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Sep 30, 2023
Udemy Q3 2023 Earnings Report
Udemy Q3 2023 earnings exceeded expectations with strong revenue growth and positive adjusted EBITDA.
Key Takeaways
Udemy's Q3 2023 earnings showcased strong performance with revenue exceeding guidance and a 17% year-over-year increase. The company achieved its second consecutive quarter of positive adjusted EBITDA and free cash flow. Udemy Business revenue grew by 30% year-over-year, driven by new customer additions and expansions.
Total revenue increased by 17% year-over-year to $184.7 million, surpassing the high end of guidance by $4.7 million.
Udemy Business revenue grew by 30% year-over-year to $109.1 million, with ARR increasing by 26% to $443.1 million.
Consumer segment revenue increased by 1% year-over-year to $75.6 million.
Udemy ended the quarter with $483.0 million in cash, cash equivalents, restricted cash, and marketable securities.
Forward Guidance
Udemy provides revenue guidance for Q4 2023 to be between $184 million and $187 million and expects an adjusted EBITDA margin between 0.0% and 1.0%. For the full year 2023, Udemy expects revenue between $723 million and $726 million, with an adjusted EBITDA margin between 0.5% and 1.0%.
Positive Outlook
- Revenue is expected to be between $184 million and $187 million for Q4 2023.
- Adjusted EBITDA margin is projected to be between 0.0% and 1.0% for Q4 2023.
- Full year 2023 revenue is anticipated to be between $723 million and $726 million.
- Full year 2023 adjusted EBITDA margin is expected to be between 0.5% and 1.0%.
- The company is focusing on delivering value for all stakeholders, while making high-growth investments and managing cost structure efficiently.
Challenges Ahead
- Revenue guidance range assumes historical changes in foreign currency exchange rates will negatively impact total revenue year-over-year growth by approximately 2 percentage points in the fourth quarter and 3 percentage points for the full year 2023.
- Udemy's revenue guidance also assumes FX rates will remain constant for the remainder of the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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