Udemy Inc’s Mixed Performance and Cautious Outlook Lead to Hold Rating

William Blair analyst Stephen Sheldon has maintained their neutral stance on UDMY stock, giving a Hold rating on April 16.

Stephen Sheldon’s rating is based on several factors that reflect both positive and cautious elements in Udemy Inc’s recent performance and future outlook. The company reported first-quarter results that surpassed expectations in terms of revenue and profit, with revenue slightly exceeding estimates and showing year-over-year growth. However, despite this positive performance, Udemy adjusted its 2025 revenue guidance downward, indicating potential challenges in maintaining top-line acceleration.
Additionally, while Udemy Business showed growth, the Consumer segment experienced a decline, albeit performing better than anticipated. The company’s updated guidance also suggests a conservative approach due to macroeconomic uncertainties, and there is a noted decline in Net Revenue Retention (NRR) for Udemy Business, particularly among large enterprise customers. These mixed signals, along with management’s cautious stance and potential growth investments under new leadership, contribute to Sheldon’s decision to maintain a Hold rating on the stock.

In another report released on April 16, Bank of America Securities also reiterated a Hold rating on the stock with a $8.00 price target.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UDMY in relation to earlier this year.