Udemy (UDMY) Q4 2023 earnings summary

Executive summary

• FY2023 revenue grew 16% YoY to $728.9M; Udemy Business revenue grew 34%, and full-year Adjusted EBITDA turned positive at $7.8M.

• Added 10M learners and more than 1,800 net new Enterprise customers in 2023, ending the year with 69M learners and 15,726 Enterprise customers.

• Board approved the first share repurchase program, authorizing purchases of up to $100M of common stock.

Financial highlights

• Q4 revenue was $189.5M, up 15% YoY and ~$3M above the high end of guidance; FY revenue was $728.9M, up 16%.

• Q4 GAAP net loss narrowed to $20.2M from $52.2M; FY GAAP net loss narrowed to $107.3M from $153.9M.

• Q4 non-GAAP net income was $3.8M versus a $22.8M loss; FY non-GAAP net income was $1.9M versus a $68.3M loss.

• Cash, cash equivalents, restricted cash and marketable securities totaled $480.9M at Q4 end.

Outlook and guidance

• Q1 2024 revenue guidance: $193M–$196M; Adjusted EBITDA margin guidance: breakeven.

• FY2024 revenue guidance: $795M–$810M; Adjusted EBITDA margin: 1.5%–2.0%.

• FY revenue outlook assumes a 3 percentage-point negative FX impact on YoY growth; Q1 outlook assumes historical FX changes will not meaningfully affect growth.

• FY weighted average share count guidance: 158M–163M basic and 160M–167M diluted; excludes potential share repurchases.