Education
About Us
Working with TipRanks
Follow Us
Udemy Inc (UDMY)
NASDAQ:UDMY
Top Page
Udemy Inc
(NASDAQ:UDMY)
Select Model
Select Model
Rating:64Neutral
Price Target:
$7.50
▲(6.99% Upside)
Udemy's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting strategic growth initiatives and a shift towards high-value enterprise solutions. However, valuation challenges and mixed technical indicators temper the score, reflecting ongoing profitability issues and consumer segment pressures.
Positive Factors
Business Model Strength
The shift towards a subscription model enhances revenue predictability and stability, supporting long-term growth and reducing reliance on one-time course sales.
Strategic Partnerships
Partnerships with major platforms can expand Udemy's reach and create new revenue streams, strengthening its market position and driving sustainable growth.
AI-Powered Initiatives
Investing in AI-driven learning enhances Udemy's competitive edge, attracting tech-savvy learners and aligning with industry trends towards personalized education.
Negative Factors
Consumer Revenue Decline
Declining consumer revenue indicates challenges in maintaining individual learner engagement, potentially impacting overall revenue diversification and growth.
Profitability Challenges
Ongoing profitability issues suggest that Udemy needs to improve cost efficiency and revenue generation to achieve sustainable financial health.
Contract Renewal Challenges
Difficulties in renewing contracts highlight potential weaknesses in customer retention strategies, which could affect long-term revenue stability.
Udemy Inc (UDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)1.67M
Price to Earnings (P/E)―
Beta (1Y)1.83
Revenue Growth3.93%
EPS Growth63.52%
CountryUS
Employees1,246
SectorTechnology
Sector Strength88
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding150,343,670
10 Day Avg. Volume1,941,591
30 Day Avg. Volume1,673,415
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)6.31
Price to Sales (P/S)1.58
P/FCF Ratio24.54
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda-50.11
Forecast
1Y Price Target
$10.40Price Target Upside48.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Udemy Inc Business Overview & Revenue Model
Company DescriptionUdemy, 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 MoneyUdemy 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 Key Performance Indicators (KPIs)
Udemy Inc Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Overall, Udemy's earnings call conveyed a positive outlook driven by exceeded financial expectations, strategic partnerships, and strong growth in the Udemy Business segment. Notably, initiatives in AI-driven learning and new high-value deals indicate potential for future growth. However, challenges remain in consumer revenue decline and renewal of prior contracts.Q2-2025 Updates
Positive Updates
Exceeded Revenue and Adjusted EBITDA Expectations
Udemy reported Q2 revenues of $200 million, exceeding expectations and the high end of guidance range. Adjusted EBITDA was stronger than expected.
Positive GAAP Net Income Achieved
Udemy delivered a positive GAAP net income for the first time since the IPO, marking a significant milestone in its financial journey.
Udemy Business Segment Growth
Revenue for the Udemy Business segment increased 7% year-over-year, with ARR reaching $520 million. The segment closed nearly 40 new business deals over $100,000 in ARR during the quarter.
Expansion and Partnership Initiatives
Strategic partnerships with Indeed and UKG were announced to integrate Udemy content, expand reach, and create new revenue streams. New partnerships and reseller agreements were also established in LatAm.
AI-Powered Skill Acceleration Platform
Udemy is positioning itself as a leading AI-powered skill acceleration platform, which has resulted in positive customer reception and the launch of new AI SKUs and AI-driven learning initiatives.
Increase in High-Value Deals
Udemy generated its highest amount of $100,000+ deals in the pipeline since 2022, indicating strong potential for growth.
Negative Updates
Consumer Revenue Decline
Consumer segment revenue was down 4% year-over-year, with an expected continued decline of approximately 8% year-over-year for the full year 2025.
Challenges with COVID-19 Era Contracts
Renewals of multiyear contracts established during the COVID-19 period presented challenges due to initial lack of robust implementation and value metrics.
Sequential Customer Count Decline
The customer count in the Udemy Business segment decreased sequentially, primarily due to a focus on larger customers and some smaller customers rolling off.
Company Guidance
In Udemy's Second Quarter 2025 Earnings Conference Call, the company reported strong financial performance, with revenues reaching $200 million, marking a 3% year-over-year increase, and exceeding expectations for both revenue and adjusted EBITDA. The Udemy Business segment, the main growth driver, saw revenue growth of 7% year-over-year, achieving an annual recurring revenue (ARR) of $520 million. The company also celebrated its first positive GAAP net income since its IPO. Notably, Udemy's subscription model now constitutes approximately 70% of its revenue, with consumer subscriptions contributing 15% to the Consumer segment, up 2 percentage points from the previous quarter. Udemy plans to grow its consumer subscriptions to over 250,000 by year-end and aims to double that number next year. Additionally, Udemy is exploring new revenue streams, such as programmatic advertising and reselling certification, to enhance its growth trajectory. The company is also focused on strategic priorities including expanding its partnership ecosystem, executing global market activation, and positioning itself as a leading AI-powered skill acceleration platform.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.65
Positive
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.70
Positive
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.68
Positive
| 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
Negative
7.01
Price Trends
7.04
Negative
7.04
Negative
7.53
Negative
Market Momentum
0.06
Negative
49.18
Neutral
41.41
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 7.01 is above the 20-day moving average (MA) of 7.00, below the 50-day MA of 7.04, and below the 200-day MA of 7.53, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UDMY.
Udemy Inc Risk Analysis
Udemy Inc disclosed 57 risk factors in its most recent earnings report. Udemy Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Udemy Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 1.48B | 12.09 | 15.10% | <0.01% | 1.02% | 9.06% | |
74 Outperform | 5.04B | 7.48 | 17.02% | 0.62% | 4.73% | 426.68% | |
70 Neutral | 1.93B | -36.97 | -13.31% | ― | 7.10% | 49.18% | |
64 Neutral | $1.05B | ― | -12.62% | ― | 3.93% | 63.52% | |
58 Neutral | 1.11B | 34.69 | -3.84% | ― | -1.66% | ― | |
52 Neutral | 826.06M | -8.85 | -54.25% | ― | 56.38% | -16.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
UDMY
Udemy Inc
7.01
-1.12
-13.78%
GHC
Graham Holdings
1,156.03
348.24
43.11%
GOTU
Gaotu Techedu
3.40
-0.31
-8.36%
AFYA
Afya
16.32
-0.52
-3.09%
DAO
Youdao
9.27
5.77
164.86%
COUR
Coursera
11.80
3.83
48.06%
Udemy Inc Corporate Events
Business Operations and StrategyStock Buyback
Udemy Inc Announces $50 Million Share Buyback
Positive
Sep 10, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.