Udemy Q2 revenue rises 3%, reports profit of $6.3 mln

Overview

• Udemy Q2 revenue rises 3% yr/yr, beating analysts' expectations

• Adjusted EBITDA for Q2 beats consensus, but adjusted EPS misses expectations

• Co achieves GAAP profitability with net income of $6.3 mln

Outlook

• Udemy forecasts Q3 revenue between $190 mln and $195 mln

• Company expects full-year revenue between $784 mln and $794 mln

• Udemy anticipates Q3 adjusted EBITDA between $18 mln and $20 mln

• Company sees full-year adjusted EBITDA between $84 mln and $89 mln

Result Drivers

• ENTERPRISE GROWTH - Enterprise segment revenue increased 7% yr/yr, despite FX rate impact, driven by new and expanded customer relationships

• CONSUMER DECLINE - Consumer segment revenue decreased 4% yr/yr, impacted by FX rate changes and sluggish monthly average buyers

• AI INITIATIVES - Introduction of AI Packages and Role Play feature aimed at enhancing skills development and driving future growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Udemy Inc is $11.00, about 35.2% above its July 29 closing price of $7.13

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBwfb872a