Udemy reports 2024 financial results with Enterprise growth and consumer segment decline
Udemy, an online learning and skills marketplace, has released its financial results for the fourth quarter and full year ending December 31, 2024.
The company reported 8% revenue growth year-over-year, with its Enterprise segment, Udemy Business (UB), growing 18% to $494.5 million. The company also completed a $150 million share repurchase program.
Greg Brown, Udemy’s President and CEO, stated:
“Udemy’s strong finish to the year underscores the disciplined execution of our strategy and the significant progress we are making to position the company for success. The opportunity ahead for Udemy remains massive as we continue to address the growing demand for skills development for enterprises and individuals globally, particularly in the era of generative AI.”
Key financial results (GAAP and Non-GAAP)
Full-year 2024 highlights:
Total revenue: $786.6 million, up 8% year-over-year (YoY), despite a 2-percentage-point negative impact from foreign exchange (FX) fluctuations.
Enterprise (Udemy Business) revenue: $494.5 million, a YoY increase of 18%.
Consumer segment revenue: $292.1 million, down 5% YoY.
Adjusted EBITDA: $43 million, up 451% from $7.8 million in 2023.
Net loss: $85.3 million, a 21% YoY improvement from $107.3 million.
Q4 2024 highlights:
Total revenue: $199.9 million, a 5% YoY increase.
Enterprise segment revenue: $130.1 million, up 13%.
Consumer segment revenue: $69.8 million, down 7%.
Adjusted EBITDA: $19.5 million, a 390% YoY increase from $4 million.
Net loss: $9.9 million, an improvement from a $20.2 million loss in Q4 2023.
Enterprise growth and customer expansion
Udemy Business continued its strong performance, reaching $516.9 million in annual recurring revenue (ARR), up 11% YoY. The company ended the year with 17,096 enterprise customers, an increase of 9%.
Notable customer expansions included partnerships with Dropbox (U.S.), Nasdaq (U.S.), Itaú Unibanco (Brazil), Grupo Bancolombia (Colombia), Krungthai Bank (Thailand), and E.ON (Germany).
The company also reported strong adoption of its AI-powered Skills Mapping feature, with over 1,800 enterprise customers leveraging the tool since its launch in November 2024.
Consumer segment decline
Udemy’s consumer segment saw a decline in 2024, with monthly average buyers decreasing by 3% year-over-year and consumer revenue falling by 5%. This decline was driven by shifting market trends, reduced discretionary spending, and unfavorable FX fluctuations.
The consumer segment consists of individual learners who purchase courses directly from Udemy, rather than accessing content through enterprise or corporate subscriptions. While this segment has historically contributed significantly to Udemy’s revenue, the recent downturn underscores the company’s increasing reliance on its enterprise business for long-term growth.
Strategic initiatives and corporate updates
Share repurchase program: Udemy completed its $150 million share buyback in Q4, reflecting confidence in its long-term growth strategy.
Geographic expansion: The company opened a new office in Mexico City to scale operations in Latin America.
Strategic partnerships: Udemy partnered with Ingram Micro to expand access to its business learning solutions across India.
Leadership appointments: The company added two independent board directors, Marylou Maco (Avaya) and Debra Chrapaty (Toast).
2025 financial outlook
For the full year 2025, Udemy projects:
Revenue between $787 million and $803 million.
Adjusted EBITDA between $75 million and $85 million.
Q1 2025 revenue guidance of $195 million to $199 million.
Shifting focus to enterprise growth
Udemy's 2024 results reflect continued growth in its enterprise segment, improved profitability, and strategic advancements in AI-powered learning. While the consumer segment faced headwinds, the company remains focused on expanding enterprise solutions and enhancing AI-driven learning experiences.
Brown emphasized:
" Our strategic pivot to focus resources upmarket to better serve large enterprise customers is on track. While 2025 will be a transition year as we execute on our plan, we have a strong foundation in place to drive sustainable, profitable growth, accelerate product innovation, and deliver long-term value for all stakeholders.”
