Udemy, Inc. (UDMY) Q2 2024 Earnings Call Transcript

Daily EarningsThursday, Aug 1, 2024 4:23 pm ET

1min read

In Udemy's second quarter 2024 earnings call, CEO Greg Brown and CFO Sarah Blanchard discussed the company's performance, strategic initiatives, and outlook for the future. Here are the key takeaways from the call.

Financial Performance

Udemy reported a revenue of $194 million for the second quarter, a 9% increase year-over-year, with Udemy business revenue reaching $121 million. The company also achieved a significant milestone of over 1 billion course enrollments since inception. Despite the macroeconomic challenges, Udemy's adjusted EBITDA margin significantly exceeded expectations.

Strategic Initiatives

Udemy is focusing on establishing itself as a skills platform of choice for organizations and individuals. The company has been successful in expanding its global enterprise customer base and plans to double the number of enterprise customers it serves. Udemy is also investing in strategic partnerships, particularly with hyperscalers like AWS and large developer platforms, to strengthen its distribution capabilities and provide more routes to market.

Market Opportunity and Challenges

Udemy is uniquely positioned to address the skills gap challenge and help individuals meet their career goals in the rapidly evolving job market. However, the company faces challenges in a challenging macroeconomic environment, particularly in the consumer segment. The company has been pulling back on marketing spend and is focusing on strategic initiatives to improve consumer vibrancy and retention.

Future Outlook

Looking ahead, Udemy is focusing on accelerating operational efficiency initiatives and expects to deliver adjusted EBITDA of $130 million to $150 million in 2026. The company is also exploring new AI-powered capabilities, including skills mapping and the AI learning assistant, to support further expansion within its customer base.

Investor and Shareholder Interactions

During the Q&A session, investors and analysts asked about the impact of the strategic shift on existing SMB customers, the company's growth prospects in the APAC region, and the pathway to accelerated margin expansion. Udemy's leadership provided detailed responses, highlighting the company's focus on the large enterprise customer segment and its confidence in the long-term opportunity for growth.

Overall, Udemy's second quarter 2024 earnings call highlighted the company's strong financial performance and strategic focus on establishing itself as a leading skills platform in the rapidly evolving job market. Despite the challenges, Udemy's leadership remains optimistic about the company's future prospects and its ability to capitalize on the massive long-term opportunity in the enterprise segment.

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