Udemy(US:UDMY)2024-10-29 20:07Financial Performance - Total revenue increased 6% year-over-year to $195.4 million, with a negative impact of 2 percentage points from foreign exchange rates[5]. - Udemy Business Annual Recurring Revenue (ARR) surpassed $500 million, increasing 14% year-over-year to $504.6 million[2][5]. - Enterprise segment revenue rose 16% year-over-year to $126.1 million, also impacted by a 2 percentage point decline from foreign exchange rates[5]. - Consumer segment revenue decreased 8% year-over-year to $69.3 million, with a 3 percentage point negative impact from foreign exchange rates[5]. - Adjusted EBITDA increased 41% year-over-year to $11.6 million, with an adjusted EBITDA margin of 6%[3][5]. - Net loss for the quarter was $25.3 million, a 51% increase compared to the previous year[3]. - Udemy reported Q3 2024 revenue of $195,417,000, a 5.5% increase from $184,722,000 in Q3 2023[19]. - Gross profit for Q3 2024 was $123,055,000, up 14.5% from $107,458,000 in Q3 2023[19]. - Total operating expenses in Q3 2024 were $152,514,000, compared to $128,954,000 in Q3 2023, reflecting an 18.2% increase[19]. - Udemy's net loss for Q3 2024 was $25,271,000, compared to a net loss of $16,767,000 in Q3 2023[19]. - Net loss for the nine months ended September 30, 2024, was $75,424,000, compared to a net loss of $87,046,000 for the same period in 2023, representing a 13.5% improvement[23]. - Gross profit for the nine months ended September 30, 2024, increased to $364,735,000, up from $309,489,000 in 2023, reflecting an 18% year-over-year growth[24]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $23,480,000, compared to $3,817,000 for the same period in 2023[26]. - The company reported a non-GAAP net income of $8,843,000 for the nine months ended September 30, 2024, compared to a loss of $1,909,000 in the same period last year[25]. Cash and Assets - The company had cash and cash equivalents of $204,563,000 as of September 30, 2024, down from $305,564,000 at the end of 2023[22]. - Total current assets decreased to $508,012,000 from $632,328,000 at the end of 2023[22]. - Cash and cash equivalents at the end of the period decreased to $205,778,000 from $331,503,000 at the end of September 30, 2023[23]. Liabilities and Deferred Revenue - Udemy's total liabilities rose to $412,648,000 as of September 30, 2024, compared to $384,304,000 at the end of 2023[22]. - Deferred revenue increased to $299,955,000 in Q3 2024 from $279,414,000 in Q3 2023, indicating growth in future revenue recognition[22]. - Deferred revenue increased to $19,906,000 for the nine months ended September 30, 2024, compared to $3,887,000 in 2023, indicating growth in future revenue recognition[23]. Strategic Initiatives - The company raised its full year 2024 adjusted EBITDA outlook, focusing on operational efficiencies and strategic initiatives[4]. - The company anticipates continued market growth and plans to enhance operational efficiency in future periods[17]. - The company plans to continue investing in new product development and market expansion strategies to drive future growth[24]. Shareholder Returns - Udemy returned approximately $51 million to shareholders through a share repurchase program, buying back 6.3 million shares[7]. Market Demand - Udemy Business serves notable clients including Fender, Glassdoor, and The World Bank, indicating strong enterprise demand[18]. Other Financial Metrics - Monthly average buyers in the consumer segment decreased by 7% year-over-year to 1.31 million[4]. - Non-GAAP gross margin improved to 63% for the nine months ended September 30, 2024, compared to 59% for the same period in 2023[24]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $70,424,000, slightly down from $71,720,000 in 2023[26].