The case for & against
Bull & Bear analysis
Bullish
Udemy, Inc. (NASDAQ: UDMY) is a prominent player in the online learning and training sector, offering a diverse range of courses geared towards skill development for both individuals and enterprises. Positioned strategically within the education technology landscape, Udemy focuses on addressing the growing demand for upskilling, particularly amid advancements in artificial intelligence (AI) and digital transformation. As a leader in the EdTech space, Udemy serves over 75 million learners and approximately 17,000 enterprise customers across more than 180 countries.
Bull says
- ↑Consumer subscriptions grew 43% YoY; subs now 74% of total revenue
- ↑Udemy Business ARR reached $517 M, driving 18% YoY growth
- ↑Adjusted EBITDA margin improved to 12% after $50 M cost‐savings; 2025 EBITDA guided $92–94 M
- ↑AI‐powered tools (e.g., AI role‐play) boost engagement and competitive positioning
- ↑Repurchased 4 M shares under a $50 M buyback, signaling confidence
- ↑High earnings yield, strong profitability and ROE, plus positive momentum support valuation
Bear says
- ↓Consumer revenue declined 8% YoY due to economic and price pressures in key markets
- ↓Net dollar retention slipped to 93% as upsell efforts and renewals slow
- ↓AI rollout execution risk could delay customer adoption and revenue benefits
- ↓Corporate L&D budget constraints may limit enterprise spend and new contract growth
- ↓Sales growth trends weakening; volatility and slowing earnings revisions pose headwinds
- ↓Geopolitical and macro uncertainties could further curb demand for training services
Investment themes with UDMY
Consumer Services↑ +0.53%
Everyday goods and personal services for consumers
MAR · DASH · EBAY
Earnings Call · Q3 2024 · Mgmt. Guidance
Updated 07-04-2026neutral
Transcript signals
Bull points
- We delivered a strong Q3 with revenue and adjusted EBITDA margin exceeding the high end of our guidance ranges. Revenue grew 6% year-over-year, including a two-point headwind from FX, and profitability reached a new record with adjusted EBITDA coming in significantly higher than anticipated. This was a direct result of our disciplined approach to driving operational efficiency throughout the business.
- We also achieved a new milestone of over 500 million in Udemy Business ARR. I'm immensely proud of our entire Udemy team and thankful for their unwavering commitment to our business and delivering on our mission.
- We're confident that this approach will position us as a stronger, more competitive company well into the future.
Bear points
- Yeah, I did mention that we are seeing continued scrutiny on budgets within organizations as companies rationalize not only their L&D spend, but the rationalizing spend across the entire enterprise. I mean, and we're doing the same thing. We're no different. But this streamlining for us presents an opportunity in that we talked for some time now about the opportunity for us to be a consolidator of, you know, L&D content, more importantly, strategy, and to be the platform that organizations look to as they're thinking more strategically about developing a skills development capability.
- Third quarter consumer revenue of $69 million was down 8% on a year-over-year basis, including a negative 3 percentage point impact from FX.
- we are raising our full year 2024 outlook. For revenue, we now expect to be in the range of $780 to $783 million, or nearly 7% growth at the midpoint, including an expected negative 2 percentage point impact from FX.
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