Udemy(US:UDMY)2025-07-30 20:06Financial Performance - Total revenue increased 3% year-over-year to $199.9 million, with a negative impact of 1 percentage point from foreign exchange rates[6]. - Udemy Business revenue of $129.3 million increased 7% year-over-year, including a negative impact of 50 basis points from foreign exchange rates[6]. - Udemy Business Annual Recurring Revenue (ARR) rose 6% year-over-year to $520.0 million[6]. - Net income was $6.3 million, representing a 3% margin, while Adjusted EBITDA was $28.4 million, or 14% margin, reflecting a 1,100 basis point expansion year-over-year[6]. - The net income for the three months ended June 30, 2025, was $6,265,000, compared to a net loss of $31,814,000 in the same period of 2024[29]. - Non-GAAP net income for Q2 2025 was $24,211, compared to a loss of $6,543 in Q2 2024, indicating improved profitability[38]. - Adjusted EBITDA for Q2 2025 was $28,398, compared to $5,463 in Q2 2024, demonstrating strong operational performance[39]. Cash Flow and Liquidity - Free cash flow for the quarter was positive $39.0 million, with year-to-date free cash flow at positive $46.1 million[6]. - Free cash flow for Q2 2025 was $39,011, significantly higher than $24,785 in Q2 2024, indicating robust cash generation[41]. - Cash provided by operating activities for Q2 2025 was $44,203, compared to $28,592 in Q2 2024, showing improved operational efficiency[41]. - The company reported a net increase in cash of $40,641 for Q2 2025, compared to an increase of $13,343 in Q2 2024, highlighting improved liquidity[34]. - Total cash, cash equivalents, and restricted cash at the end of the period was $231,373, down from $273,579 at the end of Q2 2024[34]. Assets and Liabilities - The company’s cash and cash equivalents increased to $230,258,000 as of June 30, 2025, up from $190,592,000 at the end of 2024[32]. - Total current assets reached $547,496,000, an increase from $506,328,000 at the end of 2024[32]. - The total liabilities stood at $410,598,000 as of June 30, 2025, slightly up from $408,234,000 at the end of 2024[32]. Operational Efficiency - Operating expenses for the three months ended June 30, 2025, were $128,121,000, down from $146,662,000 in the same period of 2024, showing a reduction of 12.7%[29]. - Stock-based compensation expense for Q2 2025 was $17,420, down from $24,317 in Q2 2024, indicating a reduction in equity compensation costs[38]. - Non-GAAP gross margin for Q2 2025 was 67%, up from 64% in Q2 2024, reflecting better cost management[36]. User Engagement and Growth - Surpassed a milestone of 200,000 paid subscribers for Udemy's consumer subscription, Personal Plan[6]. - Udemy's Net Dollar Retention Rate (NDRR) for Udemy Business customers is a key metric for revenue growth, reflecting the company's ability to retain and expand revenue from existing customers[21]. - The company anticipates continued growth in user engagement and revenue, with expectations for future operating results and financial position outlined for Q3 and full year 2025[24]. Strategic Initiatives - Introduced new AI Packages aimed at enhancing AI fluency for organizations and professionals[6]. - Launched Role Play, an AI-powered offering for developing real-world soft skills through immersive simulations[6]. - Udemy's strategic focus includes enhancing its enterprise solutions and expanding its market presence, particularly in workforce development[27]. Future Guidance - Provided revenue guidance for Q3 2025 of $190 to $195 million and for the full year 2025 of $784 to $794 million[9].