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Udemy Inc (UDMY)
NASDAQ:UDMY
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Udemy Inc
(NASDAQ:UDMY)
61Neutral
Positive Factors
Earnings
Udemy reported solid Q1 results, with both revenue and profitability coming in ahead of expectations.
Strategic Initiatives
Management is focusing on enhancing AI-powered capabilities, which includes launching new products like Career Accelerators and AI-driven role-plays, indicating a strategic investment in technology.
Negative Factors
Consumer Segment
The revenue outlook for 2025 was reduced due to increased uncertainty related to geopolitical developments affecting the consumer segment, particularly in North America and EMEA.
Revenue Outlook
Udemy lowered its FY25 revenue outlook as it takes a more conservative approach given macro uncertainty.
Udemy Inc (UDMY) vs. S&P 500 (SPY)
Market Cap
$1.04B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth5.43%
EPS Growth14.22%
CountryUS
Employees1,246
SectorTechnology
Sector Strength77
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding148,731,310
10 Day Avg. Volume915,321
30 Day Avg. Volume1,170,242
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)4.79
Price to Sales (P/S)0.00
P/FCF Ratio32.92
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit1.65
Enterprise Value/Ebitda-3.57
Forecast
1Y Price Target
$9.71Price Target Upside39.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Udemy Inc Business Overview & Revenue Model
Company DescriptionUdemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise customers. Its platform provides 49 million learners with access to approximately 180,000 courses through direct-to-consumer or Udemy Business offerings in approximately 75 languages. The company's courses offer learning objectives, such as reskilling or upskilling in technology and business, and soft skills, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
How the Company Makes MoneyUdemy makes money primarily through the sale of courses on its platform. The company's revenue model is based on a marketplace approach where instructors create and publish courses, and Udemy takes a percentage of the sales generated from these courses. Instructors can set their own prices, and Udemy offers promotional and marketing tools to help increase sales. Additionally, Udemy for Business is a significant revenue stream, offering a subscription-based service to organizations seeking to provide their employees with access to a curated selection of courses. This corporate offering helps companies upskill their workforce and is a growing part of Udemy's business. Strategic partnerships with educational institutions and corporations also contribute to Udemy's earnings by expanding its reach and enhancing its course offerings.
Udemy Inc Financial Statement Overview
Summary
Udemy displays strong revenue growth and improving cash flows, indicating a positive trend towards financial stability. However, continued net losses and a decreasing equity ratio pose concerns. The company needs to focus on achieving profitability while maintaining its growth trajectory to enhance overall financial health.Income Statement
Udemy's revenue has demonstrated consistent growth, rising from $429.9 million in 2020 to $790 million in TTM 2025. Despite this growth, the company remains unprofitable, with persistent negative EBIT and net income, although losses have been narrowing. Gross profit margin has been stable, around 63%, indicating efficient cost management in providing educational services.75
Positive
Balance Sheet
The balance sheet highlights a strong cash position with substantial cash reserves exceeding debt, resulting in negative net debt. The debt-to-equity ratio is low, suggesting limited leverage. However, the equity ratio has been declining, from 53% in 2021 to 33% in TTM 2025, which could indicate increasing liabilities relative to equity.68
Positive
Cash Flow
Cash flows have improved, with operating cash flow turning positive in recent periods. Free cash flow has also increased, showing a positive trajectory. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to reported losses. However, the reliance on financing activities in earlier periods highlights a need for sustained operational improvements.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 790.02M | 786.57M | 728.94M | 629.10M | 518.16M | 429.90M | Gross Profit |
| 500.59M | 491.94M | 419.34M | 353.78M | 282.13M | 220.65M | EBIT |
| -71.09M | -89.33M | -121.89M | -151.19M | -75.41M | -73.38M | EBITDA |
| -53.48M | -89.33M | -78.53M | -129.97M | -63.53M | -62.27M | Net Income Common Stockholders |
| -68.72M | -85.29M | -107.29M | -153.88M | -77.53M | -77.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 434.02M | 354.44M | 476.94M | 465.37M | 533.87M | 175.03M | Total Assets |
| 708.45M | 605.63M | 741.20M | 737.57M | 739.85M | 282.10M | Total Debt |
| 4.53M | 10.82M | 6.95M | 13.55M | 0.00 | 0.00 | Net Debt |
| -255.61M | -179.78M | -298.62M | -300.14M | -533.87M | -175.03M | Total Liabilities |
| 411.96M | 408.23M | 384.30M | 398.26M | 347.65M | 542.78M | Stockholders Equity |
| 296.49M | 197.39M | 356.89M | 339.31M | 392.20M | -260.69M |
| Cash Flow | Free Cash Flow | ||||
| 30.59M | 50.74M | -15.07M | -76.68M | -25.31M | -4.91M | Operating Cash Flow |
| 44.28M | 53.04M | -2.00M | -60.96M | -7.10M | 9.62M | Investing Cash Flow |
| -2.57M | 1.08M | -24.97M | -173.23M | -52.69M | -14.54M | Financing Cash Flow |
| -111.19M | -171.75M | 19.20M | 14.76M | 418.63M | 131.09M |
Udemy Inc Technical Analysis
Neutral
6.98
Price Trends
7.23
Negative
7.86
Negative
7.90
Negative
Market Momentum
>-0.01
Negative
51.49
Neutral
75.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDMY, the sentiment is Neutral. The current price of 6.98 is above the 20-day moving average (MA) of 6.78, below the 50-day MA of 7.23, and below the 200-day MA of 7.90, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UDMY.
Udemy Inc Risk Analysis
Udemy Inc disclosed 57 risk factors in its most recent earnings report. Udemy Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Udemy Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.89B | 33.56 | 21.81% | ― | 14.69% | 188.00% | |
73 Outperform | $1.41B | ― | -10.84% | ― | 7.26% | 39.62% | |
70 Outperform | $530.01M | 29.17 | 8.18% | ― | 4.86% | ― | |
61 Neutral | $1.04B | ― | -27.17% | ― | 5.43% | 14.22% | |
61 Neutral | $940.25M | ― | -36.29% | ― | 58.34% | -602.43% | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% | |
60 Neutral | $1.11B | 54.33 | 25.15% | ― | -2.04% | ― |
* Technology Sector Average
Performance Comparison
UDMY
Udemy Inc
6.98
-2.82
-28.78%
APEI
American Public Education
28.78
11.09
62.69%
UTI
Universal Technical Institute
35.39
21.04
146.62%
GOTU
Gaotu Techedu
3.81
-3.30
-46.41%
DAO
Youdao
9.12
5.38
143.85%
COUR
Coursera
8.69
0.45
5.46%
Udemy Inc Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.60%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Udemy reported strong financial performance in Q1 2025, with notable achievements in revenue growth, consumer subscriptions, and AI innovations. However, the company faces challenges in the consumer segment and geopolitical uncertainties, leading to a conservative outlook for the second half of the year.Q1-2025 Updates
Positive Updates
Exceeded Revenue and Adjusted EBITDA Guidance
Udemy surpassed the high end of its guidance for both revenue and adjusted EBITDA in Q1 2025, demonstrating strong financial performance.
Consumer Subscription Revenue Growth
Consumer subscription revenue rose nearly 40% year-over-year, representing 13% of the consumer segment's total revenue.
Udemy Business Annual Recurring Revenue (ARR)
Udemy Business ARR reached $519 million, up 8% from the previous year, and ARR from large customers increased by 9%.
High Margin and Cost Efficiency
Udemy Business segment achieved a gross margin of 75%, up 300 basis points from the year prior, driven by reduced content and customer success costs.
Strategic AI Developments
Udemy is focusing on AI innovation, including AI-powered capabilities that reduce program creation time by 80% and launching AI-assisted role play on its platform.
Negative Updates
Decline in Consumer Segment Revenue
Consumer segment revenue was down 8% year-over-year, impacted by a negative three percentage point from FX.
Geopolitical and Macroeconomic Uncertainty
Increased geopolitical developments and mixed economic signals in North America and EMEA contributed to a cautious spending environment.
Prudent Outlook for Second Half 2025
Due to external uncertainties, Udemy provided a conservative outlook for the second half of 2025, expecting a slight 50 basis point year-over-year decline in full-year revenue.
Company Guidance
During Udemy's First Quarter 2025 Conference Call, the company reported surpassing $200 million in quarterly revenue for the first time and exceeding the high end of guidance for both revenue and adjusted EBITDA. The revenue for Udemy Business reached $128 million, marking a 9% year-over-year increase, and the Annual Recurring Revenue (ARR) hit $519 million, up 8% from the previous year. The company also saw a 40% year-over-year increase in consumer subscription revenue. The gross margin for Udemy Business improved by 300 basis points to 75%, contributing to a total company gross margin of 65%, which is an improvement of 300 basis points from Q1 2024. Despite macroeconomic uncertainties, Udemy raised its full-year adjusted EBITDA expectations to between $77 and $87 million, highlighting a commitment to operational efficiency and strategic cost management.Udemy Inc Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Udemy Inc Appoints Hugo Sarrazin as New CEO
Positive
Mar 12, 2025
On March 11, 2025, Udemy Inc. announced the appointment of Hugo Sarrazin as the new President and Chief Executive Officer, effective March 12, 2025, succeeding Greg Brown. Sarrazin, with extensive experience in SaaS and AI, is expected to lead Udemy through its next growth phase, leveraging his expertise in strategy and innovation. The company reaffirmed its financial outlook provided earlier in February 2025, signaling stability and confidence in its strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.