Udemy is an online learning platform for learners and instructors. The company had 1.34mn monthly average buyers in 2Q23. The platform helps learners to upgrade skills in an efficient and affordable way. Udemy operates two segments: Consumer and Enterprise. In 2Q23, the number of business customers reached 14,9k, up 19.4% YoY. The growth in the business segment demonstrated an impressive rate and has the potential to expand further. Affordability of education, large offering of courses in 75 languages, global support, interactive learning, personalized and immersive learning capabilities on data-driven with ML & AI platform, and instructor ratings are among the factors driving the popularity of the platform. The company completed its IPO at $29 per share in October 2021.
Udemy provides an online learning platform for teaching and learning. The Company offers over 200k courses from over 70k instructors on its learning platform in technical skills, business skills and personal development. The Company operates through two segments: Consumer and Enterprise. The company's courses can be accessed through its direct-to-consumer or Udemy Business (UB) offerings.
A changing work environment requires upskilling and reskilling workforce. The online educational platforms became an important element of the workforce reskilling during the pandemic, apart from offering personal development courses. According to Udemy, 84% of employers surveyed report COVID has increased the need to digitalize. The e-learning market opportunity is estimated at $166bn (2021) to grow to $476bn by 2027, including $69bn to $171bn growth of corporate learning. Key pillars of the online education model are quality, adaptability of content to swift market changes, the relevance of the content, and affordability. For organizations, online education provides analytics and insights, admin tools, customer support, and integration solutions.
Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
---|---|---|---|---|---|---|---|---|---|
Udemy Inc | UDMY.O | 1,493 | 2022-12-31 | 309.3 | 48.2 | 1.4 | 1.2 | ||
2U Inc | TWOU.OQ | 255 | 2022-12-31 | 15.5 | 6.6 | 6.5 | 5.9 | 1.1 | 1.0 |
Chegg Inc | CHGG.N | 1,175 | 2022-12-31 | 9.3 | 8.6 | 7.2 | 6.9 | 2.2 | 2.1 |
Coursera Inc | COUR.N | 2,711 | 2022-12-31 | 786.0 | 159.0 | 3.2 | 2.8 | ||
Instructure Holdings Inc | INST.N | 3,614 | 2022-12-31 | 31.7 | 26.2 | 19.2 | 17.2 | 7.5 | 6.9 |
PowerSchool Holdings Inc | PWSC.N | 4,489 | 2022-12-31 | 26.8 | 23.4 | 24.9 | 22.0 | 8.2 | 7.4 |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
---|---|---|---|---|---|---|---|
Revenue | 276 | 430 | 518 | 626 | 733 | 845 | 941 |
Growth | 56% | 21% | 21% | 17% | 15% | 11% | |
EBITDA | -50 | -31 | -28 | -79 | -37 | 85 | 161 |
EBITDA margin | -18.2% | -7.1% | -5.4% | -12.7% | -5.0% | 10.1% | 17.1% |
Net income | -70 | -78 | -78 | -137 | -80 | 36 | 106 |
Net margin | -25.2% | -18.1% | -15.0% | -21.9% | -10.9% | 4.3% | 11.3% |
Net debt | -49 | -175 | -534 | -424 | -336 | -346 | -346 |
MktCap | 2,685 | 1,365 | 1,365 | 1,365 | 1,365 |
Historical Multiples
2021 | 2022 | 2023 | 2024 | 2025 | |
---|---|---|---|---|---|
EV/Revenue | 4.2 | 1.5 | 1.4 | 1.2 | 1.1 |
EV/EBITDA | -77.0 | -11.8 | -27.8 | 12.0 | 6.3 |
P/E | -34.6 | -10.0 | -17.1 | 37.9 | 12.9 |