+ Empowering the Global Workforce with Skills for the AI Era Non-GAAP financial measures This presentation con tains non-GAAP measures (includ ing non-GAAP gross p rofit, Adjust ed EBITDA, and cost synergies) used by our man agement to help us an alyze our fin ancial results, estab lish budgets and operational goals for man aging our business, evaluate our performan ce, an d make strategic decisions. We believe these pro vide useful supplemen tal information for investors to an alyze our core results and be ...

Coursera (COUR) and Udemy (UDMY) have entered into a definitive merger agreement under which Coursera will combine with Udemy in an all-stock transaction. Based on the closing prices of Coursera and Udemy common stock on December 16, the implied equity value ...

Summary of Key Points from J.P. Morgan's US Internet 2026 Outlook Industry Overview - The report focuses on the **US Internet** sector, providing insights into market performance, macroeconomic factors, and company-specific forecasts for 2026. Core Insights and Arguments 1. **2025 Performance Recap**: - The internet sector outperformed the S&P 500 by 17% in 2025, with average performance across market caps showing significant variation: - Large Cap: +19% - Mid-Cap: +42% - Small Cap: +21% - Smaller Cap (<$2B): -16% [12][13] 2. **2026 Macro Outlook**: - J.P. Morgan economists estimate a **35% risk of recession** in 2026, with expectations of resilient global growth driven by fiscal stimulus and capital expenditure [19][23]. - Key economic indicators include: - GDP Growth: 1.8% in 2026 - Inflation: Expected to remain above 3% CPI - Unemployment: Projected to peak at 4.5% in Q1 2026 [21][19]. 3. **Investment Recommendations**: - **Top Picks for 2026** include: - Alphabet (Overweight, $385 PT): Growth driven by AI and cloud services [46]. - Amazon (Overweight, $305 PT): Expected growth in AWS and retail segments [51]. - DoorDash (Overweight, $300 PT): Anticipated GOV growth of 18% CAGR from 2025-2028 [57]. - Spotify (Overweight, $805 PT): Projected revenue growth driven by premium subscriptions [66]. 4. **AI and Cloud Growth**: - AI is expected to significantly drive cloud growth, with Google Cloud projected to grow in the mid-40% range and AWS adding the highest estimated revenue in 2026 [101][102]. - The report highlights the importance of AI in enhancing operational efficiencies and driving revenue growth across various sectors [78]. 5. **Valuation Metrics**: - The S&P 500 is projected to have a price target of **$7,500** by the end of 2026, suggesting a 9% upside [26]. - Internet companies are trading at an average of **10.2x 2027E EV/EBITDA**, with expected revenue growth of approximately **13% CAGR** from 2025 to 2027 [40]. Additional Important Insights 1. **Market Dynamics**: - The report discusses the competitive landscape in the AI space, noting that leading model developers like Google and OpenAI are pushing the frontier, but competition remains intense [89][94]. - The potential for AI-driven advertising and e-commerce growth is highlighted, with expectations for significant market share shifts in the online ad market [112]. 2. **Company-Specific Catalysts**: - Alphabet's AI tools are expected to enhance productivity and revenue, while Amazon's AWS is set to double its capacity by 2027 [56][88]. - DoorDash is focusing on expanding its marketplace and improving unit economics, while Spotify is ramping up its free cash flow and operating margins [60][68]. 3. **Key Questions for 2026**: - The report raises critical questions regarding AI monetization, the impact of AI on cloud growth, and the potential for disruption in various sectors, including travel and e-commerce [76][124]. This summary encapsulates the essential insights and projections for the US Internet sector as outlined in the J.P. Morgan report, providing a comprehensive overview of the anticipated trends and investment opportunities for 2026.

Core Insights - Udemy has announced a partnership with LG CNS to expand into Korea's corporate learning market [1] - The partnership will leverage LG CNS's distribution network, which includes over 500 enterprise clients and millions of professionals [1] - Udemy will provide its AI-powered platform, including features like MCP Server, AI Assistant, and Role Play [1] Company Overview - Udemy is positioned as a global AI-powered skills acceleration platform [1] - The collaboration with LG CNS marks a strategic move to enhance Udemy's presence in the Asian market [1] Market Impact - The partnership is expected to significantly increase Udemy's reach within the corporate learning sector in Korea [1] - Access to LG CNS's extensive client base may lead to increased adoption of Udemy's learning solutions [1]

Core Insights - Udemy has announced the phased rollout of a new AI-powered microlearning experience aimed at transforming skill development on its platform, catering to the evolving needs of learners and instructors [1][4]. Group 1: AI-Powered Microlearning Experience - The new microlearning approach will convert long-form video courses into adaptive, engaging, and interactive experiences optimized for both mobile and desktop learning [2][3]. - Instructors will utilize a "human-in-the-loop" method to review and validate microlearning content, ensuring quality before it reaches learners [3][4]. - The rollout of these instructor-validated microlearning experiences is scheduled to occur throughout 2026, accessible via Udemy.com, the mobile app, and enterprise learning environments [3][4]. Group 2: Instructor Engagement and Role - Instructors are viewed as central to the skill development process, acting as creative directors who curate and validate learning experiences [4][7]. - The AI-powered microlearning model emphasizes the importance of human insights and lived experiences in teaching, reinforcing Udemy's commitment to its instructor community [4][7]. - Opportunities for both existing and new instructors specializing in short-form, interactive learning experiences will be expanded [7]. Group 3: Market Position and Clientele - Udemy serves thousands of companies, including notable clients such as Ericsson, Samsung SDS America, and Volkswagen, providing enterprise solutions to build agile teams [8]. - The platform combines on-demand, multi-language content with real-time innovation to deliver personalized learning experiences [6].

Core Insights - Udemy has introduced new instructor-focused offerings to enhance the role of human expertise in the AI-driven learning landscape [1][2] - The global demand for upskilling is increasing, with nearly 60% of professionals requiring reskilling due to rapid changes driven by AI [1] Group 1: New Offerings - Instructor Subscriptions will allow instructors to offer live sessions, short-form content, and community features, aimed at generating recurring revenue and enhancing learner engagement [3] - AI-Powered Micro-Learning tools will enable instructors to convert long-form courses into interactive micro-learning experiences, catering to learners' needs in real-time [3] - A $2.5 million Content Innovation Fund will support instructors in developing next-generation learning formats, including subscription models and AI-driven content [4] Group 2: Market Trends - Learner expectations are shifting towards modular, continuous, and skills-focused learning experiences, prompting Udemy to adapt its offerings [5] - The innovations are designed to create new revenue streams for instructors beyond traditional course formats, thereby strengthening Udemy's subscription ecosystem [5] Group 3: Company Overview - Udemy is positioned as an AI-powered skills acceleration platform, helping organizations and individuals develop essential skills for a rapidly evolving workplace [7] - The company serves thousands of enterprises globally, including notable clients like Ericsson, Samsung, and The World Bank, emphasizing its role in workforce development [7]

Core Insights - Udemy and Mila have announced a partnership aimed at accelerating responsible AI skill development for the global workforce [1][2] - The collaboration will focus on creating scalable AI learning programs that emphasize ethical and responsible AI application [1][3] Partnership Details - Starting in January, new responsible AI learning programs will be launched, combining Udemy's global reach with Mila's expertise in responsible AI research [2] - The programs will blend technical skills with strategic and ethical decision-making, catering to organizations at various stages of their AI journey [2][3] Organizational Impact - The partnership aims to equip organizations with practical skills and frameworks necessary for safe and strategic AI adoption [3] - Professionals will gain access to courses on responsible AI, ethics, governance, and practical decision-making [6] Educational Offerings - The learning solutions will include applied training on integrating responsible practices into workflows and insights from Mila researchers on emerging trends [6] - Flexible learning formats will be available, including on-demand content and expert-led sessions for enterprise teams [6] About Udemy - Udemy is an AI-powered skills acceleration platform serving 82 million learners and over 17,000 organizations globally [1][4] - The platform provides personalized experiences to help organizations develop the necessary capabilities for a rapidly evolving workplace [4] About Mila - Mila is the world's largest academic AI research center, specializing in deep learning and dedicated to advancing AI for the benefit of all [5] - Founded by Yoshua Bengio, Mila is supported by the Canadian government and recognized for its influential research and leadership in responsible AI [5]

Core Insights - Udemy has formed a strategic partnership with Emtrain to enhance compliance and workplace culture training for enterprise customers, addressing rising regulatory pressures and improving workforce performance [1][3][4] Company Overview - Udemy is an AI-powered skills acceleration platform that provides on-demand learning solutions to organizations globally, helping them build necessary capabilities for a rapidly evolving workplace [5][6] - Emtrain specializes in compliance training and risk intelligence solutions, focusing on managing employee behavior and preventing issues through scenario-based courses [7] Partnership Details - The collaboration will allow organizations to develop critical skills in areas such as data privacy, anti-harassment, and AI governance through Emtrain's content on Udemy's platform [2][3] - This partnership aims to create a comprehensive workforce enablement solution, making it easier for employees to develop vital skills seamlessly in their work environment [1][3] Market Context - The global corporate compliance training market is valued in the multibillion-dollar range, with increasing demand due to rising regulatory complexity and evolving data privacy and cybersecurity requirements [3] - Compliance training has been shown to reduce unhealthy behaviors by 25% and improve adherence to cybersecurity and regulatory protocols, although 7% of employees still perceive gaps in leadership structures [3] Industry Challenges - Harassment and discrimination claims have surged by 47%, indicating a growing need for effective compliance programs that enhance both employee and business skills [4] - Organizations are increasingly seeking a single partner for skills development to address these challenges and improve compliance frameworks [4]

Core Insights - Udemy, Inc. is recognized as a promising EdTech stock, with KeyBanc maintaining an Overweight rating while lowering the price target to $9 from $11 due to an accelerated shift towards subscription models [1][3]. Financial Performance - For Q3 2025, Udemy reported revenue of approximately $195.7 million, slightly exceeding expectations, with a strong emphasis on the transition to recurring subscription revenue [2][3]. - The company highlighted continued traction in its subscription businesses, which aligns with its strategic update earlier in the year [3]. Market Position and Strategy - Udemy operates a global learning marketplace and an enterprise offering, Udemy Business, providing curated course libraries and hands-on learning tools to organizations worldwide [4]. - The commentary surrounding the Q3 results focused on the implications of the subscription mix for both near-term growth and long-term sustainability [2][3].

Core Insights - Udemy, Inc. reported revenue of $195.68 million for the quarter ended September 2025, reflecting a year-over-year increase of 0.1% and an EPS of $0.13, up from $0.07 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $193.15 million by 1.31%, and the EPS surpassed the consensus estimate of $0.10 by 30% [1] Financial Performance Metrics - The Enterprise Segment's Annual Recurring Revenue was $527.2 million, slightly below the average estimate of $529.52 million from two analysts [4] - The Consumer Segment had a monthly average of 1.2 million buyers, which was lower than the estimated 1.27 million [4] - Total customers in the Enterprise Segment reached 17,111, compared to the average estimate of 17,241 [4] - Revenue from the Enterprise Segment was $132.8 million, exceeding the estimated $129.78 million, representing a year-over-year increase of 5.3% [4] - Revenue from the Consumer Segment was $62.88 million, slightly below the estimated $63.15 million, showing a year-over-year decline of 9.3% [4] Stock Performance - Udemy's shares have returned -2.3% over the past month, while the Zacks S&P 500 composite increased by 3.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]