NASDAQ$UDMY

Udemy Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Udemy reported its Q4 2022 earnings, showing revenue growth and strategic actions for profitability.

Udemy's Q4 2022 saw a 22% year-over-year increase in total revenue, reaching $165.3 million. Udemy Business revenue grew by 57% to $90.6 million, while Consumer segment revenue decreased by 4% to $74.7 million. The company is focusing on balancing growth and margin expansion, aiming for adjusted EBITDA profitability in the second half of 2023.

  • Total revenue increased by 22% year-over-year to $165.3 million.
  • Udemy Business revenue grew by 57% year-over-year to $90.6 million.
  • Consumer segment revenue decreased by 4% year-over-year to $74.7 million.
  • Udemy Business Annual Recurring Revenue increased 55% year-over-year to $371.7 million.

Headline financials

Total Revenue

$165M

Previous: $138M+19.8%
EPS (adj)

-$0.16

Previous: -$0.25+36.0%
Capital Expenditures

$167K

Previous: $781K-78.6%
Free Cash Flow

-$30.9M

Previous: $1.54M-2108.6%
Net Income

-$52.2M

Previous: -$38.9M-34.1%
Operating Income

-$54.1M

Previous: -$38.4M-40.7%
Gross Profit

$91.3M

Previous: $73.8M+23.8%
Cash & Equivalents

$314M

Previous: $534M-41.2%
Total Assets

$738M

Previous: $740M-0.3%
Stock-Based Comp

$28.3M

Previous: $11M+157.4%

Revenue & EPS history

Udemy · Revenue · Quarterly

$165M

Q4 2022+19.8%vs Q4 2021
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 expects revenue between $168 million and $172 million for the first quarter of 2023 and between $700 million and $730 million for the full year 2023. Adjusted EBITDA margin is expected to be between -10% and -8% for Q1 2023, and between -4% and -2% for the full year 2023.

Tailwinds

  • Revenue guidance between $168 million and $172 million for Q1 2023.
  • Revenue guidance between $700 million and $730 million for FY 2023.
  • Focus on achieving adjusted EBITDA profitability in the second half of 2023.
  • Strategic actions to streamline operations and cost structure.
  • Anticipated annualized non-GAAP savings of approximately $30 to $32 million from workforce reduction.

Headwinds

  • Adjusted EBITDA margin expected to be between -10% and -8% for Q1 2023.
  • Adjusted EBITDA margin expected to be between -4% and -2% for FY 2023.
  • Anticipated one-time charge of $8 to $9 million in Q1 2023 due to workforce reduction.
  • Macroeconomic conditions impacting business operations.
  • Foreign currency exchange rates expected to negatively impact total revenue year-over-year growth by approximately 6 percentage points in Q1 2023 and 3 percentage points for FY 2023.

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 Q4 2022

Historical avgQ4 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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