NASDAQ$UDMY

Udemy Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Udemy reported solid Q4 and full year 2023 results, exceeding expectations and showing growth in revenue and customers.

Udemy's Q4 2023 results showed a 15% increase in total revenue year-over-year, reaching $189.5 million. The Enterprise segment revenue grew by 27%, while the Consumer segment revenue remained flat. The company ended the quarter with $480.9 million in cash, cash equivalents, restricted cash, and marketable securities.

  • Total revenue increased 15% year-over-year to $189.5 million.
  • Enterprise segment revenue increased 27% year-over-year to $114.7 million.
  • Udemy Business Annual Recurring Revenue (ARR) increased 25% year-over-year to $466.0 million.
  • Consumer segment revenue growth was flat year-over-year at $74.9 million.

Headline financials

Total Revenue

$190M

Previous: $165M+14.6%
EPS (adj)

$0.02

Previous: -$0.16+112.5%
Udemy Business Customers

15.7K

No prior period
Consumer Monthly Average Buyers

1.37

No prior period
UB Annual Recurring Revenue

$466M

No prior period
Capital Expenditures

-$3.31M

Previous: $167K-2082.0%
Net Income

-$20.2M

Previous: -$52.2M+61.2%
Operating Income

-$25.7M

Previous: -$54.1M+52.6%
Gross Profit

$110M

Previous: $91.3M+20.3%
R&D Expense

$29.5M

No prior period
Stock-Based Comp

$23.1M

Previous: $28.3M-18.2%

Revenue & EPS history

Udemy · Revenue · Quarterly

$190M

Q4 2023+14.6%vs Q4 2022
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 first quarter of 2024 between $193 million and $196 million, and for the full year 2024 between $795 million and $810 million. Adjusted EBITDA margin is expected to be breakeven for Q1 2024 and 1.5%-2.0% for FY 2024.

Tailwinds

  • Revenue guidance for Q1 2024 is between $193 million and $196 million.
  • Revenue guidance for FY 2024 is between $795 million and $810 million.
  • Adjusted EBITDA margin is expected to be breakeven for Q1 2024.
  • Adjusted EBITDA margin is expected to be 1.5%-2.0% for FY 2024.
  • Share repurchase program underscores confidence in strategy.

Headwinds

  • Challenging operating environment creates some near-term headwinds.
  • Revenue growth includes a negative impact of 1 percentage point from changes in foreign exchange (FX) rates year-over-year.
  • Consumer segment revenue growth was flat year-over-year.
  • Revenue guidance assumes constant FX rates set at the start of the year.
  • Revenue guidance assumes an estimated negative impact of 3 percentage points for the full year 2024 due to historical changes in FX rates.

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 2023

Historical avgQ4 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

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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