Balanced Outlook on Udemy Inc: Strong Earnings Amid Macroeconomic Challenges, Hold Rating Maintained

Nafeesa Gupta, an analyst from Bank of America Securities, reiterated the Hold rating on Udemy Inc (UDMY – Research Report). The associated price target remains the same with $8.00.

Nafeesa Gupta’s rating is based on a combination of factors that reflect both positive and cautious elements in Udemy Inc’s financial outlook. The company reported a strong first-quarter performance, surpassing expectations in revenue and EBITDA, which was supported by effective cost-saving measures and operational efficiencies. However, the consumer segment experienced a decline, and while subscription revenue is growing, the overall revenue guidance for FY25 was reduced due to uncertainties in the macroeconomic environment, particularly in North America and EMEA.
Nafeesa Gupta remains cautious about Udemy’s revenue trends, especially given the macroeconomic challenges and signs of reduced consumer spending in higher average selling price markets. Despite these concerns, Udemy’s focus on expense management has led to better-than-expected earnings performance. The price objective remains at $8, reflecting a balanced view of the company’s potential and the existing market conditions, leading to a Hold rating.