Q4 2024 Udemy Inc Earnings Call Transcript
Key Points
- Udemy Inc (UDMY) reported full-year revenue growth of 8% year over year, exceeding expectations.
- The company achieved a significant increase in adjusted EBITDA, moving from a loss in 2022 to a positive margin in 2024.
- Udemy Inc (UDMY) saw a 10x increase in generative AI course consumption, highlighting strong demand for AI-related content.
- The company closed nearly 50 deals over $100,000 in ARR, the highest for any quarter in 2024, indicating strong enterprise engagement.
- Udemy Inc (UDMY) is focusing on large enterprise customers, which show higher retention rates and offer better upsell and cross-sell opportunities.
- Consumer revenue declined by 5% year over year, impacted by lower individual course purchases.
- The company anticipates 2025 to be a transition year with flat to modest revenue growth, reflecting ongoing challenges.
- Udemy Inc (UDMY) faces a 2% point headwind from foreign exchange rates, affecting revenue growth.
- The company is experiencing a decline in net dollar retention rate, though it has stabilized compared to prior periods.
- There is a reduction in SMB sales capacity, which is expected to impact revenue growth in 2025.
Good day and welcome to Udemy's 4th quarter and full year 2024 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press then 1 on your touch tone phone. And to withdraw your question, please press star, then 2. Please note this event is being recorded.
I would now like to turn the conference over to Mr. Dennis Walsh. Please go ahead, sir.
Thank you, Chuck. Joining me today are Udemy's Chief Executive Officer, Greg Brown and Chief Financial Officer Sarah Blanchard. For this call, we'll also be joined by Udemy's founder and Chief Technology Officer, Eren Bali.
During the conference call, we will make forward-looking statements within the meaning of federal securities laws. These statements involve assumptions and are subject to known and unknown risks and
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