Udemy Reports Third Quarter 2024 Results
Udemy (UDMY) reported Q3 2024 results with revenue increasing 6% year-over-year to $195.4 million. The Enterprise segment grew 16% to $126.1 million, while Consumer segment declined 8% to $69.3 million. The company achieved a significant milestone surpassing $500 million in Udemy Business Annual Recurring Revenue.
Notable improvements in profitability metrics include a Non-GAAP Net Income of $10.1 million (31% increase) and Adjusted EBITDA of $11.6 million (41% increase). Gross margin expanded by 500 basis points to 63%. The company repurchased 6.3 million shares for approximately $51 million during Q3 and raised its full-year 2024 outlook.
Udemy (UDMY) ha riportato i risultati del terzo trimestre 2024, con un incremento del fatturato del 6% rispetto all'anno precedente, raggiungendo 195,4 milioni di dollari. Il segmento Enterprise è cresciuto del 16% arrivando a 126,1 milioni di dollari, mentre il segmento Consumer è diminuito dell'8% a 69,3 milioni di dollari. L'azienda ha raggiunto un traguardo significativo superando 500 milioni di dollari di fatturato annuale ricorrente in Udemy Business.
Le notevoli migliorie negli indicatori di redditività includono un utile netto Non-GAAP di 10,1 milioni di dollari (aumento del 31%) e un EBITDA rettificato di 11,6 milioni di dollari (aumento del 41%). Il margine lordo è aumentato di 500 punti base, portandosi al 63%. Durante il terzo trimestre, l'azienda ha riacquistato 6,3 milioni di azioni per circa 51 milioni di dollari e ha rivisto al rialzo le stime per l'intero anno 2024.
Udemy (UDMY) reportó resultados del tercer trimestre de 2024, con un aumento de ingresos del 6% interanual, alcanzando 195,4 millones de dólares. El segmento Enterprise creció un 16% hasta 126,1 millones de dólares, mientras que el segmento Consumer disminuyó un 8% a 69,3 millones de dólares. La empresa alcanzó un hito significativo al superar 500 millones de dólares en ingresos anuales recurrentes de Udemy Business.
Las notables mejoras en los métricas de rentabilidad incluyen un ingreso neto Non-GAAP de 10,1 millones de dólares (incremento del 31%) y un EBITDA ajustado de 11,6 millones de dólares (incremento del 41%). El margen bruto se expandió en 500 puntos básicos, alcanzando el 63%. La compañía recompró 6,3 millones de acciones por aproximadamente 51 millones de dólares durante el tercer trimestre y elevó su pronóstico para el año completo 2024.
우데미 (UDMY)는 2024년 3분기 실적을 보고하였으며, 수익은 지난해 대비 6% 증가하여 1억 9540만 달러에 이르렀습니다. 기업 부문은 16% 성장하여 1억 2610만 달러에 도달했고, 소비자 부문은 8% 감소하여 6930만 달러를 기록했습니다. 이 회사는 우데미 비즈니스의 연간 반복 수익이 5억 달러를 초과하는 중요한 이정표를 달성했습니다.
수익성 지표에서의 주목할 만한 개선 사항으로는 비-GAAP 순이익이 1010만 달러로 (31% 증가) 증가하였고, 조정 EBITDA는 1160만 달러에 달하였으며 (41% 증가) 총 마진은 500 베이시스 포인트 증가하여 63%에 이르렀습니다. 이 회사는 3분기 동안 약 5100만 달러에 630만 주를 재구매하였으며, 2024년 전체 전망을 상향 조정했습니다.
Udemy (UDMY) a rapporté les résultats du troisième trimestre 2024, avec des revenus en hausse de 6 % par rapport à l'année précédente, atteignant 195,4 millions de dollars. Le segment Entreprise a connu une croissance de 16 % à 126,1 millions de dollars, tandis que le segment Consommateur a diminué de 8 % pour atteindre 69,3 millions de dollars. L'entreprise a franchi une étape importante en dépassant 500 millions de dollars de revenus annuels récurrents pour Udemy Business.
Les améliorations notables des indicateurs de rentabilité incluent un bénéfice net Non-GAAP de 10,1 millions de dollars (augmentation de 31 %) et un EBITDA ajusté de 11,6 millions de dollars (augmentation de 41 %). La marge brute a augmenté de 500 points de base, atteignant 63 %. Au cours du troisième trimestre, l'entreprise a racheté 6,3 millions d'actions pour environ 51 millions de dollars et a relevé ses prévisions pour l'ensemble de l'année 2024.
Udemy (UDMY) hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit einem Umsatzanstieg von 6% im Vergleich zum Vorjahr auf 195,4 Millionen Dollar. Das Enterprise-Segment wuchs um 16% auf 126,1 Millionen Dollar, während das Consumer-Segment um 8% auf 69,3 Millionen Dollar zurückging. Das Unternehmen erreichte einen bedeutenden Meilenstein, indem es 500 Millionen Dollar an wiederkehrenden Jahresumsätzen von Udemy Business übertraf.
Bemerkenswerte Verbesserungen der Rentabilitätskennzahlen umfassen ein Non-GAAP-Nettoeinkommen von 10,1 Millionen Dollar (31% Steigerung) und ein bereinigtes EBITDA von 11,6 Millionen Dollar (41% Steigerung). Die Bruttomarge erweiterte sich um 500 Basispunkte auf 63%. Das Unternehmen hat im dritten Quartal 6,3 Millionen Aktien für etwa 51 Millionen Dollar zurückgekauft und seine Prognose für das Gesamtjahr 2024 angehoben.
- Revenue grew 6% YoY to $195.4 million
- Enterprise segment revenue increased 16% YoY to $126.1 million
- Gross margin improved by 500 basis points to 63%
- Non-GAAP Net Income grew 31% to $10.1 million
- Adjusted EBITDA increased 41% to $11.6 million
- Udemy Business ARR reached $504.6 million, up 14% YoY
- Consumer segment revenue declined 8% YoY to $69.3 million
- Monthly Average Buyers decreased 7% to 1.31 million
- Net Loss widened by 51% to $25.3 million
- UB Net Dollar Retention Rate declined 700 basis points to 99%
- Large Customer Net Dollar Retention Rate dropped 1000 basis points to 104%
Insights
The Q3 results demonstrate significant operational improvements with several positive indicators.
Key positives include expanding gross margins by 500 basis points to
The
The enterprise learning sector shows robust demand, evidenced by notable client wins across diverse regions and industries. The expansion with major corporations like Marriott, Ericsson and Saudi Aramco indicates strong market penetration in key verticals. The strategic focus on AI capabilities through the Intelligent Skills Platform positions Udemy competitively in the evolving EdTech landscape.
The Mexico City hub expansion demonstrates commitment to geographic growth, particularly in emerging markets. However, the declining consumer segment and reduced retention rates suggest market saturation and increased competition in the B2C space. The Workday integration enhances enterprise appeal, potentially driving future growth in the higher-margin B2B segment.
Delivered stronger-than-expected profitability driven by disciplined approach to operational efficiency
Surpassed
Raises Full Year 2024 Outlook
SAN FRANCISCO, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Udemy (Nasdaq: UDMY), a leading online skills marketplace and learning platform, today reported results for the three-month period ended September 30, 2024. Udemy has provided a supplemental deck with earnings highlights, which is available for download on the “Quarterly Results” section of the Investor Relations website.
Third Quarter 2024 Financial Results and Key Operating Data Summary
(in millions, except customers, percentages, and basis points)
| Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | ||||||||||||||||||||||||
| 2024 | 2023 | YoY | 2024 | 2023 | YoY | ||||||||||||||||||||||
| Revenue | $ | 195.4 | $ | 184.7 | 6 | % | $ | 586.6 | $ | 539.4 | 9 | % | |||||||||||||||
| Gross Profit | $ | 123.1 | $ | 107.5 | 15 | % | $ | 364.7 | $ | 309.5 | 18 | % | |||||||||||||||
| Gross Margin | 63 | % | 58 | % | 500 | bps | 62 | % | 57 | % | 500 | bps | |||||||||||||||
| Non-GAAP Gross Profit | $ | 125.3 | $ | 110.0 | 14 | % | $ | 371.9 | $ | 316.8 | 17 | % | |||||||||||||||
| Non-GAAP Gross Margin | 64 | % | 60 | % | 400 | bps | 63 | % | 59 | % | 400 | bps | |||||||||||||||
| Net Loss | $ | (25.3 | ) | $ | (16.8 | ) | (51 | ) | % | $ | (75.4 | ) | $ | (87.0 | ) | 13 | % | ||||||||||
| Non-GAAP Net Income (Loss) | $ | 10.1 | $ | 7.7 | 31 | % | $ | 8.8 | $ | (1.9 | ) | 563 | % | ||||||||||||||
| Adjusted EBITDA | $ | 11.6 | $ | 8.2 | 41 | % | $ | 23.5 | $ | 3.8 | 518 | % | |||||||||||||||
| Adjusted EBITDA Margin | 6 | % | 4 | % | 200 | bps | 4 | % | 1 | % | 300 | bps | |||||||||||||||
| Enterprise Segment | |||||||||||||||||||||||||||
| Total Customers | 16,848 | 15,378 | 10 | % | |||||||||||||||||||||||
| UB Annual Recurring Revenue | $ | 504.6 | $ | 443.1 | 14 | % | |||||||||||||||||||||
| UB Net Dollar Retention Rate | 99 | % | 106 | % | (700 | ) | bps | ||||||||||||||||||||
| UB Large Customer Net Dollar Retention Rate | 104 | % | 114 | % | (1,000 | ) | bps | ||||||||||||||||||||
| Segment Revenue | $ | 126.1 | $ | 109.1 | 16 | % | $ | 364.3 | $ | 306.0 | 19 | % | |||||||||||||||
| Segment Gross Profit | $ | 92.8 | $ | 74.3 | 25 | % | $ | 264.7 | $ | 204.4 | 30 | % | |||||||||||||||
| Segment Gross Margin | 74 | % | 68 | % | 600 | bps | 73 | % | 67 | % | 600 | bps | |||||||||||||||
| Consumer Segment | |||||||||||||||||||||||||||
| Monthly Average Buyers | 1.31 | 1.41 | (7 | ) | % | 1.35 | 1.38 | (2 | ) | % | |||||||||||||||||
| Segment Revenue | $ | 69.3 | $ | 75.6 | (8 | ) | % | $ | 222.3 | $ | 233.4 | (5 | ) | % | |||||||||||||
| Segment Gross Profit | $ | 37.6 | $ | 40.3 | (7 | ) | % | $ | 122.3 | $ | 125.4 | (2 | ) | % | |||||||||||||
| Segment Gross Margin | 54 | % | 53 | % | 100 | bps | 55 | % | 54 | % | 100 | bps | |||||||||||||||
“Udemy delivered solid third quarter results with revenue and adjusted EBITDA margin above the high end of our guidance ranges, and we achieved a new milestone of over
“Longer-term, we remain focused on execution of our strategic initiatives, further optimizing our cost structure, and directing resources toward opportunities with the highest potential return. We believe these actions position Udemy to deliver high-quality, profitable growth and to lead the enterprise skills development category well into the future,” concluded Brown.
Third Quarter 2024 Financial Highlights
- Total revenue increased
6% year-over-year to$195.4 million . Revenue growth includes a negative impact of 2 percentage points from changes in foreign exchange (FX) rates year-over-year. - Enterprise segment, or Udemy Business, revenue of
$126.1 million increased16% year-over-year, including the negative impact of 2 percentage points from changes in FX rates year-over-year. - Udemy Business Annual Recurring Revenue (ARR) increased
14% year-over-year to$504.6 million . - Consumer segment revenue of
$69.3 million decreased8% year-over-year, including the negative impact of 3 percentage points from changes in FX rates. - Cash, cash equivalents, restricted cash, and marketable securities was
$358.3 million at the end of the quarter.
Business and Operational Highlights
- Added new, or expanded existing, relationships with Udemy Business customers globally, including ABB (Netherlands), Crédito Agricola (Portugal), Ericsson (Sweden), Infosys Limited (India), Marriott International (U.S.), Nationwide Building Society (UK), Primerica (U.S.), Saudi Aramco (Saudi Arabia), UnionDigital Bank (Philippines), Uniqlo Europe (UK), and West Japan Railway Company (Japan).
- Launched new AI-enabled capabilities within Udemy’s Intelligent Skills Platform, including AI Assistant, Skills Mapping and AI-powered learning paths that provide innovative, personalized learning experiences for organizations and individuals.
- Announced Udemy’s new regional hub in Mexico City, Mexico to enable scaling of operations and faster delivery of personalized, high-quality learning experiences to meet the evolving needs of organizations and professionals.
- Partnered with Workday to introduce a new integration within Workday Skills Cloud that enhances an organization’s ability to directly align learning with workforce development.
Share Repurchase Program
Udemy returned capital to shareholders through its
Financial Outlook
Udemy provides guidance based on current market conditions and expectations. Actual results may differ materially. Please refer to the comments below regarding forward-looking statements.
The following table reflects Udemy’s financial outlook for its fourth quarter and full year ending December 31, 2024.
| Three months ending December 31, 2024 | Year ending December 31, 2024 | |||
| Revenue | ||||
| Adjusted EBITDA Margin1 | Approximately | Approximately | ||
| Weighted Average Share Count, Basic2 | 148 million | 151 million | ||
| Weighted Average Share Count, Diluted2 | 149 million | 156 million | ||
| 1. Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. 2. Udemy’s outlook for weighted average share count, basic and diluted, excludes any impact from potential future repurchase activities under our share repurchase program. | ||||
The revenue guidance range above assumes historical changes in FX rates will have a negative 2 percentage point impact on fourth quarter year-over-year revenue growth and a negative 2 point impact on full year 2024 revenue growth. Udemy's revenue guidance assumes FX rates will remain unchanged from the end of the third quarter of 2024.
Webcast Information
Udemy will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET today, Tuesday, October 29, to discuss its third quarter 2024 financial results and outlook. A link to the live webcast and recorded replay of the conference call will be available on the “Quarterly Results” section of Udemy’s Investor Relations website at https://investors.udemy.com/. The live call may also be accessed via telephone at (833) 630-1963 domestically and (412) 317-5702 internationally. The archived replay of the webcast will be available for approximately one year.
Non-GAAP Financial Measures
To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures as defined below. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide useful information to investors and others in understanding and evaluating our operating results because our management team and board of directors use these non-GAAP financial measures for the purposes of assessing operating results and business planning. These non-GAAP financial measures also provide useful measures for period-to-period comparisons of our business by removing the effect of certain non-cash expenses and certain variable charges.
Adjusted EBITDA and Adjusted EBITDA Margin
We calculate Adjusted EBITDA as net loss determined in accordance with GAAP, adjusted to exclude i) interest income; ii) interest expense; iii) provision for income taxes; iv) depreciation and amortization; v) other expense, net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; vi) stock-based compensation expense; and vii) restructuring charges. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period. We have not reconciled our expectations for Adjusted EBITDA and Adjusted EBITDA Margin to net loss and net loss margin, respectively, the most directly comparable GAAP measures, because certain items are out of our control or cannot be reasonably predicted and a reconciliation for the guidance for Adjusted EBITDA and Adjusted EBITDA Margin is not available without unreasonable effort.
Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted
We define non-GAAP net income (loss) as net loss, adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, and restructuring charges.
We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted-average shares used to compute net loss per share, basic. We define non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted-average shares used to compute net loss per share, diluted, which adjusts for the potentially dilutive effects of our employee equity incentive plans.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period.
Udemy’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.
Key Business Metrics
Udemy Business customers
We count the total number of Udemy Business (“UB”) customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite the existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, conglomerate, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships or through our self-service platform.
Udemy Business Annual Recurring Revenue
We disclose our UB ARR as a measure of our Enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included.
Udemy Business Net Dollar Retention Rate and Udemy Business Large Customer Net Dollar Retention Rate
We disclose UB Net Dollar Retention Rate, or UB NDRR, as a measure of revenue growth for all UB customers within our Enterprise segment, including UB Large Customers, which we define as companies with at least 1,000 employees. We calculate UB NDRR as the total ARR at the end of a trailing twelve-month period divided by the total ARR at the beginning of a trailing twelve-month period for the cohort of all UB customers active at the beginning of the trailing twelve-month period. We calculate UB Large Customer NDRR as the total UB Large Customer ARR at the end of a trailing twelve-month period divided by the total Large Customer ARR at the beginning of a trailing twelve-month period for the cohort of UB customers with at least 1,000 employees active at the beginning of the trailing twelve-month period. Total ARR and Large Customer ARR at the end of a trailing twelve-month period are calculated as ARR and Large Customer ARR, respectively, at the beginning of a trailing twelve-month period that are then adjusted for upsells, downsells, and churns for the same cohort of customers during that period. Large Customer ARR represents the annualized value of contracts for UB customers with active seats and having at least 1,000 employees on the last day of a given period.
Monthly average buyers
A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at any point in that month, adjusting for duplicate buyers that may be present in both totals. We then calculate monthly average buyers by taking an average of the monthly buyer totals over a particular period, such as a fiscal year. Our monthly average buyer count is not intended as a measure of active engagement, as not all buyers are active at any given time or over any given period.
Segment revenue and segment gross profit
Segment revenue represents the revenue recognized from our two segments, Enterprise (or Udemy Business), and Consumer. Segment gross profit is defined as segment revenue less segment cost of revenue, which include content costs, hosting and platform costs, customer support services, and payment processing fees that are allocable to each segment. Segment gross profit excludes amortization of capitalized software, amortization of intangible assets, depreciation, and stock-based compensation allocated to cost of revenue as our chief operating decision maker does not include the information in his measurement of the performance of the operating segments.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Udemy’s expectations relating to future operating results and financial position, including the fourth quarter and full year 2024, and future periods; anticipated future expenses and investments; our business strategy and plans; the impact of our strategic initiatives and operational efficiency initiatives and our ability to successfully execute on these initiatives; market growth; and our market position and potential market opportunities. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.
The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our publicly available filings with the Securities and Exchange Commission. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.
About Udemy
Udemy (Nasdaq: UDMY) transforms lives through learning by ensuring everyone has access to the latest and most relevant skills. Through the Udemy Intelligent Skills Platform and a global community of diverse and knowledgeable instructors, millions of learners gain expertise in a wide range of technical and professional skills — from generative AI to leadership. The Udemy marketplace provides learners with thousands of up-to-date courses in dozens of languages, offering a variety of solutions to achieve their goals. Udemy Business empowers enterprises to offer on-demand learning for all employees, immersive learning for tech teams through Udemy Business Pro, and cohort learning for leaders through Udemy Business Leadership Academy. Udemy Business customers include Fender®, Glassdoor, On24, The World Bank, and Volkswagen. Udemy is headquartered in San Francisco with hubs in Austin and Denver, USA; Ankara and Istanbul, Türkiye; Dublin, Ireland; Melbourne, Australia; and Chennai, Gurugram, and Mumbai, India.
| Udemy, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 195,417 | $ | 184,722 | $ | 586,623 | $ | 539,392 | |||||||
| Cost of revenue (1)(2) | 72,362 | 77,264 | 221,888 | 229,903 | |||||||||||
| Gross profit | 123,055 | 107,458 | 364,735 | 309,489 | |||||||||||
| Operating expenses (1)(2) | |||||||||||||||
| Sales and marketing | 85,997 | 76,492 | 260,288 | 233,520 | |||||||||||
| Research and development | 32,976 | 30,307 | 96,607 | 90,829 | |||||||||||
| General and administrative | 22,266 | 22,155 | 74,299 | 71,112 | |||||||||||
| Restructuring charges | 11,275 | — | 11,275 | 10,263 | |||||||||||
| Total operating expenses | 152,514 | 128,954 | 442,469 | 405,724 | |||||||||||
| Loss from operations | (29,459 | ) | (21,496 | ) | (77,734 | ) | (96,235 | ) | |||||||
| Other income (expense), net | |||||||||||||||
| Interest income | 4,732 | 5,542 | 15,655 | 14,758 | |||||||||||
| Interest expense | 504 | (124 | ) | 424 | (464 | ) | |||||||||
| Other income (expense), net | (185 | ) | 122 | (11,077 | ) | (2,181 | ) | ||||||||
| Total other income, net | 5,051 | 5,540 | 5,002 | 12,113 | |||||||||||
| Net loss before taxes | (24,408 | ) | (15,956 | ) | (72,732 | ) | (84,122 | ) | |||||||
| Income tax provision | (863 | ) | (811 | ) | (2,692 | ) | (2,924 | ) | |||||||
| Net loss | $ | (25,271 | ) | $ | (16,767 | ) | $ | (75,424 | ) | $ | (87,046 | ) | |||
| Net loss per share | |||||||||||||||
| Basic and diluted | $ | (0.17 | ) | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.59 | ) | |||
| Weighted-average shares used in computing net loss per share | |||||||||||||||
| Basic and diluted | 149,179,826 | 151,307,963 | 152,867,160 | 148,392,636 | |||||||||||
| (1) Includes stock-based compensation expense as follows (in thousands): | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Cost of revenue | $ | 1,807 | $ | 1,788 | $ | 5,277 | $ | 5,130 | |||||
| Sales and marketing | 7,573 | 7,646 | 22,578 | 23,022 | |||||||||
| Research and development | 7,183 | 7,045 | 21,187 | 19,762 | |||||||||
| General and administrative | 6,839 | 7,005 | 21,382 | 23,806 | |||||||||
| Restructuring charges | (160 | ) | — | (160 | ) | 1,208 | |||||||
| Total stock-based compensation expense | $ | 23,242 | $ | 23,484 | $ | 70,264 | $ | 72,928 | |||||
| (2) Includes amortization of intangible assets as follows (in thousands): | |||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue | $ | 430 | $ | 725 | $ | 1,880 | $ | 2,175 | |||
| Sales and marketing | 228 | 296 | 688 | 979 | |||||||
| Total amortization of intangible assets | $ | 658 | $ | 1,021 | $ | 2,568 | $ | 3,154 | |||
| Udemy, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 204,563 | $ | 305,564 | |||
| Restricted cash, current | 100 | 3,329 | |||||
| Marketable securities | 152,546 | 171,372 | |||||
| Accounts receivable, net | 81,164 | 92,555 | |||||
| Prepaid expenses and other current assets | 24,778 | 20,924 | |||||
| Deferred contract costs, current | 44,861 | 38,584 | |||||
| Total current assets | 508,012 | 632,328 | |||||
| Property and equipment, net | 3,320 | 4,439 | |||||
| Capitalized software, net | 33,275 | 31,388 | |||||
| Operating lease right-of-use assets | 11,833 | 5,691 | |||||
| Restricted cash, non-current | 1,115 | 659 | |||||
| Deferred contract costs, non-current | 32,276 | 35,790 | |||||
| Strategic investments | — | 10,311 | |||||
| Intangible assets, net | 2,656 | 5,223 | |||||
| Goodwill | 12,646 | 12,646 | |||||
| Other assets | 3,772 | 2,721 | |||||
| Total assets | $ | 608,905 | $ | 741,196 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,273 | $ | 2,506 | |||
| Accrued expenses and other current liabilities | 25,459 | 27,778 | |||||
| Content costs payable | 36,299 | 40,277 | |||||
| Accrued compensation and benefits | 32,179 | 24,332 | |||||
| Operating lease liabilities, current | 4,689 | 5,825 | |||||
| Deferred revenue, current | 299,955 | 279,414 | |||||
| Total current liabilities | 402,854 | 380,132 | |||||
| Operating lease liabilities, non-current | 7,424 | 1,124 | |||||
| Deferred revenue, non-current | 2,364 | 3,000 | |||||
| Other liabilities, non-current | 6 | 48 | |||||
| Total liabilities | 412,648 | 384,304 | |||||
| Stockholders' equity: | |||||||
| Common stock | 1 | 2 | |||||
| Additional paid-in capital | 991,176 | 1,076,508 | |||||
| Accumulated other comprehensive income | 202 | 80 | |||||
| Accumulated deficit | (795,122 | ) | (719,698 | ) | |||
| Total stockholders’ equity | 196,257 | 356,892 | |||||
| Total liabilities and stockholders' equity | $ | 608,905 | $ | 741,196 | |||
| Udemy, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Nine Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (75,424 | ) | $ | (87,046 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 19,515 | 18,069 | |||||
| Amortization of deferred contract costs | 43,863 | 34,482 | |||||
| Stock-based compensation | 70,264 | 72,928 | |||||
| Allowance for credit losses | 1,026 | 1,309 | |||||
| Accretion of marketable securities | (6,651 | ) | (5,323 | ) | |||
| Non-cash operating lease expense | 3,641 | 4,468 | |||||
| Unrealized loss on strategic investments | 10,311 | 1,793 | |||||
| Other | 1,319 | 931 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 10,364 | 20,363 | |||||
| Prepaid expenses and other assets | (5,508 | ) | (3,628 | ) | |||
| Deferred contract costs | (46,626 | ) | (45,205 | ) | |||
| Accounts payable, accrued expenses and other liabilities | 5,962 | (7,102 | ) | ||||
| Content costs payable | (3,978 | ) | 505 | ||||
| Operating lease liabilities | (4,523 | ) | (5,168 | ) | |||
| Deferred revenue | 19,906 | 3,887 | |||||
| Net cash provided by operating activities | 43,461 | 5,263 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of marketable securities | (239,783 | ) | (225,536 | ) | |||
| Proceeds from maturities of marketable securities | 265,350 | 231,300 | |||||
| Purchases of property and equipment | (1,116 | ) | (435 | ) | |||
| Capitalized software costs | (10,247 | ) | (9,321 | ) | |||
| Net cash provided by (used in) investing activities | 14,204 | (3,992 | ) | ||||
| Cash flows from financing activities: | |||||||
| Net proceeds from exercise of stock options | 921 | 8,277 | |||||
| Proceeds from share purchases under employee stock purchase plan | 4,533 | 4,757 | |||||
| Taxes paid related to net share settlement of equity awards | (25,363 | ) | — | ||||
| Repurchases of common stock | (141,591 | ) | — | ||||
| Net cash provided by (used in) financing activities | (161,500 | ) | 13,034 | ||||
| Effect of foreign exchange rates on cash flows | 61 | (116 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (103,774 | ) | 14,189 | ||||
| Cash, cash equivalents and restricted cash—Beginning of period | 309,552 | 317,314 | |||||
| Cash, cash equivalents and restricted cash—End of period | $ | 205,778 | $ | 331,503 | |||
| Udemy, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages, share and per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross profit | $ | 123,055 | $ | 107,458 | $ | 364,735 | $ | 309,489 | |||||||
| Stock-based compensation expense | 1,807 | 1,788 | 5,277 | 5,130 | |||||||||||
| Intangible asset amortization | 430 | 725 | 1,880 | 2,175 | |||||||||||
| Non-GAAP gross profit | $ | 125,292 | $ | 109,971 | $ | 371,892 | $ | 316,794 | |||||||
| Gross margin (1) | 63 | % | 58 | % | 62 | % | 57 | % | |||||||
| Non-GAAP gross margin (2) | 64 | % | 60 | % | 63 | % | 59 | % | |||||||
| (1) We calculate gross margin as gross profit divided by revenue for the same period. (2) We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period. | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (25,271 | ) | $ | (16,767 | ) | $ | (75,424 | ) | $ | (87,046 | ) | |||
| Stock-based compensation expense | 23,402 | 23,484 | 70,424 | 71,720 | |||||||||||
| Intangible asset amortization | 658 | 1,021 | 2,568 | 3,154 | |||||||||||
| Restructuring charges | 11,275 | — | 11,275 | 10,263 | |||||||||||
| Non-GAAP net income (loss) | $ | 10,064 | $ | 7,738 | $ | 8,843 | $ | (1,909 | ) | ||||||
| Weighted-average shares used in computing net income (loss) per share, basic | 149,179,826 | 151,307,963 | 152,867,160 | 148,392,636 | |||||||||||
| Effect of dilutive securities (3) | 1,453,697 | 6,095,804 | 3,562,339 | — | |||||||||||
| Weighted-average shares used in computing non-GAAP net income (loss) per share, diluted | 150,633,523 | 157,403,767 | 156,429,499 | 148,392,636 | |||||||||||
| Net loss per share, basic and diluted | $ | (0.17 | ) | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.59 | ) | |||
| Non-GAAP net income (loss) per share, basic | $ | 0.07 | $ | 0.05 | $ | 0.06 | $ | (0.01 | ) | ||||||
| Non-GAAP net income (loss) per share, diluted | $ | 0.07 | $ | 0.05 | $ | 0.06 | $ | (0.01 | ) | ||||||
| (3) For periods presented with a non-GAAP net loss, we have excluded the effect of potentially dilutive securities as their inclusion would be anti-dilutive. | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (25,271 | ) | $ | (16,767 | ) | $ | (75,424 | ) | $ | (87,046 | ) | |||
| Adjusted to exclude the following: | |||||||||||||||
| Interest income | (4,732 | ) | (5,542 | ) | (15,655 | ) | (14,758 | ) | |||||||
| Interest expense | (504 | ) | 124 | (424 | ) | 464 | |||||||||
| Income tax provision | 863 | 811 | 2,692 | 2,924 | |||||||||||
| Depreciation and amortization | 6,340 | 6,183 | 19,515 | 18,069 | |||||||||||
| Stock-based compensation expense | 23,402 | 23,484 | 70,424 | 71,720 | |||||||||||
| Other income (expense), net | 185 | (122 | ) | 11,077 | 2,181 | ||||||||||
| Restructuring charges | 11,275 | — | 11,275 | 10,263 | |||||||||||
| Adjusted EBITDA | $ | 11,558 | $ | 8,171 | $ | 23,480 | $ | 3,817 | |||||||
| Net loss margin (4) | (13 | )% | (9 | )% | (13 | )% | (16 | )% | |||||||
| Adjusted EBITDA margin (5) | 6 | % | 4 | % | 4 | % | 1 | % | |||||||
| (4) We calculate net loss margin as net loss divided by revenue for the same period. (5) We calculate adjusted EBITDA margin as adjusted EBITDA divided by revenue for the same period. | |||||||||||||||
Investor Contact
Dennis Walsh
Vice President, Investor Relations
dennis.walsh@udemy.com
Media Contact
Ellen D. Kiehl
Director, Corporate Communications
press@udemy.com
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