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]