Shares of online learning marketplace Udemy (UDMY 33.25%) skyrocketed on Friday after the company released strong financial results for the fourth quarter of 2024. As of 12:15 p.m. ET, Udemy stock was up a whopping 33%.Udemy's profits suddenly surgeAt first glance, investors seem to be overreacting with Udemy stock today. While it did beat expectations on the top and bottom lines, the numbers in isolation weren't necessarily inspiring. For revenue, Udemy generated $200 million, which was only up 5% year ove ...

Udemy, Inc. (NASDAQ:UDMY) Q4 2024 Earnings Conference Call February 13, 2025 5:00 PM ET Company Participants Dennis Walsh – Vice President-Investor Relations Greg Brown – Chief Executive Officer Sarah Blanchard – Chief Financial Officer Eren Bali – Founder and Chief Technology Officer Conference Call Participants Jason Tilchen – Canaccord Genuity Ryan MacDonald – Needham Josh Baer – Morgan Stanley Stephen Sheldon – William Blair Curtis Nagle – Bank of America Connor Passarella – Truist Yi Fu Lee – Cantor Fi ...

4Q & FY24 Earnings Presentation February 13, 2025 1 Safe Harbor Notice This presentation and any accompanying oral commentary include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than those of historical fact, including information concerning our future operating results and financial position, anticipated future expenses and investments, business strategies and plans, market growth, market posi ...

For the quarter ended December 2024, Udemy, Inc. (UDMY) reported revenue of $199.94 million, up 5.5% over the same period last year. EPS came in at $0.10, compared to $0.02 in the year-ago quarter.The reported revenue represents a surprise of +2.69% over the Zacks Consensus Estimate of $194.7 million. With the consensus EPS estimate being $0.07, the EPS surprise was +42.86%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Udemy, Inc. (UDMY) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.07, delivering a surprise of 600%.Over the last four quarters, the company has su ...

Financial Data and Key Metrics Changes - The company reported full-year revenue of $787 million, reflecting an 8% year-over-year growth, with a 2% headwind from foreign exchange (FX) [7][36] - Adjusted EBITDA for the year was $43 million, representing a 5% margin, a significant improvement from an adjusted EBITDA loss of nearly $50 million in 2022 [36][41] - Fourth-quarter revenue increased 5% year-over-year to nearly $200 million, with over 60% of total revenue coming from outside the U.S. [37][41] Business Line Data and Key Metrics Changes - Revenue from the Udemy business segment increased by 18% for the year, while consumer revenue decreased by 5%, also impacted by a 2% negative FX effect [36][41] - Annual recurring revenue (ARR) from Udemy business reached $517 million, up 11% year-over-year, with ARR from large enterprises increasing by 12% [37][41] - The gross margin for the Udemy business segment improved to 75% in Q4, up 600 basis points from the prior year, primarily due to changes in instructor revenue share [39][41] Market Data and Key Metrics Changes - The company added approximately 250 net new Udemy business customers in Q4, increasing the global customer base by 9% year-over-year to over 17,000 [38] - The net dollar retention rate for large enterprise customers was 103%, indicating strong customer relationships and engagement [38] Company Strategy and Development Direction - The company is focusing on large enterprise customers, believing this segment offers the highest return opportunities for growth [9][10] - A strategic transition is underway to deepen engagement with existing large enterprise customers, aiming to unlock the full potential of the platform [17][18] - The company plans to revitalize its consumer marketplace while ensuring operational efficiency across all business areas [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing significant opportunities in the market, particularly in upskilling and AI integration [11][12] - The company anticipates 2025 to be a transition year, with a focus on building a foundation for long-term sustainable growth [45][48] - Management remains cautiously optimistic about navigating evolving market conditions and expects to deliver adjusted EBITDA of $75 million to $85 million for 2025 [46][48] Other Important Information - The company executed a $50 million cost savings program in 2024, which is expected to drive increased profitability and flexibility for targeted investments [20][42] - The company ended 2024 with $356 million in cash and cash equivalents, and positive free cash flow of $38 million [42][44] Q&A Session Summary Question: How have conversations with existing customers evolved recently? - Management noted positive signals from large enterprise customers, with improved win rates and a strong quarter in North America and Latin America [52] Question: Will the new features in the consumer marketplace be monetizable? - Management indicated that the updates will enhance engagement and retention, with some monetization expected from career academies [58] Question: How does interest in AI courses compare to non-AI courses? - There has been a significant uptick in interest in soft skills and leadership development, alongside technical skills related to AI [60][61] Question: What is the outlook for consumer revenue growth? - Management expressed optimism about product innovation and the impact of career academies on both consumer and enterprise segments [85] Question: What changes have been observed in corporate spending? - Management reported no material changes in corporate spending but noted a potential opening of budgets as a result of the new administration [96][98]

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 ...