Udemy Inc (UDMY) AI Stock Analysis

• Market Cap: $993.77M
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• Revenue Growth: 3.93%
• EPS Growth: 63.52%
• Country: US
• Employees: 1,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.16
• Shares Outstanding: 150,343,670
• 10 Day Avg. Volume: 2,432,539
• 30 Day Avg. Volume: 1,936,576
• 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: 0.68
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -50.11
• 1Y Price Target: $9.92
• Price Target Upside: 50.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $7.50 ▲(13.64% Upside)

Udemy's overall stock score is driven by strong financial performance in terms of revenue growth and strategic initiatives highlighted in the earnings call. However, ongoing profitability challenges and valuation concerns due to negative earnings impact the score. Technical indicators suggest stability but lack strong bullish momentum.

Positive Factors

Revenue Growth

The growth in the Udemy Business segment highlights strong demand for corporate training solutions, indicating a robust and expanding revenue stream that can drive long-term financial performance.

Positive GAAP Net Income

Achieving positive GAAP net income marks a significant milestone, reflecting improved financial management and operational efficiency, which can enhance investor confidence and support future growth initiatives.

Strategic Partnerships

These partnerships expand Udemy's reach and create new revenue streams, strengthening its competitive position and enhancing its ability to capture market share in the education technology sector.

Negative Factors

Consumer Revenue Decline

A decline in consumer revenue indicates challenges in maintaining user engagement and growth in the consumer segment, potentially impacting overall revenue diversification and stability.

Challenges with Contract Renewals

Difficulties in renewing contracts from the COVID-19 era suggest potential issues in demonstrating value, which could affect long-term client retention and revenue consistency.

Sequential Customer Count Decline

A decrease in customer count, even if focused on larger clients, may signal challenges in attracting or retaining a broader customer base, affecting future growth potential.

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 generates revenue primarily through its marketplace model, where it allows instructors to create and sell courses on its platform. The company takes a percentage of the revenue from each course sale, which constitutes a significant portion of its income. Additionally, Udemy offers a subscription service called Udemy Business, targeting organizations that wish to provide employee training and development. This service provides access to a curated library of courses for a flat fee, contributing to another key revenue stream. Partnerships with educational institutions and corporate clients also play a crucial role in expanding Udemy's reach and driving further revenue growth.

Udemy Inc Financial Statement Overview

Summary

Udemy Inc. demonstrates strong revenue growth and gross profitability, but ongoing net losses impact overall financial health. The balance sheet remains robust with low leverage and improving equity. Cash flow management shows efficiency, yet further 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: 6.60
• 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 6.6 is below the 20-day moving average (MA) of 6.79, below the 50-day MA of 6.88, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 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
AFYA	76 Outperform	$1.34B	11.04	15.50%	<0.01%	1.02%	9.06%
GHC	66 Neutral	$4.14B	6.10	16.28%	0.75%	4.73%	426.68%
UDMY	64 Neutral	$993.77M	―	-12.62%	―	3.93%	63.52%
COUR	63 Neutral	$1.65B	―	-8.40%	―	7.10%	49.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DAO	58 Neutral	$1.36B	42.59	25.15%	―	-1.66%	―
GOTU	52 Neutral	$740.46M	―	-32.95%	―	56.38%	-16.84%

Udemy Inc Corporate Events

Udemy Inc Announces $50 Million Share Buyback

On September 10, 2025, Udemy announced a $50 million share repurchase program, reflecting its Board’s confidence in the company’s growth potential amid the global demand for continuous learning driven by technological advancements. The program allows for the repurchase of common stock in various market conditions, demonstrating Udemy’s strategic focus on enhancing shareholder value while positioning itself as a leader in the upskilling revolution.

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