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Youdao Gross Margin %

: 56.62% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Youdao's Gross Profit for the three months ended in Sep. 2021 was $121.7 Mil. Youdao's Revenue for the three months ended in Sep. 2021 was $214.9 Mil. Therefore, Youdao's Gross Margin % for the quarter that ended in Sep. 2021 was 56.62%.


The historical rank and industry rank for Youdao's Gross Margin % or its related term are showing as below:

NYSE:DAO' s Gross Margin % Range Over the Past 10 Years
Min: 28.4   Med: 32.56   Max: 53.74
Current: 53.74

28.4
53.74

During the past 4 years, the highest Gross Margin % of Youdao was 53.74%. The lowest was 28.40%. And the median was 32.56%.

NYSE:DAO's Gross Margin % is ranked lower than
99.99% of the 79 Companies
in the Interactive Media industry.

( Industry Median: 65.45 vs. NYSE:DAO: 53.74 )

Youdao had a gross margin of 56.62% for the quarter that ended in Sep. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Youdao was 0.00% per year.


Youdao Gross Margin % Historical Data

The historical data trend for Youdao's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Youdao Annual Data
Trend Dec17 Dec18 Dec19 Dec20
Gross Margin %
35.53 29.59 28.40 45.91

Youdao Quarterly Data
Dec17 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.93 47.48 57.28 52.32 56.62

Competitive Comparison

For the Internet Content & Information subindustry, Youdao's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Youdao Gross Margin % Distribution

For the Interactive Media industry and Communication Services sector, Youdao's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Youdao's Gross Margin % falls into.



Youdao Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Youdao's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=222.4 / 484.38135580261
=(Revenue - Cost of Goods Sold) / Revenue
=(484.38135580261 - 261.9896625021) / 484.38135580261
=45.91 %

Youdao's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=121.7 / 214.87415392717
=(Revenue - Cost of Goods Sold) / Revenue
=(214.87415392717 - 93.202143642644) / 214.87415392717
=56.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Youdao  (NYSE:DAO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Youdao had a gross margin of 56.62% for the quarter that ended in Sep. 2021 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Youdao Gross Margin % Related Terms

Thank you for viewing the detailed overview of Youdao's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Youdao Business Description

Youdao logo
Industry
Traded in Other Exchanges
Address
No. 399, Wangshang Road, Binjiang District, Hangzhou, CHN, 310051
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Learning products, and Online marketing services. Nearly half of its revenues come from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as Youdao Dictionary Pen and Youdao Pocket Translator. It generates revenues from the online marketing services through the provision of different formats of advertisement, including but not limited to banners, text links, videos, logos, buttons, and rich media.

Youdao Headlines

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