Gregory Scott Brown, the President and CEO of Udemy, Inc. (NASDAQ:UDMY), has sold 10,000 shares of the company's common stock. The shares were sold at a weighted average price of $8.5019, resulting in a total transaction value of approximately $85,018. This sale was conducted under a pre-established Rule 10b5-1 trading plan, which Brown adopted on March 4, 2024. Following this transaction, Brown directly owns 1,203,727 shares of Udemy.
In other recent news, Udemy, Inc. has reported a 6% year-over-year revenue growth in the third quarter of 2024, reaching $195 million and surpassing its own financial projections. This increase was largely driven by the company's strategic focus on large enterprise customers, who now account for approximately 75% of revenue. The company's annual recurring revenue (ARR) saw a 14% growth, exceeding $500 million. Udemy also added over 250 new customers to its business segment, bringing the total to more than 16,800.
However, the company noted a decline in consumer revenue by 8% to $69 million. Despite this, Udemy raised its full-year 2024 revenue outlook to a range of $780-$783 million. The company has set a long-term goal of achieving $130-$150 million in adjusted EBITDA by 2026, with a targeted 20% adjusted EBITDA margin by 2027.
In addition, Udemy's founder, Eren Bali, has rejoined the leadership team as CTO, focusing on product strategy and operational efficiency. The company's recent partnership with Workday (NASDAQ:WDAY) integrates Udemy's content with Workday's skills cloud, a move anticipated to promote internal mobility and require customers to use both platforms for full benefits. These are among the recent developments that have shaped the company's current standing and future outlook.
InvestingPro Insights
While Udemy's CEO Gregory Scott Brown has recently sold shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, Udemy's market capitalization stands at $1.23 billion, with a revenue of $776.17 million for the last twelve months as of Q3 2023. The company has shown a revenue growth of 10.14% over the same period, indicating a positive trend in its business operations.
An InvestingPro Tip highlights that Udemy holds more cash than debt on its balance sheet, which could be seen as a sign of financial stability. This strong cash position may provide the company with flexibility for future investments or to weather potential economic uncertainties.
Another InvestingPro Tip notes that Udemy has impressive gross profit margins. Indeed, the data shows a gross profit margin of 61.14% for the last twelve months as of Q3 2023, which is a strong indicator of the company's ability to generate profit from its core business activities.
It's worth noting that while the company is not currently profitable, analysts predict that Udemy will be profitable this year, according to another InvestingPro Tip. This projection could be of interest to investors looking at the company's future potential.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on Udemy. In fact, there are 5 more InvestingPro Tips available for UDMY, which could provide valuable context for understanding the company's financial position and market performance.
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