NASDAQ$UDMY

Udemy Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Udemy's Q3 2024 results were reported, demonstrating stronger-than-expected profitability through operational efficiency and surpassing $500 million in Udemy Business Annual Recurring Revenue.

Udemy's Q3 2024 results showed a 6% increase in total revenue to $195.4 million. The company surpassed $500 million in Udemy Business Annual Recurring Revenue and raised its full year 2024 adjusted EBITDA outlook due to disciplined operational efficiency. Adjusted EBITDA increased 41% year-over-year to $11.6 million.

  • Total revenue increased by 6% year-over-year to $195.4 million.
  • Udemy Business revenue increased by 16% year-over-year to $126.1 million.
  • Udemy Business Annual Recurring Revenue (ARR) increased by 14% year-over-year to $504.6 million.
  • The company spent approximately $51 million to buy back 6.3 million Udemy shares in Q3.

Headline financials

Total Revenue

$195M

Previous: $185M+5.8%
EPS

-$0.17

Previous: $0.05-440.0%
Udemy Business Customers

16.8K

No prior period
Consumer Monthly Average Buyers

1.3M

No prior period
UB Annual Recurring Revenue

$505M

No prior period
Consumer Paid Subscribers

156.0K

No prior period
Capital Expenditures

-$1.12M

Previous: -$435K-156.6%
Free Cash Flow

-$26.4M

Previous: -$17.2M-53.4%
Net Income

-$25.3M

Previous: -$16.8M-50.7%
Operating Income

-$29.5M

Previous: -$21.5M-37.0%
Gross Profit

$123M

Previous: $107M+14.5%
R&D Expense

$33M

Previous: $30.3M+8.8%
Stock-Based Comp

$23.2M

Previous: $23.5M-1.0%

Revenue & EPS history

Udemy · Revenue · Quarterly

$195M

Q3 2024+5.8%vs Q3 2023
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Udemy · $76.6M total across 1 segment · Q2 2023

  • Consumer
    $76.6M-2.4%

Forward guidance

Udemy provides revenue guidance for the fourth quarter of 2024 between $193 to $196 million and expects an adjusted EBITDA margin of approximately 6.0%. For the full year 2024, Udemy anticipates revenue between $780 to $783 million and an adjusted EBITDA margin of approximately 4.5%.

Tailwinds

  • Revenue guidance for Q4 2024 is set between $193 to $196 million.
  • The company anticipates an adjusted EBITDA margin of approximately 6.0% for Q4 2024.
  • Full year 2024 revenue is projected to be between $780 to $783 million.
  • The adjusted EBITDA margin for the full year 2024 is expected to be around 4.5%.
  • The revenue guidance range assumes historical changes in FX rates will have a negative 2 percentage point impact on fourth quarter year-over-year revenue growth.

Headwinds

  • Revenue growth is expected to be negatively impacted by changes in foreign exchange rates by 2 percentage points in Q4 2024.
  • Weighted average share count, basic, for the full year is expected to be 151 million, excluding potential share repurchase impacts.
  • Weighted average share count, diluted, for the full year is expected to be 156 million, excluding potential share repurchase impacts.
  • Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss).
  • The company's outlook excludes any impact from potential future repurchase activities under their share repurchase program.

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 2024

Historical avgQ3 2024

+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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