its incorporation, 1 ordinary share was issued at a par value of US$1 per share. On February 3, 2015, the Company performed a share split to 10,000 shares at a par value of US$0.0001 per share. On March 7, 2018, the Company issued 65,377,160 shares to NetEase with a total consideration of US$7. This issuance to NetEase was treated as an in substance 10,000 to 65,387,160 share split. All ordinary shares and per share information are adjusted retroactively for all periods presented to reflect the share split in March 2018. On March 28, 2018, the Company issued 26,612,840 shares to the holding vehicle of previous non-controlling In October 2019, the Company completed the IPO on NYSE, by which, the Company sold a total of 5,600,000 ADSs, each representing one of our Class A ordinary shares, par value US$0.0001 per share. In addition, the Company issued 7,352,941 Class A ordinary shares for a total consideration of US$125.0 million in connection with concurrent private placements to certain investment funds managed by Orbis Investment Management Limited, at US$17.00 per share. The Company received total net proceeds of approximately US$213.2 million after deducting US$7.0 million of underwriter commissions and relevant offering expenses. Immediately prior to the completion of the IPO, all the ordinary shares held by NetEase and certain key founders were converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders was converted into an equal number of the Class A ordinary shares, and all of outstanding preferred shares were automatically converted into 6,814,815 Class A ordinary shares. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to three votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares. On February 10, 2021, the Company completed the follow-on As of December 31, 2020 and 2021, the Company had 114,729,466 and 123,267,785 ordinary shares issued and outstanding, respectively. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Redeemable Preferred Shares [Abstract] | |
Convertible Redeemable Preferred Shares | 14. Convertible Redeemable Preferred Shares On April 17, 2018, the Company issued 6,814,815 Series A convertible redeemable preference shares (“preferred shares”) with an issuance price of US$10.27 per share to two investors (the “Purchasers”), for a total cash consideration of US$70 million (RMB440 million). The issuance costs for Series A preferred shares were RMB9,826. The key terms of the preferred shares are as follows: Conversion right Each preferred share is convertible into an ordinary share, at the option of the holder thereof, at any time on a one-for-one The initial conversion price will be the preferred share issue price (i.e., a one-to-one Redemption right If the Company has not completed a QIPO prior to April 12, 2022, the Purchasers shall have the right to sell to the Company all or a portion of preferred shares they own at a price equal to 140% of the purchase consideration plus all declared but unpaid dividends on such preferred shares. A notice of redemption by the requesting Purchaser shall be delivered to the Company, within ninety days after but not including April 12, 2022. If the put right is not exercised within the ninety days, it will be irrevocably forfeited. In the event that the Company does not have sufficient funds to redeem all of the preferred shares requested to be redeemed, the Parent shall repurchase the requested preferred shares at a price reflecting an annual compounded rate of 6% of the purchase consideration plus all declared but unpaid dividends on such preferred shares. The redemption option provided by the Parent is considered an in-substance Liquidation In the event of liquidation, the holders of preferred shares shall be entitled to receive, prior to the holders of ordinary shares, the relevant amount per preferred share equal to (i) 100% of the applicable preferred share issue price, plus (ii) an amount accruing thereon at an annual rate of 10% of the applicable preferred share issue price, plus (iii) all declared but unpaid dividends thereon. In the event of insufficient funds available to pay in full the preference amount in respect of preferred shares, the entire assets and funds of the Company legally available for distribution to the holders of preferred shares shall be distributed on a pro rata basis among the holders of preferred shares in proportion to issued price. Voting right The holders of preferred shares and ordinary shares shall vote together based on their shareholding ratio. Dividend Each preferred shareholder shall be entitled to receive dividends and distributions on an as-converted Accounting of preferred shares The Company has classified the preferred shares in the mezzanine equity of the consolidated balance sheets. In addition, the Company records accretions on the preferred shares to the redemption value from the issuance date to the earliest redemption date. The accretions using the effective interest method, are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in paid-in All of the preferred shares were converted to Class A ordinary shares upon the completion of the Group’s IPO in October 2019. The Company’s preferred shares activities for the year ended December 31, 2019 are summarized as below: Balance as Accretions of to redemption Conversion into shares upon IPO upon IPO Balance as of December 31, Series A preferred shares Number of shares (in thousands) 6,815 — (6,815 ) — Amount (RMB in thousands) 460,652 35,893 (496,545 ) — |
Others, Net
Others, Net | 12 Months Ended |
Dec. 31, 2021 | |
Others, Net [Abstract] | |
Others, Net | 15. Others, Net For the year ended December 31, 2019 2020 2021 RMB RMB RMB Government grants 18,087 28,644 42,202 Fair value changes of short-term investments 863 9,396 28,810 Donation (1,620 ) (1,459 ) (9,801 ) Impairment of long-term investments — — (7,000 ) VAT exemption due to the COVID-19 — 51,889 (5,353 ) Foreign exchange gains/(losses) 3,279 (23,935 ) (5,005 ) Loss from lease termination — — (2,809 ) Remeasured loss from previously held interest (Note 5) — — (2,456 ) Others (545 ) (3,483 ) (1,915 ) Total 20,064 61,052 36,673 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | 16. Share-based Compensation The table below sets forth the allocation of share-based compensation expenses: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 3,642 4,641 7,862 Sales and marketing expenses 2,007 4,821 10,521 Research and development expenses 9,241 19,738 33,775 General and administrative expenses 8,446 7,225 20,043 Total 23,336 36,425 72,201 NetEase Plan (a) Description of restricted share units plan In November 2009, NetEase adopted a restricted share units plan for NetEase’s employees, directors and consultants (the “2009 RSU Plan”). NetEase has reserved 323,694,050 ordinary shares for issuance under the plan. The 2009 RSU Plan was adopted by a resolution of the board of directors on November 17, 2009 and became effective for a term of ten years unless sooner terminated. In October 2019, NetEase adopted a 2019 restricted share unit plan (the “2019 Plan”) for its employees, directors and others. The 2019 Plan has a ten-year (b) Share-based compensation expenses NetEase recognizes share-based compensation expenses in its consolidated statements of operations and comprehensive loss based on awards ultimately expected to vest, after considering estimated forfeitures. Forfeitures are estimated based on the NetEase’s historical experience over the last five years and revised in subsequent periods if actual forfeitures differ from those estimates. The corresponding share-based compensation expenses were allocated to the Group based on grants to the Group’s employees, amounting to RMB4,356, RMB2,682 and RMB1,043 which is treated as deemed contribution from NetEase Group and recorded in additional paid-in Youdao Plan (a) Description of share incentive plan On February 3, 2015, the Company adopted an option and restricted share unit plan for the Company’s employees, directors and consultants (the “2015 Share Incentive Plan” or “2015 Plan”). The 2015 Plan was adopted in February 2015 and became effective for a term of ten years unless sooner terminated, initially 8,000,000 ordinary shares of the Company was reserved. In April 2018, the Company further reserved an additional 2,222,222 ordinary shares for the 2015 Plan, which resulted in the total number of ordinary shares reserved under the 2015 Plan to be 10,222,222. (b) Valuation The Group uses binomial option pricing model to determine fair value of the share-based awards. The fair value of each option granted for the years ended December 31, 2019, 2020 and 2021 is estimated on the date of grant using the following assumptions: For the year ended December 31, 2019 2020 2021 Expected volatility 46.50%-46.90% 48.90%-52.20% 52.40%-62.40% Expected dividends yield 0% 0% 0% Risk-free interest rate 2.10%-2.60% 0.30%-1.69% 0.58%-0.87% Expected term (in years) 6 6 6 Fair value of underlying ordinary share (US$) 6.35-7.29 16.00-42.31 9.44-35.99 The expected volatility at the grant date and each option valuation date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the options. The Company has not declared or paid any cash dividends on its capital stock, and the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. The Company estimated the risk-free interest rate based on the yield to maturity of U.S. treasury bonds denominated in USD at the option valuation date. The following table presents a summary of the Company’s options activities for the years ended December 31, 2019, 2020 and 2021: Number of Weighted Weighted Aggregate (in thousands) US$ Years US$ Outstanding as of January 1, 2019 6,991 2.13 3.40 29,468 Granted 2,072 3.50 Forfeited (734 ) 2.60 Outstanding as of December 31, 2019 8,329 2.43 3.06 97,000 Granted 888 4.00 Exercised (2,962 ) 1.84 Forfeited (353 ) 3.14 Outstanding as of December 31, 2020 5,902 2.92 3.07 139,326 Granted 1,095 4.50 Exercised (1,538 ) 2.45 Forfeited (554 ) 3.75 Outstanding as of December 31, 2021 4,905 3.33 2.94 44,871 Vested and exercisable as of December 31, 2020 2,182 2.32 1.89 52,828 Vested and exercisable as of December 31, 2021 1,841 2.66 1.71 18,085 The weighted average grant date fair value of share options granted during the years ended December 31, 2019, 2020 and 2021 were US$4.12, US$23.37 and US$23.30, respectively. The total fair value of options vested during the years ended December 31, 2019, 2020 and 2021 were RMB2,771, RMB11,087 and RMB34,618 (US$5,432), respectively. Under the option plan, options are only exercisable subject to the grantee’s continuous service and completion of the Company’s IPO, and options for which the service condition has been satisfied are forfeited should employment terminate before the Company’s public listing. As the effectiveness of an IPO is not within the control of the Company, it is not deemed probable to occur for accounting purposes until the effective date of the IPO which was on October 24, 2019. Therefore, for the year ended December 31, 2019, no compensation expenses were recorded for the share options granted to the Group’s employees. As of December 31, 2021, the unrecognized compensation expenses related to the options granted under the 2015 Plan was estimated to US$16,639 (RMB106,034) and is expected to be recognized through the remaining vesting period of each grant. As of December 31, 2021, the weighted average remaining vesting period was 2.36 years. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Loss per Share [Abstract] | |
Net Loss per Share | 17. Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss from continuing operations attributable to ordinary shareholders of the Company (496,318) (798,462) (895,388) Net loss from discontinued operations attributable to ordinary shareholders of the Company (141,078) (954,327) (100,267) Net loss attributable to ordinary shareholders of the Company (637,396) (1,752,789) (995,655) Denominator: Weighted average number of ordinary shares/ADSs outstanding, basic 95,445,982 112,864,452 121,650,907 Weighted average number of ordinary shares/ADSs outstanding, diluted 95,445,982 112,864,452 121,650,907 Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, basic (5.20) (7.07) (7.36) Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, basic (1.48) (8.46) (0.82) Net loss per share/ADS, basic (6.68) (15.53) (8.18) Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, diluted (5.20) (7.07) (7.36) Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, diluted (1.48) (8.46) (0.82) Net loss per share/ADS, diluted (6.68) (15.53) (8.18) Basic and diluted loss per share are computed using the weighted average number of ordinary shares/ADS outstanding during the period. Options for the purchase of 5,047,330, 6,363,378 and 3,685,694 ordinary shares as of December 31, 2019, 2020 and 2021, respectively, were excluded from the c |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Financial Instruments | 18. Financial Instruments Fair value The following table sets forth the major financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2020 and 2021: Fair value measurements Total Significant other RMB RMB As of December 31, 2020 Short-term investments 584,999 584,999 Total 584,999 584,999 As of December 31, 2021 Short-term investments 503,831 503,831 Total 503,831 503,831 The rates of interest under the loan agreements from NetEase Group were determined based on the prevailing interest rates in the market |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies (a) Commitments As of December 31, 2021, the Group’s future minimum commitments under non-cancelable Less than One to three years More than Total RMB RMB RMB RMB Purchase commitments 187,548 700 — 188,248 Capital commitments 6,070 — — 6,070 Total 193,618 700 — 194,318 Purchase commitments mainly include commitments for content, marketing activities and purchase of smart devices. Capital commitments mainly include commitments on purchase of fixed assets and the payment on leasehold improvements. (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of any unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liabilities in this regard as of December 31, 2020 and 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | 20. Related Party Transactions During the years ended December 31, 2019, 2020 and 2021, other than disclosed elsewhere, the Group had the following material related party transactions: Name of entity or individual Relationships with the Group NetEase Group Control or under common control (a) Transactions with related parties For the year ended December 31, 2019 2020 2021 RMB RMB RMB Services and products provided to NetEase Group Learning services provided to NetEase Group 2,913 5,826 7,360 Smart devices provided to NetEase Group 11,418 7,607 6,607 Online marketing services provided to NetEase Group 23,249 15,860 9,823 Services and products purchased from NetEase Group Services purchased from NetEase Group 66,280 163,487 143,186 Fixed assets and inventories purchased from NetEase Group 18,222 2,198 2,489 Loan related transactions Interest expenses on loans from NetEase Group 30,232 31,215 31,644 Addition of long-term loans from NetEase Group — — 257,522 Equity related transactions Deemed contribution related to acquisition of businesses under common control (Note 1) 69,603 — — Deemed distribution to NetEase — 2,060 4,171 Share-based compensation under NetEase Plan 4,356 2,682 1,043 Other transactions Disposal of Youdao Cloudnote business to NetEase Group — 670 — Learning services provided to NetEase Group mainly refer to the translation services provided to the entities within NetEase Group. Smart devices provided to NetEase Group mainly refer to the arrangements where entities within NetEase Group acts as the distributor to sell smart devices, the revenues of which are recognized upon the delivery to the customer. Online marketing services provided to NetEase Group mainly refer to the performance-based advertising arrangement provided to the entities within NetEase Group to promote their own services and products. Service purchased from NetEase Group mainly consists of the human resource which the employees are with employment contracts with the entities within NetEase Group but provide services to the Group, office leasing and purchase of server custody service. Deemed contribution related to acquisition of businesses under common control represents a contribution from NetEase Group. Disposal of Youdao Cloudnote business related to disposal of Youdao Cloudnote business to an investee established by the Company and NetEase in December 2020 (Note 1). (b) Balances with related parties As of December 31, 2020 2021 RMB RMB Amounts due from NetEase Group 4,081 6,192 Amounts due to NetEase Group 67,230 83,041 Short-term loans from NetEase Group 878,000 878,000 Long-term loans from NetEase Group — 255,028 Short-term loans as of December 31, 2020 and 2021 amounted to RMB878,000, respectively, which consisted of entrustment loans from NetEase Group through banks denominated in RMB. All of these loans were repayable within one year. The effective interest rate for the outstanding loans for the years ended December 31, 2020 and 2021 ranged from approximately 3.5% to 3.9% per annum. The interest expense was RMB30,232, RMB31,215 and RMB31,028 for the years ended December 31, 2019, 2020 and 2021, respectively. In April 2021, the Group entered into a three , which was intended for general working capital. 110 Group |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information [Abstract] | |
Segment information | 21. Segment Information As disclosed in Note 2(ee), operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Chief Executive Officer. The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but are not limited to, customer base, homogeneity of products and technology. The Group’s operating segments are based on this organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. Effective in the fourth quarter of 2020, the Group changed its segment disclosure to separately report the results of its smart devices business. As a result, the Group now reports segments as learning services, smart devices and online marketing services. This change in segment reporting aligns with the manner in which the Group’s CODM currently receives and uses financial information to allocate resources and evaluate the performance of reporting segments. This change in segment presentation does not affect consolidated balance sheets, consolidated statements of operations and comprehensive loss or consolidated statements of cash flows. The Group retrospectively revised prior year segment information, to conform to current year presentation. The Group currently does not allocate operating expenses or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. The table below provides a summary of the Group’s segment results for the years ended December 31, 2019, 2020 and 2021. For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues: Learning services 602,353 1,513,960 2,441,421 Smart devices 152,044 539,962 980,424 Online marketing services 453,013 472,884 593,949 Total net revenues 1,207,410 2,526,806 4,015,794 Cost of revenues: Learning services 451,164 716,504 980,700 Smart devices 107,609 355,970 618,925 Online marketing services 313,592 346,895 427,331 Total cost of revenues 872,365 1,419,369 2,026,956 Gross margin: Learning services 25 % 53 % 60 % Smart devices 29 % 34 % 37 % Online marketing services 31 % 27 % 28 % Total gross margin 28 % 44 % 50 % |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 22. Restricted Net Assets Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries and VIEs can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the general reserve fund and the statutory surplus fund respectively. The general reserve fund and the statutory surplus fund require that annual appropriations of 10% of net after-tax |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | 23. Subsequent Events In 2022 until the date of this report, the Company has further drawn down US$30.0 million long-term loans under the US$300.0 million revolving loan facility with maturity dated March 31, 2024 from the NetEase Group. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Parent Company Only Condensed Financial Information | 24. Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X 4-08 The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2021. Condensed Balance Sheets As of December 31, 2020 2021 2021 RMB RMB US$ Note 2(f) ASSETS Cash and cash equivalents 117,400 122,765 19,265 Amounts due from Youdao Group Companies 1,011,360 2,658,772 417,219 Prepayment and other current assets 9,277 229 36 Total assets 1,138,037 2,781,766 436,520 LIABILITIES AND SHAREHOLDERS’ DEFICIT Amounts due to NetEase Group 2,059 221 35 Accrued liabilities and other payables 3,655 2,573 403 Investments in subsidiaries and VIEs 2,536,385 3,328,600 522,330 Other non-current 4,043 2,411 378 Long-term loans from NetEase Group — 255,028 40,019 Total liabilities 2,546,142 3,588,833 563,165 Shareholders’ deficit: Class A ordinary shares, US$0.0001 par value 18 24 4 Class B ordinary shares, US$0.0001 par value 56 56 9 Additional paid-in 2,309,963 3,913,946 614,184 Accumulated deficit (3,674,034 ) (4,671,195 ) (733,012 ) Accumulated other comprehensive los s (47,058 ) (54,354 ) (8,529 ) Statutory reserves 2,950 4,456 699 Total shareholders’ deficit (1,408,105 ) (807,067 ) (126,645 ) Total liabilities and shareholders’ deficit 1,138,037 2,781,766 436,520 Condensed Statements of Operations and Comprehensive Loss For the year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Note 2(f) Operating expenses: General and administrative expenses (17,255 ) (13,008 ) (13,048 ) (2,048 ) Total operating expenses (17,255 ) (13,008 ) (13,048 ) (2,048 ) Loss from operations (17,255 ) (13,008 ) (13,048 ) (2,048 ) Interest income 5,396 22,060 5,246 823 Interest expense — — (616 ) (97 ) Others, net (4,492 ) 792 2,289 359 Share of loss of subsidiaries and VIEs (585,152 ) (1,762,633 ) (989,148 ) (155,219 ) Loss before tax (601,503 ) (1,752,789 ) (995,277 ) (156,182 ) Income tax expenses — — (378 ) (59 ) Net loss (601,503 ) (1,752,789 ) (995,655 ) (156,241 ) Accretions of convertible redeemable preferred shares to redemption value (Note 14) (35,893 ) — — — Net loss attributable to ordinary shareholders of the Company (637,396 ) (1,752,789 ) (995,655 ) (156,241 ) Net loss (601,503 ) (1,752,789 ) (995,655 ) (156,241 ) Other comprehensive loss: Foreign currency translation adjustment (15,023 ) (32,531 ) (7,296 ) (1,145 ) Total other comprehensive los s (15,023 ) (32,531 ) (7,296 ) (1,145 ) Total comprehensive loss (616,526 ) (1,785,320 ) (1,002,951 ) (157,386 ) Accretions of convertible redeemable preferred shares to redemption value (Note 14) (35,893 ) — — — Comprehensive loss attributable to ordinary shareholders of the Company (652,419 ) (1,785,320 ) (1,002,951 ) (157,386 ) Condensed Statements of Cash Flows For the year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Note 2(f) Cash flows from operating activities: Net cash (used in)/provided by operating activities (782 ) 14,409 (9,040 ) (1,419 ) Cash flows from investing activities: Placement s (1,270,536 ) (20,663 ) (897,916 ) (140,903 ) Proceeds from maturities of time deposits — 1,257,689 907,759 142,447 Loans to subsidiaries (132,062 ) (1,236,543 ) (1,759,925 ) (276,171 ) Payment for long-term investment — (670 ) — — Net cash used in investing activities (1,402,598 ) (187 ) (1,750,082 ) (274,627 ) Cash flows from financing activities: Proceeds from the issuance of IPO shares, net of issuance cost 630,364 — — — Proceeds from concurrent private placement 881,662 — — — Proceeds from long-term loans from NetEase Group — — 257,522 40,411 Proceeds from the issuance of follow-on — — 1,498,627 235,167 Payment of offering expenses — (7,909 ) — — Proceeds from issuance of ordinary shares pursuant to incentive plan — 34,468 27,564 4,326 Net cash provided by financing activities 1,512,026 26,559 1,783,713 279,904 Effect of exchange rate changes on cash and cash equivalents (771 ) (34,691 ) (19,226 ) (3,016 ) Net increase in cash and cash equivalents 107,875 6,090 5,365 842 Cash and cash equivalents at the beginning of the year 3,435 111,310 117,400 18,423 Cash and cash equivalents at the end of the year 111,310 117,400 122,765 19,265 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) Principles of consolidation Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant intercompany balances and transactions within the Group have been eliminated upon consolidation. |
Discontinued operations | (c) Discontinued operations The Group reports a disposal of its component or a group of its components as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Group’s operations and financial results. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. In the period that a discontinued operation is classified as held for sale, the assets and liabilities of the discontinued operation are presents separately in asset and liability sections, respectively, of the consolidated balance sheets and prior periods are presented on a comparative basis. In the consolidated statements of operations and comprehensive loss, the results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. Unless otherwise noted, discussion in the Notes to consolidated financial statements refers to the Group’s continuing operations. Refer to Note 3 for additional information. |
Use of estimates | (d) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the learning period of the customers, fair value of assets and liabilities acquired in business combinations, assessment for impairment of long-lived assets, intangible assets and goodwill, lower of cost and net realizable value of inventories, valuation allowance of deferred tax assets, determination of the fair value of ordinary shares and convertible redeemable preferred shares, valuation and recognition of share-based compensation expenses. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. |
Functional currency and foreign currency translation | (e) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company is United States dollars (“US$” or “USD”). The functional currency of the Company’s PRC subsidiaries, VIEs, VIEs’ subsidiaries as well as one subsidiary incorporated in Hong Kong is RMB. The determination of the respective functional currencies based on the criteria of ASC 830, Foreign Currency Matters In the consolidated financial statements, the financial information of the Company has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet date. Net gains and losses resulting from foreign exchange transactions are included in others, net in the consolidated statements of operations and comprehensive loss. |
Convenience translation | (f) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2021 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.3726, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. |
Fair value measurements | (g) Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation techniques are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, time deposits, restricted cash, short-term investments, accounts receivable, other receivables, amounts due from/to NetEase Group, accounts payables, contract liabilities, accrued liabilities and other payables, short-term loans and long-term loans from NetEase Group of which the carrying values approximate their fair value. Please see Note 18 for additional information. |
Cash and cash equivalents | (h) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which have original maturities less than three months and are readily convertible to known amount of cash. |
Time deposits | (i) Time deposits Time deposits represent time deposits placed with banks with original maturities of three months or more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statements of operations and comprehensive loss during the periods presented. |
Restricted cash | (j) Restricted cash Restricted cash represents cash deposits for the upfront tuition fee in the government custodian account required by the PRC government authorities. |
Receivables, net | (k) Receivables, net The Group closely monitors the collection of its receivables and records a reserve for doubtful accounts against aged accounts and for specifically identified non-recoverable |
Investments | (l) Investments i) Short-term investments Short-term investments include investments in financial instruments with a variable interest rate indexed to performance of underlying assets. In accordance with ASC 825, Financial Instruments, ii) Long-term investments Long-term investments are comprised of equity investments in privately-held companies and limited partnership. For investments in ordinary shares or in-substance in-substance Investments in ordinary shares or in-substance Management regularly evaluates the impairment of the equity investments without readily determinable fair value and equity method investments at each balance sheet date, or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. For investments without readily determinable fair values, management performs a qualitative assessment of impairment indicators. If considered impaired, management estimates the fair value of the investment, and records an impairment in the consolidated statements of operations and comprehensive loss to the extent the carrying amount exceeds the fair value. For equity method investments, management considers if the investment is impaired when events or circumstances suggest the carrying amount may not be recoverable, and recognizes any impairment charge in the consolidated statements of operations and comprehensive loss for a decline in value that is determined to be other than temporary. |
Short-term investments | i) Short-term investments Short-term investments include investments in financial instruments with a variable interest rate indexed to performance of underlying assets. In accordance with ASC 825, Financial Instruments, |
Inventories, net | (m) Inventories, net Inventories, consisting of smart devices and learning materials for tutoring services, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased, but has arrangements to return unsold goods with certain vendors. Write downs are recorded in cost of revenues in the consolidated statements of operations and comprehensive loss. |
Property, equipment and software, net | (n) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range as follows: Servers and computers 3 years Furniture, fixtures, office and other equipment 3-10 Leasehold improvements The shorter of the useful life or term of the lease Software and others 3-5 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive loss. |
Goodwill | (o) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable assets acquired and the liabilities assumed in business combination. Goodwill is not amortized but is tested for impairment at the reporting unit level on an annual basis by the end of year, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under ASC 350-20-35, Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No impairment charge of goodwill was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. |
Impairment of long-lived assets | (p) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. The Group 2021. No impairment loss was recognized for the years ended December 31, and |
Revenue recognition | (q) Revenue recognition The Group adopted ASC 606, Revenue from Contracts with Customers Disaggregation of net revenues For the years ended December 31, 2019, 2020 and 2021, substantially all of the Group’s net revenues were generated in the PRC. The following table provides information about disaggregated revenue by types: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Learning services 602,353 1,513,960 2,441,421 Tutoring services 510,095 1,369,010 2,271,036 Fee-based 92,258 144,950 170,385 Smart devices 152,044 539,962 980,424 Online marketing services 453,013 472,884 593,949 Total net revenues 1,207,410 2,526,806 4,015,794 Tutoring services The Group offers various types of integrated learning services, which primarily cover a wide spectrum of topics and target people from broad age groups through its diverse offerings of tutoring courses, foreign languages, professional and interest education services as well as IT computer skills, etc. The Group’s tutoring services consist of online live streaming and other activities during the online live streaming period including teaching material, quiz banks, online chat rooms, summary of lessons after each class and interactions with both students and instructors. Once the online live streaming is completed, the Group also offers the customer a content playback service. With respect to the content playback service, the customer has unlimited access to previous live streaming courses for a specified period. The services of online live streaming, playback service, as well as the other activities provided mentioned above are highly interdependent and interrelated in the context of the contract and are only considered accessory services to the online live streaming courses and therefore are not distinct and are not sold standalone. Therefore, the Group’s tutoring services are accounted for as a single performance obligation. This performance obligation is satisfied over the learning period of the customers. Accordingly, the Group recognizes the revenues ratably over the estimated average learning period for different courses. The Group considers the average period that customers typically spend time on the courses and other learning behavior patterns to arrive at the best estimate for the estimated learning period for each course based on the estimated learning time customers spend on the courses and the expected number of times customers will take the courses. The Group’s tutoring services also consist of online pre-recorded The estimated weighted average duration of learning periods is approximately ranged from five to seven months for the years ended December 31, 2019, 2020 and 2021 for both live streaming courses and pre-recorded There is a refund policy provided to customers for tutoring services, depending on whether the course had commenced at the time of the refund request, the length of the course, the number of sessions that the student has taken, among other criteria. The Group determines the transaction price to be earned by estimating the refund liabilities based on historical refund ratio on a portfolio basis using the expected value method. The Group also provides discount coupons to its customers for use in purchases on tutoring services, which are treated as a reduction of revenue when the related transaction is recognized. Fee-based Fee-based Youdao Dictionary Youdao Smart Cloud ii) Smart devices The Group sells smart devices such as dictionary pens, translation devices to customers through retailers or distributors. The Group recognizes revenues when control of the goods is transferred to the customer, which generally occurs upon the delivery to the end customers as retailors or upon the delivery to distributors. Along with certain tutoring services, the Group also provides smart devices such as smart pens to facilitate customers’ learnings. For such situation, the Group has determined that the smart devices are a separate performance obligation under ASC 606, as customers can benefit from smart devices on their own and the Group’s promises to deliver smart devices is separately identifiable from tutoring services. The Group determines stand-alone selling price to each performance obligation in the approach of expected cost-plus margin. Revenue from smart devices is recognized when they are delivered to customers. iii) Online marketing services The Group derives its online marketing revenues principally from short-term contracts. The online marketing services with display period, the contracts may consist of multiple performance obligations with a typical term of less than three months. Each performance obligation generally represents different formats of advertisement, including but not limited to banners, text-links, videos, logos, buttons and rich media. In arrangements where the Group has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Group generally determines stand-alone selling prices based on the prices charged to customers. If the performance obligation has not been sold separately, the Group estimates the stand-alone selling price by taking into consideration of the pricing for advertising areas of the Group’s platform with a similar popularities and advertisements with similar formats and quoted prices from competitors as well as other market conditions. Considerations allocated to each performance obligation is recognized as revenue over the individual advertisement display period, on a straight-line basis, which is usually within three months. The Group also enters into cost-per-click The Group’s online marketing services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ internet properties, including web content, software, and mobile applications. The Group is the primary obligor to its advertisers as it is primarily responsible to the customers, bears inventory risk and has the discretion in establishing pricing. Payments made to operators of third-party internet properties are included in the traffic acquisition costs. Certain customers may receive volume rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume with reference to their historical results and reduce revenues recognized. Practical expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The effects of a significant financing component have not been adjusted for contracts which the Group expects, at contract inception, that the period between when the Group transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. (ii) The Group applied the portfolio approach in determining the learning period of the customers given that the effect of applying a portfolio approach to a group of students’ behaviors would not differ materially from considering each one of them individually. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract liabilities Contract liabilities refer to the deferred revenue and refund liabilities. Deferred revenue is relating to the learning tuition, online marketing services and fee-based premium services with fees received from customers for which the Group’s revenue recognition criteria have not been met. Revenue recognized that was included in the deferred revenue balance at January 1, 2020 and January 1, 2021 amounted to RMB438,839 and RMB854,342, respectively. As of December 31, 2021, the aggregate amount of transaction price allocated to unsatisfied performance obligations is RMB1,018.1 million Refund liabilities represent the consideration collected by the Group which it expects to refund to its customers according to refund policy. Refund liabilities are estimated based on the historical refund ratio for each of the revenue streams. The refund liabilities were not material, as of December 31, 2020 and 2021. In the event that the actual amount of refund made exceeds the estimation, such excessive amount will be deducted from net revenues. |
Cost of revenues | (r) Cost of revenues Cost of revenues primarily consists of the revenue sharing and payroll expenses to instructors and tutors, traffic acquisition costs, content costs, servers and bandwidth service fees and other direct costs of providing these services as well as costs of smart devices sold. |
Sales and marketing expenses | (s) Sales and marketing expenses Sales and marketing expenses mainly consist of marketing and promotional expenses, payroll related expenses and third-party service fee for outsourced sales and marketing functions. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, advertising expenses were RMB323.6 million, RMB1,122.1 million and RMB1,393.3 million, respectively. |
Research and development expenses | (t) Research and development expenses Research and development expenses mainly consist of personnel related expenses and technology service costs incurred for the learning courses and its development, as well as development and enhancement of the Group’s websites and applications platforms. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. No costs incurred for development of learning content, products and advertising services have been capitalized because the period after the date technical feasibility is reached and the time when relevant products and services are marketed is historically short. |
Share-based compensation | (u) Share-based compensation The Group grants options to its employees, directors and consultants with performance conditions and service conditions. In accordance with ASC 718, Compensation-Stock Compensation The Group adopts the binomial option pricing model to determine the fair value of stock options. The determination of the fair value of stock options is affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk free interest rates and expected dividends. Prior to the Company’s IPO, the fair value of the ordinary shares is assessed using the income approach/discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Upon the completion of the IPO, the market price of the Company’s publicly traded ADSs is used as an indicator of fair value of ordinary shares for purposes of recording share-based compensation expenses. Share-based compensation expenses for share options granted with service conditions are recorded net of estimated forfeitures using graded-vesting method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service conditions and the occurrence of an IPO as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service conditions are recorded upon the completion of the IPO. In the fourth quarter of 2019, due to the completion of the IPO, the total expenses of RMB18.4 million were recorded accordingly. The Group also recognizes compensation expenses on restricted share units, or RSUs, granted by the Parent to the employees of the Group. RSUs are measured based on the fair market value of the underlying stock on the dates of grant. Share-based compensation expenses related are then recorded for the number of RSUs expected to vest on a graded-vesting basis, net of estimated forfeitures, over the requisite service period. |
Employee benefits | (v) Employee benefits PRC Contribution Plan Full-time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and the VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB86,316, RMB68,002 and RMB222,690 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Taxation | (w) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step |
Business combination | (x) Business combinations The Group accounts for its business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations If a business combination is under common control, the acquired assets and liabilities are recognized at their historical book value. The consolidated financial statements include the results of the acquired entities from the earliest date presented or, if more recent, from the date when the entities first came under common control, regardless of the date of the combination. Consolidated financial statements for prior years would also be retrospectively adjusted for periods during which the entities were under common control. In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. |
Operating leases | (y) Operating leases The Group has operating leases primarily for office space. The determination of whether an arrangement is a lease or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The Group elects not to apply the recognition requirements of ASC 842 to short-term leases. Variable lease payments are the payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Other operating leases are included in operating lease right-of-use The Group uses the implicit rate when readily determinable, or its incremental borrowing rate based on the information available, at the commencement date in determining the present value of lease payments. Certain leases include renewal options and/or termination options. Renewal options are included in the lease term if the Group is reasonably certain to exercise those options while options to terminate the lease are only included in the lease term if the Group is reasonably certain not to exercise those options. Lease expenses are recorded on a straight-line basis over the lease term. |
Related parties | (z) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Noncontrolling interests and Redeemable noncontrolling interests | (aa) Noncontrolling interests and Redeemable noncontrolling interests For the Company’s majority-owned subsidiaries and VIEs, noncontrolling interests are recognized to reflect the portion of their equity that are not attributable, directly or indirectly, to the Company as the controlling shareholders. The noncontrolling interest will continue to be attributed with its share of losses even if that attribution results in a deficit noncontrolling interest balance. Redeemable noncontrolling interests represent redeemable equity interests issued by a VIE’s subsidiary of the Group to certain noncontrolling shareholders (Note 5), and have been classified as mezzanine classified noncontrolling interests in the consolidated financial statements as these interests are contingently redeemable upon the occurrence of certain conditional events, which is not solely within the control of the Group. The accretion of the redeemable equity interests would be recognized when the redemption value is over the balance of noncontrolling interests. |
Net loss per share | (bb) Net loss per share Net loss per share is computed in accordance with ASC 260, Earnings per Share. Basic net loss per share is computed by dividing net loss attributable to ordinary shareholders, considering the accretions of convertible redeemable preferred shares, by the weighted average number of ordinary shares outstanding during the year. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under treasury stock method. Potential ordinary shares include options to purchase ordinary shares and preferred shares, unless they were anti-dilutive. The computation of diluted net loss per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net loss per share. |
Statutory reserves | (cc) Statutory reserves The Company’s subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable after-tax non-distributable after-tax Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries registered as majority-owned or wholly-owned foreign investment enterprise (“FIE”) in China make appropriations from their annual after-tax after-tax |
Comprehensive loss | (dd) Comprehensive loss Comprehensive loss is defined to include all changes in equity deficit of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss includes net loss and foreign currency translation adjustment of the Group. |
Segment reporting | (ee) Segment reporting In accordance with ASC 280, Segment Reporting Effective in the fourth quarter of 2020, the Group changed its segment disclosure to separately report the results of its smart devices business. As a result, the Group now reports segments as learning services, smart devices and online marketing services. This change in segment reporting aligns with the manner in which the Group’s CODM currently receives and uses financial information to allocate resources and assess the performance of reporting segments. This change in segment presentation does not affect consolidated balance sheets, consolidated statements of operations and comprehensive loss or consolidated statements of cash flows. The Group retrospectively revised prior year segment information, to conform to current year presentation. The Group currently does not allocate operating expenses or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As the Group’s long-lived assets are substantially all located in the PRC and the Group’s revenues are substantially derived from the PRC, no geographical segments are presented. |
Recently adopted accounting pronouncements | (ff) Recently adopted accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes 2019-12 In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 |
Recently issued accounting pronouncements not yet adopted | (gg) Recently issued accounting pronouncements not yet adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Operations and Reorganization (
Operations and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operations and Reorganization [Abstract] | |
Schedule of subsidiaries and variable interest entities | As of December 31, 2021, the Company’s major subsidiaries and consolidated VIE are as follows: Place and year of incorporation Percentage Principal activities Subsidiaries Youdao (Hong Kong) Limited Hong Kong, China, 2016 100% Holding company Youdao Education Technology (Hong Kong) Limited Hong Kong, China, 2021 100% Providing sales of smart devices NetEase Youdao Information Technology (Beijing) Co., Ltd. (“Youdao Information”) Beijing, China, 2006 100% Providing sales of smart devices and solutions, technical support to the VIEs NetEase Youdao Information Technology (Hangzhou) Co., Hangzhou, China, 2019 100% Providing technical support to the VIEs NetEase Hangzhou, China, 2021 100% Providing sales of smart devices VIE Beijing Beijing, China, 2007 100% Providing online learning services as well as online marketing services |
Schedule of variable interest entities | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements: As of December 31, 2020 2021 RMB RMB Assets Cash and cash equivalents 7,691 134,639 Restricted cash (Note 2(j)) — 749,770 Short-term investments 10,354 13,617 Accounts receivable, net 145,212 146,257 Inventories, net 26,556 48,477 Amounts due from NetEase Group and Youdao Group 1,243,125 442,286 Prepayment and other current assets 45,065 64,005 Assets held for sale 52,534 204 Total current assets 1,530,537 1,599,255 Property , and software 148 3,244 Operating lease right-of-use 988 26,320 Goodwill — 103,006 Other assets, net 45,496 36,405 Total non-current 46,632 168,975 Total assets 1,577,169 1,768,230 Liabilities Accounts payables 62,438 45,756 Payroll payable 6,863 11,873 Amounts due to NetEase Group and Youdao Group 26,728 504,605 Contract liabilities 842,296 1,011,734 Taxes payable 394 4,072 Accrued liabilities and other payables 35,021 65,547 Liabilities held for sale 546,271 — Total current liabilities 1,520,011 1,643,587 Long-term lease liabilities 223 15,803 Total non-current 223 15,803 Total liabilities 1,520,234 1,659,390 For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues: Third-party net revenues 900,263 1,792,962 2,750,610 Intra-Group net revenues — 552 941 Total net revenues 900,263 1,793,514 2,751,551 Cost and expenses: Third-party cost and expenses (358,318 ) (421,814 ) (561,272 ) Intra-Group cost and expenses related to technical consulting and related service s (540,830 ) (1,402,371 ) (2,221,199 ) Other intra-Group cost and expenses (2,235 ) (1,107 ) (10,673 ) Total cost and expenses (901,383 ) (1,825,292 ) (2,793,144 ) Net income/(loss) from continuing operations 2,066 20,483 (58,520 ) For the year ended December 31, 2019 2020 2021 RMB RMB RMB Cash flows from operating activities: Net cash provided by transactions with external parties 855,715 3,034,716 3,278,167 Net cash used in transactions with intra-Group companies related to technical consulting and related service s (805,129 ) (3,098,831 ) (2,409,300 ) Net cash provided by/(used in) other transactions with intra-Group companies 392 1,613 (699 ) Net cash provided by/(used in) operating activities 50,978 (62,502 ) 868,168 Cash flows from investing activities: Net cash (used in)/provided by transactions with external parties (67,118 ) 65,510 8,550 Net cash (used in)/provided by investing activities (67,118 ) 65,510 8,550 Cash flows from financing activities: Proceeds received from ordinary shareholders 10,000 — — Net cash provided by financing activities 10,000 — — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of property and equipment are stated at cost less accumulated and impairment | Property, equipment and software are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range as follows: Servers and computers 3 years Furniture, fixtures, office and other equipment 3-10 Leasehold improvements The shorter of the useful life or term of the lease Software and others 3-5 years |
Schedule of disaggregation of revenue | For the years ended December 31, 2019, 2020 and 2021, substantially all of the Group’s net revenues were generated in the PRC. The following table provides information about disaggregated revenue by types: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Learning services 602,353 1,513,960 2,441,421 Tutoring services 510,095 1,369,010 2,271,036 Fee-based 92,258 144,950 170,385 Smart devices 152,044 539,962 980,424 Online marketing services 453,013 472,884 593,949 Total net revenues 1,207,410 2,526,806 4,015,794 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Disposal group Including discontinued operation balance sheet | The following tables set forth the assets, liabilities classified as held for sale and statement of operations of discontinued operations which were included in the Group’s consolidated financial statements: As of December 31, 2020 2021 RMB RMB Inventories, net 29,699 204 Prepayment and other current assets 35,890 293 Total current assets 65,589 497 Property, equipment and software, net 5,463 1,088 Total non-current 5,463 1,088 Total assets 71,052 1,585 Contract liabilities 546,271 — Total current liabilities 546,271 — Total liabilities 546,271 — |
Summary Of income Statements In Respect OF Discontinued Operation | For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 97,473 640,709 1,338,563 Cost of revenues (61,896 ) (293,860 ) (421,190 ) Gross profit 35,577 346,849 917,373 Operating expenses: Sales and marketing expenses (167,136 ) (1,223,414 ) (862,153 ) Research and development expenses (5,472 ) (52,409 ) (97,521 ) General and administrative expense s (4,047 ) (25,353 ) (57,966 ) Total operating expenses (176,655 ) (1,301,176 ) (1,017,640 ) Loss from operations (141,078 ) (954,327 ) (100,267 ) Net loss from discontinued operations (141,078 ) (954,327 ) (100,267 ) |
Concentration and Risks (Tables
Concentration and Risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Concentration and Risks [Abstract] | |
Summary of Concentration and Risks | There were no revenues from customers which individually represent greater than 10% of the total net revenues for the years ended December 31, 2019, 2020 and 2021. There was one instructor, through whom the Group’s Group’s respectively as follows: For the year ended December 31, 2019 2020 2021 Instructor A 13 % 18 % * Instructor B * * 16 % * The percentage was below 10% for the year. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Private Company Providing Kids Programming Courses To Students [Member] | |
Business Acquisition [Line Items] | |
Schedule of fair value of the assets acquired and the liabilities | Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities assumed as follows: As of the acquisition date RMB Consideration 7,700 Noncontrolling interests 624 Total 8,324 Cash and cash equivalents 1,302 Other tangible assets 156 Liabilities assumed (72 ) Goodwill 6,938 Total 8,324 |
Private Company Providing Kids Steam Education Courses To Students [Member] | |
Business Acquisition [Line Items] | |
Schedule of fair value of the assets acquired and the liabilities | Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities follows As of the acquisition date RMB Cash consideration 6,050 Total 6,050 Cash and cash equivalents 354 Other tangible assets 470 Liabilities assumed (11,869 ) Goodwill 17,095 Total 6,050 |
Private Company Providing Offline After School Tutoring Services [Member] | |
Business Acquisition [Line Items] | |
Schedule of fair value of the assets acquired and the liabilities | Consideration for this transaction was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities assumed as follows: As of the acquisition date Amortization Period RMB Cash consideration 122,000 Previously held equity interest 27,544 Redeemable noncontrolling interests 106,368 Total 255,912 Cash and cash equivalents 165,783 Other tangible assets 18,040 Identifiable intangible assets : Trademark 46,000 10 years Licenses 6,500 10 years Copyright 4,000 5 years Students base 3,250 3 years Deferred tax liabilities (8,963 ) Liabilities assumed (64,609 ) Goodwill 85,911 Total 255,912 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable, Net [Abstract] | |
Schedule of accounts receivable | The following is a summary of accounts receivable as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accounts receivable, net: Accounts receivable 283,159 258,156 Allowance for expected credit losses: Balance at the beginning of the year (2,278 ) (14,329 ) Additional provision charged to expenses (12,051 ) 667 Write-off — 3,845 Balance at the end of the year (14,329 ) (9,817 ) 268,830 248,339 |
Prepayment and Other Current _2
Prepayment and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayment and Other Current Assets [Abstract] | |
Summary of prepayment and other current assets | The following is a summary of prepayment and other current assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Prepayment for promotion fees 44,575 42,696 Prepayment for value-added taxes 40,950 38,315 Deferred expenses for learning services 28,752 34,457 Prepayment for content fees 2,206 9,543 Deferred charges 8,857 8,745 Prepayment for rental expenses 4,900 7,247 Prepaid sales commission 1,158 2,263 Receivable for withholding individual income taxes of option exercise 39,371 1,700 Interest receivable 51 281 Prepaid insurance fee for directors and officers 5,329 — Others 23,493 37,330 Total 199,642 182,577 |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment, Net [Abstract] | |
Schedule of property, equipment and software, net | Property, equipment and software, net as of December 31, 2020 and 2021 are as follows: As of December 31, 2020 2021 RMB RMB Servers and computers 68,895 84,425 Furniture, fixtures and office equipment 4,419 14,053 Leasehold improvements 6,723 38,120 Software and others 2,425 5,067 Total 82,462 141,665 Less: accumulated depreciation (42,289 ) (61,350 ) Net book value 40,173 80,315 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Summary of supplemental information related to operating leases | As of December 31, 2020 2021 RMB RMB Operating lease right-of-use 105,865 118,104 Operating lease liabilities - current 29,982 46,688 Operating lease liabilities - non-current 79,748 73,070 Total operating lease liabilities 109,730 119,758 Weighted average remaining lease term 4.4 years 3.6 years Weighted average discount rate 4.10 % 3.99 % |
Lease, Cost | For the year ended 2019 2020 2021 RMB RMB RMB Operating lease expenses 1,885 5,924 25,449 Short-term lease expenses 2,493 2,306 3,381 Variable lease expenses 19,841 31,684 24,008 Total lease expenses 24,219 39,914 52,838 Cash paid for amounts included in the measurement of operating lease liabilities 658 12,431 37,756 Right-of-use 26,030 91,893 85,731 Lease liabilities decrease due to early termination — — 44,469 |
Future minimum lease payments | A summary of maturity of operating lease liabilities under the Group’s non-cancelable As of RMB 2022 47,525 2023 36,115 2024 16,314 2025 11,855 2026 10,651 Thereafter 3,200 Total operating lease liabilities 125,660 Less: interest (5,902 ) Present value of operating lease liabilities 119,758 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxation [Abstract] | |
Schedule of components of income tax expense (Benefit) | The following table presents the composition of income tax expenses for the years ended December 31, 2019, 2020 and 2021: For the year ended 2019 2020 2021 RMB RMB RMB Current income tax expenses 2,432 2,929 15,611 Deferred tax benefit — — (8,963 ) Income tax expenses 2,432 2,929 6,648 |
Schedule of effective income tax rate reconciliation | The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021: For the year ended 2019 2020 2021 Statutory income tax rate 25% 25% 25% Permanent differences 0% 3% 3% Tax effect of preferential tax treatment and tax difference of statutory rate in other jurisdictions (9% ) (11% ) (9% ) Change in valuation allowance (16% ) (17% ) (21% ) Effective income tax rate 0% 0% (2% ) |
Schedule of deferred tax assets and liabilities | The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Deferred tax assets Net operating tax loss carry forwards 137,550 382,409 Advertising and promotion expenses in excess of deduction limit 315,708 334,697 Payroll and expense accrued 98,889 99,007 Others 2,085 3,612 Less: valuation allowance (554,232 ) (819,725 ) Total deferred tax assets, net — — |
Summary of valuation allowance | The following table sets forth the movement of the valuation allowances for deferred tax assets for the periods presented: For the year ended 2020 2021 RMB RMB Balance as of January 1 252,069 554,232 Change of valuation allowance 302,163 265,493 Balance as of December 31 554,232 819,725 |
Summary of operation loss carry forwards | As of December 31, 2021, certain entities of the Group had net operating tax loss carry forwards as follows: RMB Loss expiring in 2022 — Loss expiring in 2023 139,448 Loss expiring in 2024 141,556 Loss expiring in 2025 188,518 Loss expiring in 2026 240,483 Loss expiring in 2027 112,069 Loss expiring in 2028 201,070 Loss expiring in 2029 230,257 Loss expiring in 2030 and thereafter 1,126,120 2,379,521 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable [Abstract] | |
Summary of taxes payable | The following is a summary of taxes payable as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB VAT payable 3,325 30,582 Withholding individual income taxes for employees 48,692 14,724 Enterprise income taxes payable 2,503 7,656 Others 375 361 Total 54,895 53,323 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables [Abstract] | |
Summary of accrued liabilities and other payable | The following is a summary of accrued liabilities and other payables as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accrued marketing expenses 257,216 173,944 Accrued liabilities for learning services and online marketing services 136,605 141,521 Operating lease liabilities-current portion 29,982 46,688 Accrued technical expenses 24,000 29,890 Accrued administrative expenses 23,777 26,717 Accrued outside labor service fee 64,799 22,975 Payables for property, equipment and software 7,068 14,088 Deferred government grant 21,376 11,503 Warehousing and logistics fee 8,034 11,323 Accrued professional fee 11,811 10,177 Unpaid consideration for business combination — 5,129 Deposits payable to service providers 1,823 1,762 Others 15,553 19,850 Total 602,044 515,567 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Redeemable Preferred Shares [Abstract] | |
Schedule of company's preferred shares activities | The Company’s preferred shares activities for the year ended December 31, 2019 are summarized as below: Balance as Accretions of to redemption Conversion into shares upon IPO upon IPO Balance as of December 31, Series A preferred shares Number of shares (in thousands) 6,815 — (6,815 ) — Amount (RMB in thousands) 460,652 35,893 (496,545 ) — |
Others, Net (Tables)
Others, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Others, Net [Abstract] | |
Schedule of Other Nonoperating Income Expense | For the year ended December 31, 2019 2020 2021 RMB RMB RMB Government grants 18,087 28,644 42,202 Fair value changes of short-term investments 863 9,396 28,810 Donation (1,620 ) (1,459 ) (9,801 ) Impairment of long-term investments — — (7,000 ) VAT exemption due to the COVID-19 — 51,889 (5,353 ) Foreign exchange gains/(losses) 3,279 (23,935 ) (5,005 ) Loss from lease termination — — (2,809 ) Remeasured loss from previously held interest (Note 5) — — (2,456 ) Others (545 ) (3,483 ) (1,915 ) Total 20,064 61,052 36,673 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation [Abstract] | |
Summary of allocation of share-based compensation expenses | The table below sets forth the allocation of share-based compensation expenses: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 3,642 4,641 7,862 Sales and marketing expenses 2,007 4,821 10,521 Research and development expenses 9,241 19,738 33,775 General and administrative expenses 8,446 7,225 20,043 Total 23,336 36,425 72,201 |
Schedule of share-based payment award stock options valuation assumptions | The fair value of each option granted for the years ended December 31, 2019, 2020 and 2021 is estimated on the date of grant using the following assumptions: For the year ended December 31, 2019 2020 2021 Expected volatility 46.50%-46.90% 48.90%-52.20% 52.40%-62.40% Expected dividends yield 0% 0% 0% Risk-free interest rate 2.10%-2.60% 0.30%-1.69% 0.58%-0.87% Expected term (in years) 6 6 6 Fair value of underlying ordinary share (US$) 6.35-7.29 16.00-42.31 9.44-35.99 |
Schedule of share-based compensation stock options activities | The following table presents a summary of the Company’s options activities for the years ended December 31, 2019, 2020 and 2021: Number of Weighted Weighted Aggregate (in thousands) US$ Years US$ Outstanding as of January 1, 2019 6,991 2.13 3.40 29,468 Granted 2,072 3.50 Forfeited (734 ) 2.60 Outstanding as of December 31, 2019 8,329 2.43 3.06 97,000 Granted 888 4.00 Exercised (2,962 ) 1.84 Forfeited (353 ) 3.14 Outstanding as of December 31, 2020 5,902 2.92 3.07 139,326 Granted 1,095 4.50 Exercised (1,538 ) 2.45 Forfeited (554 ) 3.75 Outstanding as of December 31, 2021 4,905 3.33 2.94 44,871 Vested and exercisable as of December 31, 2020 2,182 2.32 1.89 52,828 Vested and exercisable as of December 31, 2021 1,841 2.66 1.71 18,085 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Loss per Share [Abstract] | |
Schedule of computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss from continuing operations attributable to ordinary shareholders of the Company (496,318) (798,462) (895,388) Net loss from discontinued operations attributable to ordinary shareholders of the Company (141,078) (954,327) (100,267) Net loss attributable to ordinary shareholders of the Company (637,396) (1,752,789) (995,655) Denominator: Weighted average number of ordinary shares/ADSs outstanding, basic 95,445,982 112,864,452 121,650,907 Weighted average number of ordinary shares/ADSs outstanding, diluted 95,445,982 112,864,452 121,650,907 Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, basic (5.20) (7.07) (7.36) Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, basic (1.48) (8.46) (0.82) Net loss per share/ADS, basic (6.68) (15.53) (8.18) Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, diluted (5.20) (7.07) (7.36) Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, diluted (1.48) (8.46) (0.82) Net loss per share/ADS, diluted (6.68) (15.53) (8.18) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Schedule of fair value of assets measured on recurring basis | The following table sets forth the major financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2020 and 2021: Fair value measurements Total Significant other RMB RMB As of December 31, 2020 Short-term investments 584,999 584,999 Total 584,999 584,999 As of December 31, 2021 Short-term investments 503,831 503,831 Total 503,831 503,831 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Schedule of Group's future minimum commitments under non-cancelable agreements | As of December 31, 2021, the Group’s future minimum commitments under non-cancelable Less than One to three years More than Total RMB RMB RMB RMB Purchase commitments 187,548 700 — 188,248 Capital commitments 6,070 — — 6,070 Total 193,618 700 — 194,318 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party | Name of entity or individual Relationships with the Group NetEase Group Control or under common control |
Schedule of related party transactions | (a) Transactions with related parties For the year ended December 31, 2019 2020 2021 RMB RMB RMB Services and products provided to NetEase Group Learning services provided to NetEase Group 2,913 5,826 7,360 Smart devices provided to NetEase Group 11,418 7,607 6,607 Online marketing services provided to NetEase Group 23,249 15,860 9,823 Services and products purchased from NetEase Group Services purchased from NetEase Group 66,280 163,487 143,186 Fixed assets and inventories purchased from NetEase Group 18,222 2,198 2,489 Loan related transactions Interest expenses on loans from NetEase Group 30,232 31,215 31,644 Addition of long-term loans from NetEase Group — — 257,522 Equity related transactions Deemed contribution related to acquisition of businesses under common control (Note 1) 69,603 — — Deemed distribution to NetEase — 2,060 4,171 Share-based compensation under NetEase Plan 4,356 2,682 1,043 Other transactions Disposal of Youdao Cloudnote business to NetEase Group — 670 — |
Schedule of related party balances | (b) Balances with related parties As of December 31, 2020 2021 RMB RMB Amounts due from NetEase Group 4,081 6,192 Amounts due to NetEase Group 67,230 83,041 Short-term loans from NetEase Group 878,000 878,000 Long-term loans from NetEase Group — 255,028 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information [Abstract] | |
Schedule of segment reporting information by segment | The table below provides a summary of the Group’s segment results for the years ended December 31, 2019, 2020 and 2021. For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues: Learning services 602,353 1,513,960 2,441,421 Smart devices 152,044 539,962 980,424 Online marketing services 453,013 472,884 593,949 Total net revenues 1,207,410 2,526,806 4,015,794 Cost of revenues: Learning services 451,164 716,504 980,700 Smart devices 107,609 355,970 618,925 Online marketing services 313,592 346,895 427,331 Total cost of revenues 872,365 1,419,369 2,026,956 Gross margin: Learning services 25 % 53 % 60 % Smart devices 29 % 34 % 37 % Online marketing services 31 % 27 % 28 % Total gross margin 28 % 44 % 50 % |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Schedule of condensed balance sheets | Condensed Balance Sheets As of December 31, 2020 2021 2021 RMB RMB US$ Note 2(f) ASSETS Cash and cash equivalents 117,400 122,765 19,265 Amounts due from Youdao Group Companies 1,011,360 2,658,772 417,219 Prepayment and other current assets 9,277 229 36 Total assets 1,138,037 2,781,766 436,520 LIABILITIES AND SHAREHOLDERS’ DEFICIT Amounts due to NetEase Group 2,059 221 35 Accrued liabilities and other payables 3,655 2,573 403 Investments in subsidiaries and VIEs 2,536,385 3,328,600 522,330 Other non-current 4,043 2,411 378 Long-term loans from NetEase Group — 255,028 40,019 Total liabilities 2,546,142 3,588,833 563,165 Shareholders’ deficit: Class A ordinary shares, US$0.0001 par value 18 24 4 Class B ordinary shares, US$0.0001 par value 56 56 9 Additional paid-in 2,309,963 3,913,946 614,184 Accumulated deficit (3,674,034 ) (4,671,195 ) (733,012 ) Accumulated other comprehensive los s (47,058 ) (54,354 ) (8,529 ) Statutory reserves 2,950 4,456 699 Total shareholders’ deficit (1,408,105 ) (807,067 ) (126,645 ) Total liabilities and shareholders’ deficit 1,138,037 2,781,766 436,520 |
Schedule of condensed statements of operations and comprehensive loss | Condensed Statements of Operations and Comprehensive Loss For the year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Note 2(f) Operating expenses: General and administrative expenses (17,255 ) (13,008 ) (13,048 ) (2,048 ) Total operating expenses (17,255 ) (13,008 ) (13,048 ) (2,048 ) Loss from operations (17,255 ) (13,008 ) (13,048 ) (2,048 ) Interest income 5,396 22,060 5,246 823 Interest expense — — (616 ) (97 ) Others, net (4,492 ) 792 2,289 359 Share of loss of subsidiaries and VIEs (585,152 ) (1,762,633 ) (989,148 ) (155,219 ) Loss before tax (601,503 ) (1,752,789 ) (995,277 ) (156,182 ) Income tax expenses — — (378 ) (59 ) Net loss (601,503 ) (1,752,789 ) (995,655 ) (156,241 ) Accretions of convertible redeemable preferred shares to redemption value (Note 14) (35,893 ) — — — Net loss attributable to ordinary shareholders of the Company (637,396 ) (1,752,789 ) (995,655 ) (156,241 ) Net loss (601,503 ) (1,752,789 ) (995,655 ) (156,241 ) Other comprehensive loss: Foreign currency translation adjustment (15,023 ) (32,531 ) (7,296 ) (1,145 ) Total other comprehensive los s (15,023 ) (32,531 ) (7,296 ) (1,145 ) Total comprehensive loss (616,526 ) (1,785,320 ) (1,002,951 ) (157,386 ) Accretions of convertible redeemable preferred shares to redemption value (Note 14) (35,893 ) — — — Comprehensive loss attributable to ordinary shareholders of the Company (652,419 ) (1,785,320 ) (1,002,951 ) (157,386 ) |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows For the year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Note 2(f) Cash flows from operating activities: Net cash (used in)/provided by operating activities (782 ) 14,409 (9,040 ) (1,419 ) Cash flows from investing activities: Placement s (1,270,536 ) (20,663 ) (897,916 ) (140,903 ) Proceeds from maturities of time deposits — 1,257,689 907,759 142,447 Loans to subsidiaries (132,062 ) (1,236,543 ) (1,759,925 ) (276,171 ) Payment for long-term investment — (670 ) — — Net cash used in investing activities (1,402,598 ) (187 ) (1,750,082 ) (274,627 ) Cash flows from financing activities: Proceeds from the issuance of IPO shares, net of issuance cost 630,364 — — — Proceeds from concurrent private placement 881,662 — — — Proceeds from long-term loans from NetEase Group — — 257,522 40,411 Proceeds from the issuance of follow-on — — 1,498,627 235,167 Payment of offering expenses — (7,909 ) — — Proceeds from issuance of ordinary shares pursuant to incentive plan — 34,468 27,564 4,326 Net cash provided by financing activities 1,512,026 26,559 1,783,713 279,904 Effect of exchange rate changes on cash and cash equivalents (771 ) (34,691 ) (19,226 ) (3,016 ) Net increase in cash and cash equivalents 107,875 6,090 5,365 842 Cash and cash equivalents at the beginning of the year 3,435 111,310 117,400 18,423 Cash and cash equivalents at the end of the year 111,310 117,400 122,765 19,265 |
Operations and Reorganization -
Operations and Reorganization - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Feb. 28, 2021CNY (¥)shares | Feb. 28, 2021USD ($)shares | Feb. 10, 2021USD ($)shares | Oct. 31, 2019CNY (¥)shares | Oct. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Apr. 30, 2021USD ($) |
Operations and Organization [Line Items] | |||||||||||||
The allocation related to share-based compensation expenses | ¥ 18,400 | ||||||||||||
Net loss | ¥ (1,026,400) | $ (161,058) | ¥ (1,753,352) | ¥ (601,455) | |||||||||
Net cash used in operating activities | (1,346,400) | (211,281) | (321,562) | (372,270) | |||||||||
Accumulated deficit | ¥ (4,700,000) | (4,700,000) | (3,674,034) | $ (733,012) | |||||||||
Net current liability | 764,300 | ||||||||||||
Proceeds received from ordinary shareholders | 630,364 | ||||||||||||
Proceeds from follow-on offering | 1,498,627 | $ 235,167 | |||||||||||
Proceeds from concurrent private placement | 881,662 | ||||||||||||
Line of credit facility, current borrowing capacity | 255,028 | 255,028 | 40,019 | ||||||||||
IPO [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Proceeds received from ordinary shareholders | ¥ 621,900 | $ 88,200 | |||||||||||
IPO [Member] | American depositary shares [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Number of shares issued | shares | 5,600,000 | 5,600,000 | |||||||||||
Private placement [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Proceeds from concurrent private placement | ¥ 881,700 | $ 125,000 | |||||||||||
Follow-on Public Offering [Member] | American depositary shares [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Proceeds from follow-on offering | ¥ 1,498,600 | $ 231,600 | $ 231,600 | ||||||||||
Number of shares issued | shares | 7,000,000 | 7,000,000 | 7,000,000 | ||||||||||
VIE [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Registered capital | 22,000 | 22,000 | 15,000 | ||||||||||
Non-distributable statutory reserves | 5,457 | 5,457 | 2,536 | ||||||||||
Net cash used in operating activities | 868,168 | (62,502) | 50,978 | ||||||||||
VIE [Member] | Cooperation Agreement [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Service fee | 2,092,200 | 1,276,000 | 478,800 | ||||||||||
NetEase Group [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
The allocation related to share-based compensation expenses | 1,043 | ¥ 2,682 | ¥ 4,356 | ||||||||||
Line of credit facility, current borrowing capacity | ¥ 255,028 | ¥ 255,028 | 40,000 | ||||||||||
Maturity of line of credit facility | Mar. 31, 2024 | Mar. 31, 2024 | |||||||||||
NetEase Group [Member] | Revolving Credit Facility [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Maximum Borrowing Capacity | $ | $ 300,000 | ||||||||||||
Line of credit facility, current borrowing capacity | $ | $ 40,000 | ||||||||||||
Maturity of line of credit facility | Mar. 31, 2024 | ||||||||||||
William Lei Ding [Member] | Youdao Information [Member] | Loan Agreements [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Interest-free loan in the principal amount | ¥ 3,600 | ¥ 3,600 | |||||||||||
Variable interest entity principal agreement term period | 10 years | 10 years | |||||||||||
Variable interest entity principal agreement term extend period | 10 years | 10 years | |||||||||||
William Lei Ding [Member] | Youdao Information [Member] | Operating Agreements [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Variable interest entity principal agreement term period | 20 years | 20 years | |||||||||||
Feng Zhou [Member] | Youdao Information [Member] | Loan Agreements [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Interest-free loan in the principal amount | ¥ 1,400 | ¥ 1,400 | |||||||||||
Variable interest entity principal agreement term period | 10 years | 10 years | |||||||||||
Variable interest entity principal agreement term extend period | 10 years | 10 years | |||||||||||
Feng Zhou [Member] | Youdao Information [Member] | Operating Agreements [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Variable interest entity principal agreement term period | 20 years | 20 years | |||||||||||
Investee [Member] | Youdao Cloudnote Business [Member] | |||||||||||||
Operations and Organization [Line Items] | |||||||||||||
Percentage Of Voting Interests acquired | 37.50% |
Operations and Reorganization_2
Operations and Reorganization - Schedule Of Subsidiaries And Variable Interest Entities (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Youdao (Hong Kong) Limited [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Hong Kong, China, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Youdao Education Technology (Hong Kong) Limited [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Hong Kong, China, 2021 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Providing sales of smart devices |
NetEase Youdao Information Technology (Beijing) Co., Ltd. ("Youdao Information") [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Beijing, China, 2006 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Providing sales of smart devices and solutions, technical support to the VIEs |
NetEase Youdao Information Technology (Hangzhou) Co., Ltd. ("Youdao Hangzhou") [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Hangzhou, China, 2019 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Providing technical support to the VIEs |
NetEase Youdao (Hangzhou) Smart Technology Co., Ltd. ("Youdao Smart Technology") [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Hangzhou, China, 2021 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Providing sales of smart devices |
Beijing NetEase Youdao Computer System Co., Ltd. ("Youdao Computer") [Member] | |
Subsidiaries And Variable Interest Entity [Line Items] | |
Place and year of incorporation | Beijing, China, 2007 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Providing online learning services as well as online marketing services |
Operations and Reorganization_3
Operations and Reorganization - Schedule Of Variable Interest Entities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | ||
Assets | ||||||
Cash and cash equivalents | ¥ 322,777 | ¥ 609,199 | $ 50,651 | |||
Restricted cash (Note 2(j)) | 749,770 | 117,655 | ||||
Short-term investments | 503,831 | 584,999 | 79,062 | |||
Accounts receivable, net | 248,339 | 268,830 | 38,970 | |||
Inventories, net | 255,411 | 118,963 | 40,080 | |||
Amounts due from NetEase Group and Youdao Group | 6,192 | 4,081 | 972 | |||
Prepayment and other current assets | 182,577 | 199,642 | 28,650 | |||
Assets held for sale | 497 | 65,589 | 78 | |||
Total current assets | 2,269,662 | 1,851,566 | 356,160 | |||
Property, equipment and software, net | 80,315 | 40,173 | 12,603 | |||
Operating lease right-of-use assets, net | 118,104 | 105,865 | 18,533 | |||
Goodwill | 109,944 | 6,938 | 17,253 | |||
Other assets, net | 22,436 | 17,759 | 3,520 | |||
Total non-current assets | 364,405 | 218,682 | 57,183 | |||
Total assets | 2,634,067 | 2,070,248 | 413,343 | |||
Liabilities | ||||||
Accounts payables | 161,006 | 141,304 | 25,265 | |||
Payroll payable | 277,383 | 209,603 | 43,527 | |||
Contract liabilities | 1,065,639 | 894,218 | 167,222 | |||
Taxes payable | 53,323 | 54,895 | 8,368 | |||
Accrued liabilities and other payables | 515,567 | 602,044 | 80,904 | |||
Liabilities held for sale | 546,271 | |||||
Total current liabilities | 3,033,959 | 3,393,565 | 476,094 | |||
Long-term lease liabilities | 73,070 | 79,748 | 11,466 | |||
Total non-current liabilities | 330,509 | 83,791 | 51,863 | |||
Total liabilities | 3,364,468 | 3,477,356 | $ 527,957 | |||
Net revenues: | ||||||
Net revenues | 4,015,794 | $ 630,166 | 2,526,806 | ¥ 1,207,410 | ||
Cost and expenses: | ||||||
Net income/(loss) from continuing operations | (926,087) | (145,324) | (799,025) | (460,377) | ||
Cash flows from operating activities: | ||||||
Net cash provided by/(used in) operating activities | (1,346,400) | (211,281) | (321,562) | (372,270) | ||
Cash flows from investing activities: | ||||||
Net cash (used in)/provided by investing activities | 47,074 | 7,386 | 760,971 | (1,084,005) | ||
Cash flows from financing activities: | ||||||
Net cash provided by financing activities | [1] | 1,783,713 | $ 279,904 | 26,559 | 1,587,669 | |
VIEs [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 134,639 | 7,691 | ||||
Restricted cash (Note 2(j)) | 749,770 | |||||
Short-term investments | 13,617 | 10,354 | ||||
Accounts receivable, net | 146,257 | 145,212 | ||||
Inventories, net | 48,477 | 26,556 | ||||
Amounts due from NetEase Group and Youdao Group | 442,286 | 1,243,125 | ||||
Prepayment and other current assets | 64,005 | 45,065 | ||||
Assets held for sale | 204 | 52,534 | ||||
Total current assets | 1,599,255 | 1,530,537 | ||||
Property, equipment and software, net | 3,244 | 148 | ||||
Operating lease right-of-use assets, net | 26,320 | 988 | ||||
Goodwill | 103,006 | |||||
Other assets, net | 36,405 | 45,496 | ||||
Total non-current assets | 168,975 | 46,632 | ||||
Total assets | 1,768,230 | 1,577,169 | ||||
Liabilities | ||||||
Accounts payables | 45,756 | 62,438 | ||||
Payroll payable | 11,873 | 6,863 | ||||
Amounts due to NetEase Group and Youdao Group | 504,605 | 26,728 | ||||
Contract liabilities | 1,011,734 | 842,296 | ||||
Taxes payable | 4,072 | 394 | ||||
Accrued liabilities and other payables | 65,547 | 35,021 | ||||
Liabilities held for sale | 0 | 546,271 | ||||
Total current liabilities | 1,643,587 | 1,520,011 | ||||
Long-term lease liabilities | 15,803 | 223 | ||||
Total non-current liabilities | 15,803 | 223 | ||||
Total liabilities | 1,659,390 | 1,520,234 | ||||
Net revenues: | ||||||
Net revenues | 2,751,551 | 1,793,514 | 900,263 | |||
Cost and expenses: | ||||||
Cost and expenses | (2,793,144) | (1,825,292) | (901,383) | |||
Net income/(loss) from continuing operations | (58,520) | 20,483 | 2,066 | |||
Cash flows from operating activities: | ||||||
Net cash provided by transactions with external parties | 3,278,167 | 3,034,716 | 855,715 | |||
Net cash provided by/(used in) other transactions with intra-Group companies | (699) | 1,613 | 392 | |||
Net cash provided by/(used in) operating activities | 868,168 | (62,502) | 50,978 | |||
Cash flows from investing activities: | ||||||
Net cash (used in)/provided by transactions with external parties | 8,550 | 65,510 | (67,118) | |||
Net cash (used in)/provided by investing activities | 8,550 | 65,510 | (67,118) | |||
Cash flows from financing activities: | ||||||
Proceeds received from ordinary shareholders | 10,000 | |||||
Net cash provided by financing activities | 10,000 | |||||
VIEs [Member] | Technical consulting and related services [Member] | ||||||
Cash flows from operating activities: | ||||||
Net cash used in transactions with intra-Group companies related to technical consulting and related service | (2,409,300) | (3,098,831) | (805,129) | |||
VIEs [Member] | Third Party [Member] | ||||||
Net revenues: | ||||||
Net revenues | 2,750,610 | 1,792,962 | 900,263 | |||
Cost and expenses: | ||||||
Cost and expenses | (561,272) | (421,814) | (358,318) | |||
VIEs [Member] | Intra Group [Member] | ||||||
Net revenues: | ||||||
Net revenues | 941 | 552 | ||||
VIEs [Member] | Intra Group [Member] | Technical consulting and related services [Member] | ||||||
Cost and expenses: | ||||||
Cost and expenses | (2,221,199) | (1,402,371) | (540,830) | |||
VIEs [Member] | Other Intra Group [Member] | ||||||
Cost and expenses: | ||||||
Cost and expenses | ¥ (10,673) | ¥ (1,107) | ¥ (2,235) | |||
[1] | There was no financing activity from discontinued operations. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Statutory Reserves [Line Items] | |||||
Exchange rate | 6.3726 | ||||
Impairment charge | ¥ 0 | ¥ 0 | ¥ 0 | ||
Revenue recognized that was included in the deferred revenue balance at the beginning of the year | 854,342,000 | 438,839,000 | |||
The aggregate amount of transaction price allocated to unsatisfied performance obligations | 1,018,100,000 | ||||
Advertising expenses | 1,393,300,000 | 1,122,100,000 | 323,600,000 | ||
Share-based compensation due to the completion of the IPO | ¥ 18,400,000 | ||||
Employee benefit expenses | 222,690,000 | 68,002,000 | 86,316,000 | ||
Impairment of finite lived intangible assets acquired from business combination | ¥ 56,778,000 | $ 8,911 | ¥ 0 | ¥ 0 | |
China Company Law [Member] | |||||
Statutory Reserves [Line Items] | |||||
Statutory surplus fund reached capital rate | 50.00% | ||||
China Company Law [Member] | Minimum [Member] | |||||
Statutory Reserves [Line Items] | |||||
Statutory reserve appropriation | 10.00% | 10.00% | |||
China Foreign Investment Enterprises Law [Member] | |||||
Statutory Reserves [Line Items] | |||||
General reserve reached capital rate | 50.00% | ||||
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||||
Statutory Reserves [Line Items] | |||||
General reserve appropriation | 10.00% | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of useful lives of property plant and equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Servers and computers [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture, fixtures, office and other equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture, fixtures, office and other equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | The shorter of the useful life or term of the lease |
Software and others [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Software and others [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of disaggregated Revenue (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of net revenues [Line Items] | ||||
Net revenues | ¥ 4,015,794 | $ 630,166 | ¥ 2,526,806 | ¥ 1,207,410 |
Learning services [Member] | ||||
Disaggregation of net revenues [Line Items] | ||||
Net revenues | 2,441,421 | 383,112 | 1,513,960 | 602,353 |
Tutoring Services [Member] | ||||
Disaggregation of net revenues [Line Items] | ||||
Net revenues | 2,271,036 | 1,369,010 | 510,095 | |
Fee-based premium services [Member] | ||||
Disaggregation of net revenues [Line Items] | ||||
Net revenues | 170,385 | 144,950 | 92,258 | |
Smart Devices [Member] | ||||
Disaggregation of net revenues [Line Items] | ||||
Net revenues | 980,424 | 153,850 | 539,962 | 152,044 |
Online marketing services [Member] | ||||
Disaggregation of net revenues [Line Items] | ||||
Net revenues | ¥ 593,949 | $ 93,204 | ¥ 472,884 | ¥ 453,013 |
Discontinued operations - Summa
Discontinued operations - Summary of Disposal Group Including Discontinued Operation Balance Sheet (Detail) - Academic After School Tutoring Business [Member] - Discontinued Operations [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories, net | ¥ 204 | ¥ 29,699 |
Prepayment and other current assets | 293 | 35,890 |
Total current assets | 497 | 65,589 |
Property, equipment and software, net | 1,088 | 5,463 |
Total non-current assets | 1,088 | 5,463 |
Total assets | ¥ 1,585 | 71,052 |
Contract liabilities | 546,271 | |
Total current liabilities | 546,271 | |
Total liabilities | ¥ 546,271 |
Discontinued operations - Sum_2
Discontinued operations - Summary Of income Statements In Respect OF Discontinued Operation (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating expenses: | ||||
Net loss from discontinued operations | ¥ (100,267) | $ (15,734) | ¥ (954,327) | ¥ (141,078) |
Academic After School Tutoring Business [Member] | Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 1,338,563 | 640,709 | 97,473 | |
Cost of revenues | (421,190) | (293,860) | (61,896) | |
Gross profit | 917,373 | 346,849 | 35,577 | |
Operating expenses: | ||||
Sales and marketing expenses | (862,153) | (1,223,414) | (167,136) | |
Research and development expenses | (97,521) | (52,409) | (5,472) | |
General and administrative expenses | (57,966) | (25,353) | (4,047) | |
Total operating expenses | (1,017,640) | (1,301,176) | (176,655) | |
Loss from operations | (100,267) | (954,327) | (141,078) | |
Net loss from discontinued operations | ¥ (100,267) | ¥ (954,327) | ¥ (141,078) |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Detail) - Revenue Benchmark [Member] | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Customer concentration risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk number of customers | 0 | 0 | 0 |
Customer concentration risk [Member] | Customer one [Member] | More than [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Instructor concentration risk [Member] | Learning services [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk number of instructors | 1 | 1 | 1 |
Instructor concentration risk [Member] | Learning services [Member] | More than [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Concentration and Risks - Summa
Concentration and Risks - Summary of Concentration and Risks (Detail) - Learning services [Member] - Instructor Concentration Risk [Member] - Revenue Benchmark [Member] | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Instructor A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 13.00% | |
Instructor B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% |
Concentration and Risks - Sum_2
Concentration and Risks - Summary of Concentration and Risks (Parenthetical) (Detail) - Learning services [Member] - Revenue Benchmark [Member] - Instructor Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Instructor A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 13.00% | |
Instructor A [Member] | Not more than [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Instructor B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | ||
Instructor B [Member] | Not more than [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% |
Business Combination - Addition
Business Combination - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Business Acquisition [Line Items] | ||||||
Business combination step acquistion equity interest in acquiree remeasurement gain loss | ¥ 2,456 | $ 385 | ||||
Unpaid consideration for business combination | 5,129 | |||||
Amortization of intangible assets | 2,972 | |||||
Impairment of intangible assets finite lived | ¥ 56,778 | $ 8,911 | ¥ 0 | ¥ 0 | ||
Youdao Education Technology (Hong Kong) Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interests acquired | 100.00% | |||||
Private Company Providing Kids Programming Education Courses To Students [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interests acquired | 92.50% | |||||
Business Combination, Consideration Transferred | ¥ 7,700 | |||||
Private Company Providing Kids Programming Education Courses To Students [Member] | Youdao Education Technology (Hong Kong) Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interests acquired | 7.50% | |||||
Private Company Providing Kids Steam Education Courses To Students [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interests acquired | 100.00% | |||||
Business Combination, Consideration Transferred | ¥ 6,050 | |||||
Private Company Providing Offline After School Tutoring Services [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interests acquired | 16.00% | |||||
Business Combination, Consideration Transferred | ¥ 122,000 | ¥ 30,000 | ||||
Business combination step acquistion equity interest in acquiree including subsequent acquistion percentage | 55.00% | |||||
Private Company Providing Offline After School Tutoring Services [Member] | From The Previous Shareholders Of The Investee [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | ¥ 22,000 | |||||
Private Company Providing Offline After School Tutoring Services [Member] | Out Of New Subscription Made By The Company [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | ¥ 100,000 |
Business Combination - Schedule
Business Combination - Schedule of fair value of the assets acquired and the liabilities (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Identifiable intangible assets: | |||||
Goodwill | ¥ 109,944 | ¥ 6,938 | $ 17,253 | ||
Private Company Providing Kids Programming Education Courses To Students [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | ¥ 7,700 | ||||
Noncontrolling interests | 624 | ||||
Total | 8,324 | ||||
Cash and cash equivalents | 1,302 | ||||
Other tangible assets | 156 | ||||
Identifiable intangible assets: | |||||
Liabilities assumed | (72) | ||||
Goodwill | 6,938 | ||||
Total | ¥ 8,324 | ||||
Private Company Providing Kids Steam Education Courses To Students [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | ¥ 6,050 | ||||
Total | 6,050 | ||||
Cash and cash equivalents | 354 | ||||
Other tangible assets | 470 | ||||
Identifiable intangible assets: | |||||
Liabilities assumed | (11,869) | ||||
Goodwill | 17,095 | ||||
Total | ¥ 6,050 | ||||
Private Company Providing Offline After School Tutoring Services [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | 122,000 | ¥ 30,000 | |||
Previously held equity interest | 27,544 | ||||
Redeemable noncontrolling interests | 106,368 | ||||
Total | 255,912 | ||||
Cash and cash equivalents | 165,783 | ||||
Other tangible assets | 18,040 | ||||
Identifiable intangible assets: | |||||
Deferred tax liabilities | (8,963) | ||||
Liabilities assumed | (64,609) | ||||
Goodwill | 85,911 | ||||
Total | 255,912 | ||||
Private Company Providing Offline After School Tutoring Services [Member] | Trademark [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | ¥ 46,000 | ||||
Identifiable intangible assets Amortization Period | 10 years | ||||
Private Company Providing Offline After School Tutoring Services [Member] | Licenses [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | ¥ 6,500 | ||||
Identifiable intangible assets Amortization Period | 10 years | ||||
Private Company Providing Offline After School Tutoring Services [Member] | Copyright [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | ¥ 4,000 | ||||
Identifiable intangible assets Amortization Period | 5 years | ||||
Private Company Providing Offline After School Tutoring Services [Member] | Students Base [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | ¥ 3,250 | ||||
Identifiable intangible assets Amortization Period | 3 years |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of accounts receivable (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Accounts receivable, net: | |||
Accounts receivable | ¥ 258,156 | ¥ 283,159 | |
Allowance for expected credit losses: | |||
Balance at the beginning of the year | (14,329) | (2,278) | |
Additional provision charged to expenses | 667 | (12,051) | |
Write-off | 3,845 | ||
Balance at the end of the year | (9,817) | (14,329) | |
Total | ¥ 248,339 | ¥ 268,830 | $ 38,970 |
Prepayment and Other Current _3
Prepayment and Other Current Assets - Schedule of prepaid expenses and other current assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepayment and Other Current Assets [Abstract] | |||
Prepayment for promotion fees | ¥ 42,696 | ¥ 44,575 | |
Prepayment for value-added taxes | 38,315 | 40,950 | |
Deferred expenses for learning services | 34,457 | 28,752 | |
Prepayment for content fees | 9,543 | 2,206 | |
Deferred charges | 8,745 | 8,857 | |
Prepayment for rental expenses | 7,247 | 4,900 | |
Prepaid sales commission | 2,263 | 1,158 | |
Receivable for withholding individual income taxes of option exercise | 1,700 | 39,371 | |
Interest receivable | 281 | 51 | |
Prepaid insurance fee for directors and officers | 5,329 | ||
Others | 37,330 | 23,493 | |
Total | ¥ 182,577 | $ 28,650 | ¥ 199,642 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of property, equipment and software, net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property Equipment and Software, Net [Line Items] | |||
Property and equipment, gross | ¥ 141,665 | ¥ 82,462 | |
Less: accumulated depreciation | (61,350) | (42,289) | |
Net book value | 80,315 | $ 12,603 | 40,173 |
Servers and computers [Member] | |||
Property Equipment and Software, Net [Line Items] | |||
Property and equipment, gross | 84,425 | 68,895 | |
Furniture, fixtures and office equipment [Member] | |||
Property Equipment and Software, Net [Line Items] | |||
Property and equipment, gross | 14,053 | 4,419 | |
Leasehold improvements [Member] | |||
Property Equipment and Software, Net [Line Items] | |||
Property and equipment, gross | 38,120 | 6,723 | |
Software and others [Member] | |||
Property Equipment and Software, Net [Line Items] | |||
Property and equipment, gross | ¥ 5,067 | ¥ 2,425 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Equipment And Software [Abstract] | |||
Depreciation expenses | ¥ 21,068 | ¥ 13,853 | ¥ 10,255 |
Leases - Summary of supplementa
Leases - Summary of supplemental information related to operating leases (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |||
Operating lease right-of-use assets, net | ¥ 118,104 | $ 18,533 | ¥ 105,865 |
Operating lease liabilities - current | 46,688 | 29,982 | |
Operating lease liabilities - non-current | 73,070 | $ 11,466 | 79,748 |
Total operating lease liabilities | ¥ 119,758 | ¥ 109,730 | |
Weighted average remaining lease term | 3 years 7 months 6 days | 3 years 7 months 6 days | 4 years 4 months 24 days |
Weighted average discount rate | 3.99% | 3.99% | 4.10% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current | Liabilities, Current |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expenses (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | |||
Operating lease expenses | ¥ 25,449 | ¥ 5,924 | ¥ 1,885 |
Short-term lease expenses | 3,381 | 2,306 | 2,493 |
Variable lease expenses | 24,008 | 31,684 | 19,841 |
Total lease expenses | 52,838 | 39,914 | 24,219 |
Cash paid for amounts included in the measurement of operating lease liabilities | 37,756 | 12,431 | 658 |
Right-of-use assets obtained in exchange for operating lease liabilities | 85,731 | ¥ 91,893 | ¥ 26,030 |
Lease liabilities decrease due to early termination | ¥ 44,469 |
Leases - Schedule of maturity o
Leases - Schedule of maturity of operating lease liabilities under non-cancelable operating leases (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | ¥ 47,525 | |
2023 | 36,115 | |
2024 | 16,314 | |
2025 | 11,855 | |
2026 | 10,651 | |
Thereafter | 3,200 | |
Total operating lease liabilities | 125,660 | |
Less: interest | (5,902) | |
Present value of operating lease liabilities | ¥ 119,758 | ¥ 109,730 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - HKD ($) $ in Millions | 3 Months Ended | 11 Months Ended | 12 Months Ended | 16 Months Ended | 30 Months Ended | 33 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2019 | |
Taxation [Line Items] | ||||||||||
Cultural Development Fee rate on advertising services revenue | 3.00% | |||||||||
Percent of tax rate reduction on cultural development fee | 50.00% | |||||||||
Income tax rate | 25.00% | 25.00% | 25.00% | |||||||
Expiration period for tax losses | 5 years | |||||||||
High and New Technology Enterprises [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Expiration period for tax losses | 5 years | |||||||||
High and New Technology Enterprises [Member] | New tax legislation [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Expiration period for tax losses | 10 years | |||||||||
Sales of general goods [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
VAT rate | 16.00% | 17.00% | 13.00% | |||||||
Services provided [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
VAT rate | 6.00% | |||||||||
Hong Kong [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Income tax rate | 16.50% | |||||||||
Tax rate below threshold | 8.25% | |||||||||
Threshold limit | $ 2 | |||||||||
Tax rate above threshold | 16.50% | |||||||||
China [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Income tax rate | 25.00% | |||||||||
Withholding tax rate | 10.00% | |||||||||
Beneficial withholding tax rate | 5.00% | |||||||||
Minimum percentage of ownership interests held by investors in Hong Kong to qualify for lower withholding tax rate (as a percent) | 25.00% | |||||||||
China [Member] | High and New Technology Enterprises [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Preferential tax rate | 15.00% | |||||||||
Preferential income tax rate period (years) | 3 years | |||||||||
China [Member] | High and New Technology Enterprises [Member] | Youdao Information [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Preferential tax rate | 15.00% | |||||||||
China [Member] | High and New Technology Enterprises [Member] | Beijing Lingshi Ruifeng Education Technology Co., Ltd [Member] | ||||||||||
Taxation [Line Items] | ||||||||||
Preferential tax rate | 15.00% |
Taxation - Schedule of composit
Taxation - Schedule of composition of income tax expense benefit (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Taxation [Abstract] | ||||
Current income tax expenses | ¥ 15,611 | ¥ 2,929 | ¥ 2,432 | |
Deferred tax benefit | (8,963) | $ (1,406) | ||
Income tax expenses | ¥ 6,648 | $ 1,043 | ¥ 2,929 | ¥ 2,432 |
Taxation - Schedule of effectiv
Taxation - Schedule of effective income tax rate reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxation [Abstract] | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Permanent differences | 3.00% | 3.00% | 0.00% |
Tax effect of preferential tax treatment and tax difference of statutory rate in other jurisdictions | (9.00%) | (11.00%) | (9.00%) |
Change in valuation allowance | (21.00%) | (17.00%) | (16.00%) |
Effective income tax rate | (2.00%) | 0.00% | 0.00% |
Taxation - Schedule of deferred
Taxation - Schedule of deferred tax assets and liabilities (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | |||
Net operating tax loss carry forwards | ¥ 382,409 | ¥ 137,550 | |
Advertising and promotion expenses in excess of deduction limit | 334,697 | 315,708 | |
Payroll and expense accrued | 99,007 | 98,889 | |
Others | 3,612 | 2,085 | |
Less: valuation allowance | (819,725) | (554,232) | ¥ (252,069) |
Total deferred tax assets, net | ¥ 0 | ¥ 0 |
Taxation - Schedule of valuatio
Taxation - Schedule of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Taxation [Abstract] | ||
Balance as of January 1 | ¥ 554,232 | ¥ 252,069 |
Change of valuation allowance | 265,493 | 302,163 |
Balance as of December 31 | ¥ 819,725 | ¥ 554,232 |
Taxation - Schedule of operatin
Taxation - Schedule of operating loss carryforwards (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 2,379,521 |
Loss expiring in 2022 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Loss expiring in 2023 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 139,448 |
Loss expiring in 2024 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 141,556 |
Loss expiring in 2025 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 188,518 |
Loss expiring in 2026 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 240,483 |
Loss expiring in 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 112,069 |
Loss expiring in 2028 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 201,070 |
Loss expiring in 2029 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 230,257 |
Loss expiring in 2030 and thereafter [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 1,126,120 |
Taxes Payable - Summary of taxe
Taxes Payable - Summary of taxes payable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Taxes Payable [Abstract] | |||
VAT payable | ¥ 30,582 | ¥ 3,325 | |
Withholding individual income taxes for employees | 14,724 | 48,692 | |
Enterprise income taxes payable | 7,656 | 2,503 | |
Others | 361 | 375 | |
Total | ¥ 53,323 | $ 8,368 | ¥ 54,895 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables - Schedule of accrued liabilities and other payable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued Liabilities and Other Payables [Abstract] | |||
Accrued marketing expenses | ¥ 173,944 | ¥ 257,216 | |
Accrued liabilities for learning services and online marketing services | 141,521 | 136,605 | |
Operating lease liabilities-current portion | 46,688 | 29,982 | |
Accrued technical expenses | 29,890 | 24,000 | |
Accrued administrative expenses | 26,717 | 23,777 | |
Accrued outside labor service fee | 22,975 | 64,799 | |
Payables for property, equipment and software | 14,088 | 7,068 | |
Deferred government grant | 11,503 | 21,376 | |
Warehousing and logistics fee | 11,323 | 8,034 | |
Accrued professional fee | 10,177 | 11,811 | |
Unpaid consideration for business combination | 5,129 | ||
Deposits payable to service providers | 1,762 | 1,823 | |
Others | 19,850 | 15,553 | |
Total | ¥ 515,567 | $ 80,904 | ¥ 602,044 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Feb. 28, 2021CNY (¥)shares | Feb. 28, 2021USD ($)shares | Feb. 10, 2021USD ($)$ / sharesshares | Mar. 28, 2018shares | Mar. 07, 2018USD ($)shares | Feb. 03, 2015$ / sharesshares | Oct. 31, 2019CNY (¥)shares | Oct. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020$ / sharesshares | Nov. 27, 2014$ / sharesshares |
Number of ordinary shares issued | 123,267,785 | 114,729,466 | ||||||||||||
Number of shares split | 10,000 | |||||||||||||
Total consideration connection with concurrent private placements | ¥ | ¥ 881,662 | |||||||||||||
Net proceeds | $ | $ 213,200 | |||||||||||||
Underwriter commissions and relevant offering expenses | $ 7,000 | ¥ 7,909 | ||||||||||||
Proceeds received from ordinary shareholders | ¥ 1,498,627 | $ 235,167 | ||||||||||||
Ordinary shares outstanding | 123,267,785 | 114,729,466 | ||||||||||||
NetEase [Member] | ||||||||||||||
Number of shares issued | 65,377,160 | |||||||||||||
Total consideration of share issued | $ | $ 7 | |||||||||||||
Description of share split | This issuance to NetEase was treated as an in substance 10,000 to 65,387,160 share split | |||||||||||||
Youdao Information [Member] | ||||||||||||||
Number of shares issued | 26,612,840 | |||||||||||||
Ordinary shares [Member] | NetEase [Member] | ||||||||||||||
Number of ordinary shares issued | 1 | |||||||||||||
Common stock par value | $ / shares | $ 0.0001 | $ 1 | ||||||||||||
Class A ordinary shares [Member] | ||||||||||||||
Number of ordinary shares issued | 34,979,425 | 25,597,106 | ||||||||||||
Common stock par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||
Number of shares issued on conversion | 6,814,815 | 6,814,815 | ||||||||||||
Voting right | one vote per share | one vote per share | ||||||||||||
Ordinary shares outstanding | 34,979,425 | 25,597,106 | ||||||||||||
Class B ordinary shares [Member] | ||||||||||||||
Number of ordinary shares issued | 88,288,360 | 89,132,360 | ||||||||||||
Common stock par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||
Voting right | three votes per share | three votes per share | ||||||||||||
Conversion ratio | 1 | 1 | ||||||||||||
Ordinary shares outstanding | 88,288,360 | 89,132,360 | ||||||||||||
IPO [Member] | American depositary shares [Member] | ||||||||||||||
Number of shares issued | 5,600,000 | 5,600,000 | ||||||||||||
Class A ordinary shares represented | 1 | 1 | ||||||||||||
Private Placement [Member] | ||||||||||||||
Total consideration connection with concurrent private placements | ¥ 881,700 | $ 125,000 | ||||||||||||
Private Placement [Member] | Class A ordinary shares [Member] | Orbis Investment Management Limited [Member] | ||||||||||||||
Common stock par value | $ / shares | $ 17 | |||||||||||||
Number of shares issued | 7,352,941 | 7,352,941 | ||||||||||||
Total consideration connection with concurrent private placements | $ | $ 125,000 | |||||||||||||
Follow-on Public Offering [Member] | American depositary shares [Member] | ||||||||||||||
Common stock par value | $ / shares | $ 0.0001 | |||||||||||||
Number of shares issued | 7,000,000 | 7,000,000 | 7,000,000 | |||||||||||
Class A ordinary shares represented | 1 | |||||||||||||
Underwriter commissions and relevant offering expenses | $ | $ 6,400 | |||||||||||||
Proceeds received from ordinary shareholders | ¥ 1,498,600 | $ 231,600 | $ 231,600 |
Convertible Redeemable Prefer_3
Convertible Redeemable Preferred Shares - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Millions | Apr. 17, 2018CNY (¥) | Apr. 17, 2018USD ($)investors$ / sharesshares | Oct. 31, 2019USD ($) | Dec. 31, 2021 | Dec. 31, 2020CNY (¥) | Dec. 31, 2018CNY (¥) | Apr. 12, 2022 |
Temporary Equity [Line Items] | |||||||
Series A preferred shares issuance costs | $ 7 | ¥ 7,909 | |||||
Liquidation plan | (i) 100% of the applicable preferred share issue price, plus (ii) an amount accruing thereon at an annual rate of 10% of the applicable preferred share issue price, plus (iii) all declared but unpaid dividends thereon. | ||||||
Pro Forma [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Share price percent on purchase consideration plus unpaid dividend | 140.00% | ||||||
Compounded rate on purchase consideration plus unpaid dividend | 6.00% | ||||||
Series A convertible redeemable preferred shares [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Shares issued | shares | 6,814,815 | ||||||
Shares price per shares | $ / shares | $ 10.27 | ||||||
Number of purchasers | investors | 2 | ||||||
Total cash consideration | ¥ 440,000 | $ 70 | |||||
Series A preferred shares issuance costs | ¥ 9,826 | ||||||
Financing expense and capital contribution | ¥ 4,722 |
Convertible Redeemable Prefer_4
Convertible Redeemable Preferred Shares - Schedule of company's preferred shares activities (Detail) ¥ in Thousands, shares in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥)shares | |
Series A Preferred Shares | |
Amount, Accretions of preferred shares to redemption value | ¥ 35,893 |
Series A convertible redeemable preferred shares [Member] | |
Series A Preferred Shares | |
Number of shares (in thousands), Beginning balance | shares | 6,815 |
Amount, Beginning balance | ¥ 460,652 |
Amount, Accretions of preferred shares to redemption value | ¥ 35,893 |
Series A convertible redeemable preferred shares [Member] | IPO [Member] | |
Series A Preferred Shares | |
Number of shares (in thousands), Conversion into Class A ordinary shares upon IPO | shares | (6,815) |
Amount, Conversion into Class A ordinary shares upon IPO | ¥ (496,545) |
Others, Net - Schedule of other
Others, Net - Schedule of other nonoperating income expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Others, Net [Abstract] | ||||
Government grants | ¥ 42,202 | ¥ 28,644 | ¥ 18,087 | |
Fair value changes of short-term investments | 28,810 | 9,396 | 863 | |
Donation | (9,801) | (1,459) | (1,620) | |
Impairment of long-term investments | (7,000) | $ (1,098) | ||
VAT exemption due to the COVID-19 (Note 10) | (5,353) | 51,889 | ||
Foreign exchange gains/(losses) | (5,005) | (23,935) | 3,279 | |
Loss from lease termination | (2,809) | |||
Remeasured loss from previously held interest (Note 5) | (2,456) | (385) | ||
Others | (1,915) | (3,483) | (545) | |
Total | ¥ 36,673 | $ 5,756 | ¥ 61,052 | ¥ 20,064 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of share-based compensation expenses (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 72,201 | $ 11,330 | ¥ 36,425 | ¥ 23,336 |
Cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 7,862 | 4,641 | 3,642 | |
Sales and marketing expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 10,521 | 4,821 | 2,007 | |
Research and development expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 33,775 | 19,738 | 9,241 | |
General and administrative expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 20,043 | ¥ 7,225 | ¥ 8,446 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019$ / shares | Dec. 31, 2021USD ($) | Oct. 31, 2019shares | Apr. 30, 2018shares | Feb. 03, 2015shares | Nov. 30, 2009shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares-based compensation expense | ¥ | ¥ 18,400,000 | |||||||||||
NetEase Group [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares-based compensation expense | ¥ | ¥ 1,043,000 | ¥ 2,682,000 | ¥ 4,356,000 | |||||||||
NetEase [Member] | 2009 RSU Plan [Member] | Ordinary shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for future issuance | 323,694,050 | |||||||||||
NetEase [Member] | 2019 Plan [Member] | Ordinary shares [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for future issuance | 322,458,300 | |||||||||||
Youdao, Inc. [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Weighted average grant date fair value of share options granted | $ / shares | $ 23.30 | $ 23.37 | $ 4.12 | |||||||||
Fair value of options vested | 34,618,000 | $ 5,432 | ¥ 11,087,000 | 2,771,000 | ||||||||
Youdao, Inc. [Member] | 2015 Share Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares-based compensation expense | ¥ | ¥ 0 | |||||||||||
Total unrecognized compensation expense | ¥ 106,034,000 | $ 16,639 | ||||||||||
Weighted average remaining vesting period | 2 years 4 months 9 days | 2 years 4 months 9 days | ||||||||||
Youdao, Inc. [Member] | 2015 Share Incentive Plan [Member] | Ordinary shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for future issuance | 10,222,222 | 8,000,000 | ||||||||||
Additional number of shares reserved for future issuance | 2,222,222 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of share based payment award stock options valuation assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 52.40% | 48.90% | 46.50% |
Expected volatility | 62.40% | 52.20% | 46.90% |
Expected dividends yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.58% | 0.30% | 2.10% |
Risk-free interest rate | (0.87%) | (1.69%) | (2.60%) |
Expected term (in years) | 6 years | 6 years | 6 years |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of underlying ordinary share (US$) | $ 9.44 | $ 16 | $ 6.35 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of underlying ordinary share (US$) | $ 35.99 | $ 42.31 | $ 7.29 |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of share based compensation stock option activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation [Abstract] | ||||
Number of options - Beginning balance | 5,902 | 8,329 | 6,991 | |
Number of options - Granted | 1,095 | 888 | 2,072 | |
Number of options - Exercised | (1,538) | (2,962) | ||
Number of options - Forfeited | (554) | (353) | (734) | |
Number of options - Ending balance | 4,905 | 5,902 | 8,329 | 6,991 |
Number of options - Vested and exercisable | 1,841 | 2,182 | ||
Weighted average exercise price per share - Beginning balance | $ 2.92 | $ 2.43 | $ 2.13 | |
Weighted average exercise price per share - Granted | 4.50 | 4 | 3.50 | |
Weighted average exercise price per share - Exercised | 2.45 | 1.84 | ||
Weighted average exercise price per share - Forfeited | 3.75 | 3.14 | 2.60 | |
Weighted average exercise price per share - Ending balance | 3.33 | 2.92 | $ 2.43 | $ 2.13 |
Weighted average exercise price per share - Vested and exercisable | $ 2.66 | $ 2.32 | ||
Weighted average remaining contractual life | 2 years 11 months 8 days | 3 years 25 days | 3 years 21 days | 3 years 4 months 24 days |
Weighted average remaining contractual life - Vested and exercisable | 1 year 8 months 15 days | 1 year 10 months 20 days | ||
Aggregate intrinsic value | $ 44,871 | $ 139,326 | $ 97,000 | $ 29,468 |
Aggregate intrinsic value - Vested and exercisable | $ 18,085 | $ 52,828 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of earning per shares basic and diluted (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss from continuing operations attributable to ordinary shareholders of the Company | ¥ (895,388) | $ (140,507) | ¥ (798,462) | ¥ (496,318) |
Net loss from discontinued operations attributable to ordinary shareholders of the Company | (100,267) | (15,734) | (954,327) | (141,078) |
Net loss attributable to ordinary shareholders of the Company | ¥ (995,655) | $ (156,241) | ¥ (1,752,789) | ¥ (637,396) |
Denominator: | ||||
Weighted average number of ordinary shares/ADSs outstanding, basic | 121,650,907 | 121,650,907 | 112,864,452 | 95,445,982 |
Weighted average number of ordinary shares/ADSs outstanding, diluted | 121,650,907 | 121,650,907 | 112,864,452 | 95,445,982 |
Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, basic | (per share) | ¥ (7.36) | $ (1.15) | ¥ (7.07) | ¥ (5.20) |
Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, basic | (per share) | (0.82) | (0.13) | (8.46) | (1.48) |
Net loss per share/ADS, basic | (per share) | (8.18) | (1.28) | (15.53) | (6.68) |
Net loss per share/ADS from continuing operations attributable to ordinary shareholders of the Company, diluted | (per share) | (7.36) | (1.15) | (7.07) | (5.20) |
Net loss per share from discontinued operations attributable to ordinary shareholders of the Company, diluted | (per share) | (0.82) | (0.13) | (8.46) | (1.48) |
Net loss per share/ADS, diluted | (per share) | ¥ (8.18) | $ (1.28) | ¥ (15.53) | ¥ (6.68) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Options for purchase of ordinary shares [Member] | |||
Net Loss per Share [Line Items] | |||
Anti dilutive securities excluded in calculation of earnings per share | 3,685,694 | 6,363,378 | 5,047,330 |
Financial Instruments - Schedul
Financial Instruments - Schedule of fair value (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Fair Value, by Balance Sheet Grouping [Line Items] | |||
Short-term investments | ¥ 503,831 | $ 79,062 | ¥ 584,999 |
Fair Value Recurring [Member] | |||
Fair Value, by Balance Sheet Grouping [Line Items] | |||
Short-term investments | 503,831 | 584,999 | |
Total | 503,831 | 584,999 | |
Fair Value Recurring [Member] | Significant other observable inputs (Level 2) [Member] | |||
Fair Value, by Balance Sheet Grouping [Line Items] | |||
Short-term investments | 503,831 | 584,999 | |
Total | ¥ 503,831 | ¥ 584,999 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Group's future minimum commitments under non-cancelable agreements (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Future minimum commitments [Line Items] | |
Purchase commitments | ¥ 188,248 |
Capital commitments | 6,070 |
Total | 194,318 |
Less than one year [Member] | |
Future minimum commitments [Line Items] | |
Purchase commitments | 187,548 |
Capital commitments | 6,070 |
Total | 193,618 |
One to three years [Member] | |
Future minimum commitments [Line Items] | |
Purchase commitments | 700 |
Total | ¥ 700 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of related party (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Relationships with the Group | Control or under common control | Control or under common control | Control or under common control |
Related Party Transactions - _2
Related Party Transactions - Schedule of related party transactions (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Services and products provided to NetEase Group [Member] | Learning services provided to NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | ¥ 7,360 | ¥ 5,826 | ¥ 2,913 |
Services and products provided to NetEase Group [Member] | Smart devices provided to NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 6,607 | 7,607 | 11,418 |
Services and products provided to NetEase Group [Member] | Online marketing services provided to NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 9,823 | 15,860 | 23,249 |
Services and products purchased from NetEase Group [Member] | Services purchased from NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 143,186 | 163,487 | 66,280 |
Services and products purchased from NetEase Group [Member] | Fixed assets and inventories purchased from NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 2,489 | 2,198 | 18,222 |
Loan related transactions [Member] | Interest expenses on loans from NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 31,644 | 31,215 | 30,232 |
Loan related transactions [Member] | Addition of Long Term Loans From Net Lease Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 257,522 | ||
Equity related transactions [Member] | Deemed contribution related to acquisition of businesses under common control [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 69,603 | ||
Equity related transactions [Member] | Deemed distribution to NetEase [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 4,171 | 2,060 | |
Equity related transactions [Member] | Share-based compensation under NetEase Plan [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | ¥ 1,043 | 2,682 | ¥ 4,356 |
Other transactions [Member] | Disposal of Youdao Cloudnote business to NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | ¥ 670 |
Related Party Transactions - _3
Related Party Transactions - Schedule of related party balances (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due from NetEase Group | ¥ 6,192 | $ 972 | ¥ 4,081 |
Amounts due to NetEase Group | 83,041 | 13,031 | 67,230 |
Short-term loans from NetEase Group | 878,000 | 137,777 | 878,000 |
Long-term loans from NetEase Group | 255,028 | 40,019 | |
NetEase Group [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from NetEase Group | 6,192 | 4,081 | |
Amounts due to NetEase Group | 83,041 | 67,230 | |
Short-term loans from NetEase Group | 878,000 | ¥ 878,000 | |
Long-term loans from NetEase Group | ¥ 255,028 | $ 40,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Apr. 30, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) |
Related Party Transaction [Line Items] | ||||||
Short-term loans | ¥ 878,000 | ¥ 878,000 | ¥ 878,000 | $ 137,777 | ||
Interest expense | 31,644 | 31,215 | ¥ 30,232 | |||
Amount drawn down under the facility | 255,028 | 255,028 | 40,019 | |||
NetEase Group [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Short-term loans | 878,000 | 878,000 | 878,000 | |||
Interest expense | 31,028 | ¥ 31,215 | ¥ 30,232 | |||
Amount drawn down under the facility | ¥ 255,028 | ¥ 255,028 | 40,000 | |||
Line of credit facility expiration date | Mar. 31, 2024 | |||||
NetEase Group [Member] | Revolving Credit Facility [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest expense | ¥ 616 | |||||
Debt Instrument, Term | 3 years | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 300,000 | |||||
Debt instrument variable interest rate spread | 1.10% | |||||
Amount drawn down under the facility | $ | $ 40,000 | |||||
Line of credit facility expiration date | Mar. 31, 2024 | |||||
NetEase Group [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Effective interest rate | 3.90% | 3.90% | ||||
NetEase Group [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Effective interest rate | 3.50% | 3.50% |
Segment Information - Schedule
Segment Information - Schedule of segment reporting information by segment (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Net revenues: | ||||
Total net revenues | ¥ 4,015,794 | $ 630,166 | ¥ 2,526,806 | ¥ 1,207,410 |
Cost of revenues: | ||||
Total cost of revenues | ¥ 2,026,956 | $ 318,074 | ¥ 1,419,369 | ¥ 872,365 |
Gross margin: | ||||
Total gross margin | 50.00% | 50.00% | 44.00% | 28.00% |
Learning services [Member] | ||||
Net revenues: | ||||
Total net revenues | ¥ 2,441,421 | $ 383,112 | ¥ 1,513,960 | ¥ 602,353 |
Cost of revenues: | ||||
Total cost of revenues | ¥ 980,700 | $ 153,893 | ¥ 716,504 | ¥ 451,164 |
Gross margin: | ||||
Total gross margin | 60.00% | 60.00% | 53.00% | 25.00% |
Smart devices [Member] | ||||
Net revenues: | ||||
Total net revenues | ¥ 980,424 | $ 153,850 | ¥ 539,962 | ¥ 152,044 |
Cost of revenues: | ||||
Total cost of revenues | ¥ 618,925 | $ 97,123 | ¥ 355,970 | ¥ 107,609 |
Gross margin: | ||||
Total gross margin | 37.00% | 37.00% | 34.00% | 29.00% |
Online marketing services [Member] | ||||
Net revenues: | ||||
Total net revenues | ¥ 593,949 | $ 93,204 | ¥ 472,884 | ¥ 453,013 |
Cost of revenues: | ||||
Total cost of revenues | ¥ 427,331 | $ 67,058 | ¥ 346,895 | ¥ 313,592 |
Gross margin: | ||||
Total gross margin | 28.00% | 28.00% | 27.00% | 31.00% |
Restricted Net Assets - Summary
Restricted Net Assets - Summary Of Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Restricted Net Assets [Abstract] | |
Percentage of annual appropriations set aside for Payments of divindends | 10.00% |
Restricted portion of net asset | ¥ 236.9 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - NetEase Group [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2021 | |
Subsequent Event [Line Items] | ||||
Line of credit facility expiration date | Mar. 31, 2024 | |||
Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 300 | |||
Line of credit facility expiration date | Mar. 31, 2024 | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from lines of credit | $ 30 | |||
Line of credit facility, maximum borrowing capacity | $ 300 | |||
Line of credit facility expiration date | Mar. 31, 2024 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Schedule of condensed balance sheets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 322,777 | $ 50,651 | ¥ 609,199 | ||
Amounts due from Youdao Group Companies | 6,192 | 972 | 4,081 | ||
Prepayment and other current assets | 182,577 | 28,650 | 199,642 | ||
Total assets | 2,634,067 | 413,343 | 2,070,248 | ||
Current liabilities: | |||||
Amounts due to NetEase Group | 83,041 | 13,031 | 67,230 | ||
Accrued liabilities and other payables | 515,567 | 80,904 | 602,044 | ||
Non-current liabilities: | |||||
Other non-current liabilities | 2,411 | 378 | 4,043 | ||
Long-term loans from NetEase Group | 255,028 | 40,019 | |||
Total liabilities | 3,364,468 | 527,957 | 3,477,356 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 3,913,946 | 614,184 | 2,309,963 | ||
Accumulated deficit | (4,700,000) | (733,012) | (3,674,034) | ||
Accumulated other comprehensive loss | (54,354) | (8,529) | (47,058) | ||
Statutory reserves | 4,456 | 699 | 2,950 | ||
Total shareholders' deficit | (808,993) | (126,947) | (1,407,108) | ¥ 301,027 | ¥ (1,141,433) |
Total liabilities, mezzanine equity and shareholders' deficit | 2,634,067 | 413,343 | 2,070,248 | ||
Class A ordinary shares [Member] | |||||
Shareholders' deficit: | |||||
Ordinary shares | 24 | 4 | 18 | ||
Class B ordinary share [Member] | |||||
Shareholders' deficit: | |||||
Ordinary shares | 56 | 9 | 56 | ||
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 122,765 | 19,265 | 117,400 | ||
Amounts due from Youdao Group Companies | 2,658,772 | 417,219 | 1,011,360 | ||
Prepayment and other current assets | 229 | 36 | 9,277 | ||
Total assets | 2,781,766 | 436,520 | 1,138,037 | ||
Current liabilities: | |||||
Amounts due to NetEase Group | 221 | 35 | 2,059 | ||
Accrued liabilities and other payables | 2,573 | 403 | 3,655 | ||
Investments in subsidiaries and VIEs | 3,328,600 | 522,330 | 2,536,385 | ||
Non-current liabilities: | |||||
Other non-current liabilities | 2,411 | 378 | 4,043 | ||
Long-term loans from NetEase Group | 255,028 | 40,019 | |||
Total liabilities | 3,588,833 | 563,165 | 2,546,142 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 3,913,946 | 614,184 | 2,309,963 | ||
Accumulated deficit | (4,671,195) | (733,012) | (3,674,034) | ||
Accumulated other comprehensive loss | (54,354) | (8,529) | (47,058) | ||
Statutory reserves | 4,456 | 699 | 2,950 | ||
Total shareholders' deficit | (807,067) | (126,645) | (1,408,105) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 2,781,766 | 436,520 | 1,138,037 | ||
Parent Company [Member] | Class A ordinary shares [Member] | |||||
Shareholders' deficit: | |||||
Ordinary shares | 24 | 4 | 18 | ||
Parent Company [Member] | Class B ordinary share [Member] | |||||
Shareholders' deficit: | |||||
Ordinary shares | ¥ 56 | $ 9 | ¥ 56 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Schedule of condensed balance sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2019 |
Class A ordinary shares [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Class B ordinary share [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock par value | 0.0001 | 0.0001 | |
Parent Company [Member] | Class A ordinary shares [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock par value | 0.0001 | 0.0001 | |
Parent Company [Member] | Class B ordinary share [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock par value | $ 0.0001 | $ 0.0001 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Schedule of condensed statements of operations and comprehensive loss (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating expenses: | ||||
General and administrative expenses | ¥ (190,297) | $ (29,862) | ¥ (113,106) | ¥ (69,242) |
Total operating expenses | (2,932,086) | (460,110) | (1,958,894) | (794,885) |
Loss from operations | (943,248) | (148,018) | (851,457) | (459,840) |
Interest expense | 31,644 | 4,966 | 31,215 | 30,232 |
Others, net | 36,673 | 5,756 | 61,052 | 20,064 |
Loss before tax | (919,439) | (144,281) | (796,096) | (457,945) |
Income tax expenses | (6,648) | (1,043) | (2,929) | (2,432) |
Net loss | (1,026,400) | (161,058) | (1,753,352) | (601,455) |
Accretions of convertible redeemable preferred shares to redemption value (Note 14) | (35,893) | |||
Net loss attributable to ordinary shareholders of the Company | (995,655) | (156,241) | (1,752,789) | (637,396) |
Net loss | (1,026,400) | (161,058) | (1,753,352) | (601,455) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (7,296) | (1,145) | (32,531) | (15,023) |
Total other comprehensive loss | (7,296) | (1,145) | (32,531) | (15,023) |
Total comprehensive loss | (1,033,650) | (162,203) | (1,785,883) | (616,478) |
Comprehensive loss attributable to ordinary shareholders of the Company | (1,002,951) | (157,386) | (1,785,320) | (652,419) |
Parent Company [Member] | ||||
Operating expenses: | ||||
General and administrative expenses | (13,048) | (2,048) | (13,008) | (17,255) |
Total operating expenses | (13,048) | (2,048) | (13,008) | (17,255) |
Loss from operations | (13,048) | (2,048) | (13,008) | (17,255) |
Interest income | 5,246 | 823 | 22,060 | 5,396 |
Interest expense | (616) | (97) | ||
Others, net | 2,289 | 359 | 792 | (4,492) |
Share of loss of subsidiaries and VIEs | (989,148) | (155,219) | (1,762,633) | (585,152) |
Loss before tax | (995,277) | (156,182) | (1,752,789) | (601,503) |
Income tax expenses | (378) | (59) | ||
Net loss | (995,655) | (156,241) | (1,752,789) | (601,503) |
Accretions of convertible redeemable preferred shares to redemption value (Note 14) | (35,893) | |||
Net loss attributable to ordinary shareholders of the Company | (995,655) | (156,241) | (1,752,789) | (637,396) |
Net loss | (995,655) | (156,241) | (1,752,789) | (601,503) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (7,296) | (1,145) | (32,531) | (15,023) |
Total other comprehensive loss | (7,296) | (1,145) | (32,531) | (15,023) |
Total comprehensive loss | (1,002,951) | (157,386) | (1,785,320) | (616,526) |
Comprehensive loss attributable to ordinary shareholders of the Company | ¥ (1,002,951) | $ (157,386) | ¥ (1,785,320) | ¥ (652,419) |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Schedule of condensed statements of cash flows (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Cash flows from operating activities: | ||||||
Net cash (used in)/provided by operating activities | ¥ (1,346,400) | $ (211,281) | ¥ (321,562) | ¥ (372,270) | ||
Cash flows from investing activities: | ||||||
Placements of time deposits | (897,916) | (140,903) | (20,663) | (1,522,270) | ||
Proceeds from maturities of time deposits | 907,759 | 142,447 | 1,327,451 | 526,505 | ||
Payment for long-term investments | (27,380) | (4,297) | (40,490) | (2,000) | ||
Net cash used in investing activities | 47,074 | 7,386 | 760,971 | (1,084,005) | ||
Cash flows from financing activities: | ||||||
Proceeds from the issuance of IPO shares, net of issuance cost | 630,364 | |||||
Proceeds from concurrent private placement | 881,662 | |||||
Proceeds from long-term loans from NetEase Group | 257,522 | 40,411 | ||||
Proceeds from the issuance of follow-on offering shares, net of issuance cost (Note 13) | 1,498,627 | 235,167 | ||||
Payment of offering expenses | $ (7,000) | (7,909) | ||||
Proceeds from issuance of ordinary shares pursuant to incentive plan | 27,564 | 4,326 | 34,468 | |||
Net cash provided by financing activities | [1] | 1,783,713 | 279,904 | 26,559 | 1,587,669 | |
Effect of exchange rate changes on cash and cash equivalents | (21,029) | (3,300) | (30,097) | 196 | ||
Net increase in cash and cash equivalents | 463,348 | 72,709 | 435,871 | 131,590 | ||
Cash, cash equivalents and restricted cash at the beginning of the year | 609,199 | 95,597 | 173,328 | 41,738 | ||
Cash, cash equivalents and restricted cash at the end of the year | 1,072,547 | 168,306 | 609,199 | 173,328 | ||
Parent Company [Member] | ||||||
Cash flows from operating activities: | ||||||
Net cash (used in)/provided by operating activities | (9,040) | (1,419) | 14,409 | (782) | ||
Cash flows from investing activities: | ||||||
Placements of time deposits | (897,916) | (140,903) | (20,663) | (1,270,536) | ||
Proceeds from maturities of time deposits | 907,759 | 142,447 | 1,257,689 | |||
Loans to subsidiaries | (1,759,925) | (276,171) | (1,236,543) | (132,062) | ||
Payment for long-term investments | (670) | |||||
Net cash used in investing activities | (1,750,082) | (274,627) | (187) | (1,402,598) | ||
Cash flows from financing activities: | ||||||
Proceeds from the issuance of IPO shares, net of issuance cost | 630,364 | |||||
Proceeds from concurrent private placement | 881,662 | |||||
Proceeds from long-term loans from NetEase Group | 257,522 | 40,411 | ||||
Proceeds from the issuance of follow-on offering shares, net of issuance cost (Note 13) | 1,498,627 | 235,167 | ||||
Payment of offering expenses | (7,909) | |||||
Proceeds from issuance of ordinary shares pursuant to incentive plan | 27,564 | 4,326 | 34,468 | |||
Net cash provided by financing activities | 1,783,713 | 279,904 | 26,559 | 1,512,026 | ||
Effect of exchange rate changes on cash and cash equivalents | (19,226) | (3,016) | (34,691) | (771) | ||
Net increase in cash and cash equivalents | 5,365 | 842 | 6,090 | 107,875 | ||
Cash, cash equivalents and restricted cash at the beginning of the year | 117,400 | 18,423 | 111,310 | 3,435 | ||
Cash, cash equivalents and restricted cash at the end of the year | ¥ 122,765 | $ 19,265 | ¥ 117,400 | ¥ 111,310 | ||
[1] | There was no financing activity from discontinued operations. |