Overview

* Udemy ( UDMY ) Q2 revenue rises 3% yr/yr, beating analysts' expectations

* Adjusted EBITDA for Q2 beats consensus, but adjusted EPS misses expectations

* Co achieves GAAP profitability with net income of $6.3 mln

Outlook

* Udemy ( UDMY ) forecasts Q3 revenue between $190 mln and $195 mln

* Company expects full-year revenue between $784 mln and $794 mln

* Udemy ( UDMY ) anticipates Q3 adjusted EBITDA between $18 mln and $20 mln

* Company sees full-year adjusted EBITDA between $84 mln and $89 mln

Result Drivers

* ENTERPRISE GROWTH - Enterprise segment revenue increased 7% yr/yr, despite FX rate impact, driven by new and expanded customer relationships

* CONSUMER DECLINE - Consumer segment revenue decreased 4% yr/yr, impacted by FX rate changes and sluggish monthly average buyers

* AI INITIATIVES - Introduction of AI Packages and Role Play feature aimed at enhancing skills development and driving future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $199.90 $197 mln

Revenue mln (9

Analysts

)

Q2 Miss $0.04 $0.12 (8

Adjusted Analysts

EPS )

Q2 Net $6.30

Income mln

Q2 Beat $28.40 $23.10

Adjusted mln mln (8

EBITDA Analysts

)

Q2 Gross 66.0%

Margin

Q2 14.0%

Adjusted

EBITDA

Margin

Q2 67.0%

Adjusted

Gross

Margin

Q2 $133.80

Adjusted mln

Gross

Profit

Q2 Gross $132 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for Udemy Inc ( UDMY ) is $11.00, about 35.2% above its July 29 closing price of $7.13

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)