Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $923.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: 7.91%
• EPS Growth: 22.07%
• Country: US
• Employees: 1,246
• Sector: Technology
• Sector Strength: 46
• Industry: Education & Training Services
• EPS (TTM): -0.56
• Shares Outstanding: 148,485,100
• 10 Day Avg. Volume: 1,162,214
• 30 Day Avg. Volume: 1,306,787
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.60
• Price to Cash Flow (P/CF): 32.80
• P/FCF Ratio: 32.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.13
• Price Target Upside: 52.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Udemy Inc's overall stock score reflects its positive revenue growth and improving cash flow management. However, ongoing profitability issues and mixed technical indicators weigh on its attractiveness. The recent leadership change is a positive development, potentially enhancing strategic direction and innovation.

Positive Factors

Leadership and Strategy

A fresh perspective in the CEO role, combined with the recent return of co-founder Eren Bali to oversee product & engineering, has Udemy poised to execute on this new strategic vision for the company.

Strategic Focus

Management's strategy includes increasing focus on large enterprise customers and more strategic partnerships.

Negative Factors

Consumer Spending

Slowing web and app user data trends indicate ongoing softness in consumer discretionary spend, with global app user trends for Udemy falling 14% year-over-year.

Macroeconomic Conditions

There is potential risk to growth in 2Q and the fiscal year due to tough macroeconomic conditions and weak enterprise budgets.

Udemy Inc Business Overview & Revenue Model

Company Description

Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise customers. Its platform provides 49 million learners with access to approximately 180,000 courses through direct-to-consumer or Udemy Business offerings in approximately 75 languages. The company's courses offer learning objectives, such as reskilling or upskilling in technology and business, and soft skills, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes Money

Udemy makes money primarily through the sale of courses on its platform. The company's revenue model is based on a marketplace approach where instructors create and publish courses, and Udemy takes a percentage of the sales generated from these courses. Instructors can set their own prices, and Udemy offers promotional and marketing tools to help increase sales. Additionally, Udemy for Business is a significant revenue stream, offering a subscription-based service to organizations seeking to provide their employees with access to a curated selection of courses. This corporate offering helps companies upskill their workforce and is a growing part of Udemy's business. Strategic partnerships with educational institutions and corporations also contribute to Udemy's earnings by expanding its reach and enhancing its course offerings.

Udemy Inc Financial Statement Overview

Summary

Udemy Inc is experiencing consistent revenue growth with improving cash flow management and operational efficiency. Despite low leverage, the company faces challenges with persistent net losses and the need to enhance profitability.

Income Statement

Udemy Inc has shown consistent revenue growth over the years, with a 7.9% increase in 2024. However, the company continues to incur losses, reflected by its negative net profit margin of -10.8% in 2024. Despite a significant improvement in EBIT margin to -11.4% and EBITDA margin remaining negative, these margins indicate challenges in achieving profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.05, suggesting low leverage. However, the return on equity remains negative due to persistent net losses. The equity ratio is relatively stable at 32.6%, indicating a balanced asset financing structure but also highlighting the need to improve profitability to enhance shareholder value.

Cash Flow

Udemy's free cash flow turned positive in 2024, a substantial improvement from prior years. The free cash flow to net income ratio is positive at -0.6, indicating better cash management. The operating cash flow to net income ratio is 0.62, suggesting that operational activities are beginning to cover losses, signaling a positive trend in cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
786.57M	728.94M	629.10M	518.16M	429.90M
	Gross Profit
491.94M	419.34M	353.78M	282.13M	220.65M
	EBIT
-89.33M	-121.89M	-151.19M	-75.41M	-73.38M
	EBITDA
-89.33M	-78.53M	-129.97M	-63.53M	-62.27M
	Net Income Common Stockholders
-85.29M	-107.29M	-153.88M	-77.53M	-77.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
354.44M	476.94M	465.37M	533.87M	175.03M
	Total Assets
605.63M	741.20M	737.57M	739.85M	282.10M
	Total Debt
10.82M	6.95M	13.55M	0.00	0.00
	Net Debt
-179.78M	-298.62M	-300.14M	-533.87M	-175.03M
	Total Liabilities
408.23M	384.30M	398.26M	347.65M	542.78M
	Stockholders Equity
197.39M	356.89M	339.31M	392.20M	-260.69M
Cash Flow		Free Cash Flow
50.74M	-15.07M	-76.68M	-25.31M	-4.91M
	Operating Cash Flow
53.04M	-2.00M	-60.96M	-7.10M	9.62M
	Investing Cash Flow
1.08M	-24.97M	-173.23M	-52.69M	-14.54M
	Financing Cash Flow
-171.75M	19.20M	14.76M	418.63M	131.09M

Udemy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UDMY, the sentiment is Negative. The current price of 6.64 is below the 20-day moving average (MA) of 6.83, below the 50-day MA of 8.15, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UDMY.

Udemy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTI	74 Outperform	$1.47B	28.74	21.41%	―	14.70%	275.89%
COUR	69 Neutral	$1.19B	―	-13.11%	―	9.27%	34.66%
APEI	68 Neutral	$429.81M	43.82	5.41%	―	4.00%	―
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
UDMY	57 Neutral	$923.58M	―	-30.77%	―	7.91%	22.07%
DAO	54 Neutral	$961.51M	86.71	25.15%	―	3.01%	―
GOTU	54 Neutral	$684.16M	―	-41.45%	―	51.50%	-70812.50%

Udemy Inc Corporate Events

Udemy Inc Appoints Hugo Sarrazin as New CEO

On March 11, 2025, Udemy Inc. announced the appointment of Hugo Sarrazin as the new President and Chief Executive Officer, effective March 12, 2025, succeeding Greg Brown. Sarrazin, with extensive experience in SaaS and AI, is expected to lead Udemy through its next growth phase, leveraging his expertise in strategy and innovation. The company reaffirmed its financial outlook provided earlier in February 2025, signaling stability and confidence in its strategic direction.