Udemy (NASDAQ:UDMY) Surprises With Q1 Sales But Full-Year Sales Guidance Slightly Misses Expectations

UDMY Cover Image — Udemy (NASDAQ:UDMY) Surprises With Q1 Sales But Full-Year Sales Guidance Slightly Misses Expectations

Adam Hejl

Wed, Apr 30, 2025, 2:29 PM 4 min read

Online learning platform Udemy (NASDAQ:UDMY) reported Q1 CY2025 results exceeding the market’s revenue expectations , with sales up 1.8% year on year to $200.3 million. The company expects next quarter’s revenue to be around $197 million, close to analysts’ estimates. Its non-GAAP profit of $0.12 per share was 20.5% above analysts’ consensus estimates.

Is now the time to buy Udemy? Find out in our full research report.

Udemy (UDMY) Q1 CY2025 Highlights:

Revenue: $200.3 million vs analyst estimates of $197.2 million (1.8% year-on-year growth, 1.6% beat)
Adjusted EPS: $0.12 vs analyst estimates of $0.10 (20.5% beat)
Adjusted EBITDA: $21.1 million vs analyst estimates of $18.36 million (10.5% margin, 14.9% beat)
The company dropped its revenue guidance for the full year to $783 million at the midpoint from $795 million, a 1.5% decrease
EBITDA guidance for the full year is $82 million at the midpoint, above analyst estimates of $79.4 million
Free Cash Flow Margin: 3.5%, similar to the previous quarter
Monthly Active Buyers: 17,216, up 1,146 year on year
Market Capitalization: $1.02 billion

Company Overview

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Udemy’s sales grew at a decent 13.3% compounded annual growth rate over the last three years. Its growth was slightly above the average consumer internet company and shows its offerings resonate with customers.

This quarter, Udemy reported modest year-on-year revenue growth of 1.8% but beat Wall Street’s estimates by 1.6%. Company management is currently guiding for a 1.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 1% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will see some demand headwinds.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.

Monthly Active Buyers

Buyer Growth

As a subscription-based app, Udemy generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.

Over the last two years, Udemy’s monthly active buyers, a key performance metric for the company, increased by 11.9% annually to 17,216 in the latest quarter. This growth rate is strong for a consumer internet business and indicates people love using its offerings.

In Q1, Udemy added 1,146 monthly active buyers, leading to 7.1% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating buyer growth just yet.

Revenue Per Buyer

Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the average buyer spends. ARPB is also a key indicator of how valuable its buyers are (and can be over time).

Udemy’s ARPB fell over the last two years, averaging 1.6% annual declines. This isn’t great, but the increase in monthly active buyers is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Udemy tries boosting ARPB by taking a more aggressive approach to monetization, it’s unclear whether buyers can continue growing at the current pace.

This quarter, Udemy’s ARPB clocked in at $11,635. It declined 5% year on year, worse than the change in its monthly active buyers.

Key Takeaways from Udemy’s Q1 Results

We were impressed by Udemy’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also excited its revenue, EPS, and EBITDA outperformed Wall Street’s estimates. On the other hand, it lowered its full-year revenue guidance. Overall, we still think this was a solid quarter with some key areas of upside. The stock traded up 3.6% to $7.13 immediately after reporting.

Udemy may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

Terms and Privacy Policy

Your Privacy Choices

Utah Privacy Notice

More Info