Udemy (UDMY) investor relations material

Strategic vision and transformation

• Pivoting from an online content catalog to an AI-enabled skill acceleration platform, focusing on enterprise and reskilling needs driven by AI advancements.

• Emphasizing platform capabilities such as assessments, role plays, labs, and mastery validation to ensure ongoing skill relevancy.

• Building a technology stack that integrates with enterprise systems for just-in-time, contextual learning and robust skill dashboards.

• Doubling the number of SKUs, especially AI-focused offerings, and expanding partnerships to enhance product reach and value.

• Announcing new partnerships (e.g., Indeed, Glean, Workera) to deliver reskilling solutions and feedback loops within enterprise workflows.

Financial performance and growth initiatives

• 2023 is a transition year with changes in go-to-market strategy and renewal pressures from the COVID cohort, but a record pipeline of large enterprise deals is emerging.

• Subscription business is experiencing rapid growth, with July showing 60% year-over-year increase and targets for 250,000 subscribers by year-end.

• Consumer business is refocused with a new dedicated team and leadership, aiming to reverse decline and drive higher LTV through subscriptions.

• Margin target of 20% for fiscal 2027, with a strong track record of EBITDA performance and plans to balance growth and profitability.

• Nearly $400 million in cash and a $200 million revolver provide flexibility for M&A, with a focus on strategic, accretive opportunities in technology, geography, and adjacent categories.

Product innovation and customer impact

• Launch of the MCP server enables integration of course content into enterprise LLMs, driving large new deals and differentiating the platform.

• Role play simulations and AI tools for both learners and instructors enhance soft skills training and allow enterprises to create custom content.

• New product editions, such as a creator edition for enterprises, increase platform stickiness and customization.

• Ancillary revenue streams, including ad business and certification vouchers, are being layered in, with high-margin opportunities like CompTIA vouchers.

• Focus on enterprise and subscription growth, with ancillary revenues supplementing the repositioned business model.