On November 2, 2023, Udemy Inc (UDMY, Financial), a company dedicated to transforming lives through learning, reported its financial results for the three- and nine-month periods ended September 30, 2023. The company saw a 17% YoY increase in total revenue, reaching $184.7 million. This exceeded the high end of the guidance range for the quarter by $4.7 million. The revenue growth includes a negative impact of 1 percentage point from changes in foreign exchange (FX) rates year-over-year.
Financial Performance Highlights
Udemy Business, the enterprise segment of the company, reported a 30% YoY revenue increase to $109.1 million. This includes the negative impact of 2 percentage points from changes in FX rates year-over-year. The Annual Recurring Revenue (ARR) for Udemy Business increased 26% YoY to $443.1 million.
The consumer segment revenue saw a slight increase of 1% YoY to $75.6 million, including the negative impact of 0.5 percentage points from changes in FX rates year-over-year. The company ended the quarter with $483.0 million in cash, cash equivalents, restricted cash, and marketable securities.
Key Operating Data Summary
For the three months ended September 30, 2023, Udemy reported a gross profit of $107.5 million, a 20% increase from the same period in 2022. The gross margin was 58%, a 200 basis points increase from the previous year. The net loss for the quarter was $16.8 million, a 64% decrease from the same period in 2022.
For the nine months ended September 30, 2023, the company reported a gross profit of $309.5 million, an 18% increase from the same period in 2022. The gross margin remained the same at 57%. The net loss for the period was $87.0 million, a 14% decrease from the same period in 2022.
Business and Operational Highlights
Udemy added new or expanded existing relationships with Udemy Business customers globally, including Assurant, Inc. (U.S.), Bosch Global Software Technologies (India), Compasso Tecnologia LTD (Brazil), Deutsche Telekom (Slovakia), DHL Express (Belgium), Elektrobit Automotive GmbH (Germany), Shell (UK), Sanofi (France), Sun Life Assurance Company (Canada), Schlumberger Limited (U.S.) and Vimeo, Inc. (U.S.). The company also surpassed 100,000 paid monthly and annual subscribers for Udemy’s consumer subscription, Personal Plan.
Future Outlook
For the fourth quarter and full year ending December 31, 2023, Udemy expects revenue to be between $184 - $187 million and $723 - $726 million respectively. The adjusted EBITDA Margin is expected to be between 0.0% - 1.0% for both the fourth quarter and the full year.
Explore the complete 8-K earnings release (here) from Udemy Inc for further details.
