Core Insights - Udemy, a leading AI-powered skills acceleration platform, announced the winners of the 2025 Learning Excellence Awards, recognizing organizations that have successfully achieved impactful results in learning and development through AI-driven upskilling [1] Group 1 - The awards were presented during Udemy's annual FWD event, highlighting the transformative efforts of visionary leaders in enhancing learning at scale [1] - The recognized organizations exemplify how they are equipping their teams to thrive in an AI-driven future [1]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $128.8 million, down $3.4 million or 2.6% year over year [14] - Talent Development Solutions (TDS) revenue was $101.2 million, slightly down year over year [13] - Global Knowledge revenue was $27.6 million, down approximately $2.9 million or 9.6% year over year [14] - Adjusted EBITDA was $28.3 million, flat compared to last year, with an adjusted EBITDA margin of 22% compared to 21.4% last year [16] - GAAP net loss was $23.8 million, compared to a GAAP net loss of $39.6 million in the prior year [16] - Free cash flow for the quarter was negative $22.6 million, compared to negative $16.1 million in the prior year [17] Business Line Data and Key Metrics Changes - TDS LTM dollar retention rate was 99%, unchanged from the previous quarter [14] - The decline in TDS performance was attributed to a decrease in the learner product line, reflecting changes in the B2C market [13] - The TDS Enterprise Solutions segment showed growth for four consecutive quarters, representing more than 90% of the TDS segment [6] Market Data and Key Metrics Changes - Demand in North America and the Middle East was notably softer, impacting Global Knowledge revenue [7] - The macroeconomic and geopolitical headwinds continued to affect revenue, particularly in public sector spending [12] Company Strategy and Development Direction - The company is focused on a transformation plan that includes a dual business unit structure and a new AI innovation-based product roadmap [6] - Strategic investments are being made in go-to-market resources and products, with a focus on enterprise customers [12] - The company aims to evolve its product strategy to emphasize AI-native design and skills intelligence [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainty affecting revenue and updated full-year revenue guidance to $510 million to $530 million [19] - Despite the challenges, management remains confident in the core business's durability and the potential for market growth [11] - The company is monitoring external market conditions and focusing on profitability improvements [19] Other Important Information - The company achieved $45 million in expense reductions, contributing to profitability and margin expansion [7] - The company is expanding global learner support with a unified language experience in over 50 languages [10] Q&A Session Summary Question: Can you provide additional color on sectors impacted by the softer live learning environment? - Management noted that public sector spending in North America and the Middle East was significantly affected, while Europe showed good progress [22][23] Question: Is the softness more macro-driven or competitive? - Management indicated that the softness is primarily macro-driven, with positive bookings in Europe providing confidence [25][26] Question: How does the adjusted revenue guidance reflect bookings and potential further erosion? - The guidance adjustment was based on first-half performance and anticipated seasonality, with a focus on managing risk [28] Question: Is the timeline for returning to growth dependent on macro conditions? - Management believes that while macro conditions have impacted growth, there are still controllable elements that can drive recovery [30][32] Question: How is the dollar retention rate performing, particularly for enterprise customers? - The dollar retention rate was around 99%, with challenges primarily from the North American federal business impacting overall performance [35] Question: How should we frame the magnitude of headwinds faced? - Management indicated that the Global Knowledge segment faces more significant headwinds, while TDS is expected to perform reasonably well [40][41]

Core Insights - Duolingo's shares increased by over 30% following an upward revision of its guidance due to strong user growth driven by artificial intelligence [1] - The company raised its full-year revenue guidance to between $1.01 billion and $1.02 billion, up from a previous range of $987 million to $996 million [1] - Duolingo also increased its bookings guidance to between $1.15 billion and $1.16 billion [1] User Growth and Profitability - The company reported a 40% increase in daily active users, reaching nearly 48 million compared to about 34 million in the same period last year [2] - Co-founder and CEO Luis von Ahn stated that the company exceeded its own high expectations for bookings and revenue while also expanding profitability [2]

Core Insights - D2L has been selected by the Project Management Institute (PMI) to enhance their digital learning ecosystem for project professionals globally [1][2][3] - The partnership aims to provide adaptive learning paths tailored to specific career goals, supporting transformative global learning in project management [2][3] - PMI, with nearly 750,000 members in over 200 countries, has a long-standing commitment to project management success and offers various professional development resources [3][5] Company Overview - D2L is focused on transforming learning experiences, aiming to make education more engaging and effective across various sectors, including K-12, higher education, and business [6] - The company collaborates with global customers to inspire and enhance learning outcomes [6] Industry Context - PMI is recognized as a leading authority in project management, providing certifications, courses, and networking opportunities to empower professionals and organizations [5] - The collaboration with D2L is expected to expand PMI's global impact by equipping more individuals and organizations with essential knowledge and skills [4]

Financial Data and Key Metrics Changes - Total revenue for Q1 was $124.2 million, down approximately $3.6 million or 2.8% year over year [19] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [21] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [22] - Free cash flow was $26.2 million, an improvement of $15.8 million from $10.4 million in the prior year [23] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $99.1 million, up 1% year over year [18] - Global Knowledge (GK) revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [18][19] - TDS dollar retention rate for Q1 was 99%, compared to 100% last quarter and 99% one year ago [19] Market Data and Key Metrics Changes - There was a decline in U.S. public sector discretionary live learning spending, while large-scale non-U.S. public sector deals increased [10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [11] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][7] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [16] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [8][16] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [15][38] - The outlook for the full fiscal year remains unchanged, with expectations for revenue between $530 million and $545 million [26] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [26] - The first quarter is typically the highest seasonal free cash flow quarter, with expectations of cash usage in the second quarter [23][24] Q&A Session Summary Question: What are the underlying KPIs that give confidence in the full-year target? - Management highlighted the growth in TDS and a strong deal pipeline in GK, suggesting potential for improvement if the market stabilizes [30][32] Question: How should we think about the government business and its recent softness? - Management noted that discretionary spending in the U.S. federal sector impacted revenue, but there is positive activity in European public sectors [48][50] Question: What changes or improvements can be expected under the new CFO? - The focus will be on integrating finance into every decision and aligning it with go-to-market strategies to drive growth [54]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $124.2 million, down approximately $3.6 million or 2.8% year over year [18] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [20] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [21] - Free cash flow improved to $26.2 million compared to $10.4 million in the prior year, reflecting an increase of $15.8 million [22] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $99.1 million, up 1% year over year [17] - Global Knowledge revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [17][18] - TDS dollar retention rate for the first quarter was 99%, compared to 100% last quarter and 99% one year ago [18] Market Data and Key Metrics Changes - There was a decline in U.S. Public sector discretionary live learning spending, while large scale non-U.S. Public sector deals increased [9][10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [10] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][8] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [15][24] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [7][15] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [14][36] - The company expects to see most growth in the back half of the fiscal year, contingent on market stabilization [8][24] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [24] - The leadership team has been expanded with the addition of a new Chief Marketing Officer to enhance marketing efforts [6] Q&A Session Summary Question: What are you seeing in the underlying KPI or deals that give you confidence in reiterating the full year target? - Management expressed confidence in TDS growth and noted a positive deal pipeline in GK, contingent on market stabilization [30] Question: Is there a component of GK being worse and TDS better in your underlying assumptions? - Management acknowledged that discretionary spending was impacted in Q1, particularly in live learning, but noted improvements in the last month of the quarter [32][33] Question: What is the next phase of the business transformation process? - Management indicated that the focus will shift towards increasing growth rates and enhancing go-to-market strategies [35][36] Question: Can you provide context on the government business and its performance? - Management noted softness in U.S. Federal discretionary spending but observed good activity in European public sectors [47][48] Question: What specific changes or improvements can we expect with the new CFO? - The new CFO emphasized the importance of integrating finance into all business decisions to support go-to-market strategies [52]