Slide 1: 4Q & FY24 Earnings Presentation
4Q & FY24 Earnings Presentation February 13, 2025 1
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation and any accompanying oral commentary include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than those of historical fact, including information concer
Slide 3: Transforming lives through learning
Transforming lives through learning
Slide 4: Key takeaways
Key takeaways Increased 2024 revenue by 8% year-over-year, driven by 18% Udemy Business segment revenue growth. Achieved a new milestone with Q4 adjusted EBITDA margin expanding to 10%, reflecting disciplined cost management and scaling of operations. Added ~1,400 net new customers in 2024, with the
Slide 5: Financial results and highlights
Financial results and highlights % Change FX Q4 2024 % Change FX FY 2024 Q4 2024 FY 2024 YoY Impact Guidance YoY Impact Guidance Revenue $199.9M 5% (2pts) $193M to $196M $786.6M 8% (2pts) $780M to $783M Gross Margin 64% 600 bps 63% 500 bps Non-GAAP Gross Margin1 64% 500 bps 64% 500 bps Net Loss ($9.
Slide 6: Category leading enterprise software performance
Category leading enterprise software performance Annual Recurring Revenue ($M) $505M $517M $493M $479M $466M $443M Udemy Business $420M Q4 2024 ARR Increased 11% YoY Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Dollar Retention Rate (NDRR)1 108% 106% 106% 104% 101% 99% 98% Large Custo
Slide 7: Large and growing enterprise global customer base
Large and growing enterprise Key Q4 2024 Wins and global customer base Expansions 17,096 Udemy Business customers 51% Fortune 100 72% Nikkei 225 7Note: Data as of December 31, 2024
Slide 8: Vibrant consumer marketplace supports enterprise growth
Vibrant consumer marketplace supports enterprise growth Courses added Learners Total Courses per month Instructors Languages 77M 250k 5k+ 80k 75 Revenue Segment Adjusted Gross margin (in millions) Monthly Average Buyers (in thousands) $74.9 $79.2 $73.8 $69.3 $69.8 1,366 1,442 1,286 1,312 1,321 51% 5
Slide 9: Accelerating path toward high end of Adjusted EBITDA target
Accelerating path toward high end of Adjusted EBITDA target Clear line of sight to achieving 20% long-term adjusted EBITDA margin target in 2027, driven by disciplined approach to expense management and driving operational efficiencies throughout the business. Adjusted EBITDA margin ~2.0 - 3.0% ~20% ~
Slide 10: Key initiatives to drive revenue growth
Key initiatives to drive revenue growth Reallocating resources Expanding penetration Supporting growth Revitalizing the upmarket toward large within existing customer through strategic Consumer enterprise companies base of large enterprise partnerships marketplace customers Terial icons ● >5k Udemy
Slide 11: Becoming the go-to destination for career advancement
Becoming the go-to destination for career advancement Career Academies will provide learners structured, guided pathways to develop and advance their careers 11
Slide 12: Expanding the business and soft skills learning experience
Expanding the business and soft skills learning experience Role play simulations will build upon the Udemy business and soft skills content Practice soft skills Platform for instructors (scale to thousands of role play simulations by the end of 2025) 12
Slide 13: Q1 and full year 2025 outlook
Design WIP Q1 and full year 2025 outlook Q1 2025 Full Year 2025 Revenue* $195 to $199 million $787 to $803 million YoY growth at midpoint* 0% 1% FX impact* (2pts) (2pts) Adjusted EBITDA $17 to $19 million $75 to $85 million Margin at midpoint 9% 10% *Revenue guidance assumes FX rates will remain unc
Slide 14: Key takeaways
Key takeaways Increased 2024 revenue by 8% year-over-year, driven by 18% Udemy Business segment revenue growth. Achieved a new milestone with Q4 adjusted EBITDA margin expanding to 10%, reflecting disciplined cost management and scaling of operations. Added ~1,400 net new customers in 2024, with the
Slide 15: Appendix
Appendix 15
Slide 16: Key Business Metrics Definitions
Key Business Metrics Definitions A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at an
Slide 17: GAAP to Non-GAAP Gross Margin
GAAP to Non-GAAP Gross Margin 1 We calculate gross margin as gross profit divided by revenue for the same period 17 2 We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period
Slide 18: GAAP to Non-GAAP Net Income (Loss)
GAAP to Non-GAAP Net Income (Loss) 18 1 For periods presented with a net loss, potentially dilutive securities were excluded from the computation of net loss per share, diluted, because the impact of including them would have been anti-dilutive
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 1 We calculate net loss margin as net loss divided by revenue for the same period 19 2 We calculate adjusted EBITDA margin as adjusted EBITDA divided by revenue for the same period