Chinese online learning and dictionary service company Youdao posted Wednesday both surging revenues and widening losses in its first quarterly earnings report since debuting on the New York Stock Exchange last month.
The NetEase-owned firm recorded net revenues of 345.9 million yuan ($49.1 million) in the three months through to September, a year-on-year surge of 98.4%. Youdao attributed the strong growth in revenues from online marketing services, sales of digital learning devices, and a nearly 180% rise in the number of paid students enrolled on its K-12 courses.
But the company didn’t have things all its own way, with its net loss more than tripling to 242.2 million yuan from 77 million yuan last year, mainly due to higher marketing and research costs, according to the release.
Youdao CEO Zhou Feng said the company will continue to invest in education technology to improve user experience and tailor products to consumers. Youdao will also invest in the further expansion of student enrollments, Zhou said.
Youdao’s IPO was far from easy. In October, the company more than halved its initial planned IPO size to $116 million amid dampening interest from overseas investors in poorly performing Chinese stocks. Its share price fell sharply during its first trading day and it ended up raising just $95.2 million.
Youdao’s share price rose 1.71% to $13.68 during after-hours trading Wednesday.
A previous version of this article wrongly stated the day of Youdao’s earnings report and share price rise.