Youdao Inc., an AI-powered solutions provider, announced its unaudited financial results for the first quarter ended March 31, 2025. Total net revenues for the quarter were RMB1.3 billion (US$178.9 million), marking a 6.7% decrease from the same period in 2024. Net revenues from learning services experienced a significant decline, falling by 16.1% to RMB602.4 million (US$83.0 million). In contrast, net revenues from smart devices saw a 5.1% increase, reaching RMB190.5 million (US$26.3 million). Net revenues from online marketing services increased by 2.6% to RMB505.4 million (US$69.6 million). Despite the decline in total net revenues, Youdao reported a substantial improvement in profitability. Income from operations soared to RMB104.0 million (US$14.3 million), representing a 247.7% increase compared to the same period in 2024. The net income attributable to ordinary shareholders also rose significantly, reaching RMB76.7 million (US$10.6 million), up from RMB12.4 million in the previous year. Non-GAAP net income attributable to ordinary shareholders was reported at RMB81.7 million (US$11.3 million), which is a fourfold increase from the previous year. Basic and diluted net income per American depositary share $(ADS.AU)$ attributable to ordinary shareholders were RMB0.65 (US$0.09) and RMB0.64 (US$0.09), respectively, compared to RMB0.11 and RMB0.10 for the same period in 2024. Youdao's cash, cash equivalents, and short-term investments totaled RMB424.5 million (US$58.5 million) as of March 31, 2025, a decrease from RMB662.6 million as of December 31, 2024. The company reported net cash used in operating activities of RMB255.5 million (US$35.2 million) for the first quarter of 2025. To support future business operations, NetEase Group has agreed to provide financial support for ongoing development.