What were the key takeaways from Udemy's earnings call?

What is Udemy's gross profit margin?

What guidance did Udemy's management provide for the next earnings period?

What is the market's earnings forecast for Udemy next quarter?

Did Udemy beat or miss consensus estimates last quarter?

What is Udemy's latest dividend and current dividend yield?

What were the key takeaways from Udemy’s earnings call?

What factors drove the changes in Udemy's revenue and profit?

- **Subscription Surge**: Consumer subscription revenue up 43% YoY, driving 74% of total revenue.\n- **AI-Driven Growth**: Role Play technology and virtual coaching enhance enterprise training, with 10,000+ use cases.\n- **Financial Strength**: Q3 EBITDA of $24M (12% margin), up 600bps YoY, with $92M-$94M full-year target.\n- **Strategic Shifts**: Pivot to subscriptions reduces transactional revenue short-term, but LTV:CAC of 3x vs. 1x for transactions signals long-term value.\n- **Partnership Payoff**: Indeed partnerships boost subscription conversions 16x, while Pearson certifications quadruple learner revenue.\n- **Enterprise Resilience**: Udemy Business ARR at $527M, with large customer NDR stabilizing at 97% despite COVID-era contract pressures.\n

**【CEO Summary Section】**
- **Subscription Growth**: Consolidated subscription revenue grew 8% YoY, accounting for 74% of total revenue. Consumer subscription revenue increased 43% YoY, surpassing full-year paid subscriber targets.\n- **AI Integration**: Udemy’s platform combines AI with human instructors to deliver skill acquisition, mastery, validation, and amplification. Role Play technology enables custom training for enterprises, with 10,000+ use cases.\n- **Strategic Partnerships**: Collaborations with Pearson for certification journeys and Indeed for career-focused subscriptions (16x higher conversion rate) drive learner outcomes.\n- **Enterprise Momentum**: Udemy Business ARR reached $527M, with $7M net new ARR in Q3. Large customer NDR stabilized at 97%, signaling resilience despite COVID-era contract pressures.\n- **Consumer Transformation**: Shifting from transactional to subscription-first model, with LTV:CAC of 3x for subscriptions vs. 1x for transactions. Career-focused offerings like certification journeys (e.g., CompTIA) boost average revenue per learner by 4x.\n- **AI-Driven Innovation**: Launching virtual instructor-led training and live coaching to enhance learner engagement and retention.\n\n**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue of $196M exceeded guidance, with GAAP net income of $2M (vs. -$25M YoY). Adjusted EBITDA of $24M (12% margin) up 600bps YoY.\n- **Gross Margin**: Improved to 67% (from 64% YoY), driven by higher-margin subscription revenue.\n- **Cost Efficiency**: Operating expenses at 57% of revenue, down 400bps YoY.\n- **Cash Flow**: Free cash flow of $12M (6% of revenue), with $372M in cash.\n- **2025 Outlook**: Subscription revenue growth expected in high-single digits, with 2026 targeting double-digit growth. Full-year 2025 EBITDA guidance raised to $92M-$94M.\n- **Investments**: Accelerating pivot to subscriptions, reducing transactional sales, and scaling AI-driven solutions.\n\n**【Q&A Highlights】**
- **L&D Budget Dynamics**: Enterprises consolidating vendors, with Udemy winning 3x seat growth in Europe. Economic buyers outside L&D (e.g., sales, IT) drive expansion deals.\n- **Consumer Headwinds**: Short-term revenue decline expected as subscriptions replace transactions, with inflection in 2026.\n- **Instructor Ecosystem**: Revenue share for instructors reduced to 15% in 2026, but new monetization paths (e.g., coaching, cohorts) offset risks.\n- **AI Platform Integration**: Exploring partnerships with large AI platforms for distribution, balancing monetization with strategic fit.\n- **Pipeline Strength**: Udemy Business pipeline remains robust, with deal sizes growing in tech, manufacturing, and financial services.\n

Udemy, Inc. (UDMY) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: Q2 revenue $200M (+3% YoY), driven by Udemy Business ARR growth to $520M. Consumer segment down 4% YoY due to FX.
- **AI-Driven Growth**: AI readiness packages booked 40% of workforce at a global medtech company. Roleplay adoption at 70% employee participation rate.
- **Financial Milestones**: First GAAP net profit since IPO ($6M), adjusted EBITDA $28M (+1,100bps YoY). Free cash flow $39M (20% of revenue).
- **Subscription Surge**: Subscription GMV +40% YoY in June, targeting 250,000+ consumer subscribers by year-end. Programmatic ads to unlock new revenue.
- **Pipeline Momentum**: $100K+ ARR deals in Q2 highest since 2022. Consumer subscription GMV tracking +50% YoY in July.
- **AI Product Leadership**: Over 100 courses on Vibe coding, 4,500+ Gen AI courses with 11M paid enrollments. MCP server beta shows strong enterprise demand.


**【CEO Summary Section】**
- **Revenue Performance**: Q2 revenue of $200 million (+3% YoY), with Udemy Business ARR reaching $520 million (+6% YoY). Consumer segment revenue declined 4% YoY due to FX headwinds.
- **Strategic Priorities**: 
  1. **Subscription Expansion**: Subscription GMV grew 40% YoY in June, targeting 250,000+ consumer subscribers by year-end. Programmatic advertising pilots to monetize free users.
  2. **Partnerships**: New deals with Indeed, UKG, and BCN Global to expand enterprise reach. Reselling certifications and embedding learning in workflows.
  3. **Global Activation**: Double-digit ARR growth in Japan, driven by localized campaigns. Brazil, India, and Japan targeted for high-opportunity markets.
  4. **AI Differentiation**: Launching AI-powered roleplay (7,000+ unique scenarios) and in-course AI assistants. Udemy Business AI readiness packages booked 40% of workforce at a global medtech company.
- **Product Innovation**: Over 100 courses on Vibe coding, 4,500+ Gen AI courses with 11M paid enrollments. MCP server beta for enterprise customers shows strong demand.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - GAAP net income of $6M (first since IPO), adjusted EBITDA of $28M (+1,100bps YoY). Free cash flow of $39M (20% of revenue).
  - Gross margin improved 300bps to 67%, operating expenses at 56% of revenue (-800bps YoY).
- **Pipeline Momentum**: 
  - $100K+ ARR deals in Q2 highest since 2022, with North America, APAC, and LatAm pipeline up YoY.
  - New bookings from self-service subscriptions grew +35% YoY.
  - Consumer subscription GMV up 40% YoY in June, tracking 50% YoY in July.
- **Outlook**: 
  - Q3 revenue $190-195M (midpoint +3% YoY), 2025 full year $784-794M (+1% YoY). Adjusted EBITDA raised to $84-89M (+600bps YoY).
  - Net dollar retention to bottom out in Q3, stabilize in Q4, and accelerate in 2026.

**【Q&A Key Highlights】**
- **COVID Contracts Impact**: 2022 multiyear deals challenging to renew, but 2023+ contracts feature better implementation and value metrics. Outsourcing SMB renewals to BPO.
- **AI Demand**: 25% of pipeline tied to AI readiness packages. Roleplay adoption by enterprises (e.g., 70% employee participation at Devoteam) driving stickiness.
- **Consumer Strategy**: Shifting focus to subscription (20%+ GMV by year-end), reducing discounts, and leveraging partnerships like Indeed for career transition learners.
- **Ad Revenue Potential**: 39M monthly visitors on udemy.com to monetize via programmatic ads, with Q3 pilots testing ad formats and targeting.
- **Macro Trends**: L&D budget uncertainty offset by reskilling demand. AI fluency programs booked 40% of workforce at a global medtech company.


Udemy, Inc. (UDMY) Q2 2025 Earnings Call Transcript

- **Q1 Strong Performance**: Exceeded high-end guidance with $200M+ revenue and 11% EBITDA margin, driven by enterprise growth and margin expansion.
- **AI-First Strategy**: 10M+ AI course enrollments, new role-play simulations, and Google/Anthropic integrations position Udemy as AI reskilling leader.
- **Subscription Growth**: Consumer subscriptions up 40% YoY, now 13% of segment revenue vs. 8% last year.
- **Enterprise Traction**: 40+ large deals, 96% net retention, and <10% seat penetration in existing customers.
- **Financial Discipline**: $50M annualized cost savings offset macro headwinds, with 2025 EBITDA guidance up 30% YoY.
- **Key Risk**: Consumer sentiment weakness and FX headwinds expected to weigh on 2025 revenue growth.


**【CEO Summary Section】**
- Udemy exceeded Q1 2025 guidance for both revenue and adjusted EBITDA, with ARR from large customers growing 9% year-over-year.
- Hugo Sarrazin emphasized a strategic shift to an AI-powered reskilling platform, highlighting 4 key initiatives: consumer subscription growth (40% YoY), partnership ecosystem expansion, global market activation, and strategic growth opportunities.
- AI-driven innovations like Career Accelerators and role-play simulations are central to the platform, with 10 million AI-related course enrollments to date.
- Enterprise traction includes multi-million dollar deals with global firms, leveraging Udemy's skill mapping and AI-driven learning paths for measurable business outcomes.

**【CFO Financial Commentary】**
- Q1 2025 revenue reached $200 million for the first time, with Udemy Business contributing 64% of total revenue (up 400bps YoY) and gross margin improving 300bps to 65%.
- Adjusted EBITDA was $21 million (11% of revenue), up nearly 800bps YoY, driven by cost savings and revenue mix shift to higher-margin Business segment.
- Full-year 2025 guidance: $772-794 million revenue (-0.5% YoY midpoint), with adjusted EBITDA $77-87 million (10% of revenue), reflecting cautious macro outlook but strong margin expansion.

**【Q&A Key Themes】**
- **Consumer Segment Softness**: Subscription growth (40% YoY) offset by transactional model headwinds, with 13% of Consumer revenue from subscriptions vs. 8% last year.
- **AI as Growth Driver**: 1,700+ AI courses on Udemy Business, 10 million AI-related enrollments, and partnerships with Google and Anthropic for cutting-edge AI protocols.
- **Enterprise Expansion**: 40+ new large deals in Q1, 96% net dollar retention, and <10% seat penetration in existing customers.
- **Operational Resilience**: $50 million annualized cost savings from restructuring, enabling disciplined investment in AI and customer success.

**【Customer Success Focus】**
- Appointment of Chief Customer Experience Officer Neeracha Taychakhoonavudh to drive expansion within existing 17,000+ enterprise customers.
- AI-powered tools like skill mapping and learning path personalization are key to improving customer retention and upsell opportunities.

**【Risks & Challenges】**
- Consumer sentiment weakness impacting transactional revenue, with FX headwinds expected to reduce Q2 revenue growth by 1.5%.
- Slower-than-expected enterprise deal cycles due to macro uncertainty, though large deals remain resilient.
- Transitioning from content provider to AI platform requires ongoing investment in R&D and marketing.


Udemy (UDMY)-30 Apr 25-2025 Q1 Earnings call transcript

- **8% Revenue Growth**: 2024 ended with $787M revenue, 18% growth in enterprise segment
- **Margin Expansion**: 5% EBITDA margin (vs -50% in 2022), 64% gross margin in Q4
- **Large Enterprise Focus**: 12% ARR growth, 103% NDRR, 50+ deals >$100K ARR
- **AI-Driven Innovation**: 10x increase in AI course consumption, real-time assessment creation via AI
- **2025 Outlook**: $75-85M EBITDA, 10% margin; 2026 targets $130-150M EBITDA
- **Shareholder Returns**: $150M buyback completed; disciplined capital allocation


**【CEO Opening Remarks】**
- Full-year 2024 revenue grew 8% YoY to $787M, driven by 18% growth in Udemy Business segment. Adjusted EBITDA of $43M (5% margin) marked a $93M improvement from 2022's loss.
- Strategic pivot to large enterprises yielded 12% ARR growth from this segment, with 50+ deals >$100K ARR in Q4. Large enterprise NDRR of 103% outperformed total base (98%).
- 2025 priorities: 
  1. Resource allocation to high-ROI large enterprise customers
  2. Deepening engagement with existing large enterprises
  3. Strategic partnerships for global expansion
  4. Consumer marketplace revitalization
  5. Operational efficiency initiatives

**【CFO Financial Highlights】**
- Q4 2024 revenue $199M (5% YoY growth), with Udemy Business contributing 65% of total revenue. Gross margin improved 500bps to 64% due to instructor revenue share reduction.
- 2025 guidance: 
  - Revenue $787-803M (flat to +2% YoY)
  - Adjusted EBITDA $75-85M (10% margin at midpoint)
  - Free cash flow generation to continue
- 2026 targets: $130-150M adjusted EBITDA and 20% margin by 2027

**【CTO Product Innovation】**
- Launching 13 career academies in 2025, starting with 6 in Q2. These combine technical and soft skills via AI-powered role-playing simulations and interactive learning experiences.
- Marketplace model enables 8M+ assessment questions and 15K coding exercises created by instructors, surpassing internal development capabilities.
- Generative AI adoption: 10x increase in AI-related course consumption in 2024, with DeepSeek courses launched within days of model release.

**【Q&A Key Takeaways】**
1. **Consumer Marketplace Strategy**: 
   - Career academies will monetize through subscriptions and enterprise sales
   - Focus on career advancement rather than individual courses
   - Early indicators of improved engagement and retention

2. **AI Integration**: 
   - Role-playing simulations for soft skills (e.g., leadership, negotiation) will scale via instructor-created content
   - AI-powered skill validation assessments to expand across all subjects

3. **Capital Allocation**: 
   - $150M share buyback completed in 2024
   - 2025 focus: growth investments, M&A, and shareholder returns

4. **Large Enterprise Momentum**: 
   - Q4 win rate improvement and largest deal volume in 12 months
   - NDRR stabilization signals customer satisfaction
   - Upsell opportunities in AI-driven learning paths


UDMY

UDMY fundamentals

Earnings Call

You can ask Aime