Youdao is a Chinese AI-focused edtech and advertising technology company, majority-owned by NetEase. The company operates three businesses: learning services, online marketing services, and smart devices. At its core, Youdao runs Youdao Dictionary — China's most popular dictionary and translation app with ~39M monthly active users — which serves as a traffic funnel into its broader ecosystem. Learning services include Youdao Lingshi, an AI-enhanced online tutoring platform targeting K-12 students preparing for the college entrance exam, as well as STEAM and coding courses, and China University MOOC, the country's largest MOOC platform. Online marketing services, now roughly equal in size to learning, includes performance-based programmatic advertising (charged on a per-click basis) and Youdao Ads, a global influencer and KOL marketing business with a network of over 30M influencers across 75+ countries. Smart devices include the Youdao Dictionary Pen and the Youdao Tutoring Pen, AI-powered hardware that cross-sells users into learning services. Youdao generates revenue through tuition fees (collected upfront, creating a deferred revenue balance), subscription fees for AI-powered app features, performance-based advertising, and one-time hardware sales. A key structural feature is Youdao's relationship with NetEase, which is both a major advertiser and a significant lender. Youdao's proprietary Confucius LLM underpins its AI strategy across learning, advertising, and hardware.