NASDAQ$UDMY

Udemy Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Udemy reported strong fourth quarter and full year 2024 results, driven by 18% full year Enterprise revenue growth, record Adjusted EBITDA, and completion of a $150 million share repurchase program.

Udemy concluded 2024 with robust performance, exceeding revenue expectations and achieving record Adjusted EBITDA. The company's strategic pivot towards serving large enterprise customers is on track, despite anticipating 2025 to be a transition year. Key highlights include significant growth in Enterprise segment revenue and a substantial increase in Adjusted EBITDA margin.

  • Total revenue increased 5% year-over-year to $199.9 million in Q4 2024.
  • Enterprise segment revenue grew 13% year-over-year to $130.1 million in Q4 2024.
  • Adjusted EBITDA reached $19.5 million in Q4 2024, a 390% increase year-over-year.
  • The company completed a $150 million share repurchase program during the quarter.

Headline financials

Total Revenue

$200M

Previous: $190M+5.5%
EPS (adj)

$0.10

Previous: $0.02+400.0%
Udemy Business Customers

17.1K

Previous: 15.7K+8.7%
Consumer Monthly Average Buyers

1.32

Previous: 1.37-3.6%
UB Annual Recurring Revenue

$517K

Previous: $466M-99.9%
Consumer Paid Subscribers

170.0K

No prior period
Net Income

-$9.86M

Previous: -$20.2M+51.3%
Operating Income

-$11.6M

Previous: -$25.7M+54.8%
Gross Profit

$127M

Previous: $110M+15.8%

Revenue & EPS history

Udemy · Revenue · Quarterly

$200M

Q4 2024+5.5%vs Q4 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 projects first quarter 2025 revenue between $195 million and $199 million, and full year 2025 revenue between $787 million and $803 million. Adjusted EBITDA for Q1 2025 is expected to be $17 million to $19 million, and for the full year 2025, $75 million to $85 million.

Tailwinds

  • Anticipated continued growth in revenue for both Q1 and full year 2025.
  • Projected increase in Adjusted EBITDA for both Q1 and full year 2025, indicating improved profitability.
  • Strategic initiatives are on track to position the company for long-term success.
  • Focus on upmarket enterprise customers is expected to drive future growth.
  • Strong foundation in place to accelerate product innovation and deliver long-term value.

Headwinds

  • Revenue guidance assumes a negative 2 percentage point impact from foreign exchange rates for Q1 2025.
  • Revenue guidance assumes a negative 2 percentage point impact from foreign exchange rates for full year 2025.
  • 2025 is anticipated to be a 'transition year' as the company executes its plan.
  • The company is unable to provide a quantitative reconciliation of forecasted Adjusted EBITDA to GAAP net income (loss) due to unpredictable items.
  • Potential risks and uncertainties could cause actual results to differ materially from predictions.

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 2024

Historical avgQ4 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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