News Release

Udemy Reports Fourth Quarter and Full Year 2022 Results

February 14, 2023  |  

Total revenue increased 22% year-over-year for both the fourth quarter and full year
Announced strategic actions to further accelerate path to profitability

SAN FRANCISCO, Feb. 14, 2023 (GLOBE NEWSWIRE) -- Udemy (Nasdaq: UDMY), a leading destination for learning and teaching online, today reported results for the three- and twelve-month periods ended December 31, 2022.

“Udemy ended its first full year as a public company strong, despite a very challenging macro environment,” said Gregg Coccari, Udemy’s Chairman and CEO. “We continue to be encouraged by the strength of our leading growth engine, Udemy Business, which is supported by an accelerating shift from offline to online skills development, and the health of our Consumer marketplace. We are cautiously optimistic about the year ahead as we focus on balancing long-term sustainable growth and margin expansion, driving toward delivering a profitable second half of 2023 on an adjusted EBITDA basis.”

Fourth quarter 2022 financial performance highlights include:

  • Total revenue increased 22% year-over-year to $165.3 million. Revenue growth includes a negative impact of 4 percentage points from changes in foreign exchange (FX) rates year-over-year.
  • Enterprise segment, or Udemy Business, revenue increased 57% year-over-year, including the negative impact of 4 percentage points from changes in FX rates year-over-year, to $90.6 million.
  • Udemy Business Annual Recurring Revenue increased 55% year-over-year to $371.7 million and Net Dollar Retention Rate was 115%. Net Dollar Retention Rate for Udemy Business Large Customers, or customers with at least 1,000 employees, was 123%.
  • Consumer segment revenue decreased 4% year-over-year, including the negative impact of 5 percentage points from changes in FX rates year-over-year, to $74.7 million.
  • Monthly Average Buyers on Udemy’s Consumer marketplace decreased by 2% year-over-year, but increased 3% sequentially from Q3 2022, to 1.36 million.

Fourth Quarter and Full Year 2022 Financial Results and Key Operating Data Summary

(in millions, except customers, percentages and basis points)

 Three Months Ended
December 31,
 % Change Fiscal Year Ended
December 31,
 % Change
 2022 2021 YoY 2022 2021 YoY
Revenue$165.3   $135.5   22 % $629.1   $515.7   22 %
GAAP Gross Profit$91.3   $71.3   28 % $353.8   $279.6   27 %
% of Revenue 55 %  53 % 260 bps  56 %  54 % 200 bps
Non-GAAP Gross Profit$94.0   $72.8   29 % $362.0   $282.3   28 %
% of Revenue 57 %  54 % 320 bps  58 %  55 % 280 bps
GAAP Net Loss$(52.2)  $(41.4)  26 % $(153.9)  $(80.0)  92 %
Non-GAAP Net Loss$(22.8)  $(29.3)  (22)% $(68.3)  $(43.8)  56 %
Adjusted EBITDA$(20.2)  $(25.1)  (19)% $(48.7)  $(27.9)  74 %
% of Revenue (12)%  (19)% 630 bps  (8)%  (5)% (230)bps
Enterprise Segment                     
Total Customers 13,920    10,515   32 %           
Annual Recurring Revenue$371.7   $239.3   55 %           
Net Dollar Retention 115 %  118 % (300)bps           
Segment Revenue$90.6   $57.8   57 % $314.0   $187.0   68 %
Segment Gross Profit$60.4   $38.6   56 % $209.5   $123.0   70 %
% of Segment Revenue 66.6 %  66.9 % (30)bps  66.7 %  65.8 % 90 bps
Consumer Segment                     
Monthly Average Buyers 1.36    1.39   (2)%  1.34    1.35   (1)%
Segment Revenue$74.7   $77.7   (4)% $315.1   $328.7   (4)%
Segment Gross Profit$37.4   $36.9   1 % $165.8   $169.4   (2)%
% of Segment Revenue 50.0 %  47.6 % 240 bps  52.6 %  51.5 % 110 bps

Business and Operational Highlights:

  • Announced leadership changes at the start of Q1 2023, including the retirement of current Chairman and CEO, Gregg Coccari; the promotions of current President of Udemy Business Greg Brown to CEO and current Senior Vice President of Customer Success Stephanie Stapleton Sudbury to President of Udemy Business; and the hiring of Karen Fascenda as Chief People Officer and Nathan Blain as General Manager of Cohort Learning.
  • Udemy Business added new, or expanded existing, relationships with global customers including European multinational chemical company, BASF SE (Germany); the world’s largest manufacturer of construction equipment, Caterpillar, Inc. (U.S.); global technology platform for Business Spend Management, Coupa Software (U.S.); the leading global platform for the luxury fashion industry, FARFETCH Limited (UK); multinational retailer Grupo Falabella (Chile); and global supplier of premium and luxury cars and vans, The Mercedes-Benz Group AG (Germany).
  • Recently closed a multi-year deal with Capgemini, a global technology services company, in which Udemy Business was selected as its learning content partner to support the launch of their new Capgemini Engineering and Industry Academies.
  • Continued Udemy Business’s expansion in the Asia-Pacific region with new customer wins through strategic reseller partnerships, including the fintech and software developer, Kaitai Vision Information Technology (China); shipping and logistics company, Nippon Yusen Kaisha (Japan); and provider of outsourcing, software development and security services, Ryobi Systems Co., Ltd. (Japan).
  • Established new reseller partnerships in Latin America (LATAM), including HSM, an executive education provider in Brazil; CognosOnline, a leader in LATAM for digital learning solutions; and eClass, an e-learning content and technology vendor.
  • Launched a collection of courses for in-demand skills compliant with 508 accessibility standards; a redesigned instructor performance dashboard with enhanced insights into Udemy Business course engagement; and a set of immersive learning data-science labs and coding exercises for new learners.
  • Added a new Hindi collection, the 14th language to be included in the Udemy Business International Collection.
  • Named to Built In’s Annual List of Best Places to Work, which recognized Udemy as a top employer in the U.S., Colorado, Austin and San Francisco.

Business Update

On February 13, 2023, Udemy announced to its employees that in response to macroeconomic conditions and to further streamline its operations and cost structure, it made the difficult decision to reduce its global workforce by approximately 10%. Employee notifications are complete and this action will result in a one-time charge in Q1 2023 of $8 to $9 million in non-GAAP severance costs, primarily consisting of personnel expenses, such as salaries and wages, one-time severance payments, and other benefits. Udemy expects these actions to result in annualized non-GAAP savings of approximately $30 to $32 million. Udemy believes these actions will accelerate its path to profitability and now expects to be profitable on an adjusted EBITDA basis for the second half of 2023.

Financial Outlook

Udemy provides guidance based on current market conditions and expectations. Actual results may differ materially. Please refer to the comments below regarding forward-looking statements.

The following table reflects Udemy’s financial outlook for its first quarter and full year ending December 31, 2023.

 Three Months Ending
March 31, 2023
 Year Ending
December 31, 2023
Revenue$168 - $172 million $700 - $730 million
Adjusted EBITDA Margin*(10)% - (8)% (4)% - (2)%
Weighted Average Share Count146 million 149 million
*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.

The revenue guidance range above assumes foreign currency exchange rates will remain constant. As a result of changes in FX rates during 2022, FX is expected to impact total revenue year-over-year growth by approximately 6 percentage points in the first quarter and 3 percentage points for the full year 2023.

Webcast Information

Udemy will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET today, Tuesday, February 14, to discuss its fourth quarter and full year 2022 financial results and 2023 outlook. A link to the live webcast and recorded replay of the conference call will be available on the “Quarterly Results” section of Udemy’s Investor Relations website at The live call may also be accessed via telephone at (877) 270-2148 toll-free domestically and at (412) 902-6510 internationally. The archived replay of the webcast will be available for approximately one year.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Udemy’s key non-GAAP performance measures include Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP net loss.

We calculate Adjusted EBITDA as net loss determined in accordance with GAAP, excluding i) interest (income) expense, net; ii) provision for income taxes; iii) depreciation and amortization; iv) other expense, net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency and v) stock-based compensation expense. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period. We have not reconciled our expectations for Adjusted EBITDA and Adjusted EBITDA Margin to net loss and net loss margin, respectively, the most directly comparable GAAP measures, because certain items are out of our control or cannot be reasonably predicted and a reconciliation for the guidance for Adjusted EBITDA and Adjusted EBITDA Margin is not available without unreasonable effort. As Adjusted EBITDA and Adjusted EBITDA Margin facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges. We define non-GAAP loss as net loss attributable to common stockholders, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period. We believe the presentation of operating results that excludes these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

Udemy’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Udemy’s expectations relating to future operating results and financial position, including the first quarter of 2023, the full year 2023, and future periods; anticipated future expenses and investments; our business strategy and plans; market growth; our market position and potential market opportunities; the costs and benefits associated with Udemy's reduction in force; and the timing of completion of the reduction in force and the recognition of associated costs. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (“SEC”), including, without limitation, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the SEC on November 2, 2022. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.

About Udemy

Udemy (Nasdaq: UDMY) improves lives through learning by providing flexible, effective skill development to empower organizations and individuals. The Udemy marketplace platform, with thousands of up-to-date courses in dozens of languages, offers the tools learners, instructors, and enterprises need to achieve their goals and reach their full potential. Millions of people learn on the Udemy platform from real-world experts in topics ranging from programming and data science to leadership and team building. Udemy Business enables employers to offer on-demand learning for all employees, immersive learning for tech teams, and cohort learning for leaders. Udemy Business customers include FenderⓇ, Glassdoor, On24, The World Bank, and Volkswagen. Udemy is headquartered in San Francisco with hubs in Istanbul and Ankara, Türkiye; Austin, Texas; Boston, Massachusetts; Mountain View, California; Denver, Colorado; Dublin, Ireland; Melbourne, Australia; New Delhi, India; and Sao Paulo, Brazil.

Udemy, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)

 Three Months Ended
December 31,
 Fiscal Year Ended
December 31,
  2022   2021   2022   2021 
Revenue$165,330  $135,451  $629,097  $515,657 
Cost of revenue (1)(2) 73,990   64,122   275,320   236,024 
Gross profit 91,340   71,329   353,777   279,633 
Operating expenses (1)(2)       
Sales and marketing 88,558   70,624   301,347   227,023 
Research and development 29,961   19,208   104,556   66,107 
General and administrative 26,917   22,442   99,064   64,410 
Total operating expenses 145,436   112,274   504,967   357,540 
Loss from operations (54,096)  (40,945)  (151,190)  (77,907)
Other income (expense)       
Interest income (expense), net 3,335   436   4,297   (16)
Other expense, net (257)  (206)  (4,696)  (920)
Total other income (expense), net 3,078   230   (399)  (936)
Net loss before taxes (51,018)  (40,715)  (151,589)  (78,843)
Income tax provision (1,135)  (669)  (2,286)  (1,183)
Net loss attributable to common stockholders$(52,153) $(41,384) $(153,875) $(80,026)
Net loss per share attributable to common stockholders       
Basic and diluted$(0.36) $(0.38) $(1.09) $(1.46)
Weighted-average shares used in computing net loss per share attributable to common stockholders       
Basic and diluted 143,120,852   108,168,420   140,873,504   54,972,827 

(1) Includes stock-based compensation expense as follows (in thousands):

 Three Months Ended
December 31,
 Fiscal Year Ended
December 31,
  2022  2021  2022  2021
Cost of revenue$1,920 $736 $5,360 $1,623
Sales and marketing 10,538  2,852  29,054  8,637
Research and development 7,547  2,370  20,850  6,816
General and administrative 8,245  5,018  26,029  17,604
Total stock-based compensation expense$28,250 $10,976 $81,293 $34,680

(2) Includes amortization of intangible assets as follows (in thousands):

 Three Months Ended
December 31,
 Fiscal Year Ended
December 31,
  2022  2021  2022  2021
Cost of revenue$725 $729 $2,900 $1,022
Sales and marketing 341  384  1,366  481
Total amortization of intangible assets$1,066 $1,113 $4,266 $1,503

Udemy, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

 December 31, December 31,
  2022   2021 
Current assets:   
Cash and cash equivalents$313,685  $533,868 
Marketable securities 151,687    
Accounts receivable, net 104,530   73,180 
Prepaid expenses and other current assets 14,878   15,927 
Deferred contract costs, current 30,234   18,898 
Total current assets 615,014   641,873 
Property and equipment, net 7,012   9,887 
Capitalized software, net 27,412   20,054 
Operating lease right-of-use assets 11,377    
Restricted cash, non-current 3,629   2,900 
Deferred contract costs, non-current 35,411   25,647 
Strategic investments 12,104   10,000 
Intangible assets, net 9,331   13,597 
Goodwill 12,646   12,646 
Other assets 3,632   3,247 
Total assets$737,568  $739,851 
Liabilities and stockholders' equity   
Current liabilities:   
Accounts payable$14,529  $34,627 
Accrued expenses and other current liabilities 31,247   40,140 
Content costs payable 37,310   35,961 
Accrued compensation and benefits 22,882   22,341 
Operating lease liabilities, current 7,002    
Deferred revenue, current 273,937   208,274 
Total current liabilities 386,907   341,343 
Operating lease liabilities, non-current 6,545    
Deferred revenue, non-current 4,342   2,280 
Other liabilities, non-current 464   6,528 
Total liabilities 398,258   350,151 
Stockholders' equity:   
Preferred stock     
Common stock 1   1 
Additional paid-in capital 951,946   848,229 
Accumulated other comprehensive loss (233)  (1)
Accumulated deficit (612,404)  (458,529)
Total stockholders’ equity 339,310   389,700 
Total liabilities and stockholders' equity$737,568  $739,851 

Udemy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

 Fiscal Year Ended
December 31,
  2022   2021 
Cash flows from operating activities:   
Net loss$(153,875) $(80,026)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization 21,216   15,297 
Amortization of deferred sales commissions 32,279   17,801 
Stock-based compensation 81,293   34,680 
Allowance for credit losses 960   326 
Accretion of marketable securities (896)   
Non-cash operating lease expense 6,205    
Unrealized loss on strategic investments 2,896    
Other 690    
Changes in operating assets and liabilities:   
Accounts receivable (32,309)  (27,000)
Prepaid expenses and other assets (4)  (9,903)
Deferred contract costs (53,379)  (36,508)
Accounts payable, accrued expenses and other liabilities (28,620)  7,272 
Content costs payable 1,349   4,389 
Operating lease liabilities (6,487)   
Deferred revenue 67,725   66,568 
     Net cash used in operating activities (60,957)  (7,104)
Cash flows from investing activities:   
Purchases of marketable securities (158,503)   
Proceeds from maturities of marketable securities 7,500    
Purchases of property and equipment (1,564)  (5,335)
Capitalized software costs (14,160)  (12,868)
Purchases of strategic investments (5,000)  (10,000)
Payments related to business combination, net of cash acquired (1,500)  (24,490)
     Net cash used in investing activities (173,227)  (52,693)
Cash flows from financing activities:   
Net proceeds from exercise of stock options 7,149   10,878 
Net proceeds from issuance of redeemable convertible preferred stock    2 
Proceeds from share purchases under employee stock purchase plan 9,192    
Payment of redeemable convertible preferred stock issuance costs    (2,250)
Payment of deferred offering costs (1,586)  (5,183)
Cash proceeds from initial public offering    415,187 
     Net cash provided by financing activities 14,755   418,634 
Effect of foreign exchange rates on cash flows (25)   
Net increase (decrease) in cash, cash equivalents and restricted cash (219,454)  358,837 
Cash, cash equivalents and restricted cash—Beginning of period 536,768   177,931 
Cash, cash equivalents and restricted cash—End of period$317,314  $536,768 

Udemy, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share amounts)

 Three Months Ended December 31, 2022
 GAAP Stock-based
 Amortization of
Intangible Assets
 (in thousands, except share and per share amounts)
Revenue$165,330  $  $  $165,330 
Cost of revenue 73,990   (1,920)  (725)  71,345 
Gross profit 91,340   1,920   725   93,985 
Operating expenses       
Sales and marketing 88,558   (10,538)  (341)  77,679 
Research and development 29,961   (7,547)     22,414 
General and administrative 26,917   (8,245)     18,672 
Total operating expenses 145,436   (26,330)  (341)  118,765 
Loss from operations (54,096)  28,250   1,066   (24,780)
Other income (expense)       
Interest income, net 3,335         3,335 
Other expense, net (257)        (257)
Total other income, net 3,078         3,078 
Net loss before taxes (51,018)  28,250   1,066   (21,702)
Income tax provision (1,135)        (1,135)
Net loss attributable to common stockholders$(52,153) $28,250  $1,066  $(22,837)
Net loss per share attributable to common stockholders       
Basic and diluted$(0.36)     $(0.16)
Weighted-average shares used in computing net loss per share attributable to common stockholders       
Basic and diluted 143,120,852       143,120,852 

 Fiscal Year Ended December 31, 2022
 GAAP Stock-based
 Amortization of
Intangible Assets
 (in thousands, except share and per share amounts)
Revenue$629,097  $  $  $629,097 
Cost of revenue 275,320   (5,360)  (2,900)  267,060 
Gross profit 353,777   5,360   2,900   362,037 
Operating expenses       
Sales and marketing 301,347   (29,054)  (1,366)  270,927 
Research and development 104,556   (20,850)     83,706 
General and administrative 99,064   (26,029)     73,035 
Total operating expenses 504,967   (75,933)  (1,366)  427,668 
Loss from operations (151,190)  81,293   4,266   (65,631)
Other income (expense)       
Interest income, net 4,297         4,297 
Other expense, net (4,696)        (4,696)
Total other expense, net (399)        (399)
Net loss before taxes (151,589)  81,293   4,266   (66,030)
Income tax provision (2,286)        (2,286)
Net loss attributable to common stockholders$(153,875) $81,293  $4,266  $(68,316)
Net loss per share attributable to common stockholders       
Basic and diluted$(1.09)     $(0.48)
Weighted-average shares used in computing net loss per share attributable to common stockholders       
Basic and diluted 140,873,504       140,873,504 

 Three Months Ended December 31, 2021
 GAAP Stock-based
 Amortization of
Intangible Assets
 (in thousands, except share and per share amounts)
Revenue$135,451  $  $  $135,451 
Cost of revenue 64,122   (736)  (729)  62,657 
Gross profit 71,329   736   729   72,794 
Operating expenses       
Sales and marketing 70,624   (2,852)  (384)  67,388 
Research and development 19,208   (2,370)     16,838 
General and administrative 22,442   (5,018)     17,424 
Total operating expenses 112,274   (10,240)  (384)  101,650 
Loss from operations (40,945)  10,976   1,113   (28,856)
Other income (expense)       
Interest income, net 436         436 
Other expense, net (206)        (206)
Total other income, net 230         230 
Net loss before taxes (40,715)  10,976   1,113   (28,626)
Income tax provision (669)        (669)
Net loss attributable to common stockholders$(41,384) $10,976  $1,113  $(29,295)
Net loss per share attributable to common stockholders       
Basic and diluted$(0.38)     $(0.27)
Weighted-average shares used in computing net loss per share attributable to common stockholders       
Basic and diluted 108,168,420       108,168,420 

 Fiscal Year Ended December 31, 2021
 GAAP Stock-based
 Amortization of
Intangible Assets
 (in thousands, except share and per share amounts)
Revenue$515,657  $  $  $515,657 
Cost of revenue 236,024   (1,623)  (1,022)  233,379 
Gross profit 279,633   1,623   1,022   282,278 
Operating expenses       
Sales and marketing 227,023   (8,637)  (481)  217,905 
Research and development 66,107   (6,816)     59,291 
General and administrative 64,410   (17,604)     46,806 
Total operating expenses 357,540   (33,057)  (481)  324,002 
Loss from operations (77,907)  34,680   1,503   (41,724)
Other income (expense)       
Interest income, net (16)        (16)
Other expense, net (920)        (920)
Total other expense, net (936)        (936)
Net loss before taxes (78,843)  34,680   1,503   (42,660)
Income tax provision (1,183)        (1,183)
Net loss attributable to common stockholders$(80,026) $34,680  $1,503  $(43,843)
Net loss per share attributable to common stockholders       
Basic and diluted$(1.46)     $(0.80)
Weighted-average shares used in computing net loss per share attributable to common stockholders       
Basic and diluted 54,972,827       54,972,827 

 Three Months Ended
December 31,
 Fiscal Year Ended
December 31,
  2022   2021   2022   2021 
Net loss$(52,153) $(41,384) $(153,875) $(80,026)
Adjusted to exclude the following:       
Interest (income) expense, net (3,335)  (436)  (4,297)  16 
Provision for income taxes 1,135   669   2,286   1,183 
Depreciation and amortization 5,600   4,897   21,216   15,297 
Stock-based compensation expense 28,250   10,976   81,293   34,680 
Other expense, net 257   206   4,696   920 
Adjusted EBITDA$(20,246) $(25,072) $(48,681) $(27,930)

Investor Contact
Dennis Walsh
Vice President, Investor Relations

Media Contact
Abby Welch
Senior Director, Corporate Communications