Udacity Drives 120% Enterprise and Government Growth in Q3, Secures $75 Million to Continue Momentum

Rhea-AI Summary

Udacity reported a significant rise in Q3 enterprise and government bookings, increasing 120% year-over-year, with total bookings up 80%. The company achieved profitability and secured a $75 million debt facility from Hercules Capital (NYSE: HTGC). The growth is attributed to heightened demand for technology skills from various sectors including aerospace and defense. Notably, ARR surged 260% in the first half of 2020. Partnerships with industry giants like Microsoft and AT&T further bolster Udacity's position in delivering vital skills training for the future workforce.

Positive

• Q3 enterprise and government bookings increased 120% year-over-year.
• Total bookings rose by 80% year-over-year.
• ARR increased by 260% in H1 2020.
• Udacity reached profitability.
• Secured a $75 million debt facility from Hercules Capital.

Negative

• None.

MOUNTAIN VIEW, Calif., Nov. 3, 2020 /PRNewswire/ -- Udacity, which prepares employees and students for careers of the future, today announced its Q3 enterprise and government bookings rose by 120% year-over-year, total bookings increased 80% year-over-year, and ARR increased 260% in H1 2020.  In addition, the company has reached profitability and, to continue building on this growth, Udacity has signed a $75 million debt facility, with Hercules Capital (NYSE: HTGC) serving as the underwriter.

Udacity's market growth is driven by increasing interest from businesses and governments for talent with the most in-demand and emerging technology skills. Udacity's clients now include five of the world's top seven aerospace companies, three of the Big Four professional services firms, the world's leading pharmaceutical company, Egypt's Information Technology Industry Development Agency, and three of the four branches of the United States Department of Defense.

Udacity has also continued to partner with industry leaders to offer the same high-level skills training to individuals. Most recently, Microsoft and Udacity launched a Machine Learning Engineer for Microsoft Azure Nanodegree program. Udacity also partnered with AT&T to provide 1,000 Nanodegree licenses at a combined value of over $1 million to members of underserved communities.

"Our clients clearly understand that investing in current talent, versus hiring from the outside, has proven to be a far more effective way to accelerate their digital transformation strategy," said Gabe Dalporto, CEO of Udacity. "This new financing will help us continue to scale and provide global workers with the skills they need to future-proof their careers."

"Given Udacity's growth, focus on sustainable business practices, and expanding reach across multiple industries, we are excited to provide this investment. We look forward to working with the company to help them sustain their impressive global growth, and continued innovation in upskilling and reskilling," said Steve Kuo, Senior Managing Director and Technology Group Head at Hercules Capital.

For more information on Udacity's industry-leading Nanodegrees and programs, please visit: udacity.com.

About Udacity

Udacity is a global, online training platform powering digital transformation and accelerated time-to-market initiatives for Fortune 500 and Global 2000 enterprises. Udacity programs provide industry-created practitioner skills through a series of "Nanodegree" programs consisting of online courses and real-world projects in artificial intelligence, machine learning, data science, autonomous systems, cloud computing, cybersecurity, programming, digital marketing, and product management, among other disciplines. Udacity collaborates with expert instructors and over 200 global industry partners including AT&T, Google, Facebook, Mercedes-Benz, and NVIDIA to power technical education. Headquartered in Mountain View, Calif., the private company has operations in the United Kingdom, Egypt, Germany, India, and the United Arab Emirates. Udacity has raised $238 million in funding to date from investors including Bertelsmann, Andreessen Horowitz, Charles River Ventures, Drive Capital and Hercules Capital. For more information, please visit www.udacity.com.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $10.2 billion to over 500 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@htgc.com, or call 650.289.3060.

Media Contact
Andrea Heuer for Udacity
udacity@consortpartners.com

View original content:http://www.prnewswire.com/news-releases/udacity-drives-120-enterprise-and-government-growth-in-q3-secures-75-million-to-continue-momentum-301165867.html

SOURCE Udacity

FAQ

What were Udacity's Q3 2020 enterprise and government bookings growth?

Udacity's Q3 2020 enterprise and government bookings increased by 120% year-over-year.

How much did Udacity's total bookings increase in Q3 2020?

Total bookings for Udacity rose by 80% year-over-year in Q3 2020.

What is the significance of the $75 million debt facility for Udacity?

The $75 million debt facility secured by Udacity from Hercules Capital will support its continued growth and service expansion.

What was the annual recurring revenue (ARR) increase for Udacity in H1 2020?

Udacity's ARR increased by 260% in the first half of 2020.

What sectors are driving Udacity's growth?

Udacity's growth is driven by increasing demand from sectors such as aerospace, professional services, pharmaceuticals, and defense.