Udemy, Inc. ( UDMY ) shares are trading lower after it reported second-quarter FY24 revenue growth of 9% Y/Y to $194.4 million, beating the consensus of $194.16 million.

In the Enterprise Segment, customers rose 11% Y/Y to 16,595, and annual recurring revenue increased 17% Y/Y to $492.6 million.

In the Consumer Segment, monthly average buyers fell 4% Y/Y to $1.29 million and segment revenue fell 4% Y/Y to $73.8 million.

Adjusted gross profit increased 18% Y/Y to $123.7 million, with a margin expansion of 500bps Y/Y to 64%. Adjusted EBITDA rose significantly to $5.5 million from $1.9 million a year ago.

At the end of the quarter, cash, cash equivalents, restricted cash, and marketable securities totaled $422.1 million.

Repurchase: Udemy ( UDMY ) has repurchased $35 million worth of its shares, buying back 3.8 million shares in Q2. The company has $60 million left in its $150 million share repurchase program.

Outlook: Udemy ( UDMY ) forecasts Q3 revenue of $191 million – $194 million (vs. $210.17 million estimate) and has reduced its FY24 revenue outlook from $795 million – $805 million to $776 million – $782 million (vs. $799.2 million estimate).

The company will focus on high-growth large enterprise customers, aiming to boost operational efficiency and achieve significant margin expansion.

Udemy ( UDMY ) CEO Greg Brown said “strategic initiatives announced today” will enable the company to deliver significant Adjusted EBITDA over time.

Udemy ( UDMY ) is “confident in providing a target of $130 to $150 million for full year 2026.”

Also Read: Udemy Analysts Flag SMB Softness And Sales Cycle Elongation Leading To Enterprise Growth Moderation

Price Action: UDMY shares are trading lower by 17.76% at $7.60 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next:

Analyst Reaffirms Buy Rating on Udemy ( UDMY ) as Strategic Partnerships Boost Growth