Top 8 Must-See AI News Updates Investors Probably Missed

5. Youdao Inc. (NYSE:DAO)

Number of Hedge Fund Holders: 5

Youdao Inc. (NYSE:DAO) is a leading intelligent learning company that develops and leverages technologies to offer learning content to users of all ages via its popular online knowledge tools, including smart devices, STEAM courses, interactive learning apps, and education digitalization solutions.

On February 20th, Youdao Inc. (NYSE:DAO) posted a 9.5% YoY drop in Q4 net revenues to $183.6 million due to a 21.2% revenue decline from the learning services segment. However, the company’s earnings per share increased markedly to $0.10 YoY. For the full year 2024, total net revenues jumped 4.4% YoY to $770.7 million, buoyed by a 48.3% growth in the online marketing services segment and stable revenues from smart devices.

“We achieved a significant milestone of first-ever full-year profitability in 2024. In terms of products and services, our AI-based and differentiated services enhanced customer loyalty, with retention rate surpassing 70% in the fourth quarter for Youdao Lingshi. In addition, we strengthened collaboration with NetEase in online marketing services, facilitating the long-term development of this segment. AI-driven subscription services continued to upgrade, leading to elevated customer satisfaction and over 130% year-over-year increase in total sales. Looking ahead, we are launching our ‘AI Native’ strategy-integrating AI more comprehensively across our business lines, for example, automating our advertising platforms and introducing AI-driven tutoring for our course customers.”

-said Dr. Feng Zhou, CEO of Youdao Inc.