Udemy, Inc. reported a revenue of $191.4 million for the first quarter of 2026, a decrease of 4% from $200.3 million in the same period of the previous year. The decline was primarily attributed to a 19% drop in revenue from the Consumer segment, which fell to $58.5 million, while the Enterprise segment saw a 4% increase to $132.9 million. The Enterprise segment now accounts for 69% of total revenue, reflecting a strategic shift towards higher-margin offerings. Despite the revenue decline, the company managed to reduce its cost of revenue by 12%, resulting in a gross profit of $129.3 million and a gross margin of 68%, up from 65% year-over-year.

Operating expenses increased by 6% to $141.8 million, driven by higher sales and marketing costs, which rose by 9% to $89.6 million. Research and development expenses also saw a 7% increase, totaling $26.8 million. The company reported a net loss of $12.6 million, compared to a loss of $1.8 million in the prior year, reflecting increased personnel costs and acquisition-related expenses associated with its proposed merger with Coursera, Inc. The merger, announced in December 2025, is expected to close in the second half of 2026, pending regulatory approvals and other customary conditions.

Udemy's customer base remains significant, with over 85 million learners and more than 90,000 instructors contributing to its course offerings. The company reported a total of 16,822 Udemy Business (UB) customers, a slight decrease from the previous year, while its UB Annual Recurring Revenue (ARR) increased by 4% to $539.7 million. The company also noted a decline in its Net Dollar Retention Rate (NDRR) for UB customers, which fell to 93%, indicating challenges in upselling and retaining existing customers amid budget scrutiny.

Looking ahead, Udemy aims to enhance its platform through investments in artificial intelligence and personalized learning experiences. The company is focused on expanding its international footprint and increasing its subscription offerings, which accounted for 77% of total revenue in the latest quarter. Despite the current challenges, Udemy's management remains optimistic about future growth, driven by its dual-revenue model and ongoing investments in technology and content development. The company believes that its existing cash reserves, along with expected cash flows, will be sufficient to meet operational needs for at least the next 12 months.

About Udemy, Inc.

Udemy is a global online learning platform offering a marketplace of over 250,000 courses across technology, business, soft skills, and personal development. It serves individual learners and organizations through its consumer marketplace and Udemy Business, supporting skills development, reskilling, and workforce training. Leveraging AI, data insights, and a vast instructor network, Udemy provides personalized, high-quality content in multiple languages to a broad international audience.

This description was generated via AI from an annual report. Updated 8 months ago.

About 10-Q Filings

A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.

Key points about the 10-Q:

  • Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
  • Content: It includes:
    • Financial statements showing the company's current financial position
    • Updates from management on the performance and projections of the business
    • Information about potential risks the company faces
    • Details on how the company is run internally
  • Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.

Our Methodology

AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.

Our method:

  1. Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
  2. AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
  3. Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
  4. Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
  5. Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Read more about AssetRoom

Feedback & Corrections

Spot an error or have a suggestion? Contact us.