NASDAQ$UDMY

Udemy Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Udemy's Q3 2022 results were driven by solid execution and healthy customer demand.

Udemy's total revenue increased by 22% year-over-year to $158.4 million, with Udemy Business revenue growing by 67% and accounting for over 50% of the total revenue mix. The company's Udemy Business Annual Recurring Revenue (ARR) increased 69% year-over-year to $350 million.

  • Total revenue increased 22% year-over-year to $158.4 million.
  • Udemy Business revenue increased 67% year-over-year to $83.9 million, accounting for over 50% of total revenue.
  • Udemy Business Annual Recurring Revenue (ARR) increased 69% year-over-year to $350 million.
  • Consumer segment revenue decreased 6% year-over-year to $74.6 million, while monthly average buyers increased 4% year-over-year to 1.32 million.

Headline financials

Total Revenue

$158M

Previous: $130M+22.3%
EPS (adj)

-$0.15

Previous: -$0.04-275.0%
Capital Expenditures

-$1.4M

Previous: -$4.55M+69.3%
Free Cash Flow

-$48.1M

Previous: -$13.8M-248.1%
Net Income

-$46.7M

Previous: -$9.26M-404.1%
Operating Income

-$43.3M

Previous: -$9.55M-352.9%
Gross Profit

$89.4M

Previous: $71.6M+24.8%
Cash & Equivalents

$428M

Previous: $130M+228.7%
Total Assets

$730M

Previous: $290M+151.9%
Stock-Based Comp

$25M

Previous: $7.22M+245.8%

Revenue & EPS history

Udemy · Revenue · Quarterly

$158M

Q3 2022+22.3%vs Q3 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Udemy · $159M total across 2 segments · Q3 2022

  • Udemy Business
    $83.9M+66.5%
  • Consumer
    $74.6M-5.8%

Forward guidance

Udemy expects FX to continue to be a headwind in the fourth quarter of 2022. Assuming foreign currency exchange rates remain constant, FX is expected to impact total revenue year-over-year growth by approximately six percentage points in the fourth quarter of 2022.

Headwinds

  • FX is expected to impact total revenue year-over-year growth by approximately six percentage points in the fourth quarter of 2022.
  • Udemy anticipates experiencing some seasonality during the fourth quarter due to increased marketing investments around Black Friday.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+2.0%

Avg return

Earnings day

+1.9%

Avg return

5 days after

-0.6%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+40.7%

Q3 2023

Best reaction

-22.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%
Q4 2025+0.0%-2.3%+3.8%
Q3 2025-11.6%-16.5%-20.4%
Q2 2025+9.2%+4.6%-1.9%
Q1 2025-6.6%-5.7%+6.6%
Q4 2024+28.0%+29.2%+4.9%
Q3 2024-1.1%-2.7%-2.5%
Q2 2024-17.7%-22.2%-7.3%
Q1 2024+0.7%+0.2%-12.1%
Q4 2023-22.1%-20.9%-21.4%
Q3 2023+40.7%+40.9%+67.2%
Q2 2023-4.5%-4.1%-9.6%
Q1 2023+2.9%+1.5%+21.4%
Q4 2022-0.7%-11.8%-23.9%
Q3 2022-3.9%+0.8%-2.7%
Q2 2021+23.0%+23.2%+21.7%
Q2 2022+23.0%+23.2%+21.7%
Q1 2021+5.1%+18.8%+39.5%
Q1 2022+5.1%+18.8%+39.5%
Q4 2019+1.0%+3.2%-15.0%
Q4 2021-13.0%-14.2%-30.8%
Q3 2020+0.2%-7.0%-30.2%
Q4 2020+0.2%-7.0%-30.2%
Q3 2021-6.5%-5.8%-32.5%
Q2 2020
Q1 2020

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