Financial Data and Key Metrics Changes - In Q1 2025, Udemy's quarterly revenue surpassed $200 million for the first time, with adjusted EBITDA exceeding expectations [32][38] - Udemy Business annual recurring revenue (ARR) was $519 million, up 8% year over year, with ARR from large customers increasing by 9% [33] - Total company gross margin improved to 65%, a 300 basis point increase from Q1 2024, driven by changes in content costs and a shift towards Udemy Business [38] Business Line Data and Key Metrics Changes - Udemy Business revenue was $128 million, a 9% year-over-year increase, despite a one percentage point headwind from foreign exchange rates [33] - Consumer segment revenue was $73 million, down 8% year over year, with a negative three percentage point impact from foreign exchange [36] - Subscription revenue across both segments now accounts for 68% of total revenue, representing a 500 basis point expansion year over year [37] Market Data and Key Metrics Changes - Approximately 60% of Udemy's revenue comes from outside the U.S., indicating a strong global presence [16] - The company added approximately 120 net new Udemy Business customers, increasing the global customer base by 7% year over year to over 17,200 [33] Company Strategy and Development Direction - Udemy is transforming from a content provider to an AI-powered reskilling platform, focusing on large enterprises in key verticals [11][14] - The company aims to increase emphasis on consumer subscriptions, which saw revenue rise nearly 40% year over year in Q1 [15] - A full-stack localization strategy will be implemented across high-potential markets to enhance market-specific product experiences [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the top line outlook due to external uncertainties, particularly in the consumer segment [40] - The company is focusing on operational efficiency and has implemented $50 million in annualized cost savings to navigate potential headwinds [42] - Management remains optimistic about long-term growth opportunities, particularly in AI and enterprise reskilling [28][45] Other Important Information - The company introduced Career Accelerators, which are curated role-specific learning paths aimed at enhancing personalized learning experiences [22] - Udemy's AI innovations are reducing program creation time by 80% on average, enabling targeted development journeys [22] Q&A Session Summary Question: Key observations from the first 45 days of tenure - Management highlighted the need for better packaging and merchandising of AI offerings and the opportunity to support consumer learners in their career growth [47][51] Question: Contribution from new career accelerators - Management expects career accelerators to be exciting for learners but remains cautious due to macroeconomic uncertainties affecting consumer sentiment [62][64] Question: Conversations with enterprise customers - Management noted increased questions about consolidation and ROI, indicating a shift towards demonstrating value from Udemy's offerings [75][76] Question: Changes in consumer subscription focus - Management confirmed that changes in pricing, packaging, and marketing efforts are underway to enhance consumer subscriptions [87][90] Question: AI opportunity and upsell potential - Management indicated that AI is central to conversations with existing customers, with plans to package targeted AI offerings for different organizational personas [94][95]

Financial Performance - Udemy's Q1 2025 revenue reached $200.3 million, a 2% year-over-year increase, despite a negative foreign exchange impact of 2 percentage points[16] - The company's gross margin was 65%, up 400 basis points year-over-year, while non-GAAP gross margin was also 65%, up 300 basis points[16] - Udemy reported a net loss of $1.8 million, a 90% improvement year-over-year, and a non-GAAP net income of $17.9 million, a 236% increase[16] - Adjusted EBITDA for Q1 2025 was $21.1 million, a 227% increase year-over-year, with an adjusted EBITDA margin of 11%, up 800 basis points[16] Enterprise Business - Udemy Business Annual Recurring Revenue (ARR) reached $519 million at the end of Q1 2025, an 8% year-over-year increase[16] - The company added 120 net new enterprise customers in Q1 2025, a 7% year-over-year increase[12,28] - Udemy closed over 40 new business deals exceeding $100,000 in ARR during the quarter[12] Subscription Model - Subscription revenue accounted for 68% of total revenue in Q1 2025, a 500 basis points year-over-year expansion[12,20] - Consumer subscriptions revenue now accounts for 13% of the segment's revenue mix, a 400 bps YoY expansion[16] Future Outlook - Udemy projects Q2 2025 revenue between $195 million and $199 million, with an adjusted EBITDA between $22 million and $24 million[43] - The company anticipates full-year 2025 revenue between $772 million and $794 million, and adjusted EBITDA between $77 million and $87 million[43]

Revenue Performance - Total revenue increased 2% year-over-year to $200.3 million, with a negative impact of 2 percentage points from foreign exchange rates[5] - Enterprise segment revenue of $127.7 million increased 9% year-over-year, including a negative impact of 1 percentage point from foreign exchange rates[5] - Consumer segment revenue decreased 8% year-over-year to $72.6 million, with a negative impact of 3 percentage points from foreign exchange rates[5] - Udemy Business Annual Recurring Revenue (ARR) increased 8% year-over-year to $519.0 million[5] - Revenue for Q1 2025 was $200.3 million, a 2.3% increase from $196.8 million in Q1 2024[26] Profitability and Loss - Net loss was $1.8 million, a significant improvement of 90% year-over-year, while Adjusted EBITDA was $21.1 million, representing an 800 basis point expansion in margin to 11%[5] - Net loss for Q1 2025 decreased to $1.8 million from $18.3 million in Q1 2024, with net loss per share improving from $(0.12) to $(0.01)[34] - Adjusted EBITDA for Q1 2025 was $21.1 million, compared to $6.5 million in Q1 2024, reflecting an adjusted EBITDA margin of 11%[35] Operating Expenses - Total operating expenses for Q1 2025 were $133.9 million, down from $143.3 million in Q1 2024, primarily due to reduced sales and marketing expenses[26] - Stock-based compensation expense for Q1 2025 was $18.0 million, down from $22.7 million in Q1 2024[34] Customer Growth and Engagement - Added 2 million new learners and nearly 120 net new Enterprise customers, ending the quarter with a total of 79 million learners and 17,216 Enterprise customers[5] - The company continues to focus on expanding its Udemy Business offerings, targeting enterprise clients with on-demand learning solutions[24] Financial Guidance - Guidance for Q2 2025 revenue is projected between $195 million and $199 million, with full year 2025 revenue guidance between $772 million and $794 million[7] - The company expects a negative impact of 1.5 percentage points on Q2 year-over-year revenue growth due to foreign exchange rates[8] Market Recognition - Recognized as a Strategic Leader in the 2025 Fosway 9-Grid™ for Digital Learning, highlighting its market position[5] Cash and Receivables - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $190.7 million, slightly down from $191.8 million at the beginning of the period[30] - Accounts receivable increased to $111.2 million in Q1 2025 from $88.2 million in Q4 2024, indicating improved sales performance[28] - Deferred revenue increased to $326.3 million in Q1 2025, up from $291.1 million in Q4 2024, suggesting strong demand for Udemy's services[28] Gross Profit - Gross profit for Q1 2025 was $129.4 million, compared to $120.6 million in Q1 2024, resulting in a gross margin of 65%[32]

Technical Analysis - Udemy, Inc. (UDMY) has reached a significant support level, indicating a potential investment opportunity from a technical perspective [1] - A "golden cross" has occurred, where UDMY's 50-day simple moving average has broken above its 200-day moving average, suggesting a bullish breakout may be on the horizon [1] - The golden cross is characterized by a downtrend followed by a crossover of the shorter moving average over the longer moving average, leading to a positive trend reversal [2] Performance Metrics - UDMY has experienced a rally of 29.7% over the past four weeks, indicating strong upward momentum [3] - The company currently holds a 2 (Buy) rating on the Zacks Rank, further supporting the bullish outlook [3] Earnings Outlook - There have been no earnings estimate cuts for the current quarter, with four revisions higher in the past 60 days, indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for UDMY has also increased, reinforcing the potential for continued gains [4]

Company Overview - Udemy, Inc. is an edtech company valued at $1.5 billion, operating an online marketplace that connects consumers with experts across various subjects for skill acquisition, development, and validation [1] Industry Insights - The company is part of the growing online education sector, which is increasingly popular as individuals seek to enhance their skills and knowledge through accessible platforms [1]

Core Viewpoint - Udemy, Inc. (UDMY) shows a significantly improving earnings outlook, making it a strong investment choice as analysts continue to raise earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.10 per share, reflecting a year-over-year increase of +233.33% [4]. - Over the past 30 days, the Zacks Consensus Estimate for Udemy has risen by 50%, with one estimate moving higher and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, Udemy is expected to earn $0.42 per share, indicating a year-over-year change of +162.5% [5]. - The consensus estimate for the current year has increased by 61.26%, with five estimates moving higher and no negative revisions [5]. Favorable Zacks Rank - Udemy currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant stock performance [6]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to outperform the S&P 500 [6]. Bottom Line - Investors are increasingly optimistic about Udemy due to solid estimate revisions, as evidenced by a 30.8% stock gain over the past four weeks [7].

Financial Performance - For the fiscal year ended December 31, 2024, the company incurred net losses of $85.3 million, $107.3 million, and $153.9 million for the years 2024, 2023, and 2022 respectively, with an accumulated deficit of $805.0 million as of December 31, 2024[98]. - Total revenue for the fiscal year ended December 31, 2024, was $786,565,000, representing an increase of 7.9% from $728,937,000 in 2023[398]. - Gross profit for 2024 was $491,940,000, up from $419,339,000 in 2023, indicating a gross margin improvement[398]. - Net loss for 2024 was $85,288,000, a decrease from a net loss of $107,294,000 in 2023, reflecting a 20.5% improvement in profitability[398]. - Total current assets decreased to $506,328,000 in 2024 from $632,328,000 in 2023, a decline of 20%[396]. - Total liabilities increased to $408,234,000 in 2024 from $384,304,000 in 2023, marking a 6.2% rise[396]. - Cash and cash equivalents decreased significantly from $305,564,000 in 2023 to $190,592,000 in 2024, a drop of 37.5%[396]. - Operating expenses for 2024 totaled $581,268,000, compared to $541,234,000 in 2023, reflecting an increase of 7.4%[398]. - The total stockholders' equity decreased from $389.7 million on December 31, 2021, to $197.4 million on December 31, 2024, reflecting a decline of approximately 49.3%[404]. - The balance of accumulated deficit increased from $458.5 million in 2021 to $804.9 million in 2024, reflecting a growth of approximately 75.5%[404]. Employee and Operational Insights - The company had 1,246 full-time employees as of December 31, 2024, and implemented a restructuring plan affecting approximately 280 employees to drive operational efficiencies[92]. - 95% of employees engaged in learning on the company's platform during the fiscal year ended December 31, 2024, highlighting a strong internal focus on development[91]. - The company has experienced significant growth, which has placed strain on its operational infrastructure and managerial resources[132]. - The company faces risks associated with hiring and retaining qualified employees, which may impact its operational efficiency[135]. Market and Competitive Landscape - The online learning market is highly competitive, with numerous competitors offering similar services, which may impact the company's ability to grow revenue and achieve profitability[113]. - The company experienced elongated sales cycles for its Udemy Business offerings due to budget tightening amid economic uncertainty, particularly for large customers with over 1,000 employees[107]. - The company has experienced significant growth in the number of customers subscribing to its UB offerings, but future growth remains uncertain due to various factors affecting customer retention and expansion[112]. - The company anticipates that broader societal and macroeconomic conditions will influence the growth rate of the online learning market, making it difficult to predict demand for its platform[117]. Intellectual Property and Compliance - The company held 16 registered trademarks in the United States and 44 in foreign jurisdictions, along with 3 registered patents in the United States, indicating a commitment to protecting its intellectual property[88]. - The company faces risks related to intellectual property litigation, which could result in significant costs and impact its financial condition and reputation[198]. - The company may face challenges in protecting its intellectual property rights in foreign jurisdictions, potentially harming its competitive advantage[195]. - The company uses open source software, and failure to comply with related licenses could restrict its ability to provide its platform[199]. Regulatory and Legal Risks - The company is subject to various laws and regulations worldwide, which could adversely affect its business and financial condition if not complied with[144]. - Compliance with the E.U. General Data Protection Regulation (GDPR) could result in fines of up to €20 million or 4% of annual global revenue for non-compliance[160]. - The California Consumer Protection Act (CCPA) and its amendments may impose civil penalties and additional compliance costs on the company[164]. - The company is involved in various claims, lawsuits, and government investigations that could adversely affect its business and financial condition[152]. Strategic Initiatives and Future Outlook - The company is focused on expanding its platform offerings and entering new markets, which may require substantial financial resources and could impact profitability[98]. - The company plans to continue expanding its sales and marketing organizations, which requires significant investment and may take time to yield results[122]. - The company plans to continue expanding its international operations, which currently include locations in Ireland, Turkey, India, Australia, and Mexico[140]. - The company has announced the release of the Udemy AI Assistant and AI Skills Mapping tool, indicating a strategic focus on leveraging AI for future growth[176]. Financial Management and Capital Structure - The company may need to raise additional funds to support its growth strategy, which could be challenging under unfavorable market conditions[139]. - The company has never declared nor paid cash dividends and intends to retain future earnings for business operations and expansion[228]. - The trading price of the company's common stock may be volatile, influenced by various factors including market conditions and analyst coverage[219]. - As of December 31, 2024, directors, executive officers, and principal stockholders beneficially owned approximately 54% of the outstanding common stock, allowing them significant control over stockholder approval matters[229].

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 ...