UDMY Earnings Prediction
The chart below shows how UDMY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UDMY sees a -1.02% change in stock price 10 days leading up to the earnings, and a +0.21% change 10 days following the report. On the earnings day itself, the stock moves by +0.34%. This data can give you a slight idea of what to expect for the next quarter's release.
UDMY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
199.94M
5.49%
2.32%
Gross Margin
63.62%
9.78%
1.03%
Operating Margin
-3.09%
-77.18%
-66.81%
Net Margin
-4.93%
-53.84%
-61.87%
EPS
-0.07
-46.15%
-58.82%
No Data Available
UDMY Earnings Analysis
Udemy Inc Corporation (UDMY.O) Earnings Conference Call
Positive
Earnings Beat Expectations: Udemy, Inc. beat earnings expectations with reported EPS of $0.1, exceeding expectations of $0.07.
Revenue Growth Analysis: Full-year revenue growth of 8% year over year, despite a two-point headwind from foreign exchange (FX).
Strong Adjusted EBITDA Performance: Adjusted EBITDA significantly exceeded the high end of guidance, reflecting disciplined execution and operational efficiency.
Enterprise Customer ARR Growth: ARR growth from large enterprise customers was four points higher than from SMB customers, indicating a successful strategic focus on larger clients.
Record High Deal Closures: Closed nearly fifty deals over $100,000 in ARR, the highest for any quarter this year, showcasing strong demand from large enterprises.
Customer Retention Insights: Large enterprise customers showed higher retention rates compared to SMB customers, indicating strong customer relationships and satisfaction.
Enterprise Revenue Growth: Udemy Business revenue increased 18% for the year, demonstrating growth in the enterprise segment.
Strong Financial Health: The company ended the year with $356 million in cash and positive free cash flow of $38 million, indicating strong financial health.
Improved Gross Margin: Gross margin for Udemy Business segment improved to 75%, up 600 basis points from the prior year, due to changes in instructor revenue share.
Course Content Expansion: The marketplace remains vibrant with instructors adding over 5,000 courses each month, indicating ongoing content growth and engagement.
Negative
Consumer Revenue Decline: Udemy's consumer revenue declined by 5% year over year, indicating challenges in the consumer segment.
Revenue Growth with FX Headwind: Despite an overall revenue growth of 8%, the company faced a 2% headwind from foreign exchange (FX) impacts, which could affect future performance.
Transition Year Outlook: The company anticipates 2025 to be a transition year, suggesting potential instability or slower growth ahead as they implement strategic changes.
Consumer Revenue Decline: Udemy's consumer revenue for Q4 was down 7% year over year, reflecting ongoing struggles in attracting individual course purchases.
2025 Growth Outlook: The guidance for 2025 indicates flat to only 2% growth, which is a significant slowdown compared to previous years, particularly in the consumer segment where revenue is expected to decline by approximately 6%.
SMB Sales Capacity Reduction: The company is reducing SMB sales capacity by $20 million, which may hinder growth in that segment and overall revenue generation.
Customer Retention Challenges: The net dollar retention rate for both total and large enterprise customers declined by a single point, indicating potential challenges in retaining existing customers.
Restructuring Charges Impact: The company recognized $5 million in non-recurring restructuring charges in Q4, which may signal underlying operational issues that need addressing.
UDMY FAQs
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UDMY Earning Call Sentiment
Udemy, Inc. (NASDAQ:UDMY) Q4 2024 Earnings Call Transcript
UDMY.O
-2.62%Positive
The earnings call reveals strong financial performance with an 8% revenue increase and significant cost savings. Positive signals from enterprise customers and strategic focus on large deals suggest growth potential. The share buyback program indicates shareholder value focus. Despite FX headwinds and consumer revenue decline, optimistic guidance and product innovation plans support a positive outlook. The market cap suggests moderate stock price movement, leading to a positive prediction.
