News Release

Udemy Reports Third Quarter 2021 Results

December 8, 2021  |  

Udemy Business Revenue Up 84% Year over Year, With ARR of $207 Million

SAN FRANCISCO, Dec. 08, 2021 (GLOBE NEWSWIRE) -- Udemy (Nasdaq: UDMY), a leading destination for learning and teaching online, today reported results for the third quarter ended September 30, 2021.

“We’re proud of our progress this quarter in carrying out our mission of connecting people everywhere with the knowledge and skills needed to succeed in a changing world,” said Gregg Coccari, chief executive officer. “Our differentiated marketplace model enables us to continuously deliver high-quality and relevant content across in-demand skills in local languages to our global customers. As a result of increasing demand for upskilling and reskilling in workplaces around the world, revenue for Udemy Business grew 84% year over year and ending ARR exceeded $200M. As learners, instructors, and companies face an accelerating pace of change, Udemy is well-positioned to provide the critical skills people need to succeed in today’s workplace.” 

“We are very pleased with the results in the quarter, particularly with the strong performance of Udemy Business, where more than 9,500 businesses and their employees turned to Udemy to help them upskill and reskill,” said Sarah Blanchard, chief financial officer. “Our overall revenue was up 9% year over year, despite our consumer business facing an extraordinary year-over-year comparison given accelerated growth during the early waves of the pandemic last year. We are excited about the future as we continue to execute against our huge global market opportunity.”

Third Quarter 2021 Financial Results and Key Operating Data:

  • Revenue totaled $129.6 million, up 9% year over year.
  • GAAP net income (loss) was ($9.3 million) compared to $1.9 million in the third quarter of fiscal 2020. GAAP net income (loss) per share was ($0.25), compared to $0.05 in the third quarter of fiscal 2020.
  • Non-GAAP net income (loss) was ($1.7 million) compared to $4.7 million in the third quarter of fiscal 2020. Non-GAAP net income (loss) per share was ($0.04) compared to $0.14 in the third quarter of fiscal 2020.
  • GAAP gross profit was $71.6 million, compared to $69.5 million in the third quarter of fiscal 2020.
  • Non-GAAP gross profit was $72.2 million, compared to $69.6 million in the third quarter of fiscal 2020.
  • Adjusted EBITDA was $1.6 million, compared to $8.1 million in the third quarter of fiscal 2020.
  • Consumer revenue totaled $79.2 million, down (13%) year over year.
  • Udemy Business revenue totaled $50.4 million, up 84% year over year.
  • Consumer segment monthly average buyers was 1,263 thousand, down (6%) year over year.
  • Udemy Business segment annual recurring revenue was $207.4 million, up 80% year over year.
  • Udemy Business total customers was 9,592 as of September 30, 2021, up 42% year over year.
  • Udemy Business net dollar retention rate was 118% compared to 119% in the third quarter of fiscal 2020.
  • Consumer segment gross profit was $42.0 million compared to $53.3 million in the third quarter of fiscal 2020.
  • Udemy Business segment gross profit was $32.9 million compared to $18.2 million in the third quarter of fiscal 2020.

Third Quarter Highlights:

  • Added new Udemy Business customers across key verticals including Alcoa, Mitsubishi Chemical, and Carvana, a leading e-commerce platform for buying and selling used cars. Notable expansions included Computacenter PLC, Michelin (Manufacture Francaise des Pneumatiques Michelin), Momentum Metropolitan, and Mercado Libre.
  • Launched Udemy Business Pro, which features labs and assessments in a number of technology verticals and acquired CorpU, which specializes in cohort-based leadership training for Fortune 500 companies.
  • Incorporated new machine learning capabilities to enhance search functionality, provide even more personalized recommendations to individual learners, and improve conversion and retention within the consumer business.
  • Expanded international reach via key partnerships, including launching partnerships with Woongjin ThinkBig, one of the largest Korean education companies, Sanjieke in China, and MultiChoice Group in Sub-Saharan Africa.
  • Ranked by Sustainalytics in the first percentile for ESG risk ratings in the Internet Software and Services sub-industry as of July 2021.
  • Continued to fulfill a commitment to democratizing education globally with millions of users accessing more than 18,000 free courses on Udemy.
  • Completed an Initial Public Offering on the NASDAQ stock market, raising more than $400 million in proceeds.

2021 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 table below reflects Udemy’s financial outlook for its fourth quarter and fiscal year ended December 31, 2021:

Revenue$130.0 - 134.0 million$510.2 - 514.2 million
Adjusted EBITDA$(28.5) - (24.5) million$(31.4) - (27.3) million
Adjusted EBITDA Margin(22.0%) - (18.3%)(6.2%) - (5.3%)

Webcast Information 
Udemy will host a webcast at 2:00 pm Pacific Time on Wednesday, December 8, to discuss its third quarter 2021 financial results, as well as its fourth quarter 2021 outlook. The live webcast will be accessible on Udemy’s website at A webcast replay will be available approximately two hours after the conclusion of the live event.

Non-GAAP Financial Measures

To supplement the condensed 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. We calculate Adjusted EBITDA as net loss (income) determined in accordance with GAAP, excluding by i) interest expense (income), net; ii) provision for (benefit from) income taxes; iii) depreciation and amortization; iv) other expense (income), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency and v) non-cash stock-based compensation expense.  We have not reconciled our expectations for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, because certain items are out of our control or cannot be reasonably predicted and a reconciliation for the guidance for Adjusted EBITDA is not available without unreasonable effort. As Adjusted EBITDA 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 provides 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. 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 fourth quarter of 2021 and future periods, anticipated future expenses and investments, our business strategy and plans, market growth, our market position and potential market opportunities, and the impact of acquisitions and business alliances. 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, 2021, filed with the SEC on December 8, 2021. 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.

Third Party Data

This press release contains information developed by Sustainalytics ( Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at

About Udemy
Udemy's (Nasdaq: UDMY) mission is to create new possibilities for people and organizations everywhere by connecting them to the knowledge and skills they need to succeed in a changing world. The Udemy marketplace platform, with thousands of up-to-date courses in dozens of languages, provides the tools learners, instructors, and enterprises need to achieve their goals and reach their full potential. Millions of people learn on Udemy from real-world experts in topics ranging from programming and data science to leadership and team building. For companies, Udemy Business offers an employee training and development platform with subscription access to thousands of courses, learning analytics, and the ability to host and distribute their own content. Udemy Business customers include Glassdoor, On24, The World Bank, and Volkswagen. Udemy is headquartered in San Francisco with hubs in Ankara, Turkey; 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 per share amounts)

 Three Months Ended September 30, Nine Months Ended September 30,
 2020 2021 2020 2021
 (in thousands, except per share amounts)
Revenue$118,436   129,563   $319,804   380,206  
Cost of revenue (1)(2)48,926   57,986   153,596   171,902  
Gross profit69,510   71,577   166,208   208,304  
Operating expenses (1)(2)       
Sales and marketing46,045   52,258   142,221   156,399  
Research and development11,945   16,703   36,240   46,898  
General and administrative8,996   12,166   35,031   41,969  
  Total operating expenses66,986   81,127   213,492   245,266  
Income (loss) from operations2,524   (9,550)  (47,284)  (36,962) 
Other income (expense)       
Interest expense, net(64)  (61)  (1,078)  (452) 
Other income (expense), net(100)  (196)  38   (714) 
  Total other expense, net(164)  (257)  (1,040)  (1,166) 
Net income (loss) before taxes2,360   (9,807)  (48,324)  (38,128) 
Income tax (provision) benefit(495)  545   (2,261)  (514) 
Net income (loss) attributable to common stockholders1,865   (9,262)  (50,585)  (38,642) 
Net income (loss) per share attributable to common stockholders       
Basic$0.05   $(0.25)  $(1.54)  $(1.04) 
Diluted$0.02   $(0.25)  $(1.54)  $(1.04) 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders       
Basic34,016,248   37,740,586   32,746,492   37,068,570  
Diluted123,842,757   37,740,586   32,746,492   37,068,570  

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

 Three Months Ended September 30, Nine Months Ended September 30,
 2020 2021 2020 2021
Cost of revenue$62  $350  $253  $888 
Sales and marketing509  2,149  5,931  5,784 
Research and development733  1,304  3,917  4,445 
General and administrative1,545  3,417  13,351  12,587 
Total stock-based compensation expense$2,849  $7,220  $23,452  $23,704 

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

 Three Months Ended September 30, Nine Months Ended September 30,
 2020 2021 2020 2021
Cost of revenue$  $293  $  $293 
Sales and marketing  97    97 

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

 December 31, September 30,
 2020 2021
Current assets:   
Cash and cash equivalents$175,031   $130,178  
Accounts receivable, net of allowance for doubtful accounts of $643 and $707 as of December 31, 2020 and September 30, 2021, respectively.46,257   40,655  
Prepaid expenses and other current assets6,036   17,678  
Deferred contract costs, current9,640   17,438  
Total current assets236,964   205,949  
Property and equipment, net9,106   10,590  
Capitalized software, net14,013   18,544  
Restricted cash, non-current2,900   2,900  
Deferred contract costs, non-current16,197   21,859  
Intangible assets, net   14,710  
Goodwill   12,646  
Other assets2,916   2,757  
Total assets$282,096   $289,955  
Liabilities, redeemable convertible preferred stock, and stockholders' deficit   
Current liabilities:   
Accounts payable$23,710   26,220  
Accrued expenses and other current liabilities46,778   39,660  
Content costs payable31,483   30,582  
Accrued compensation and benefits20,403   14,633  
Deferred revenue141,439   165,858  
Total current liabilities263,813   276,953  
Deferred revenue, non-current937   1,362  
Other liabilities, non-current3,927   4,181  
Total liabilities268,677   282,496  
Redeemable convertible preferred stock274,104   274,267  
Stockholders' deficit:   
Common stock     
Additional paid-in capital117,818   150,337  
Accumulated deficit(378,503)  (417,145) 
Total stockholders’ deficit(260,685)  (266,808) 
Total liabilities, redeemable convertible preferred stock, and stockholders' deficit$282,096   $289,955  

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

 Nine Months Ended September 30,
 2020 2021
Cash flows from operating activities:   
Net loss$(50,585)  $(38,642) 
Adjustments to reconcile net loss to net cash used in operating activities:   
 Depreciation and amortization7,812   10,400  
 Amortization of deferred sales commissions4,995   11,995  
 Stock-based compensation23,452   23,704  
 Provision for doubtful accounts147   324  
 Change in fair value of warrant liability39     
  Changes in operating assets and liabilities:   
   Accounts receivable, prepaid expenses and other assets(6,907)  (537) 
   Deferred contract costs(10,367)  (25,455) 
   Accounts payable, accrued expenses and other liabilities(1,192)  (13,455) 
   Content costs payable313   (989) 
   Deferred revenue22,650   23,234  
    Net cash used in operating activities(9,643)  (9,421) 
Cash flows from investing activities:   
Purchases of property and equipment(3,945)  (4,554) 
Capitalized software costs(6,749)  (9,767) 
Payments related to business combinations, net of cash acquired   (24,490) 
    Net cash used in investing activities(10,694)  (38,811) 
Cash flows from financing activities:   
Net proceeds from exercise of stock options7,944   7,619  
Net proceeds from issuance of redeemable convertible preferred stock39,948   2  
Payment of redeemable convertible preferred stock issuance costs   (2,250) 
Payment of deferred offering costs   (1,992) 
    Net cash provided by financing activities47,892   3,379  
Net increase (decrease) in cash, cash equivalents and restricted cash27,555   (44,853) 
Cash, cash equivalents and restricted cash—Beginning of period51,751   177,931  
Cash, cash equivalents and restricted cash—End of period$79,306   $133,078  

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

 Three Months Ended September 30, 2021
 GAAP Stock-Based
 Amortization of
Intangible Assets
 (in thousands, except per share amounts)
Revenue$129,563   $   $   $129,563  
Cost of revenue57,986   (350)  (293)  57,343  
Gross profit71,577   350   293   72,220  
Operating expenses        
Sales and marketing52,258   (2,149)  (97)  50,012  
Research and development16,703   (1,304)     15,399  
General and administrative12,166   (3,417)     8,749  
Total operating expenses81,127   (6,870)  (97)  74,160  
Income (loss) from operations(9,550)  7,220   390   (1,940) 
Other income (expense)        
Interest expense, net(61)        (61) 
Other income (expense), net(196)        (196) 
Total other expense, net(257)        (257) 
Net income (loss) before taxes(9,807)  7,220   390   (2,197) 
Income tax (provision) benefit545         545  
Net income (loss) attributable to common stockholders$(9,262)  $7,220   $390   $(1,652) 
Net income (loss) per share attributable to common stockholders        
Basic and diluted$(0.25)      $(0.04) 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders37,740,586       37,740,586  

 Nine Months Ended September 30, 2021
 GAAP Stock-Based
 Amortization of
Intangible Assets
 (in thousands, except per share amounts)
Revenue$380,206   $   $   $380,206  
Cost of revenue171,902   (888)  (293)  170,721  
Gross profit208,304   888   293   209,485  
Operating expenses        
Sales and marketing156,399   (5,784)  (97)  150,518  
Research and development46,898   (4,445)     42,453  
General and administrative41,969   (12,587)     29,382  
Total operating expenses245,266   (22,816)  (97)  222,353  
Income (loss) from operations(36,962)  23,704   390   (12,868) 
Other income (expense)        
Interest expense, net(452)        (452) 
Other income (expense), net(714)        (714) 
Total other expense, net(1,166)        (1,166) 
Net income (loss) before taxes(38,128)  23,704   390   (14,034) 
Income tax (provision) benefit(514)        (514) 
Net income (loss) attributable to common stockholders$(38,642)  $23,704   $390   $(14,548) 
Net income (loss) per share attributable to common stockholders       
Basic and diluted$(1.04)      $(0.39) 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders37,068,570       37,068,570  

 Three Months Ended September 30, 2020
 GAAP Stock Based
 (in thousands, except per share amounts)
Revenue$118,436   $   $118,436  
Cost of revenue48,926   (62)  48,864  
Gross profit69,510   62   69,572  
Operating expenses     
Sales and marketing46,045   (509)  45,536  
Research and development11,945   (733)  11,212  
General and administrative8,996   (1,545)  7,451  
Total operating expenses66,986   (2,787)  64,199  
Income (loss) from operations2,524   2,849   5,373  
Other income (expense)      
Interest expense, net(64)     (64) 
Other income (expense), net(100)     (100) 
Total other expense, net(164)     (164) 
Net income (loss) before taxes2,360   2,849   5,209  
Income tax (provision) benefit(495)     (495) 
Net income (loss) attributable to common stockholders$1,865   $2,849   $4,714  
Net income (loss) per share attributable to common stockholders     
Basic$0.05     $0.14  
Diluted$0.02     $0.04  
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders     
Basic34,016,248     34,016,248  
Diluted123,842,757     123,842,757  

 Nine Months Ended September 30, 2020
 GAAP Stock Based
 (in thousands, except per share amounts)
Revenue$319,804   $   $319,804  
Cost of revenue153,596   (253)  153,343  
Gross profit166,208   253   166,461  
Operating expenses      
Sales and marketing142,221   (5,931)  136,290  
Research and development36,240   (3,917)  32,323  
General and administrative35,031   (13,351)  21,680  
Total operating expenses213,492   (23,199)  190,293  
Income (loss) from operations(47,284)  23,452   (23,832) 
Other income (expense)      
Interest expense, net(1,078)     (1,078) 
Other income (expense), net38      38  
Total other expense, net(1,040)     (1,040) 
Net income (loss) before taxes(48,324)  23,452   (24,872) 
Income tax (provision) benefit(2,261)     (2,261) 
Net income (loss) attributable to common stockholders$(50,585)  $23,452   $(27,133) 
Net income (loss) per share attributable to common stockholders     
Basic and diluted$(1.54)    $(0.83) 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders32,746,492     32,746,492  

 Three Months Ended September 30,  Nine Months Ended September 30,
 2020 2021 2020 2021
Net income (loss)$1,865   $(9,262)  $(50,585)  $(38,642) 
Adjusted to exclude the following:       
Interest expense, net(64)  (61)  (1,078)  (452) 
Provision (benefit) for income taxes(495)  545   (2,261)  (514) 
Depreciation and amortization2,741   3,943   7,812   10,400  
Stock-based compensation expense2,849   7,220   23,452   23,704  
Other expense (income), net(100)  (196)  38   (714) 
Adjusted EBITDA$8,114   $1,613   $(16,020)  $(2,858) 


Shannon Hughes
Vice President, Corporate Communications

Willa McManmon
Managing Director, The Blueshirt Group