DAO - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Youdao 2024 Fourth Quarter and Full-Year Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jeffrey Wang, Investor Relations Director of Youdao. Please go ahead.

Jeffrey Wang

Thank you, operator. Please note the discussion today will contain forward-looking statements related to the future performance of the company, which are intended to qualify for the safe harbor from liability as established by the U.S. Act. Reform Litigation Securities Private Such statements subject other performance are of not certain risks guarantees to and future and and are uncertainties, factors. assumptions

and of any U.S. to these the company business release mentioned and of are in forward-looking A could factors as press control certain cause general that with undertake discussion. the included discussion does Some in today's actual this risk materially differ financial risks results The this from company the Commission. those is Securities to company's results and beyond Exchange information, affect required Youdao's and update by obligation not filings except law. could

During for today's non-GAAP certain only. will financial discuss comparison call, measures management also purpose

of fourth results, see issued GAAP to For and of quarter earlier the results definitions non-GAAP the today. please reconciliations non-GAAP news XXXX year and financial financial full release financial measures

Youdao's conference of As be also a webcast A reminder, on replay website recorded. this is will call being corporate at this conference available ir.youdao.com.

on today Youdao's Markets; our of Officer; Dr. to and Zhou, our our the from us Mr. our Capital Finance. I of Li, of some Joining turn now and over will call to are Strategy President; Dr. Executive Wayne direction. Lei Jin, VP and our Mr. Peng VP senior Feng the review strategic Su, Chief management Mr. call Zhou highlights recent

Feng Zhou

thank for in participating and today's all Jeffrey, you you, Thank call.

a that revenues based for XX.X% compared over the to proactively X.X period I focused Services. all the on RMB in improved. year. largely operations Before renminbi, cash the are strong same X.X% revenues further period enhanced year. increase to health. of quarter, inflow otherwise everyone driven RMB last year, a summer, was representing primarily our rational decline with compared numbers the overall Learning Net we begin, services billion, million, fourth and acquisition. specifically profitability year have by RMB last Income same approach of our demand decrease of with fourth XX.X would courses remind like million, the from quarter Since an XXX.X strategy a unless we This on to customer has stated. In reached maintained and Operating reached stable

XXXX, million operations cash indicators a and billion, million, demonstrated first significant XXX.X in improvement performance. amounted of For Net year-over-year. a outflow XXXX, RMB key Operating health improvement and our financial remarkable record totaled X.X% operations X.X our cash of in to full-year full-year to achieving profitability the basis. year-over-year. RMB turnaround with narrowed financial revenues from Income improvements XXX.X from XX.X% profit million, operating of RMB an loss XX.X RMB substantial up from marking a ever flow representing

from XXX.X health quarter, disciplines and on revenues Now, we let's Lingshi, review progresses the Learning financial your business the million, and Youdao across lines. In XX.X% our significantly. focusing by By courses long-term enhanced Services year-over-year. net reached down RMB our fourth major competitiveness maintaining financial like

the covered million Services which Learning reached and content cost fourth services Within net the digital expenses, the segment, profits. RMB from XXX.X in meaningful operating generating revenues quarter,

long-term initiatives. innovation growth, centered satisfaction, committed and with are fostering priorities optimizing driving operational We elevating to vitality forward-looking on customer top

Directors' for the IP, has billings quarter. operations Lingshi customer by pioneered gross XX% in on path year-over-year a Youdao focusing to acquisition on growth leading fourth over

future than study learning development Lingshi. rate AI-tiered X enhanced Additionally, points videos, loyalty, class Youdao with learning in This the fourth has counseling XX% improvement comprehensive surpassing of rise of and greater experiences small quarter, in more confidence customer our gives percentage an customer flagship product, loyalty which year-over-year. integrates us retention in the

more smaller are retention XX%. franchise than classes. products XX% large have on while has increase transitioning programming exceeding iterated our continuously STEAM courses, courses to from gross with driven quarter, billings informatics of during fourth focused the our year-over-year terms class rates In programming This in and approach

strong AI-driven Services our with we growth. of Next, Learning over segment, the streak see consecutive subscription XX% growth witnessed services. within year-over-year X quarters in an Total impressive sales

full of representing over sales model, XXXX, year to of Recently, XXX of exposition subscription AI-driven step-by-step services XXX% launched increase the an an we For first generated million, China's open over source year-over-year. Confucius-oX. RMB reasoning

sector. Currently, Confucius-oX with and problem-solving in XX Chinese. lightweight capabilities billion a consumer-grade Notably, processes. users AI and reasoning provide of since Tutor, accuracy education over technology assistant, officially Confucius-oX been positive offers detailed reasoning which has the has It parameter GPUs innovation open-sourced and in problem-solving use and on in implemented XXX achieves AI models As feedback model, to cumulative strong launched. single received product million encourage logic been the supports chain-of-thought learning our utilizes P high reasoning to broader Mr. Confucius-oX deployments in with

develop AI quickly plus XXXX DeepSeek X partnered we Dictionary, award the named by the fourth AR embraced Online Youdao English-learning the are of the ecosystem. one top of recent App of In Awards. an our products. [ by has integrating RX wave Youdao many XXXX Education and technology. Hi Desktop Confucius App Echo, quarter, Translation the Letec through to was models across both apps alongside with DeepSeek deliver ]. We the immersive at AI-powered Furthermore, we won Best experience Microsoft to Annual continuing Rokid Store

our and learning intelligence, already insights worlds. best Mr. Our users teams to Tutor, robust P blending rapidly friendly enhances challenging both providing powerful support like more effective for Confucius AI unique optimized for problems. combination of scenarios reasoning and DeepSeek with experiences, our domain-specific delivers materials smarter, more offerings. are while This with into RX products deeper high-traffic the experimented models chat

more service. and Additionally, enables responsive cost-efficient faster, offer to us it

of percentage reached XXX.X an year-over-year. QX, XX.X%, RMB million in representing up For net X.X% marketing margin online to increase points Gross increased services, revenue year-over-year. X.X

advertising, have such tools revenues. as record-breaking industries In terms domestic and gaming of performance-based seen AI

our overseas front, milestone advertising. of advertising growth international lays official an partnership a Google. the the established for with foundation recently future On solid we This

extensive and advanced large leveraged recognition. influencers global image as database such models of leader key and technologies in the KOL, opinion Additionally, field language we of overseas marketing, have our

XX videos model conversion conversion which analyzes trends In and global widespread and tools, virality comprehensively possesses evaluation in successfully to each Furthermore, driving X game's model XXX Marvel we pivotal as a potential. content, common of role creator first facilitated the uses after these strong model Internet. identify of the ratings effectiveness predict played over This reach, impressions using the KOL assigns With game, the across resulting promotion launch, influencer in rates. By pieces allowing conversion nearly commercial existing KOL their developed metric, a conversion high influencer to we data Rivals. and -- to release have sections, therefore, weeks for the their the we us an million conversion effectiveness. of video key the in

are optimistic long-term we ahead, prospects about our marketing of services. online Looking the

and synergy are through in side committed strengthening with in NetEase both side. We to collaboration traffic enhanced with sector, gaming Group clients particularly demand the

revenues increase, Turning million with improved Smart segment. Devices in significantly XXX.X to our an financial reached X.X% Net RMB health. year-over-year QX, marking

product, annual JD.com consecutive Pen November its position performed the during XX both the in for Dictionary top category Tmall Youdao Our exceptionally as on X shopping its seller and well flagship the festival, maintaining on spot The dictionary item of years. both an revenues XX% top for the single contributed year-over-year Pro the to pen. in also platforms. increase for pens dictionary XX These successes earned sales

XX debut. announce Pen have to we cumulative addition, units our sales million that Dictionary thrilled surpassed its of In since market are

a analytical product, SpaceOne, launched Pen also translation of top-tier we Youdao Featuring feature, at Dictionary price brand-new In week, pen, the recently providing reasoning instant terms the delivering reasoning this an offers we in-depth the launched an scan for incorporating clearer Pro. accessible DeepSeek and complex Earlier the XX model, problem-solving guidance scenarios. product and performance capabilities point. dictionary

that steadfast dictionary personalized strengthening particularly experiences leadership we our educational Moving to with smart and committed enhancing users in operational learning several It our our are innovations pens AI-powered profitability. forward, ADS, in implementation this pen, to was in Youdao drive we a executed during In of towards a apps Lingshi, respective combined units, their as rapid pioneer dictionary and which AI translation emerged our business continuing breakthrough focused business leaders generative as product. for and clear year Youdao segments. XXXX, such devices, strategy our English for a

the the XXXX Chinese industry. has explosive with reshaping a of DeepSeek, Looking tech that trend popularity is started ahead,

revolutionize we As anticipated open-source reasoning would that models underway. and and we learn people market, now this how call, on discussed is transformation that and

over past weeks. swift the few been has response Our

introducing additional have and We deeply projects unlock just ad business We're is into our to DeepSeek customers autonomous the features, apps, embedded innovative our processes beginning. integrating They higher the AI-driven more large as for learning platforms work course are of and example, AI courses, and our be automating our native seamlessly that for Yet devices. to serve integrated maturing should as agents drive across outcomes. productivity. Accordingly, eager but merely and advertising not this to we excited year. believe models our strategy, reasoning into our these should platforms We this that deliver AI launching lines by, models tutoring by rapid our customers. AI comprehensively hardware

was XXXX for achieving time. profitability operating full-year for milestone first significant Another the

over conditions our will line. With performance. with the progress, improvements detailed revenue into that, to bottom in financial ongoing targeting provide For XXXX, I our and call given the you Peng more current are moderate turn growth insights economic fast-paced we Su to our alongside

Peng Su

our full XXXX. hello, fourth you, everyone. you We presenting of will Zhou, some read be through earlier highlights encourage our further press for release Today, today issued details. from and to Thank I Dr. and financial quarter year

or revenue decline, overall were on of from primarily to the decrease in representing decrease of to For million operational XXX.X our or of Learning XXXX. from Devices online USD investment representing prioritizing return or in the increase the XXX.X was our million, marketing a USD strategy were revenue from XXX.X the -- a fourth of from X.X% more continued RMB million from period higher our or has The period continuing of period focus services the our RMB by Net increase Net RMB resilience a to selective the XX.X driven USD approach, XX X.X% engagement. efficiency the period million Dictionary Smart of modest due decrease revenue Pen sales million, short-term acquisition revenue quarter, were XX.X% X.X customer We strategy business. Net million, on RMB the our XXXX, million, total net due year-over-year USD billion the Youdao same despite from Services enhanced XXX.X were XXXX. same revenue believe from up and same XX.X XXXX. representing XXXX. same the

XXXX. Gross margin with XXX.X of Gross XXXX Devices for XX.X% XXXX. quarter, Smart XX.X% representing fourth for fourth total was for with XX.X% for for the of the the quarter RMB fourth marketing of same XX% was XXXX or compared our gross XX.X% million, XX.X For the margin services XXXX online decrease quarter for of from period USD the Learning Gross margin period for compared the of same fourth XX.X% same profit first the million quarter was of compared the Services period XXXX. was XX.X% with quarter for for XXXX. of a

our RMB XXX.X XXX.X USD the reduced quarter, expense For total million for last period fourth to with XX.X of million year. we or compared same RMB million operating the

at XXX.X Sales fourth more million in our the XXXX. with expense RMB compared XXXX. with the development expense fourth and RMB in detail. million to compared declined was of XXX.X marketing RMB XXX.X Research in quarter Looking decreased and to million quarter million expense of RMB XXX.X

X.X% in the period same compared X.X% of of margin quarter last for income fourth with was XXXX year. operating Our the

XX.X RMB to attributable USD same for For XX Non-GAAP income X.XX were for the of diluted XX.X last of fourth quarter X.XX to the the RMB and was for ordinary the per for million RMB X.XX or shareholders the XXXX, XX.X RMB X.X, ADS same USD attributable with to fourth diluted attributable of shareholders the for XX.X RMB fourth was period million the X.X, shareholders to ordinary ADS and million or X.XX, fourth net quarter the million XXXX net USD quarter or income RMB year. the last with income XX.X respectively. the or shareholders period was compared million RMB USD compared our net ordinary RMB USD net respectively. year. Basic income basic or or X.X Non-GAAP X.XX attributable ordinary and quarter of and USD million per

operating by million XXX.X provided XX.X USD for cash RMB the fourth net or was million quarter. Our activities

Turning full-year results. our to

XX.X RMB XXXX X billion our X.X% or remaining online were to Smart RMB X.X or XX.X% million, XXXX the to compared XXXX, to to XXXX. XXXX. decreased remaining X.X XXXX up Net or down gross for RMB were revenue by stable USD XXX.X million. Total X.X Net by revenue income expense or RMB for shareholders Net for in and X.X. income basic RMB total RMB XXXX from our XXXX from XXX.X billion for X.X was attributable attributable XXXX USD Devices million XX.X% XXX.X million. to million. to year-over-year Net for for Our billion billion to RMB billion XXX.X XXX.X were million were USD revenue million. Learning revenue or per stable million And USD RMB Services for Total or XXXX million, services ordinary compared XXX.X marketing shareholders year-over-year ADS X.X to profit ordinary USD RMB diluted billion from increased for XX.X or USD compared with USD or XXXX. XXX.X our USD net operating X.X

Looking at sheet. balance our

equivalents XXX.X were Learning XX, million now compared questions. contract of totaled and Operator, million. This December remarks. our USD current to the USD XXX which December the non-current XX.X our liabilities, to go open and Thank of our like call RMB XX, attention. short-term period, XXX.X cash as prepared or the with please XXXX, your XXXX. concludes end of billion RMB X.X Services As our cash, revenue cash restricted consists and mainly million We ahead. you million would of deferred from generated your or for RMB At investments the

Operator

[Operator Brian from question The Gong Citi. first have of is Instructions] we

Brian Gong

quarter. profitability decent for achieved this on Congrats

Just very lines like the Can on for a and for different question. management our strategies? elaborate this overall outlook XXXX, year quick business

Feng Zhou

Brian. Thank you,

areas. education So, on our One company AI-driven is X focused is key technology.

is AI-driven technologies. marketing other online The

these we significant And see X our about areas. both strategy lines. along talk opportunities in in XXXX I'll So,

leveraging each strategy our quality, product in try we key gaining So our positions one, AI, needs improving customer establish cutting-edge deeper is our by to our segments. offering enhance content of leadership into insights and to

So for as marketing earlier, models and discussed become the very education segment. we reasoning segment important also have

reasoning Today, this only very also solving are in actually we advancement And do affordable. rapid not models really at anticipated at actual we expectations. that problems, the are but exceeded have pace So, area. our good they

explosive I think you look technology in has at in if infrastructure applications. growth to lead So, so history, breakthroughs often

we So, model advertising. likely be pivotal XXXX year of in widespread believe and for next this education applications large very will the developing year, and language important

side. And plan modest a will while to drive for focusing on side, where financial as the milestone a a maintain be So, achieved today's us, looking particularly a we ahead that's profitability XXXX, for tech in the so focus And year XXXX on us product economic and keeping we to we growth environment. was key towards profitability. revenue challenging

So, we will remain financially disciplined, balancing growth and profitability.

businesses. So looking at the separate

for Lingshi. remain products Youdao Services, focused we So high-demand Learning like on

compared It's features AI technology to -- a because our offerings. be this we the to for introduce the we it's So health, core going as for like courses, important -- more our tutoring financial year, us about, think element ready. also this is past we is for good of believe for place is to as talked years long-term we -- course is right This this the for for growth. And and finally strategy. AI is in good

are project now. working a that's on right major we So,

high-quality teams, content learning So provide video service so learning for customers. believe AI our our much an will combined enhanced tutoring expert experiences and enhanced we -- with

other Additionally, also we like adviser. and working are college features AI AI-driven mission on

we subscription will affordable services, our So, important, which interactive believe as and AI offer We're we that also too. experiences. learning be expanding

upgraded Hi Echo. recently we So,

conversation lower latency. conversation much So a much better with experience,

we an that's So, down the example do line. will of what

lot Smart of services as we our this opportunities continued subscription we year. And XXXX. will So, see a enhance in new regard release Devices, and services to

at dictionary market pen leadership remains with And time, to Our like category also, the introduce same on products. category. we'd maintaining the new focus

product pipeline good very a for have we XXXX. So,

Youdao year, this days X ago, high-end SpaceOne first just our the launched we Pen. product So of

should So, a represents for our next-generation like. learning vision what AI device tutoring this look device

it's as very So pens. product a different dictionary our

of of So continue it terms to experiences kind home is innovation, example of a differentiate how in personalized enhanced so we very good learning through especially this for learners.

-- trend to growing continued application yuan of the also but of shift trend finally, trend services, the language second we the in online And marketing be performance-based the the advertising. towards is advertising. to industry very models key twofold. AI is ad see One be large multi-trillion So importantly, of important in

relatively So, by this XXXX but still opportunities we are player growth a leveraging small in in space, these trends. we significant see

So, last more to to with advertiser collaboration strategic we began plan ecosystems partnership, year our NetEase XXXX. considerably XXXX, resources. expect integrate deepen than ad and in represents we to revenue, and our which less traffic grow The currently this XX% of

on globally, a will opinion expand we parallel, in focus leader So and to marketing with also performance-based continue advertising. key

that for clients. So capabilities and moreover, platform we ad exploring enhance are AI our projects LLM-driven actively will

in step replicate QX So, XXXX. last our achieved is the QX growth we to goal year,

kind is committed pursue are we attain, to and find this them challenging them. While to step of growth

So on at expand and optimize the a business day-to-day same time, we our continue basis. to

So, we more will ensure sustainable think growth. stable and that

more technology that's we growth. our me. AI experienced to our develop teams as Yes, will So more customers, matures, accumulate all contributing ad from business

Yongwei Li

Zhou. Thank to in remarkable And financial Wayne. continue this we color XXXX, add progress There more particularly to to in monitor and perspective. I'd you, our progress cash aspect. improvement in metrics track flow XXXX, financial the and Dr. from financial was key like is the profitability will

financial technology, Dr. will stepped the as streamline performance in of advantages believe primarily focus loss-making It achieve the in the our tutoring, XXXX. the our improvement on from and such as line We profitability AI attributable XX from year in and was drive the for scalable business. loss over AI net Zhou, The units. XXXX to to by shareholders will Youdao's projects as of our by the Dr. XXXX LLM-driven in The profit. million Zhou, RMB enhance income ordinary marks our of front, around significant bottom compared operating First, strategic improvement with XXX mentioned RMB first XXXX. further million mentioned

technology will advancement and we XXXX, to become effective, business leverage more to cost profitability. further new cost ahead with optimization measures AI and implement mature Looking enhance this

and net flow RMB cash substantial a rapid enhanced breakeven XXXX for business. In cash achieve XXXX. to improvement we both XXX in from from to a we step improvements will from perspective, profitability flow control, million cost aiming XXXX, outflow annual subscription improvement. Second, dramatically around improved operating our in in our XX from and of outflow AI million Such in historical our RMB growth continue further have cash expansion efforts net revenue

considering growth while continued focus. revenue Zhou, environment as challenging Dr. profitability we growth, Regarding by a mentioned economic moderate anticipate key today's keeping

and delivering better significant we While financial and business in business from in remain face we challenges confident uncertainty, competitors performance XXXX.

Operator

we of from Zhao next question The Brenda have is CICC.

Liping Zhao

Congrats in on the improvement education in products, your your AI progress both in in ad sector. and

QX So, in arise And the is my like are will business flattish. marketing previously, online question mainly we XXXX? our this for strategy? Are are is business expand domestic because kind because in going we kind that growth market? about expand of this what's the saw of opportunities the of to business going -- we the market, overseas our in we to What

Lei Jin

Lei. This interconnected X strategy Thank for focus on advertising your Youdao's is growth you will questions. XXXX, Jin In drivers.

collaboration partnership mailbox By integration expansion. Music, are technological are building both and measurable successful Youdao's developing and advertising algorithm we platforms, services. they AI with across driving NetEase ecosystem in intensifying our mail Cloud first, analytics with The news -- NetEase through improvement on NetEase Group our efficiency, proprietary and data

they for substantial for less We Group Notably, still ad XXX% potential. account our year-over-year new XX% achieved additional XXXX, ecosystem channels revenue points. services now touch create high-potential are over NetEase of demonstrating than growth yet with identifying total in our untapped to revenue, ad advertiser traffic the

foundation X in partner, million strategic X is our gaining over ad surpass year, Last TikTok as XXX with marked us breakthroughs, cross-border emerging digital position certification revenue mentioned, international momentum. global you growth, while Tier helped year-over-year for through our Second, recent alliance the marketing partnership capture one beyond. becoming sustainable Google strong growth. us expansion global RMB opportunities in and established This to a strategically XXX% XXXX

integration revolutionizing capabilities. with Finally, our are tech DeepSeek's successful through innovation, following AI of advertising stack advertising LLM our we the

generation ad enhance developing speed execute now operational delivery. campaign AI strategy marketing optimization are with and solution aligned significantly both We dynamic budget optimizer. position enable adjustment, This an real-time automates objectives, in efficiency advertising and

Operator

Thomas The next of is Jefferies. we Chong question have from

Thomas Chong

about for is question My this Services Learning the priority year.

Peng Su

the Thomas. the Thank Lingshi. adjustments robust focus think handle Learning the on we will I in Su initiated We intensified the you, product This year, demand, question Youdao is Peng. courses Services structured the with last And the portfolios. especially I first. our in

completion, time. of out We same the revenue to at are expected restructuring Learning think, the in half ongoing, is to it's latter stabilize half phasing remains year. this and programs conclude the second projected this of the non-essentials I Upon in Services from This year.

strategic year efficient deliver this as Lingshi expect and think the the for the we customers. revenue gross capability personalized we key the advanced Learning the following Lingshi We at of the Youdao well. But models. the will priority Services experience first, XXXX. to more for and growing same I initiatives serve commit we DeepSeek, will the language keep to XXXX in will advance, our And leverage the billings time, think as large in of the learning the

the comprehensively more design, Youdao the explanations, enhancement, first solutions. services learning planning within AI of precisely -- We identification of enhanced upgrade will Lingshi the college for the include gaps, is comprehensive will clarify learning and the optimize system. application class a knowledge QA more in Post upgrade intelligent the

to the updates with updates aligned the data-driven routine the implementing are instructional beyond videos revisions. we Secondly, curriculum

feedback accuracy the we the from Our our managers learning the adviser R&D specific the the the derived be and on feedback system. dedicated When expediate rates primary update within video threshold, students your our and students' the rates students. Thank media I think high-quality to intelligent to will services we the answers error and to collect proactively teams, content, exceeds criteria exercise products engage that and consolidated facilitate will content business in confident update Thomas. And delivering you, the content, will Learning and that things we -- we the XXXX expect to system redevelopments. be the the about keep hope feel the our on and did questions. Services, video the

Operator

Securities. from is Huatai of The [ Zhang Bo ] question we next have

Unknown Analyst

after model, Bo with integration Confucius, expect Zhang impact is can of large business is we on Youdao Huatai. positive DeepSeek, language what from question the operation? This the My

Feng Zhou

question. Zhang Yes. Thank it. Yes, the will take you, I for Bo,

So, think I there points. are X

RX, first, models, the building it exciting for opportunities reasoning us. DeepSeek, of DeepSeek on a up opens particularly lot So

So, advertising China integrate our Youdao Dictionary, first and of education AI including DeepSeek P Pen, in area MOOC, Dictionary teams the -- University, and we're Youdao Youdao Chinese into Smart the to Mr. one Tutor, Cloud.

doing we're first. So, it

what's knowledge. However, with these domain-specific more powerful enhancing business-specific is models

So, one enhance RAG key technology. that you the technology retrieval it can generation DeepSeek to model, model base augment augmented a the with is base

So, this integrates the model with knowledge bases and vector expertise. databases to combine general capabilities with domain-specific

our framework. So, has is RAG significant China's with of team platform. experience RAG one It our actually and QAnything leading

So, that's a good example.

developed in applications application also such AI we've education, So, our RAG popular year. last as assistant college

So RAG them strengthen we applications, making will effective. DeepSeek, now these more with

the standpoint, competitive a into I platforms think it's mobile applications of integration apps from developing strong iPhone like for quite is, to similar Android. models and So deeper

with better teams now, think building right edge experiences, those we app So, an I will have here.

mobile have So, well. to able develop better applications just will we these AI very develop as teams been applications

So, that's one.

-- large so newer, models. are is a application point of second promising So language model agents very

So just tasks. single answering of instead agents multistep solve questions, so

So, AI have expect success programming, will like be to areas education next major be I advertising where and very already successful. and in seen agents area agents the

these optimizers. early very already just exploring, AI about are ad talked good agents. are Yes, already for results these we that applications see agent Lei Jin optimizing we So AI and

as such can topics, ad tutoring Qwen So, lot automate specific very tasks we strong with see high there scenarios agent that where such highly on technology optimizing model, advertising success analysis, of frequent rate, with as ]. a Gongo attribution [ a are assets performing and very combined a

models we enhancing Third, general vertical large-scale with more smaller, models. are purpose domain-specific

So, this is different from RAG.

knowledge combine model with is RAG essentially, So you a base.

has and since you it's been specialized new effective. model models. more highly to XXXX, vertical and develop strategy proving be So, This smaller our actually is

open-sourced instance, for recently I talked model we So the reasoning Confucius-oX-XXB about.

or is on like one a optimized the run XXXX to consumer-grade XXXX. GPU this So,

outperforms the So it skilled tasks. same version of size DeepSeek size, the of XXB RX actually of the in mass same

So of basically, size. effective that's model mass DeepSeek the for a same developed more than tasks we

a also in that our exciting. in just exciting is by very a teams that's what's Confucius-oX think I developed under So, just was And month, -- month.

rapid how empowered in So, open-source create to that showcases vertical competitive has industry team others the our and development models. models

So Confucius online offline translation -- a with NMT we general many And alongside Confucius just X than translation and models. of edge translation parameters have that model -- the parameters also of also billion quality model we've models. better developed delivers actually with larger-sized fewer also Confucius-oX, than XX%

So coming we quickly and usage models. scenario to develop anticipate continue understand upgrade will models as in we the these vertical quarters, and new

R&D keeping to while our valuable business, yes. So cost compute delivering and efficient results users and

answers So, I hope that Thank you. question. your

Operator

This session. remarks. any to over like And back the I turn question-and-answer conference to would for concludes our closing management

Jeffrey Wang

Thank you once again us for joining today.

Have If you questions, reach or U.S. nice have or out day. contact China directly us a at Financial to in Youdao any further the please free Piacente feel to Communications

Operator

The concluded. today's conference has now Thank you attending for presentation.

You may now disconnect.

Youdao (DAO) 20 Feb 252024 Q4 Earnings call transcript