Udemy slightly beats Q4 revenue estimates on subscription growth

Overview

• AI-powered skills platform's Q4 revenue slightly beat analyst expectations

• Adjusted EBITDA for Q4 beat consensus

• Company announced pending merger with Coursera, subject to approvals

Outlook

• Udemy will not provide financial guidance due to pending merger with Coursera

• Company highlights strategic focus on subscription revenue and AI-driven learning solutions

• Udemy notes increasing demand for AI content and enterprise reskilling needs

Result Drivers

• SUBSCRIPTION REVENUE GROWTH - Consolidated subscription revenue increased 7% year-over-year, now comprising 76% of total revenue, supporting the subscription-first strategy

• ENTERPRISE SEGMENT - Enterprise segment revenue increased 3% year-over-year, aided by a $12.8 million increase in Net New ARR

• CONSUMER SUBSCRIPTION INCREASE - Consumer subscription revenue rose 53% year-over-year, reflecting a strategic pivot towards recurring revenue

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "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 $8.00, about 66% above its February 4 closing price of $4.82

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwc5yWf2a

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