NASDAQ$UDMY
Udemy Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Udemy Q3 2023 earnings exceeded expectations with strong revenue growth and positive adjusted EBITDA.
Udemy's Q3 2023 earnings showcased strong performance with revenue exceeding guidance and a 17% year-over-year increase. The company achieved its second consecutive quarter of positive adjusted EBITDA and free cash flow. Udemy Business revenue grew by 30% year-over-year, driven by new customer additions and expansions.
- Total revenue increased by 17% year-over-year to $184.7 million, surpassing the high end of guidance by $4.7 million.
- Udemy Business revenue grew by 30% year-over-year to $109.1 million, with ARR increasing by 26% to $443.1 million.
- Consumer segment revenue increased by 1% year-over-year to $75.6 million.
- Udemy ended the quarter with $483.0 million in cash, cash equivalents, restricted cash, and marketable securities.
Headline financials
Revenue & EPS history
Udemy · Revenue · Quarterly
$185M
Revenue by segment
Udemy · $76.6M total across 1 segment · Q2 2023
- Consumer$76.6M-2.4%100.0%
Forward guidance
Udemy provides revenue guidance for Q4 2023 to be between $184 million and $187 million and expects an adjusted EBITDA margin between 0.0% and 1.0%. For the full year 2023, Udemy expects revenue between $723 million and $726 million, with an adjusted EBITDA margin between 0.5% and 1.0%.
Tailwinds
- Revenue is expected to be between $184 million and $187 million for Q4 2023.
- Adjusted EBITDA margin is projected to be between 0.0% and 1.0% for Q4 2023.
- Full year 2023 revenue is anticipated to be between $723 million and $726 million.
- Full year 2023 adjusted EBITDA margin is expected to be between 0.5% and 1.0%.
- The company is focusing on delivering value for all stakeholders, while making high-growth investments and managing cost structure efficiently.
Headwinds
- Revenue guidance range assumes historical changes in foreign currency exchange rates will negatively impact total revenue year-over-year growth by approximately 2 percentage points in the fourth quarter and 3 percentage points for the full year 2023.
- Udemy's revenue guidance also assumes FX rates will remain constant for the remainder of the year.
- Plans to adjust the content payment structure for its Udemy Business and consumer subscription offerings, reducing the instructor share from 25% today to 15% by 2026, with the first adjustment to 20% effective as of January 1, 2024.
- The adjustment is expected to improve future gross margin, which will allow the Company to make greater investments in brand initiatives and product innovation to accelerate growth in the business.
- Actual results may differ materially.
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 2023
+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
| Quarter | Report date | Reaction (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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