Udemy Reports $200.3 Million Revenue in Q1 2025, Net Loss Improves to $1.8 Million

Udemy, Inc. reported a revenue of $200.3 million for the first quarter of 2025, reflecting a 2% increase from $196.8 million in the same period of the previous year. The growth was primarily driven by a 9% increase in revenue from the Enterprise segment, which accounted for 64% of total revenue, while the Consumer segment saw an 8% decline, contributing 36% to total revenue. The company recorded a net loss of $1.8 million, a significant improvement compared to a net loss of $18.3 million in the prior year, indicating a reduction in losses attributed to operational efficiencies and a decrease in instructor revenue share.

In terms of operational metrics, Udemy's customer base expanded, with the number of Udemy Business (UB) customers increasing by 7% to 17,216 as of March 31, 2025. The company's Annual Recurring Revenue (ARR) from UB customers rose by 8% to $519 million, driven by an increase in the number of customers, although overall net dollar retention rates showed a decline. The monthly average buyers for the Consumer segment decreased slightly to 1.4 million, down from 1.4 million in the previous year, reflecting challenges in attracting new learners.

Strategically, Udemy underwent a leadership transition with Hugo Sarrazin appointed as the new President and CEO on March 12, 2025, succeeding Greg Brown. The company also recognized $1.5 million in restructuring charges during the quarter as part of its ongoing efforts to enhance operational efficiency. The restructuring plan, initiated in September 2024, aims to streamline operations and reduce costs, impacting approximately 280 employees.

The company’s balance sheet showed total assets of $639 million as of March 31, 2025, up from $606 million at the end of 2024. Cash and cash equivalents stood at $190.7 million, with marketable securities totaling $167.4 million. Despite the positive cash flow from operations of $12.2 million during the quarter, Udemy continues to face challenges in achieving sustained profitability, with an accumulated deficit of $806.8 million as of the end of the quarter.

Looking ahead, Udemy remains focused on expanding its international footprint and enhancing its platform offerings, particularly in the Enterprise segment. The company anticipates that its investments in technology and operational efficiency will lead to improved margins over time. However, it acknowledges the uncertainties in the online learning market and the potential impact of economic conditions on its growth trajectory.