EX-99.1 2 fy22q4pressrelease.htm EX-99.1 Document


Udemy Reports Fourth Quarter and Full Year 2022 Results

•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, CA / February 14, 2023 - 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,		% ChangeFiscal Year Ended
December 31,		% Change
20222021YoY20222021YoY
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 Revenue55 %53 %260bps56 %54 %200bps
Non-GAAP Gross Profit$94.0 $72.8 29 %$362.0 $282.3 28 %
  % of Revenue57 %54 %320bps58 %55 %280bps
GAAP Net Loss$(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 Customers13,920 10,515 32 %
Annual Recurring Revenue$371.7 $239.3 55 %
Net Dollar Retention115 %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 Revenue66.6 %66.9 %(30)bps66.7 %65.8 %90 bps
Consumer Segment
Monthly Average Buyers1.36 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 Revenue50.0 %47.6 %240 bps52.6 %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, 2023Year Ending December 31, 2023
Revenue$168 - $172 million$700 - $730 million
Adjusted EBITDA Margin*(10)% - (8)%(4)% - (2)%
Weighted Average Share Count146 million149 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 https://investors.udemy.com/. 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)
(Unaudited)
Three Months Ended December 31, Fiscal Year Ended December 31,
2022202120222021
Revenue$165,330 $135,451 $629,097 $515,657 
Cost of revenue (1)(2)73,990 64,122 275,320 236,024 
Gross profit91,340 71,329 353,777 279,633 
Operating expenses (1)(2)
Sales and marketing88,558 70,624 301,347 227,023 
Research and development29,961 19,208 104,556 66,107 
General and administrative26,917 22,442 99,064 64,410 
Total operating expenses145,436 112,274 504,967 357,540 
Loss from operations(54,096)(40,945)(151,190)(77,907)
Other income (expense)
Interest income (expense), net3,335 436 4,297 (16)
Other expense, net(257)(206)(4,696)(920)
Total other income (expense), net3,078 230 (399)(936)
Net loss before taxes(51,018)(40,715)(151,589)(78,843)
Income tax provision(1,135)(669)(2,286)(1,183)
Net loss attributable to common stockholders$(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 diluted143,120,852 108,168,420 140,873,504 54,972,827 

(1)Includes stock-based compensation expense as follows (in thousands):
Three Months Ended December 31, Fiscal Year Ended December 31,
2022202120222021
Cost of revenue$1,920 $736 $5,360 $1,623 
Sales and marketing10,538 2,852 29,054 8,637 
Research and development7,547 2,370 20,850 6,816 
General and administrative8,245 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,
2022202120222021
Cost of revenue$725 $729 $2,900 $1,022 
Sales and marketing341 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)
(Unaudited)
December 31,December 31,
20222021
Assets
Current assets:
Cash and cash equivalents$313,685 $533,868 
Marketable securities151,687 — 
Accounts receivable, net 104,530 73,180 
Prepaid expenses and other current assets14,878 15,927 
Deferred contract costs, current30,234 18,898 
Total current assets615,014 641,873 
Property and equipment, net7,012 9,887 
Capitalized software, net27,412 20,054 
Operating lease right-of-use assets11,377 — 
Restricted cash, non-current3,629 2,900 
Deferred contract costs, non-current35,411 25,647 
Strategic investments12,104 10,000 
Intangible assets, net9,331 13,597 
Goodwill12,646 12,646 
Other assets3,632 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 liabilities31,247 40,140 
Content costs payable37,310 35,961 
Accrued compensation and benefits22,882 22,341 
Operating lease liabilities, current7,002 — 
Deferred revenue, current273,937 208,274 
Total current liabilities386,907 341,343 
Operating lease liabilities, non-current6,545 — 
Deferred revenue, non-current4,342 2,280 
Other liabilities, non-current464 6,528 
Total liabilities398,258 350,151 
Stockholders' equity:
Preferred stock— — 
Common stock1 1 
Additional paid-in capital951,946 848,229 
Accumulated other comprehensive loss(233)(1)
Accumulated deficit(612,404)(458,529)
Total stockholders’ equity339,310 389,700 
Total liabilities and stockholders' equity$737,568 $739,851 



Udemy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Fiscal Year Ended December 31,
20222021
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 amortization21,216 15,297 
Amortization of deferred sales commissions32,279 17,801 
Stock-based compensation81,293 34,680 
Allowance for credit losses960 326 
Accretion of marketable securities(896)— 
Non-cash operating lease expense6,205 — 
Unrealized loss on strategic investments2,896 — 
Other690 — 
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 payable1,349 4,389 
Operating lease liabilities(6,487)— 
Deferred revenue67,725 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 securities7,500 — 
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 options7,149 10,878 
Net proceeds from issuance of redeemable convertible preferred stock— 2 
Proceeds from share purchases under employee stock purchase plan9,192 — 
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 activities14,755 418,634 
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 period536,768 177,931 
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)
(Unaudited)

Three Months Ended December 31, 2022
GAAPStock-based CompensationAmortization of Intangible AssetsNon-GAAP
(in thousands, except share and per share amounts)
Revenue$165,330 $— $— $165,330 
Cost of revenue73,990 (1,920)(725)71,345 
Gross profit91,340 1,920 725 93,985 
Operating expenses
Sales and marketing88,558 (10,538)(341)77,679 
Research and development29,961 (7,547)— 22,414 
General and administrative26,917 (8,245)— 18,672 
Total operating expenses145,436 (26,330)(341)118,765 
Loss from operations(54,096)28,250 1,066 (24,780)
Other income (expense)
Interest income, net3,335 — — 3,335 
Other expense, net(257)— — (257)
Total other income, net3,078 — — 3,078 
Net loss before taxes(51,018)28,250 1,066 (21,702)
Income tax provision(1,135)— — (1,135)
Net loss attributable to common stockholders$(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 diluted143,120,852 143,120,852 



Fiscal Year Ended December 31, 2022
GAAPStock-based CompensationAmortization of Intangible AssetsNon-GAAP
(in thousands, except share and per share amounts)
Revenue$629,097 $— $— $629,097 
Cost of revenue275,320 (5,360)(2,900)267,060 
Gross profit353,777 5,360 2,900 362,037 
Operating expenses
Sales and marketing301,347 (29,054)(1,366)270,927 
Research and development104,556 (20,850)— 83,706 
General and administrative99,064 (26,029)— 73,035 
Total operating expenses504,967 (75,933)(1,366)427,668 
Loss from operations(151,190)81,293 4,266 (65,631)
Other income (expense)
Interest income, net4,297 — — 4,297 
Other expense, net(4,696)— — (4,696)
Total other expense, net(399)— — (399)
Net loss before taxes(151,589)81,293 4,266 (66,030)
Income tax provision(2,286)— — (2,286)
Net loss attributable to common stockholders$(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 diluted140,873,504 140,873,504 



Three Months Ended December 31, 2021
GAAPStock-based CompensationAmortization of Intangible AssetsNon-GAAP
(in thousands, except share and per share amounts)
Revenue$135,451 $— $— $135,451 
Cost of revenue64,122 (736)(729)62,657 
Gross profit71,329 736 729 72,794 
Operating expenses
Sales and marketing70,624 (2,852)(384)67,388 
Research and development19,208 (2,370)— 16,838 
General and administrative22,442 (5,018)— 17,424 
Total operating expenses112,274 (10,240)(384)101,650 
Loss from operations(40,945)10,976 1,113 (28,856)
Other income (expense)
Interest income, net436 — — 436 
Other expense, net(206)— — (206)
Total other income, net230 — — 230 
Net loss before taxes(40,715)10,976 1,113 (28,626)
Income tax provision(669)— — (669)
Net loss attributable to common stockholders$(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 diluted108,168,420 108,168,420 



Fiscal Year Ended December 31, 2021
GAAPStock-based CompensationAmortization of Intangible AssetsNon-GAAP
(in thousands, except share and per share amounts)
Revenue$515,657 $— $— $515,657 
Cost of revenue236,024 (1,623)(1,022)233,379 
Gross profit279,633 1,623 1,022 282,278 
Operating expenses
Sales and marketing227,023 (8,637)(481)217,905 
Research and development66,107 (6,816)— 59,291 
General and administrative64,410 (17,604)— 46,806 
Total operating expenses357,540 (33,057)(481)324,002 
Loss from operations(77,907)34,680 1,503 (41,724)
Other income (expense)
Interest income, net(16)— — (16)
Other expense, net(920)— — (920)
Total other expense, net(936)— — (936)
Net loss before taxes(78,843)34,680 1,503 (42,660)
Income tax provision(1,183)— — (1,183)
Net loss attributable to common stockholders$(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 diluted54,972,827 54,972,827 

Three Months Ended December 31, Fiscal Year Ended December 31,
2022202120222021
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 taxes1,135 669 2,286 1,183 
Depreciation and amortization5,600 4,897 21,216 15,297 
Stock-based compensation expense28,250 10,976 81,293 34,680 
Other expense, net257 206 4,696 920 
Adjusted EBITDA$(20,246)$(25,072)$(48,681)$(27,930)


Investor Contact
Dennis Walsh
Vice President, Investor Relations
dennis.walsh@udemy.com

Media Contact
Abby Welch
Senior Director, Corporate Communications
abby.welch@udemy.com