Revenue Performance - Total revenue for the fiscal year 2024 increased by 8% year-over-year to $786.6 million, with a negative impact of 2 percentage points from foreign exchange rates[5] - Enterprise segment revenue for Udemy Business reached $494.5 million, reflecting an 18% year-over-year increase, also impacted by a 2 percentage point negative effect from foreign exchange rates[5] - Consumer segment revenue decreased by 5% year-over-year to $292.1 million, including a negative impact of 2 percentage points from foreign exchange rates[5] - Udemy's revenue for the three months ended December 31, 2024, was $199,942,000, representing a 5.8% increase from $189,545,000 in the same period of 2023[26] Profitability Metrics - Adjusted EBITDA for the fiscal year 2024 was $43.0 million, representing a 451% increase year-over-year[2] - The gross profit for the fiscal year ended December 31, 2024, was $491,940,000, up from $419,339,000 in 2023, indicating a growth of 17.3%[26] - Udemy reported a net loss of $85,288,000 for the fiscal year 2024, an improvement compared to a net loss of $107,294,000 in 2023, reflecting a reduction of 20.5%[30] - Gross profit for Q4 2024 was $127,205,000, an increase from $109,850,000 in Q4 2023, representing a growth of 15.0%[32] - Non-GAAP gross profit for the fiscal year 2024 reached $500,707,000, up from $429,245,000 in 2023, indicating a year-over-year increase of 16.7%[32] - The net loss for Q4 2024 was $9,864,000, a significant improvement compared to a net loss of $20,248,000 in Q4 2023, reflecting a reduction of 51.2%[34] - Non-GAAP net income for Q4 2024 was $15,531,000, compared to $3,824,000 in Q4 2023, marking an increase of 305.5%[34] - Adjusted EBITDA for Q4 2024 was $19,480,000, a substantial rise from $3,977,000 in Q4 2023, representing a growth of 388.5%[35] Customer Metrics - Total customers increased to 17,096, with nearly 1,400 net new Enterprise customers added in 2024[5] - Monthly average buyers in the consumer segment decreased by 4% year-over-year to 1.32 million[5] Cash Flow and Assets - The company experienced a net cash provided by operating activities of $53,043,000 in 2024, a significant turnaround from a net cash used of $2,005,000 in 2023[30] - The total current assets decreased to $506,328,000 as of December 31, 2024, down from $632,328,000 in 2023, a decline of 20%[28] - Cash and cash equivalents decreased to $190,592,000 from $305,564,000, representing a decline of 37.5% year-over-year[28] Liabilities and Expenses - Total liabilities increased to $408,234,000 as of December 31, 2024, compared to $384,304,000 in 2023, marking a rise of 6.2%[28] - Udemy's operating expenses for the fiscal year 2024 totaled $581,268,000, an increase from $541,234,000 in 2023, which is a rise of 7.4%[26] Strategic Initiatives - The company completed a $150 million share repurchase program, indicating confidence in its long-term strategy[5] - Udemy opened a new office in Mexico City to enhance operations in the LATAM market[5] Future Guidance - The company expects first quarter 2025 revenue to be between $195 million and $199 million, with full year 2025 revenue guidance of $787 million to $803 million[7] Share Metrics - The weighted-average shares used in computing net loss per share for 2024 were 151,320,497, compared to 150,098,776 in 2023, indicating a slight increase in shares[26] - The weighted-average shares used in computing non-GAAP net income per share, diluted, for Q4 2024 was 148,068,999, compared to 162,850,017 in Q4 2023[34] Margins - The gross margin for Q4 2024 improved to 64%, up from 58% in Q4 2023[32] - The net loss margin for Q4 2024 was -5%, an improvement from -11% in Q4 2023[35] - The adjusted EBITDA margin for Q4 2024 was 10%, compared to 2% in Q4 2023, showing a notable increase[35] Investment Metrics - Udemy's strategic investments decreased to $0 from $10,311,000 in 2023, reflecting a complete divestment in this area[28]

Wall Street analysts forecast that Udemy, Inc. (UDMY) will report quarterly earnings of $0.07 per share in its upcoming release, pointing to a year-over-year increase of 250%. It is anticipated that revenues will amount to $194.7 million, exhibiting an increase of 2.7% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of t ...

Financial Data and Key Metrics - Revenue grew 6% YoY to $195 million, with a 2-percentage point headwind from FX [9][35] - Adjusted EBITDA margin reached a new record, significantly higher than anticipated [9] - Udemy Business ARR surpassed $500 million, up 14% YoY [10][36] - Gross margin for Udemy Business improved to 74%, up 600 basis points YoY [39] - Consumer revenue declined 8% YoY to $69 million, impacted by FX and lower individual course purchases [39] - Adjusted EBITDA was $12 million, or 6% of revenue, with a 200 basis point expansion YoY [44] Business Line Performance - Udemy Business revenue grew 16% YoY to $126 million, despite a 2-percentage point FX headwind [35] - Large enterprise customers (1,000+ employees) contributed 75% of Udemy Business revenue, with ARR growing 15% YoY [16][36] - SMB ARR grew 11% YoY, but resources are being reallocated to focus on large enterprises [16][36] - Consumer segment saw a decline in revenue, but personal plan subscriptions showed growth [39] Market Performance - Over 60% of total revenue came from outside the US, with FX negatively impacting growth by 2 percentage points [35] - EMEA region showed muted growth, while APAC and LATAM regions performed stronger [105] - The company serves 17,000 Udemy Business customers and 75 million learners across 180 countries [12] Strategy and Industry Competition - The company is shifting focus to large enterprise customers, de-emphasizing SMBs, to optimize resource allocation for higher growth and margins [16] - AI-powered skills mapping and AI Assistant were launched to enhance personalized learning experiences [10][28] - The company aims to achieve $130-$150 million in adjusted EBITDA by 2026 and a 20% adjusted EBITDA margin by 2027 [57] - Generative AI and digital transformation are driving the need for upskilling, presenting a significant market opportunity [19][20] Management Commentary on Operating Environment and Future Outlook - The operating environment remains stable but subdued, with continued scrutiny on corporate budgets [11][65] - The company expects to deliver $70 million in adjusted EBITDA in 2025, with a clear path to its 2026 target [52] - Management is confident in the long-term opportunity for enterprise and individual skills development, particularly in the age of AI [58] Other Important Information - The company achieved $50 million in annualized cost savings, exceeding the initial target of $25 million [13][50] - A $150 million share repurchase program is nearing completion, with $51 million used in Q3 [46] - The company expects restructuring charges of $18 million, primarily related to personnel expenses [44][45] Q&A Session Summary Question: Impact of AI-enabled capabilities on enterprise growth [60] - AI capabilities like skills mapping and AI Assistant are already improving sales cycles and customer engagement, with over 1,000 enterprises adopting these features [61][63] Question: Corporate L&D spending environment [65] - The L&D spending environment remains subdued, but the company sees opportunities to consolidate L&D content and strategy, as evidenced by a 40,000-seat deal with a Fortune 100 tech company [65][67] Question: Growth expectations for Udemy Business in 2025 [71] - The company expects headwinds in 2025 due to reduced SMB capacity and EMEA weakness, but remains confident in long-term double-digit growth for Udemy Business [72][73] Question: Integration with Workday [76] - The integration with Workday maps Udemy Business content to Workday's Skills Cloud, promoting internal mobility and requiring customers to use both platforms [78][80] Question: Impact of new CRO on sales processes [88] - The new CRO is focused on enhancing sales capabilities, particularly in key verticals, with expected impact on growth in 2025 [89][91] Question: Geographical performance and net dollar retention [104][106] - EMEA showed muted growth, while APAC and LATAM performed stronger Net dollar retention is pressured by longer sales cycles and smaller deal sizes, but the company remains focused on driving customer value [105][107] Question: Product roadmap beyond AI [115] - The return of the CTO is expected to accelerate product innovation, with more details to be shared in future announcements [116][117] Question: Expansion within Udemy Business [120] - The company is leveraging its expanded product portfolio, including AI capabilities, to drive larger deals and strategic conversations with enterprise customers [121][123] Question: Sequential net add decline in Udemy Business customers [125] - The decline in net adds is primarily due to the strategic reallocation of resources from SMB to large enterprise customers [126]

Udemy, Inc. (UDMY) reported $195.42 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.8%. EPS of $0.07 for the same period compares to $0.05 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $192.5 million, representing a surprise of +1.52%. The company delivered an EPS surprise of +600.00%, with the consensus EPS estimate being $0.01.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Udemy, Inc. (UDMY) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 600%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.04, delivering a surprise of -300%. Over the last four quarters, the company has surpa ...

Udemy Reports Third Quarter 2024 Results Delivered stronger-than-expected profitability driven by disciplined approach to operational efficiency Enterprise Segment Total Customers 16,848 15,378 10 % UB Annual Recurring Revenue $ 504.6 $ 443.1 14 % UB Net Dollar Retention Rate 99 % 106 % (700) bps UB Large Customer Net Dollar Retention Rate104 % 114 % (1,000) bps Segment Revenue $ 126.1 $ 109.1 16 % $ 364.3 $ 306.0 19 % Segment Gross Profit $ 92.8 $ 74.3 25 % $ 264.7 $ 204.4 30 % Segment Gross Margin 74 % 68 ...

Core Insights - Udemy will report its third quarter 2024 financial results on October 29, 2024, after market close [1] - A live conference call and webcast will be held on the same day at 2 p.m. PT / 5 p.m. ET to discuss the results [1] Company Overview - Udemy is a leading online skills marketplace and learning platform that provides access to a wide range of technical and professional skills [3] - The platform features the Udemy Intelligent Skills Platform and a diverse community of instructors, offering thousands of courses in various languages [3] - Udemy Business offers on-demand learning solutions for enterprises, including immersive learning for tech teams and cohort learning for leaders [3] - Notable Udemy Business customers include Fender®, Glassdoor, On24, The World Bank, and Volkswagen [3] - The company is headquartered in San Francisco with additional hubs in Austin, Denver, Türkiye, Ireland, Australia, and India [3]

Supatman Investment Thesis Udemy (NASDAQ:UDMY) provides a learning marketplace that helps individuals and organizations bridge the skills gap. The company operates in a vast and expanding market for both individual and corporate reskilling and training. The company's consumer business is facing challenges due to a weaker macroeconomic environment and increased competition. Its enterprise segment continues to exhibit double-digit growth and shows better profitability. Management has decided to prioritize the ...

Core Viewpoint - Udemy's stock price has significantly declined following the release of its second-quarter financial results, primarily due to lowered full-year revenue guidance despite achieving revenue targets for the quarter [1][4]. Financial Performance - For the second quarter, Udemy reported revenue exceeding $194 million, aligning with management's expectations and reflecting a 9% year-over-year increase [2]. - The company has adjusted its full-year revenue guidance to a range of $776 million to $782 million, down from the previous estimate of $795 million to $805 million [4]. Business Model and Revenue Streams - Udemy operates as a two-sided education marketplace, where third-party contributors create courses, and learners can purchase them without needing accreditation [3]. - In the second quarter, Udemy Business, which provides a catalog of courses for enterprises, accounted for 62% of total revenue, contributing to an annual recurring revenue of $493 million [3]. Future Outlook - Management anticipates only 5% top-line growth in the upcoming third quarter and has outlined plans to restructure the business to focus on higher growth opportunities [4]. - For 2026, Udemy expects to report adjusted EBITDA between $130 million and $150 million, with an enterprise value of approximately $980 million, suggesting a potentially attractive valuation if profit goals are met [5]. Customer Metrics and Profitability - Customer metrics for Udemy continue to improve, and the company is expected to achieve profitability as it implements changes to the payout structure for instructors [6]. - Maintaining a balance of instructors and buyers is crucial for enhancing the stock's outlook in the coming years [6].

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Thursday. Shares of Western Digital Corporation WDC fell in today's pre-market trading after the company reported its fourth-quarter financial results. Western Digital reported quarterly earnings of $1.44 per share, which beat the analyst consensus estimate of $1.18 by 22.03%. The company reported quarterly sales of $3.76 billion, which beat the analyst consensus estimate of $3.747 billion and is a 40.72% increase over s ...