Benefitting from strong sales of its learning services and products, NetEase subsidiary Youdao (NYSE: DAO) saw its total revenue in 2020 increase by 142.7% to USD 485.4 million.
“Our learning segment prospered in the fourth quarter, led by our robust K12 products,” said CEO Feng Zhou. According to the earnings report, student enrollments for K12 premium courses rose 357% in the year.
The growth has come with a cost, as Youdao’s total operating expenses tripled to reach USD 499.6 million amid heated competition: “The increase was mainly driven by intensified sales and marketing efforts associated with student acquisition and branding, as well as increased compensation expenses incurred by the expansion of the sales and marketing team,” said the company’s statement.
NetEase (NASDAQ:NTES, HKEX:9999) itself reported total revenues of USD 11 billion for 2020, up 24.3% year-on-year, while non-GAAP net income attributable to shareholders was USD 2.28 billion, 6% less than the year before.
Online games remained the sales engine of the second-biggest game publisher in China, generating USD 8.4 billion, up 17.6% year-on-year, taking up more than two thirds of overall sales.
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This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.