Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: 3.93%
• EPS Growth: 63.52%
• Country: US
• Employees: 1,246
• Sector: Technology
• Sector Strength: 97
• Industry: Education & Training Services
• EPS (TTM): 0.16
• Shares Outstanding: 150,343,670
• 10 Day Avg. Volume: 2,038,415
• 30 Day Avg. Volume: 1,532,581
• PEG Ratio: 0.69
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 24.54
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -50.11
• 1Y Price Target: $9.25
• Price Target Upside: 31.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: $7.50 ▲(6.38% Upside)

Udemy's overall stock score is driven by strong strategic initiatives and financial stability, despite ongoing profitability challenges. The company's focus on AI and partnerships, along with recent leadership changes, positions it well for future growth. However, technical indicators and valuation metrics suggest caution.

Positive Factors

Financial Performance

Udemy reported a modest revenue beat with stronger beat on profit, and slightly raised full-year guidance.

Leadership and Strategy

New CEO Hugo Sarrazin is giving investors plenty to be excited about as new GTM initiatives, AI product SKUs and merchandising opportunities are generating strong early results.

Product and Market Expansion

The company is encouraged by progress as it shifts Enterprise resources upmarket, with notable recent deals including a wall-to-wall expansion at one of the world’s largest consulting firms.

Negative Factors

Competition

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

Macroeconomic Challenges

An uncertain macro environment is expected to continue adversely impacting revenue.

User Engagement

Recent app DAU data by Sensor Tower suggests continued year-over-year declines, indicating challenges in maintaining user engagement despite a slight improvement in June trends.

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 Inc. shows strong revenue growth and gross profitability. However, ongoing net losses and negative net profit margin impact overall financial health. The balance sheet is robust with low leverage and improving equity. Cash flow management is efficient, yet profitability improvements are needed for sustained financial stability.

Income Statement

Udemy Inc. has shown consistent revenue growth over time, with a TTM revenue increase of approximately 1.14% compared to the previous year. The gross profit margin remains strong at 64.3% for TTM, reflecting efficient cost management. However, negative net profit margin (-3.85%) and negative EBIT and EBITDA margins indicate ongoing profitability challenges.

Balance Sheet

The balance sheet shows a solid equity position with an equity ratio of 36.3% and a low debt-to-equity ratio of 0.04, indicating low leverage. However, the company has been operating at a net loss, impacting its return on equity (-13.13%). The positive stockholders' equity trend suggests financial stability.

Cash Flow

Positive operating cash flow and free cash flow indicate good cash generation capabilities with a free cash flow growth rate of -5.95%. Despite negative net income, the operating cash flow to net income ratio is 1.95, showcasing efficient cash flow management. Continued focus on improving free cash flow is essential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	795.54M	786.57M	728.94M	629.10M	518.16M	429.90M
Gross Profit	511.75M	491.94M	419.34M	353.78M	282.13M	220.65M
EBITDA	-13.47M	-89.33M	-78.53M	-129.97M	-63.53M	-62.27M
Net Income	-30.64M	-85.29M	-107.29M	-153.88M	-77.53M	-77.62M
Balance Sheet
Total Assets	643.96M	605.63M	741.20M	737.57M	739.85M	282.10M
Cash, Cash Equivalents and Short-Term Investments	391.98M	354.44M	476.94M	465.37M	533.87M	175.03M
Total Debt	9.22M	10.82M	6.95M	13.55M	0.00	0.00
Total Liabilities	410.60M	408.23M	384.30M	398.26M	347.65M	542.78M
Stockholders Equity	233.36M	197.39M	356.89M	339.31M	392.20M	-260.69M
Cash Flow
Free Cash Flow	47.72M	50.74M	-15.07M	-76.68M	-25.31M	-4.91M
Operating Cash Flow	59.90M	53.04M	-2.00M	-60.96M	-7.10M	9.62M
Investing Cash Flow	-26.45M	1.08M	-24.97M	-173.23M	-52.69M	-14.54M
Financing Cash Flow	-75.73M	-171.75M	19.20M	14.76M	418.63M	131.09M

Udemy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7.05 is below the 20-day moving average (MA) of 7.16, below the 50-day MA of 7.11, and below the 200-day MA of 7.70, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 20.47 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
COUR	75 Outperform	$1.93B	―	-8.40%	―	7.10%	49.18%
UTI	72 Outperform	$1.44B	23.32	23.11%	―	14.56%	127.02%
APEI	69 Neutral	$524.67M	27.80	10.20%	―	5.50%	338.59%
UDMY	66 Neutral	$1.03B	―	-12.62%	―	3.93%	63.52%
Sector *	62 Neutral	£500.86M	27.11	0.85%	2.82%	3.88%	-21.07%
DAO	55 Neutral	$1.06B	51.99	25.15%	―	-2.04%	―
GOTU	54 Neutral	$920.81M	―	-36.29%	―	58.34%	-602.43%

Udemy Inc Corporate Events

Udemy Inc Holds Annual Meeting, Elects Directors

On June 16, 2025, Udemy Inc. held its Annual Meeting where 85.6% of the voting power was represented. During the meeting, stockholders elected two Class I directors, ratified Deloitte & Touche LLP as the independent accounting firm, approved executive compensation on a non-binding basis, and amended the company’s certificate of incorporation to limit certain officers’ liability.

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 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.