Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 908.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: 5.43%
• EPS Growth: 14.22%
• Country: US
• Employees: 1,246
• Sector: Technology
• Sector Strength: 82
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 148,731,310
• 10 Day Avg. Volume: 1,017,684
• 30 Day Avg. Volume: 908,764
• PEG Ratio: -0.10
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.38
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: -5.11
• 1Y Price Target: $9.63
• Price Target Upside: 31.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $8.00 ▲(8.99%Upside)

Udemy's stock score is driven by strong earnings call performance and positive corporate developments, indicating potential for future growth. However, ongoing unprofitability and valuation concerns temper the outlook. The stock shows mixed technical signals, suggesting a cautious approach.

Positive Factors

Financial Performance

Udemy reported solid Q1 results, with both revenue and profitability coming in ahead of expectations.

Strategic Partnerships

The company is in the process of expanding Udemy access across its entire organization, which could lead to a significant multi-year deal.

Technological Advancements

Management is focusing on enhancing AI-powered capabilities, which includes launching new products like Career Accelerators and AI-driven role-plays, indicating a strategic investment in technology.

Negative Factors

Competitive Pressure

Competition from platforms like LinkedIn Learning has closed the gap with Udemy, offering cheaper proposals.

Consumer Segment Challenges

Most of the revenue outlook reduction is directed towards the consumer segment due to an increased level of uncertainty related to recent geopolitical developments, particularly in NA and EMEA.

Revenue Outlook

Udemy lowered its FY25 revenue outlook as it takes a more conservative approach given macro uncertainty.

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 course sales on its platform, where it charges students a fee to access individual courses. The company operates on a revenue-sharing model with instructors, taking a percentage of each course sale. Additionally, Udemy offers a subscription service called Udemy Business, which is designed for organizations and institutions to provide their employees or members with unlimited access to a curated selection of courses for a recurring subscription fee. This B2B offering represents a significant revenue stream for the company. Udemy also engages in various promotional activities and partnerships with educational institutions and enterprises to expand its reach and course offerings, further contributing to its revenue growth.

Udemy Inc Financial Statement Overview

Summary

Udemy has shown consistent revenue growth and improving cash flows, albeit remaining unprofitable with narrowing losses. The stable gross profit margin and strong cash position are positive, but the declining equity ratio and continued net losses are concerns.

Income Statement

Udemy's revenue has demonstrated consistent growth, rising from $429.9 million in 2020 to $790 million in TTM 2025. Despite this growth, the company remains unprofitable, with persistent negative EBIT and net income, although losses have been narrowing. Gross profit margin has been stable, around 63%, indicating efficient cost management in providing educational services.

Balance Sheet

The balance sheet highlights a strong cash position with substantial cash reserves exceeding debt, resulting in negative net debt. The debt-to-equity ratio is low, suggesting limited leverage. However, the equity ratio has been declining, from 53% in 2021 to 33% in TTM 2025, which could indicate increasing liabilities relative to equity.

Cash Flow

Cash flows have improved, with operating cash flow turning positive in recent periods. Free cash flow has also increased, showing a positive trajectory. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to reported losses. However, the reliance on financing activities in earlier periods highlights a need for sustained operational improvements.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
790.02M	786.57M	728.94M	629.10M	518.16M	429.90M
	Gross Profit
500.59M	491.94M	419.34M	353.78M	282.13M	220.65M
	EBIT
-71.09M	-89.33M	-121.89M	-151.19M	-75.41M	-73.38M
	EBITDA
-53.48M	-89.33M	-78.53M	-129.97M	-63.53M	-62.27M
	Net Income Common Stockholders
-68.72M	-85.29M	-107.29M	-153.88M	-77.53M	-77.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
357.01M	354.44M	476.94M	465.37M	533.87M	175.03M
	Total Assets
638.99M	605.63M	741.20M	737.57M	739.85M	282.10M
	Total Debt
9.87M	10.82M	6.95M	13.55M	0.00	0.00
	Net Debt
-179.75M	-179.78M	-298.62M	-300.14M	-533.87M	-175.03M
	Total Liabilities
429.63M	408.23M	384.30M	398.26M	347.65M	542.78M
	Stockholders Equity
209.36M	197.39M	356.89M	339.31M	392.20M	-260.69M
Cash Flow		Free Cash Flow
30.59M	50.74M	-15.07M	-76.68M	-25.31M	-4.91M
	Operating Cash Flow
44.28M	53.04M	-2.00M	-60.96M	-7.10M	9.62M
	Investing Cash Flow
-2.57M	1.08M	-24.97M	-173.23M	-52.69M	-14.54M
	Financing Cash Flow
-111.19M	-171.75M	19.20M	14.76M	418.63M	131.09M

Udemy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.34 is above the 20-day moving average (MA) of 7.28, above the 50-day MA of 6.87, and below the 200-day MA of 7.89, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 18.21 is Positive, 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	78 Outperform	$1.78B	31.83	21.81%	―	14.69%	188.00%
COUR	73 Outperform	$1.39B	―	-10.84%	―	7.26%	39.62%
UDMY	71 Outperform	$1.09B	―	-27.17%	―	5.43%	14.22%
APEI	66 Neutral	$469.75M	27.09	8.18%	―	4.86%	―
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
GOTU	61 Neutral	$969.40M	―	-36.29%	―	58.34%	-602.43%
DAO	60 Neutral	$1.07B	51.52	25.15%	―	-2.04%	―

Udemy Inc Corporate Events

Udemy Announces Leadership Changes to Drive AI Growth

On June 11, 2025, Udemy announced leadership changes with Eren Bali transitioning from Chief Technology Officer to Head of Innovation, focusing on product vision and AI advancement. Ozzie Goldschmied was appointed as the new Chief Technology Officer to lead Udemy’s transformation into an AI-powered platform. These changes aim to accelerate Udemy’s growth and enhance its positioning as a leader in AI-driven skills development, leveraging Bali’s innovative focus and Goldschmied’s extensive industry experience.

The most recent analyst rating on (UDMY) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Udemy Inc stock, see the UDMY Stock Forecast page.

Udemy Secures $200M Credit Facility for Growth

On June 3, 2025, Udemy announced the closing of a new $200 million senior secured revolving credit facility, enhancing its financial flexibility to support long-term strategic growth initiatives. The facility, which matures on May 30, 2030, remains undrawn at closing, and Udemy enters the agreement with no outstanding debt and a robust liquidity profile. This financial move positions Udemy to accelerate its AI innovation roadmap and pursue high-ROI growth initiatives, reinforcing its leadership in the global workforce skills development market.

The most recent analyst rating on (UDMY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Udemy Inc stock, see the UDMY Stock Forecast page.