Hello, and thank you for joining us today. I'm Dennis Walsh, Vice President of Investor Relations at Udemy. Before we begin, we want everyone to be aware that during the formal presentation and question and answer session that follows, members of Udemy's leadership team will make reference to forward-looking statements concerning management's expectations, goals, objectives, and similar matters. Those statements are based only on information available to us at this time. There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. Some of those factors are set forth in our annual report on Form 10-K, our most recent 10-Q, in today's meeting and other public disclosures. Our discussions and presentation today include information regarding GAAP and non-GAAP financial measures. You can find a reconciliation of GAAP to non-GAAP results on our investor relations website at investors.udemy.com. Let's turn to the agenda. We're so excited for Udemy's first-ever Investor Day and to share the plans our teams have for growing the business over the next several years. In a moment, Udemy's Chairman and CEO, Gregg Coccari, will kick things off with an intro and overview of Udemy's growth strategy. You'll hear from three leaders that oversee our content, product, and engineering teams. Next, we'll provide an overview of Udemy's brand, engagement, and marketing strategies. After a short break, you'll hear from three Udemy Business leaders, followed by a dive into our financial model and long-term outlook from our CFO. After another short break, we will open up the call for questions from Udemy sell-side analysts. Throughout the day, you'll also hear from Udemy learners, customers, and instructors who will share the way working with Udemy has helped them meet their goals. Before I turn it over to Greg, I invite you to meet Udemy. Welcome to Udemy. We are a global online learning company for individuals and organizations everywhere. You can learn with us in 75 different languages and counting. Individually, we each bring our unique perspective to reimagine the way knowledge is shared. Together, we can improve lives by empowering learners, instructors, and organizations around the world. These are some of the companies that trust us to upskill and reskill their teams. We currently have thousands of courses available, with new additions published every month on emerging topics. You can learn almost anything. Database programming, web development, marketing strategy, graphic design, and more. We hope that you join us for the next step in your learning journey. Check us out at udemy.com. Welcome, everybody, to Udemy's 2022 Investor Day. Over the course of the next three hours, our leadership team will share how we are working to deliver on Udemy's mission to improve lives through learning. What excites me the most are some of the personal stories you'll hear today from instructors, learners, Udemy Business customers about how Udemy has helped them achieve their goals. A major shift is happening in the way people learn and work. Traditional education and training methods are quickly becoming outdated. A recent study found that companies estimate that in the next five years, 40% of the core skills will change and approximately 50% of the global workers will require reskilling. This is creating a massive opportunity as learners and organizations look for ways to reskill and upskill to keep up with the pace of change. Many of today's learning options have a number of shortcomings, including relevance, quality, breadth, scalability, and affordability of content. Udemy addresses these shortcomings and effectively connects the global ecosystem of learners to up-to-date knowledge from experts and practitioners around the world. We built a world-class SaaS platform on the top of a vibrant consumer marketplace. This allows us to offer fresh, high-quality, affordable learning to organizations and individuals around the world and help them achieve their critical business outcomes. Udemy was launched in 2010 and has consistently delivered sustainable growth. We have a proven land and expand strategy for Udemy Business that you will hear more about later from Greg Brown and his team. We've built a comprehensive marketplace that has attracted more than 57 million learners from all around the world. Today, Udemy's platform allows individual learners and organizations access to affordable, relevant, and up-to-date content across nearly every industry. Yet we're just getting started. We expect to continue executing our land and expand strategy in Udemy Business. As we further integrate into the flow of work and deliver more immersive learning experiences, we anticipate sustainable high growth for Udemy Business. Finally, we continue to roll out innovative product offerings while expanding our geographic footprint. It's important that we set aspirational goals for what success looks like at Udemy. We only succeed when our partners succeed. We want Udemy to be the first choice for all learners. We want our instructors to have the best platform that allows them to build meaningful businesses. Finally, we want Udemy to be the primary solution for tech, business, and leadership learning. We've made great progress for each of these goals. In the presentations that follow, you will hear directly from the leaders that are making all of this happen. These are some of the leaders that are bringing our vision to life. However, we have more than 1,600 Udemies from around the world, and their contributions are crucial to our success. With that, since it all starts with our best-in-class content, it's my pleasure to introduce Scott Rogers, our SVP of Supply Strategy. Hi, my name is Scott Rogers, and I lead supply and instructor strategy at Udemy. Over the next few minutes, I'm gonna talk about how our marketplace model works and how it fuels our subscription businesses. I've spent the better part of two and a half decades in traditional professional skills publishing, and I've learned that great content comes from three key elements. To create a great end result, you of course need expert creators. If the source material isn't good, the end result won't be either. Once you create the content, you need audience engagement. You need to see how it's resonating with learners. When you get that learner feedback, you need to optimize the content. The scale and the speed of that feedback loop is what can create truly great content. It's also what differentiates Udemy from traditional publishers. As a publisher, you can find expert creators, you create the course through your production system, and then you put it on your platform, and you might not update it for two years or even three years. At Udemy, our instructors are incentivized to listen to learner feedback and optimize their content consistently. Over the next few slides, I'll explain how this works. Global experts flock to Udemy because of our scale. Tens of thousands of instructors have created hundreds of thousands of courses to serve tens of millions of global learners. Not only does this provide us with a tremendous amount of learner data, it also provides tremendous incentive for instructors to come to our platform. We paid $189 million to instructors over the past 12 months, and as a result, global experts come to publish. We are now averaging almost 5,000 courses published in our platform every single month, and each of these is a shot at innovation. You can innovate by understanding corporate needs that are emerging, for instance, the ESG course. You can innovate by serving learners better. When Angela Yu brought her iOS bootcamp to Udemy, there were two other courses that had a majority of market share in the topic. Now Angela has the number one course on Udemy. You can also innovate by using the tools that we provide all instructors effectively. In the case of Stephane Maarek, he uses our practice test functionality, so learners can actually use quizzes that he created that are timed, that are a proxy for the actual official Amazon exam, so that learners will know if they're ready to go take the official exam. There are many different ways for instructors to innovate. One of the most predictable is simply being first or early to market on our platform to meet the needs of our millions of learners. You can see this happen across all of our different topic areas, whether it's business topics like Emergency COVID-19 Preparedness course, which came to our platform before the shelter-in-place orders, or time and time again in tech. A key thing to note here is that our instructors are unconstrained by the traditional publishing model. Again, as a publisher, you create content with an instructor, you put it on your platform, and you'll typically update it in two or three years. Our instructors have access to the Udemy platform 24/7, so they're free to publish a month before the software release. Should the software change, they can go in that morning, that evening, and update the content for their learners. Learners love it, and our corporate partners love it. They are able to deal with digital transformation with content that is constantly first and refreshed. Our scaled feedback loops drive ongoing improvement. Our algorithm tracks and tries to match learner need with the right course, and one of the key metrics that it tracks is ratings and reviews. If you're an instructor who has a course on the first page of the search and you get a poor review, it's in your financial interest to try and cure that learner problem. Of course, if you go in and do that, all future learners are going to get the benefit of that improvement as well. There's similar incentives with our Q&A. Instructors who create loyal learners are more likely to have those learners purchase their next course in the marketplace or use their courses in our subscription platforms, which means instructors make more money when they serve learners well. It's not just the qualitative feedback loops, it's also quantitative data that our platform provides to instructors. You can see several of the examples here. Instructors are able to see what their learners are bookmarking. That is, what do learners think is the most important thing that they wanna go back to again and again? If you're an instructor, you might add more content around the topic. You might even add or create a new course if the topic is big enough. We also give instructors the ability to understand where do learners start a lecture and not complete it. If you're an instructor, you might refilm with more energy. You might shorten the lecture. You might add a quick win to keep learners engaged. The specific intervention is up to you, but our platform provides you with the knowledge you need and the data so that you can intervene in the right place. Our instructors love this. In fact, our top instructors update each of their courses an average of four and a half times a year. That's how we enable world-class experts at a global scale. I mentioned Angela earlier. She published her first course on Udemy in 2017. She now has 1.6 million learners enrolled in her courses, and a 4.7 out of five average. Jose Portilla now has 3 million learners enrolled in his courses and a 4.6 average. That is teaching at scale. It's not just Angela and Jose. 19 instructors will make $1 million or more on Udemy this year, and hundreds of instructors will make more than $100,000 this year. That, in essence, is how our marketplace works. Tens of thousands of instructors creating hundreds of thousands of courses which compete against each other to best serve learner needs, where the most effective courses rise to the top, and we pick from the best of the best to fuel our subscription businesses, Udemy Business and Personal Plan. When we're curating our courses, we look at a host of different factors. One of the key one is just the simple scaled learner behavior data from the marketplace in UB. What are our millions of learners searching for? What are they enrolling in? What are they consuming? We also look at average rating. We wanna see and make sure that instructors continue to serve learners well over time. We of course look at instructor responsiveness. I've explained how we provide our instructors with data, qualitative and quantitative. We wanna make sure that they're using this. Finally, input from our corporate customers, whether this comes from our hundreds of customer success team members who are constantly talking to our customers and giving us their input and guidance, or through in-product functionality. A system that's unique to Udemy is to allow our corporate customers, if they see a course in the marketplace which isn't yet in Udemy Business, they can request it. If the course meets our curation thresholds, we'll typically add it. In fact, in 2021, we added over 1,000 courses based on customer course requests with an average response time of under four hours. As you can imagine, our customers love this. Looking at our curation on a month-to-month basis, we will add typically 200 courses per month and remove 50 courses per month. When we remove courses, it's because they've fallen below our ratings guidelines or the content is simply not being used by our customers because there are other, more effective options available. As you see here, over the past few years, our collection has almost tripled from about 2,500 courses in 2019 to over 8,000 English language courses today. As always, we wanna make sure that our curation efforts are adding learner value, and we track a number of metrics. One of them is our Udemy Business learner ratings. That is we track all employees at our customers, and over the last 90-day period, what is the average of those ratings. As you can see here in September, it averaged 4.5. Absolutely terrific. We also track our learner Net Promoter Score, and in Q1 of 2022, that was a 58 NPS, considered excellent in the industry. I've talked about Udemy's marketplace, but Udemy is actually many different marketplaces of which English is one. These local marketplaces around the world, many of them now have scaled to the point that we can create local language collections for our Udemy Business product. As you see here, there are 14 collections, English and the 13 local language collections in Udemy Business. If you look at the slide, the rings show how many local language speakers there are for each language, giving you a sense of the addressable market, which is huge. It's not just that we have local language. We have local experts creating locally relevant content. You can imagine how important this is. If you're a student in Japan and you wanna learn business management and you're listening to an American course that talks about McDonald's in Iowa or football examples, that's gonna be less relevant to you than a Japanese business person with locally relevant context. Very, very important, and our learners love having this. We're investing in building out these local collections. We now have 13 local language collections plus English with almost 11,000 courses in them. In the first half of this year, we added 1,700 courses, which amounts to over 14,000 hours of new content. The key takeaways from this session are scaled feedback loops incentivize and enable instructors to create high quality and relevant learner experiences in a way that the publishing model simply can't match. Our marketplace supply engine powers Udemy Business with broad coverage and freshness. Finally, our global language coverage by local experts provides competitive differentiation and learner value. Thank you for your time. Hi, everyone. I'm Prasad Gune, and I'm responsible for the product team here at Udemy. I'm joined by Seth Hodgson, our VP of Engineering. We're excited to talk to you today about Udemy product and engineering. Howdy, folks. We're gonna be talking today about how our product and engineering teams help deliver on Udemy's mission through four pillars. First, a scalable integrated platform that enables instructors, learners, and organizations with a dynamic flywheel of content, feedback, and incentives. Second, comprehensive learning, where we support different ways to learn, whether it be on-demand, guided, immersive, or cohort learning, or a combination. Next, extensive integrations so that our rich content offerings are available on our own and third-party platforms. Last but not least, powerful data which we leverage to drive outcomes for our customers. We believe that these four pillars allow us to offer truly differentiated value to our customers. Let's dive in, shall we? Let's talk about our scaled and integrated platform. We believe this is a major differentiator for us. The power starts with bringing together three key customers at scale, instructors, learners, and organizations. Having all three of these customer types enables us to create tremendous value that exceeds the sum of the parts. Let's see how. Our 74,000 instructor partners are expert practitioners in their field. They dynamically expand our knowledge base by providing fresh, relevant content for our learners and organizations. This includes the immersive learning experiences you'll hear about from Seth. In turn, they're able to monetize their knowledge and receive learner feedback on their content. Our 57 million learners acquire knowledge and skills for career development. At that scale, we are able to rapidly learn and experiment to improve their experience. As you heard from Scott, we also gather qualitative and quantitative feedback in the form of ratings and reviews. This provides directional feedback to instructors and helps us curate the very best content for our UB collection. To complete the flywheel, over 13,000 organizations are able to upskill and reskill with our learning content and analytics. In turn, they provide strategic insights on their areas of interest, as well as content feedback from their learners. Organizational usage also validates our content quality to consumer learners. The integrated Udemy platform allows all these customers to drive to shared outcomes, and the scale of our marketplace generates hard to replicate high value data and insights. We'll talk more about that later. As covered by Scott and Prasad, we're starting from the broadest, freshest learning content on the planet. On-demand learning is our foundation, and it drives the flywheel of our marketplace with dynamics that ensure content relevance, freshness, and vibrancy. Today's on-demand learning is mainly video-based with supporting materials that learners engage with at a pacing of their choosing. I'm gonna walk you through how we're building on this foundation to deliver an increasingly comprehensive and powerful learning platform. First, we add personalized and skill-based guidance. We let learners focus in on career and occupational areas that matter to them. We produce Udemy curated learning paths focused on key domains and skill sets. We also allow organizations to author their own custom learning paths. These are tuned to the organization's specific upskilling and reskilling efforts. Today, A.I. and machine learning power our personalized search, recommendations, discovery, and learning experiences. With the rapid progress taking place in deep learning, we're very excited about the novel new applications that will benefit our learners, instructors, and organizations. From here, we are focused on two key areas of professional skills development and mastery. The first is today's top technical skills, which must be learned by doing. Our emphasis is in authentic scenarios where we provide simple, low risk access to fully configured workspaces and environments that our learners can practice in. They don't get stuck trying to set up their system and tools correctly. They can dive straight in and go. We provide feedback on their progress and mastery through assessments, and we're improving the authoring and maintenance tools and workflows for our instructors, so that they can contribute and monetize their expertise through these learning activities. I'll share a short demo of what hands-on practice looks like for a learner in a bit. This brings us to the second key skills development area, learning to lead. These skills cannot be learned simply by watching videos or reading on our own. They require self-assessment, discussion and debate, and real feedback from our peers with support from moderators and expert faculty. In order to build mastery in leadership skills, we must apply what we are learning in real life in the flow of our work. Our cohort learning offering is where we are working to scale and innovate the practice and mastery of these skills. What excites me most about our learning platform is that we're just getting started on some of these new learning modalities. Thanks to our comprehensive learning platform, we can support our users throughout their learning journey. Learners can develop their skills through the different learning modalities Seth shared with you in order to achieve their desired learning goals and outcomes. This includes watching videos, reading tutorials, doing hands-on practice, and assessing their progress. They're then able to apply and share their skills, driving true impact. This learning is based on solving real-world problems and integrated with the way our users work and collaborate. Through machine learning, we can personalize their learning experience. The journey I walked you through reflects the experience of a single learner, but you can imagine how this applies in the context of organizational learning. At scale, this enables companies to drive their business objectives. Stephanie Stapleton, our Head of Customer Success, will share a few great customer examples with you. We've talked about the different ways we help our users learn. Let's take a quick look at our product offerings. For consumers, we offer à la carte or bundled courses from our instructors. This has been the foundation of our marketplace offering. We've recently launched a consumer subscription called Personal Plan aimed at individual learners who seek deeper guidance and practice. For businesses, we offer multiple products under the Udemy Business umbrella. Team Plan is our self-serve offering for business users with teams of 5-20 employees. For larger teams and organizations, we have our Enterprise Plan, a curated on-demand catalog of over 17,000 high-quality courses in multiple languages. In addition, we offer immersive learning through Udemy Business Pro. This product offers workspaces, labs, and assessments in areas including cloud computing, software development, data science, and DevOps. We round out our Udemy Business offering with CorpU, our cohort-based learning experience authored by experts for all levels of leadership development. Against the backdrop we've just shared, here's a quick look at what hands-on practice of technical skills looks like for a learner. First, we set the stage with an authentic scenario, and we offer several options for the amount of guidance provided. The scenario includes clear learning objectives and outcomes, what I'll do and what I'll learn. In this case, I'm working for a company with hundreds of stores. Sales data and other features are tracked and available for each of these stores. I'll use this data to create a forecasting model to predict the sales for new potential stores. As the learner, when I launch this lab, I get a batteries-included out-of-the-box practice environment that requires 0 complex setup. There is no provisioning or management overhead for my organization or for the instructor to worry about. I get to roll up my sleeves and start practicing. The environment for this lab is pre-configured with today's leading data science tools and technologies, and as I proceed, I learn about key software libraries and charting packages. I use them to perform several types of analysis, such as analyzing sales data using a histogram chart, and visualizing the correlation between sales and other features of our stores using this heat map chart. I wrap up by implementing a forecasting model for new stores based on training and test data sets that we can use to inform our expansion strategy. Learning by doing is the only way to truly master today's top tech skills and equips learners, instructors, and organizations with immersive learning capabilities that unlock staff upskilling and reskilling. We are evolving our comprehensive learning platform using an API-first approach. This starts by looking at our business as a set of key entities and capabilities, and we define modular interoperable APIs to represent them. This foundation fosters innovation across the customer experience and opens the door to faster, more efficient timelines to scale our offerings. It powers our first-party applications that include our customer-facing Udemy.com website, our Udemy Business web experience, our native mobile applications, and new experiences such as Apple CarPlay for learning on the go. Critically, it also powers an expanding set of third-party ecosystem integrations through industry-standard interoperability with learning management systems and learning experience platforms, as well as other key business systems and tools. The set of opportunities that our learning platform can be applied to is far larger than what we could or should build on our own. Cody Crnkovich, Head of Partnerships, will give you a deep dive into how these are accelerating our reach, as well as customer and business outcomes. We've walked you through our single platform and APIs. This unified foundation gives us visibility across key user interactions for our three crucial customer segments, instructors, learners, and organizations. In the past, these customer segments often lacked a line of sight into the skills and outcomes that matter. Our global view enables visibility and alignment around those shared goals through skills insights. We can guide instructors on which skills to teach, help learners in achieving their career goals, and assist organizations in driving to business outcomes. Let's go a little deeper for each customer. We help improve instructor outcomes by sharing insights on where the market opportunities are and how they can enhance their teaching capabilities. For learners, our marketplace unlocks valuable data for personalized recommendations. This helps learners know the skills needed to achieve their goals and how they can acquire those skills. Here, we are pursuing deep learning opportunities to predictively assist them in semantic selection of the best learning content and activities. Finally, we also power insights for organizations. For instance, which are the trending skills in companies like theirs, and how they can address the most pressing skill gaps to achieve their business goals. I'd like to leave a few key takeaways for you. First, a scaled integrated platform drives powerful flywheel effects for our customers. Our API integrations allow us to quickly scale our learning experiences. Finally, powerful data and insights from our unified platform empower our instructors, learners, and organizations and drive improved outcomes. As a product leader, I'm pleased with the marketplace and platform we've built thus far, but even more energized by the opportunity ahead of us. Thank you for your time today. Teaching on Udemy has changed my life. It's given me a renewed sense of purpose by helping my students take their careers to the next level. It helps me influence and change the lives of people around the world who might not have the same privileges that I had growing up and through my professional career. Udemy continues to impact my life by connecting me to students around the world. I'm blown away every time I get messages from students about how they're able to finish school or change careers because of one of my courses. Right now, I have students in 99 countries, and the best thing about teaching is when they tell me that they found a job with what they learned on my courses. It feels very fulfilling to teach through a medium such as Udemy because of its power to reach so many people worldwide. Because what is the use of gaining all that knowledge if it's not transferred to others in the most effective way possible? I teach because I like to explain complex things in a simple manner. I teach because I want to impact my generation. Because making a difference in someone's life through knowledge is so worthwhile. I wanna empower students all over the world to have access to the skills of tomorrow. I love the power of education to transform lives. I think it's the reason I was put on this planet. I teach architecture. Business. Leadership. Social media. Programming. Machine learning. Cybersecurity. I teach with Udemy. Hi, I'm Stacey Zolt Hara, Senior Vice President of Corporate Communications, and I'm here today to talk to you about Udemy's mission-driven brand. Udemy's mission is to improve lives through learning. We are learning evangelists. Everything we do is focused on engaging these three audiences in our shared mission. Just as our platform brings these stakeholders together through inputs, outputs, data, and insights, so does our mission. In the backdrop of a challenging economy, digital transformation, and once-in-a-generation changes to the way we work, Udemy is addressing a core business, individual, and societal need. If we are successful, each of these audiences will see a clear ROI, a connection between Udemy's success and theirs, and a connection with each other. Engaging around a shared mission is how we will grow long-term brand trust and loyalty. As you'll hear today from my colleagues and from our learners, organizations, and instructors, those who use Udemy come back for more. That land and expand strategy is core to our growth, but our path to become the world's number one learning company begins by boosting awareness. Udemy's brand awareness is actually overall pretty low, and it parallels low awareness in the edtech category generally. Our awareness study from earlier this year demonstrates that there's still lots of room to grow. I've spotlighted a handful of markets on this slide that shows our Q1 2022 aided awareness in various markets. On the high end, you have India with 47% aware of Udemy. On the lower end, there's Japan with just 8% awareness. That's notable because Udemy is actually the market leader for adult skills education in Japan. We have 1 million learners, 2,200 instructors, and 7,000 courses in Japanese. Together with our partner, Benesse, we serve 54% of the Nikkei 225, and yet we are clearly just getting started with lots of room to grow. Udemy benefits where we build conversation about the category generally because where the conversation about lifelong learning, reskilling, and upskilling is happening, Udemy is front and center. In fact, our tracking data shows that Udemy share of voice is beating the competition with 53%. We know that when people know Udemy, they love us. Udemy's Q3 marketplace learner study showed a net promoter score of 51, excellent by industry standards. Among those aware of Udemy, 30%-50% prefer our platform, and 50% are aware of Udemy Business, which demonstrates that funnel effect from awareness to marketplace consideration to U.B. referral in many instances. On which channels are people learning about Udemy? Not surprisingly, the top channels include social media, search engines, and online articles and blogs. In fact, 24%-40% of people are hearing about Udemy through a personal or professional recommendation. Word of mouth is actually the number one referral source for Udemy Business, and more than 65% of organic udemy.com traffic originates from search and social. Therefore, our job to elevate the brand centers on three core tasks. First, we need to elevate the category, elevating the problem we seek to solve, discussion around the ROI that comes with prioritizing upskilling and reskilling, and what can happen when lifelong learning is accessible, affordable, and agile. Second, we need to elevate brand awareness for that top-of-funnel activation. Third, we will focus and target audiences where conversation and engagement will build influence and increase consideration. Let's first take a look at how we're building top-of-funnel awareness for Udemy. We are building a brand that is globally consistent and locally relevant. As you heard from Scott earlier, this is about hitting the skills and cultural context that resonates on the ground in our markets with instructors and courses in local language. It's also about creative that resonates locally. Early in 2023, we will launch new TV commercials in Japan, Korea, and India. I'm so excited today to give you a sneak preview where you can compare our U.S. spot with our soon-to-be-released spot in Japan, so you can get a feel for how we adapt our brand to be relevant and compelling in non-U.S. markets. Let's explore your future with Udemy. Programming websites, designing logos, presenting your ideas. Learn the skills you need from thousands of online courses. Udemy. In addition to paid media, we have built a global earned media operation with P.R. teams on the ground across 15 markets. Our globally consistent, locally tailored narrative elevates the need for learning, the importance of upskilling and reskilling, and the ROI for companies who invest in cultures of learning. We are quite simply setting the agenda for the category and creating a favorable landscape for brand consideration while supporting our sales teams on the ground. You will typically see six key themes emerging across these global hits. While we are localizing the pitch according to local data and trends, we're also keeping these themes consistent globally to help us tell a unified story. Our themes center around upskilling and reskilling, digital transformation, and aligning our messaging with government workforce initiatives that clearly can benefit from the Udemy platform. We are talking about hybrid workforce and learning models, how learning is changing with the distributed workforce. We talk about emerging technologies and what courses learners are taking to keep up with the nonstop pace of change. We talk a lot about local learner, customer, and instructor stories, and finally, hyper-localized trends and data to make sure our stories resonate. Social media is where we are doubling down to engage in conversation where people are and build that trusted friend referral through expert voices, influencers our learners can identify with, and success stories where they can see parallels to their own lives. Different from advertising, where we talk at our stakeholders with a one-way message, this is where we truly engage them in a multidimensional conversation with Udemy and with each other over the long term. Our stories generally center on a few core themes. First, we are amplifying success stories. Learner stories like this one from Ryan Taubert, who shared on LinkedIn that he was waiting tables five years ago, making $3.50 an hour. After a $10-dollar Udemy course, he's making over $100 grand a year with multiple income sources. In the middle column, we are connecting and engaging. This center image depicts our Global Head of Social Media, Molly Hampton, in a conversation with one of our instructors, Jimmy Naraine. It was an output of a social media cohort training that we did for our instructors, where they learned from Udemy social media team about how to build their brand and then funnel that elevated traffic into their Udemy following. In this conversation on Instagram Live, we reached 30,000 live users and had 2,500 comments. After the conversation, Jimmy's followers increased by 6%. Finally, we build specific recommendations around courses and leverage third-party validation from influencers like this one. Nicole Young, a rising Instagram influencer who posts regularly about her transition into the tech field through self-guided learning. Nicole today is working as a Brand Technical Influencer for a company that provides Internet of Things infrastructure, and she rated one of Udemy's IoT courses as best-in-class. By investing deeply in social media globally, we are also demonstrating our global reach and the way that Udemy's platform connects learners everywhere with the very best instructors from around the world, leveling that playing field for them both. Here's but one example, a conversation between Vivian, a Learner in Nigeria, and Aaron, an Instructor in Virginia in the United States. With 12 million followers across our 18 social media channels globally, we are seeing industry-leading engagement around our content, conversations between learners and instructors about skills acquisition, and the power of learning to unlock new opportunities for everyone. It's this global perspective and commitment that sparks visceral reaction to broader societal goals. In fact, this year, Udemy became a signatory of the United Nations Global Compact, a voluntary initiative to implement sustainability principles and to take steps towards supporting the U.N. Sustainable Development Goals. Of those goals, Udemy has centered on three areas of focus, quality education, decent work and economic growth, and reducing inequalities. We are engaging our core stakeholders in each of these goals in service to advancing our shared mission to improve lives through learning. These goals are embedded in our business. Simply by growing our work, our footprint, and dimensionalizing our offer, we are contributing to a world where education access knows no geographical boundaries, where learning can unlock doors to progress and opportunity. The reskilling and digital transformation movement in Japan is a great example of this dynamic. In October, Japan's Prime Minister, Kishida Fumio, announced a plan to spend JPY 1 trillion, or nearly $7 billion for reskilling programs for individual workers over the next five years. It reflects a shift in Japanese human capital strategy that aims to reshape generations-long career patterns. Historically, employees spent nearly their full careers at a single company, typically, and career progression was based mostly on tenure. This new program brings a focus on skills to hiring and ongoing training and development. Prime Minister Kishida says this is essential to support the Japanese economy and that it will take public-private partnership to get the job done. We believe Udemy has a clear role to play in advancing that ambition together with our customers and ultimately the 1 million-plus Japanese learners on our platform. We are demonstrating our mission-driven brand through our products and services, as well as in the way we do business. Three recent examples of this we are quite proud of that I wanna highlight for you. First, for the second year in a row, Udemy was ranked by Sustainalytics as number 1 in ESG risk ratings in the internet, software, and services sub-industry. Second, we were recently certified as a Fair Pay Workplace. Finally, we have been recognized by Fortune and Great Place To Work as one of the Best Workplaces for Women. We think it is absolutely critical for us to continue our work as a strong corporate citizen and build a halo effect that drives desire among stakeholders to be affiliated with the values Udemy stands for. Udemy's mission will continue to be core to our brand essence as we grow. I wanna leave you today with four key points. First, Udemy is building a purpose-driven brand, elevating our shared mission to improve lives through learning. Second, we've got lots of room to grow top-of-funnel awareness through globally consistent, locally resonant campaigns. Third, most learners and organizations are learning about Udemy through trusted sources of referral, such as social media, news, and word of mouth. Finally, that is why we are focused on building conversation and amplification around learning. By raising and elevating the aspiration of learning, we will elevate the problem Udemy's platform seeks to solve, learning and the need for access to agile, affordable, and current skills education. Thank you so much. Hello, I'm Llibert Argerich, the SVP of Marketing. In this section, I'll talk about Udemy's global customer acquisition, engagement, and retention. Udemy's platform is global in nature, with traffic flowing from 230 countries, receiving over 33 million unique visitors every month. Learners come to Udemy from all over the world. India and the U.S. are the largest sources of traffic, with 7.1 and 5.9 million monthly unique visitors respectively. What's unique about Udemy, though, is a very long tail of countries that represent over 1/3 of the total traffic, giving us a truly global footprint. It's called the rest of the world in this chart. Those 33 million monthly unique visitors come to Udemy with a wide variety of learning needs, backgrounds, and goals. Our platform caters to this variety, allowing each visitor to find the offerings that best suit their needs in an easy and frictionless experience. As you saw in the product presentation with Prasad and Seth, we have a broad range of offerings for both consumers and businesses. The one thing to add from a go-to-market perspective is that our products are designed to deliver incremental value, and thus driving strong upselling motions. This slide represents the increasing value of our product offerings from left to right for both consumers and enterprise businesses. As you can see on the left side, consumers can upgrade their learning experience by moving from free courses to more advanced paid options. For example, a learner who enrolls in an individual course will be incentivized to upsell to a subscription so they can get access to more content and advanced learning experiences. A very common upselling path for consumer-to-business offerings is when individual learners promote Udemy within their companies after having experienced the value of our platform on their own. Team Plan is also a great efficient pipeline generation tool. It's an easy entry point for teams to understand the value of Udemy before rolling it out more broadly within their organizations. Udemy Pro and CorpU provide great bundle opportunities together with enterprise brands, providing more value to employees and organizations while increasing contract values for Udemy. All of this is made possible by the sophistication of our platform and our marketing engine, allowing us to acquire, engage, and retain customers at scale. We have built a data and technology-driven marketing engine that allows us to acquire users across the globe efficiently. We have integrated our data flows with key marketing platforms to make near real-time decisions on bidding and targeting. We have also developed predictive lifetime value models or LTV models that allow us to identify and acquire the most valuable learners. This engine allows us to be in control of our cost of acquisition, to grow customer lifetime value at the segment level, and manage our budgets to hit our ROI goals while being flexible to adapt in real time to external trends and factors. With only 18% of Udemy's traffic coming from the U.S., it's very important that our marketing adapts and speaks to the local audiences we're targeting. Our design, communications, and production capabilities allow us to produce creatives that, while anchored on our global brand, also adapt to the cultural norms of the countries we advertise in. We leverage our global infrastructure to produce assets at scale while working with local language experts and native marketers to make the necessary adaptations for each country. We reach the audiences wherever they are, making sure that our messages resonate with their needs and motivations. As Scott mentioned earlier, Udemy's local content by local experts is a tremendous competitive advantage and is delighting our corporate customers and individual learners. Our pricing optimization approach fuels the local supply by making it easy and accessible for learners to purchase courses which drive instructor earnings and in return more supply. To make it easy to purchase the courses from anywhere in the world, we have built a global pricing engine that allows anyone to have access to our products at prices adjusted to the local purchase parity power in the local currency and using payment methods they are familiar with. This pricing engine was a hugely strategic investment, and it powers the global dynamics of our marketplace. The strong learner conversion resulting from this price engine also fuels our global pipeline for Udemy Business. Once on the Udemy platform, we make sure learners get the most personalized and relevant experience possible. Whether they're looking to buy a single course, are enrolled in our Personal Plan subscriptions, or an employee accessing Udemy Business, we aim at understanding the needs and goals by collecting and analyzing the data they volunteer, as well as the data generated by their usage and interactions with our platform. Our research and recommendation engines, powered by advanced A.I. and machine learning models, make discovering the right learning experiences easy and engaging. The example on the left shows how we help busy learners within Udemy Business to make the most of their time by providing bite-sized lectures that provide them with real-world skills they can apply right away. We also provide learning guidance to help learners progress in their specific professional fields, as you can see on the example on the right. The combination of our broad learning offerings, our personalized experience, and of course, the high quality of our instructional content, drives a very engaged base of global active learners. In the last 12 months, more than 20 million learners have been actively learning on Udemy. Collectively, they've learned more than 11.6 billion minutes, which is the equivalent to more than 2,200 years of sequential learning in just 12 months. More importantly, each active learner has spent an average of 578 minutes learning. This is what we call learning at scale. To achieve the level of engagement we just went over requires significant investment in personalization technology and data science. This chart is a visualization of the infrastructure we have built that powers the personalization on our platform and our marketing. We have built a series of proprietary platforms that allow us to capture, structure, and analyze the data that powers complex machine learning models. We use the outputs of all those models to personalize our recommendations across different learner touchpoints, whether that's on or off Udemy. We are continuously evolving those models to learn even more ways to drive learning engagement. All those investments help us foster adoption, empower learning, and support the success of our learners. Fostering adoption of our products by personalizing the discovery experience drives engagement. Empower learners to achieve their learning goals by providing tailored guidance and immersive learning experience results in longer retention. Last but not least, supporting admins to manage their workforces by providing insights and trends leads to account expansion, supporting the land and expand strategy that Greg Brown and Stephanie Stapleton will describe in a few minutes. To summarize this marketing section, we have a global platform that reaches learners and organizations all over the world. Our product lineup drives a strong conversion funnel and upselling motions. We lean heavily on technology and data to provide personalized discovery and learning experiences. We're driving strong adoption, engagement, retention, and expansion across our consumer and business segments. Thank you for listening. After about 20 years of teaching high school math, I made the bold decision to leave the classroom and to pursue a career as a data scientist. I was working as a Amazon delivery driver at the time, and in the mornings before work, I studied. I spent a couple hours taking these courses. Well, I got on Udemy, and I checked out this course. I started doing it, and I found out that I fell in love with coding. I also got some course recommendations on Udemy to help sharpen my technical skills in Python, SQL, and Power BI. The idea that I could just reinvent myself overnight through these online courses and it was addicting. Udemy helped me accomplish my career goal of becoming a data scientist. I got the job. I'm a software engineer at Amazon, and I learned how to code on Udemy. I'm very proud of how far I've come, and I'm currently a data analyst with Sobeys, the second-largest grocery retailer in Canada. Without Udemy, I could not have gone from being a unemployed musician to a software engineer. It's crazy to think that that's possible, but I did that on Udemy. Buy a couple courses, see what sticks, and you can really change your life with Udemy. Hi, I'm Greg Brown, President of Udemy Business. Today, I'm gonna provide an overview of our business from a go-to-market perspective with a focus on sales. Let's kick things off. With the continuous growth and adoption of new technologies like blockchain, machine learning, and artificial intelligence, organizational learning and skill development across the enterprise are now economic imperatives. 80% of CEOs believe the need for new skills is their biggest business challenge. For their employees, opportunities for development have become the second most important factor in workplace happiness after the nature of the work itself. Organizations recognize the need to foster a growth mindset culture to ensure their people. To a tailored cohort experience for leadership development, Udemy Business supports skill development at all levels of the organization. We continue to make investments in our global partner ecosystem to support direct and indirect revenue channels that help enable us to scale with agility across a global marketplace. With an 83% compound annual growth rate, Udemy Business has continued to grow amidst arguably the most turbulent environment in our lifetime, including the COVID pandemic, the Ukrainian war, dramatic inflation, and economic uncertainty. This is a testament to the value our business delivers and the impact it's having on organizations of all sizes and locations. With customers in 133 countries, Udemy Business continues to experience significant growth in all regions. With 50% of our enterprise revenue coming from outside of North America. Over 50% of Asia-Pacific revenue is driven by our new ventures group, which includes partnerships with Benesse in Japan, Woongjin ThinkBig in South Korea, Sunlands in China, and FUNiX in Vietnam. These are highly selected partnerships that meet stringent criteria, and they're delivering stellar results. We'll dive deeper into our partner strategy later in the day. However, we wanted to highlight the revenue impact our global partner ecosystem is delivering in helping us scale, as they're an important pillar of our growth strategy. Udemy Business net dollar retention rate is 117%, with an even higher NDRR for our enterprise customers at 123%, both of which are in line with best-in-class SaaS companies. Our ability to sustain enterprise net dollar retention above 120% over the last three years reflects the value we've been able to deliver to our customers over an extended period of time. Therefore, we're in excellent position to continue to deliver revenue growth with our customer base amidst the macroeconomic headwinds we're facing. Our customers continue to realize the value our Udemy business platform delivers and continue to... over one hundred thousand in ARR as we help to close critical skills gaps and drive greater operational efficiency. With sixty-nine percent year-over-year growth in deals ranging between one hundred thousand and two hundred and fifty thousand ARR, eighty percent year-over-year growth in deals ranging from two hundred and fifty thousand to one million ARR, and a hundred and thirty-eight percent year-over-year growth in deals above one million ARR. Our largest customers have expanded with us at an accelerated rate. Over the past two years, we've deliberately shifted our sales model from transactional and inbound responsive to one that is focused on building long-term strategic partnerships centered around driving business outcomes that our customers seek to achieve. With this new approach, we're able to support each customer on their unique journey to help them achieve near and long-term business objectives as a trusted partner. This intentional shift has increased our multi-year contracts by 135% year-over-year, improved three-year contract revenue by 104% year-over-year, and delivered 57% of our bookings from customer expansions in Q3 2022. In becoming a trusted advisor to the C-suite, we have elevated our value proposition and expanded our engagements to support upskilling and reskilling across hybrid workplaces. Our executive team and customer success organization directly engage and support customer CXOs, helping to strengthen and scale their learning and development strategies to deliver against key business outcomes. Our senior leaders strive to meet with our largest customers quarterly, and many of these meetings take place face-to-face as we believe in the value and impact of human connectivity. The insights and experiences our customers' CXOs share help guide and influence our product roadmaps as we continue to invest in building actionable skill and industry insights while optimizing existing tech investments through our partner integration ecosystem. This chart highlights the fact that our portfolio of solutions are broadly applicable and add value across the majority of industry verticals. Here's a sampling to show the breadth, depth, and diversity of our global customer base. This chart also illustrates the primary verticals we're currently focused on further penetrating. Now I'm gonna provide insight into a couple high-impact stories that highlight our strategic customer partnerships. Since 2017, we partnered with this global Fortune 100 enterprise technology company to achieve the following business outcomes. First, we achieved a Net Promoter Score of 87, which was the highest amongst their learning partners. We supported revenue growth of 37% in 2021 in the global business services group, and we continuously delivered high impact value as we expanded seat license growth by 44% in 2021. Over the past five years, we partnered with this Big Four consulting firm to deliver these strategic business outcomes. $1 billion in new revenue growth supported by Udemy Business skill development in 2021. Our high-quality content enabled an 84% first-time certification pass rate, and 4,500 new AWS certifications were achieved in 2021 alone that helped empower revenue growth. Now I'm gonna provide an example of how our land and expand strategy has enabled us to continue to grow with the Fortune 100 professional services firm. We first landed this customer in 2017 when they purchased a Team Plan online, which you've heard Llibert speak to earlier. As mentioned, we strategically invest in the success of our customers to drive long-term value. As a result, within the same year, we launched a successful pilot for the cloud technology team that expanded to all access for their entire technical team in 2018. We then leveraged our success with the technical teams to expand our on-demand offering to all business units the following year, which led to a wall-to-wall expansion with Udemy Business for every employee in 2020. After launching Udemy Business Pro last year, which is our immersive labs and assessment solution, their technical learning team quickly took advantage and added this new offering. This year, we have further expanded our cohort leadership development offering, which collectively has resulted in a 300% compound annual growth rate over five years and over $2.2 million in ARR across all three of our solutions. Given our land and expand sales strategy, Udemy Business has penetrated less than 10% of potential licenses within our existing enterprise customer base. As we continue to focus on delivering value as a strategic partner to our customers, we estimate our expansion opportunity to be over $2 billion based on a 50% seat expansion growth. With over 13,400 customers and growing, our opportunity within our existing customer base is significant. With over 50% of Fortune 100 organizations as customers, Udemy Business is truly an enterprise SaaS solution that helps empower global companies to upskill at scale and close mission-critical skill gaps to remain competitive in ever-changing global environments. In summary, Udemy Business has delivered strong growth with an 83% three-year compound annual growth rate. With a 117% net dollar retention rate and a 123% enterprise NDRR, Udemy Business is well positioned in line with best-in-class SaaS companies. Our consultative approach to helping deliver strategic business outcomes is driving multi-year customer bookings upwards of a 135%. With an estimated $2 billion in enterprise expansion growth potential, our opportunity within our existing customer base is significant, which is complemented by new direct and indirect revenue growth. Now, I'd like to introduce Stephanie Stapleton Sudbury, Senior Vice President of Customer Success, who will provide a deeper look into our Customer Success organization. Hi, everyone. My name is Stephanie Stapleton Sudbury, and I'm the SVP of Global Customer Success at Udemy Business. I'm so excited to talk to you all today about why customer success is so important to our Udemy Business customers, how Udemy's fundamental belief in customer success enables our customers to achieve their business outcomes through learning, and how we've built our organization for scale. Customer success is so critical to our customers, and the reason is because companies are going through massive organizational change. In a recent survey by Deloitte, 71% of CEOs said they're preparing for a talent and workforce transformation. Talent transformation is the process of developing the employee base's skill set to keep up with the ever-changing needs of the business. In this survey, they also talk about innovation being a high priority, keeping up with the pace of change of technology. All of this is what we hear from our customers on a regular basis. Having conversations with customers too. The pandemic has happened. We're in a post-pandemic world, and leading and the skills required to lead has fundamentally changed. The war for talent is also impacting every single company, and so the need to reskill and upskill workforces to promote internal mobility is a top priority. All of these initiatives require a lot of complexity and strategic thinking in order to move the organization from one place to another. Leaders need strategic partners to help them develop the learning strategies to achieve these transformations. That's why customer success is here. In addition to supporting the organization's strategy, we also need to help support the employee population in activating those learners. A few years ago, we did a study of all of our Udemy Business learners. We found that about 6% of them are just always learning. The other 94% of them need to be activated. They need a reason, a motivation, and guidance for what to learn. It's so important for us as customer success managers to partner with people leaders, and organizations to give those learners guidance, to help them understand why they should be learning, and to help them make time for learning. Now, let's talk about how we do customer success at Udemy. It's important to understand where the industry has come from. Traditional online learning engagements were really focused on adoption first. Why don't we just get people in, get people learning, and get people using it almost for usage sake? Now, that's not necessarily a bad thing. We love learning, but the problem really comes when you're trying to understand the impact of learning on the organization. What companies and leaders would find is that if they just focused on adoption first, they could never understand the impact of learning. Did we achieve the business results that we're hoping for? Did we achieve learning outcomes? At Udemy, we flip this on its head, and we work by understanding the company's business objectives first. We wanna know what the corporate strategy is, and then we partner with the leaders in the organization to develop programs tied to driving business results. We make sure that all of those programs are driving towards the right learning outcomes, developing the right skills and competencies in the organization, and then we focus on driving adoption. The Customer Success team partners with customers to make sure that all of this happens effectively. How do we drive adoption? We have a number of tools that we bring so all of our customers can get support across the entire customer journey. First, we start with onboarding. We wanna make sure, obviously, that we have great technical integrations and that we have a project plan, and that managers are engaged and they know their role in driving learning. As I said earlier, we do a lot of work on learning program design, content mapping. We have a number of adoption resources for the middle of the customer journey to drive engagement, communication templates, playbooks for how to make time for learning. We bring a lot of data. You heard a number of different presenters before me talking about leveraging data at Udemy. We do this with our customers too. We bring them benchmarking data so they can see what they're doing against their industry peers. We give them trend insights across the billions of learning interactions that we see on our platform so they can determine where to focus next. We've built a customer success organization to support our customer base as it scales. We have an operational model today that supports 13,000 customers and growing, and we deploy a variety of different customer touch models depending on how big the deployment is. Self-serve here on the left, if they purchase Team Plan, which you heard Llibert Argerich talking about earlier, 5-20 seats, that's a fully digital customer experience. If a customer has a mid-range of seats between 21 and 100, they'll be served by our scaled customer success team. This is a blended approach. We leverage technology and automation to create a personalized feel for a customer journey, and we have teams of customer success associates that will engage with our customers in moments of risk or opportunity or important moments in the customer journey. Lastly, we have our high-touch customer success team, which is more like traditional B2B SaaS customer success that you would expect. This is where every customer success manager has a smaller book and is very hands-on throughout the customer journey. We like to hire in regions so we can spend time with our customers face-to-face. Underneath all of this, we have renewals teams that support the renewal journey, making sure we optimize that for both Udemy and the customer, professional services team that will support delivery for our cohort learning experience as well as high-touch engagements around learning architecture and content mapping, customer support if any license holder needs help or has a question, and then our customer success operations team, which is there to make sure we have all the tools and resources to scale effectively. It's not just our customer success team that's driving customer success at Udemy. One of the things that makes Udemy so special is that customer success is a fundamental Udemy belief organization-wide. Let me give you a few different examples of this. First is team selling. We often bring Customer Success into pre-sales conversations with prospects so they can understand what a partnership with Udemy would look like and have confidence that we can help deliver on their business objectives. We'll also bring in Learning and Development often to talk learning strategy with leaders. We also have shared goals across all functions that are around the customer's success and impact. A really great example of this is Customer Success, Marketing, and Product own commonly shared usage and adoption goals across products and feature lines. Lastly, we develop our product strategy in concert with our customers, and we have a number of different ways that we get customer feedback from our customers. We have an executive advisory council with over 12 of the world's top CLOs, and then we have a lot of customer feedback coming in through support and through the customer success managers. We use all of this to make sure that we're partnering with our customers as we build Udemy for the future. Now I'll tell a story about a large enterprise customer, Publicis Sapient, that we've been working with for a while. They came to us because they needed to do a couple things. First, upskill their technical teams on cloud and digital technologies that were changing rapidly, and they wanted to improve employee onboarding experience. We partnered very tightly with the Head of Learning, Ian, really understood the company's business goals, determined a measurement strategy for how we were gonna gauge the impact of learning, and then built out robust learning programs and communication strategies to make sure that the entire workforce that was eligible for these programs was engaging. What we found was we were able to drive 335,000 hours of learning across Publicis' tech teams. This resulted in $280 million of revenue attributed to these learning programs because they could do things like win more client contracts. We were also able to, through their new hire onboarding program, decrease time to ramp from three weeks to one week, resulting in a 66% time to productivity. This was both on technical skills and solution selling. We're not just driving results for our customers. All of this investment in customer success is really driving results for Udemy. On average, our Udemy Business customer accounts have a 69% adoption rate. That means for every license sold, 69% of them have already completed their first lecture. We have deep consumption as well. On average, every month, an active learner is learning 4.9 hours. We're also driving financial results. In 2022, 43% of our ARR that was renewed was renewed onto multiyear contracts. We've been able to upsell 46% of our accounts in 2022. All right. To wrap us up, I have three key takeaways. First, we have an outcomes-based approach that helps our customers achieve business results through learning. Second, we've built customer success for scale at Udemy. Third, we're helping our company achieve business results through customer success. Thank you so much. Hi, my name is Cody Crnkovich. I'm the Vice President of Partners and Business Development here at Udemy. I'm really excited about the opportunity to talk about our partnership strategy and the impact we hope to have on the business. At Udemy, partnerships are a key vector for our long-term growth goals. As a team, we look to drive impact and growth across both our consumer and business offerings, and we focus our efforts around three key pillars, global expansion, extending our reach, and meeting our business customers in the flow of their work. In all partnership cases, we have a global focus. While our English catalog is extensive, as you heard from Scott and our content team, we have a differentiated localized content catalog across a wide set of regions. We leverage this local content advantage by working with regional resell and co-sell partners. When combined with our sales and customer success machinery, we increase our speed to market and local penetration. In some cases, there's a potentially large market where we don't have localized content. Like the case with Japan about six years ago, we implement our high-touch new ventures partnership model. Our new ventures model aims to leverage a key local brand to help develop our content catalog and to have a local language version of UB once the quality of the catalog meets our high standards. I'll come back to that new ventures model in a bit with a very specific success story. In addition to our global focus, the partnership team seeks relationships that either extend our market reach or the capabilities and reach of our large sales go-to-market. Through relationships with key brands and regional leaders that have reach and scale in their own right, we increase the awareness and adoption of our offerings. For example, we're working with a large media company in South Africa, MultiChoice Group, to reach learners via TV and digital channels in the 14 sub-Saharan Africa countries MultiChoice services. As for UB in Latin America, as an example, we have strong Portuguese and Spanish catalogs, but a lighter direct sales force. We work with leading education and training companies in a reseller capacity to increase the feet on the street, selling Udemy Business in countries like Brazil, Chile, and Mexico. Finally, a critical part of Udemy's success requires that we work with partners to enable our users to access Udemy content in the flow of work. We need to be where employees are learning already, for example, in LMS and LXP platforms. Also, our customers are asking that Udemy's rich data end up in key reporting and BI systems. As you heard from Seth and Prasad from our Product and Engineering team, our open-nature focus on platform services and APIs enables the partnership team to build a robust integration ecosystem that supports our customers' ability to get the most out of their software investments and their investments in learning. I wanna dive into some specific examples of partnerships to help make some of our motions a bit more clear. As I mentioned earlier, the New Ventures team has developed a high-touch model focused on regions that have a large addressable market, that are complex to enter, where UB doesn't have a large field presence already, and where our local language catalog may be nascent. In addition to those market dynamics, we look for partners that, for an exclusive relationship, have the brand, the resources, and the investment appetite to develop the market and their people to both sell into and support local customers. Japan is an example of how the new ventures model has helped Udemy launch and grow quickly in a market that has traditionally been challenging for foreign companies to penetrate. We chose our Japanese partner, Benesse, for many reasons. First, they are the largest and most established education enterprise in Japan with an annual revenue totaling $4 billion. Second, they operated primarily in the K through 12 space, where they have 80% of the market share, but they had designs to expand into the adult learning market. Finally, Benesse has the brand, expertise, resources, and investment appetite to build a business leveraging Udemy's product, platform, and our domain expertise. A perfect partnership foundation. Japanese learners have a strong desire for learning in local language. We've worked with Benesse over the years to expand the Japanese language catalog to over 7,000 courses. It gives us a massive advantage over our competitors. Our partnership with Benesse has also helped Udemy to localize our go-to-market strategy, helping to make us successful in Japan. The partnership started in 2017, and today, Benesse has over 100 people on the ground dedicated to Udemy. This has resulted in over 1 million learners in Japan, and UB's year-over-year revenue growth in the market has exceeded 100% throughout the partnership. Our Japanese customer base now covers over 50% of the Nikkei 225, Japan's equivalent of the Fortune 500. The example of Benesse in Japan shows the power of our new ventures model. We're aiming to repeat that success in 3 new markets, China, South Korea, and most recently, Vietnam. Each of these regions has a very large total addressable market, a large potential customer base, and a large learner population. However, each of these markets requires a distinct local language catalog. We're leveraging our partners to help develop quality local language catalogs at an accelerated pace. Our work with Benesse is the blueprint we aim to repeat in 3 exciting new markets for Udemy. Now that you have a bit more of an understanding about our new ventures model and our exclusive relationships in Japan, China, South Korea, and Vietnam, let's shift gears to talk about the rest of the world. As I mentioned, our partnership motions are global and are focused on extending our reach. Through partnerships, we engage a wider audience than our own marketing, sales, and brand can on their own. Let's discuss some of our key global partner motions. Our reseller partnership motion is designed to drive source business from our partners. That means the partner brings the opportunity in relationship to Udemy business outside of our own pipe-pipeline development efforts. Partner-sourced deals often lower our customer acquisition cost and time to close metrics due to the partner's preexisting relationships and local market knowledge. We're seeing strong reseller momentum in Europe, the Middle East, Latin America, and Asia-Pacific, specifically when it comes to partners sourcing business for Udemy Business. In fact, over half of our partnership business across the globe in the first half of the year came from sourced deals, and we expect that percentage to increase. Another category of resellers includes global technology partners like SumTotal, a leading learning management system recently acquired by Cornerstone OnDemand. As a leading LMS platform, SumTotal has hundreds of enterprise customers, and their sales reps are now selling UB to their existing customer base and taking it to prospects. In addition to our reseller relationships, we also look for partnerships that give us access to recognized brands. For example, First National Bank in South Africa, one of the Big Four banks in the region, includes the ability for each of their customers to consume up to six courses per year from a 400 course custom content bundle we put together for them. This is part of their eBucks program, a value-added services program for FNB customers where Udemy is a key benefit. The last category of partnerships I will mention is around our work with hyperscalers like Amazon, Microsoft, and Google. When it comes to cloud tech, we have the strongest content in the market. We're working with companies like Amazon Web Services to position UB and our courses to their customer base. Speaking of, I'm really excited to dive a bit deeper into where we are in our relationship with AWS. As I said, we have the best AWS courses and instructors in the market, and we believe we've helped certify more AWS developers than any other training provider. To develop our partnership, we worked with AWS to pass their technical audit through the first half of this year. We then joined the AWS Partner Network and listed on the AWS Marketplace this summer, and we've already been accepted into the invite-only ISV Accelerate program. An unbelievable feat to get invited into that program so quickly. For Udemy, the benefit's obvious. First, quota retirement and other sales incentives for AWS sellers. This makes our already relevant product an obvious discussion point and add-on for AWS sellers and their accounts. Another critical benefit for Udemy is that AWS customers can actually leverage what we call Amazon's Enterprise Discount Program. This allows AWS customers to leverage spend they've already committed to AWS and redirect that to Udemy Business licenses. Finally, there are natural procurement benefits to working with AWS, as we are now able to resell on AWS paper, a known entity to all procurement teams. This benefit will have material impact on improving our time to close deals. While Udemy will see reach and lift from the relationship, for AWS, there is benefit to bringing U.B.'s best-in-class courses and instructors to their customers as well. AWS customers that use U.B. to train their developers result in an accelerated consumption of AWS and higher retention, not to mention helping to increase the massive AWS developer ecosystem. Our content is known by both AWS employees and their customers, and our scale proves that. In the past year alone, we had over 130,000 enrollments in the AWS Certified Cloud Practitioner course, and we've had over 1.2 million enrollments in our top three categories associated with AWS. As an aside, we've also heard from many AWS employees that they leverage Udemy courses to help pass their required AWS certification. We love that. A lot of great things are happening in this relationship, but we are early days. Today, we're focused on creating awareness in the AWS seller and customer base, mainly seeking AWS's support to help us move deals forward. As the partnership matures, we expect this relationship to materially impact our partner source deals metric, not to mention reach and scale. There's a lot happening in the world of partnerships at Udemy. Hopefully, the topics covered have helped you understand a bit more about our partnership strategy. I talked about how partnerships are a key driver of growth for Udemy globally, and we drilled into some specific examples of partnerships that are already impacting the business. As a team, we're focused on finding, investing in, and developing impactful partnerships to extend Udemy's go-to-market reach in both our consumer and business offerings. Finally, working with our product and engineering teams, we're committed to an open ecosystem, and we'll ensure UB is available in the flow of work to help our customers get the most out of their software investments and their learning investments. That's all from me. Thanks for the opportunity and time today. Appreciate it. Udemy is a high-quality, on-demand, at-scale learning platform for all of our employees around the globe. You know, as a tech company, you know, Intuit is looking at always building the skills of our employees, and we know that the shelf life of skills is so short that we can't provide all the learning that we need for people on our own. Whether we need technical skills or business skills, being able to leverage a single platform to do that is incredibly valuable for us, and it allows us to scale faster. The biggest thing that we can do from a learning standpoint is continue to deliver opportunities for people to grow their career. The Udemy Business is key to that in terms of providing the skills and the learnings. With L.L. Hamilton, when we transitioned from a former e-learning content provider several years back, we let the employees have a voice in the process as to what content they found to be most effective. Udemy, based on the pilot results, the comments, employee feedback, it was a clear-cut winner against many of the other subscription providers we looked at. The satisfaction speaks to employees really rating the quality of the learning experience and the relevance to the job situation. Udemy Business has got the most up-to-date content, the most interactive content, the ability to curate and develop your own programming, incredible reporting and analytics that you can use to actually take that engagement and have it be meaningful, and it gets to do it all kind of within one platform. Not only is the content really broad in terms of what you can find, but the instructors are practitioners, and it's approachable. We love that because it feels like you can take what you learn and apply it really easily. Udemy is a key ingredient in terms of some of the content that we insert into our programs as we're onboarding new employees to get the right skills at the right time. Hi, I'm Sarah Blanchard, Udemy's Chief Financial Officer. I'm excited to talk with you today about Udemy's differentiated business model and to share details on our path to profitability. Udemy is addressing a massive and growing opportunity in corporate training and lifelong learning. Last year, the addressable market was estimated to be approximately $166 billion. That opportunity is expected to grow to almost $500 billion by 2027, representing a 19% CAGR. The market is under-penetrated. We are barely scratching the surface. Udemy has more than 57 million learners and just over 13,000 corporate customers. Even though we have over 13,000 corporate customers, that is less than 1% penetration of global corporations. As you heard from Greg Brown, within our corporate customer base, we have under 10% of the seats licensed. This means there is a long runway for growth with both new and existing customers. There are many macro trends that are driving this growth. These trends include increasing digital transformation as more jobs are changed by automation and technology. That trend has presented a significant opportunity for the creator and skills economies, which experienced an acceleration of growth throughout the COVID-19 pandemic. Our platform takes advantage of both. There's also a growing need to offer flexible training as more companies offer remote positions. Companies are employing a continued focus on L&D budget efficiency, even during a challenging macro backdrop. Importantly, there is an increasing need to continuously reskill and upskill employees in a timely manner. Udemy has a differentiated business model. You've heard about our unique marketplace of high-quality and fresh content in more than 75 languages that creates a huge competitive moat. Udemy has benefited from numerous tailwinds that I mentioned earlier, but importantly, through consistent execution and our diversified business model, we're driving sustainable long-term growth. We have a clear path to profitability as we make strategic and responsible investments in high-growth opportunities while driving operational leverage. I will share more on that in a moment. We have a proven track record of strong revenue growth and consistent gross margin expansion. The strength of our business model, coupled with persistent execution, has allowed us to deliver a 32% CAGR over the last three years. Through our continued focus on building Udemy Business, which has a higher gross margin than our consumer segment, and a focus on reducing costs and driving operational efficiencies as we scale, we've expanded our gross margin by 900 basis points over that period. In our first year as a public company, we reliably outperformed expectations each quarter. Considering the challenging macroeconomic conditions, our results are a testament to the durability of our diversified two-segment model, as well as our vast global footprint. We combine high-quality content, insights and analytics, and technology into a single unified platform that is purpose-built to meet the specific needs of consumers, enterprises, and instructors. Our complementary consumer marketplace and Udemy Business segments create a symbiotic ecosystem and diversified revenue streams. Our Udemy Business segment helps organizations upskill and reskill their employees. This segment now accounts for more than 50% of our revenue since Q3 2022, ahead of our expectations. Going forward, Udemy Business will continue to grow as a percentage of total revenue due to the strong growth we continue to see in that segment as corporations prioritize investments in employee skills development. Our consumer segment targets individual learners seeking to gain valuable job skills to advance their professional careers and keep up with the latest technology. From a geographic perspective, we have a very diverse footprint and revenue base. North America represents just over 40% of our overall revenue today, which provides some insulation from unfavorable macroeconomic impacts, and the Asia Pacific region is one of our fastest-growing markets. We will continue to expand our international footprint as we've been building out our global go-to-market team, and as you heard from Cody, through partnerships in local regions. Now, I'd like to dig into our segments, starting with Udemy Business, which is our leading growth engine. Annual recurring revenue as of Q3 2022 was $350 million, which was up 70% year-over-year. We grew our Udemy Business customer base by 40% or nearly 4,000 new customers to more than 13,000 customers since our IPO. With a net dollar retention rate of 117% in the third quarter of 2022, our retention is on par, if not better, than many best-in-class SaaS companies. Going forward, macro factors out of our control are expected to be a headwind, primarily to our commercial segment, which represents small and medium-sized businesses, as those companies are most likely to reduce their L&D budgets in a recession. However, even if L&D budgets are reduced during this tough economic period, the online learning budget share is still growing on both an absolute and relative basis and taking share from offline learning. In particular, we see larger corporations increasingly shifting to online as more employees are working from home and the need to provide upskilling and reskilling continues to increase. As you heard from Greg Brown, we continue to execute against our land and expand strategy, driving significant growth in existing customers each year. This growth is a testament not only to our innovative products and effective go-to-market teams, but to the way in which we partner with our customers to make sure we're able to help deliver their desired business outcomes. Nearly 100% of this expansion growth to date has come from seat expansion with existing customers. We're in the early stages of upselling our newer products, uPro and CorpU, and are happy with the progress we see there. Let's dive in a little deeper on what this looks like in a given customer over time. Our proven land and expand strategy is an investment in building long-term, high ROI relationships with our customers. You heard from Greg and Stephanie how we partner with our customers to understand their desired business outcomes and work with them to build programs that give their employees the skills they need to be successful. You heard from Scott about our high-quality, broad, fresh, and localized content. You heard from Prasad and Seth about our innovative products aimed at driving affordable, effective skills acquisition with measurable results. This unique combination of critical capabilities gives us a huge advantage once we start working with an organization. We get our foot in the door, oftentimes starting with a smaller deal size, and quickly show them the advantages of working with Udemy, allowing us to build significant value for both parties over time. Our strong net dollar retention rate is a testament to this. As I've mentioned, the majority of our expansion to date has come from seed expansion.But with the recent launch of U Pro and acquisition of Corp U, we are well-positioned to build significant lifetime value through both seed expansion and upselling our new innovative products, leading to a strong ROI and sustainable long-term recurring revenue growth. Now let's take a look at our consumer business. As we've shared, our consumer business provides a solid foundation and a springboard for Udemy business growth. It's encouraging to see the resilience of our marketplace, given the uncertain and volatile economic conditions. Traffic to udemy.com is the highest in our space, and monthly average buyers purchasing courses or subscriptions has been stable throughout this challenging macro environment. The traffic and active learner base serve as a solid lead-gen engine for our SaaS business. Our scaled global marketplace has many competitive advantages, including our portfolio of highly rated fresh content, engaged expert instructors, affordable learning experiences, and dynamic pricing. Localization of content and payments drives deeper penetration of new markets and increases future Udemy Business opportunities. Additionally, the scale of our marketplace allows us to test and iterate quickly on our product in a way that is not disruptive to our corporate business. Now, I'd like to share more about where we are focusing our product investments. Given the large and growing addressable market and the strong foundation we've built with our unique business model and capable go-to-market team, we're thoughtfully investing in capabilities that will allow us to take advantage of the opportunity in front of us. We're investing in the platform across four main areas. First, driving increased, more measurable learner outcomes across both our Udemy Business learners and our consumer learners. Second, improving our instructors' ability to create additional modalities and hands-on learning experiences. Third, continue to improve our ability to support organizations and their need to upskill and reskill their workforces efficiently, including leadership needs and cohort-based offerings. Fourth, investments in our consumer subscription offering, which will not only drive improved unit economics, but as it scales, become a large testing ground for us as we build experiences on the consumer side, test them, and then port them over to Udemy Business. As I said at the outset, we have a clear path to profitability on an adjusted EBITDA basis by 2024. It has always been a part of Udemy's DNA to employ disciplined and efficient expense management. Since we have always been focused on balancing sustainable growth and profitability, we did not need to change our mindset and philosophy in response to the macro environment. We are monitoring the business carefully and taking action where it is needed, while at the same time, keeping an eye on the long-term opportunity in front of us. Through solid execution of our strategy, we believe we can expand our gross margin and our adjusted EBITDA margin steadily each year as we drive toward our long-term targets. I will provide more details on the levers to improve these margins on the next slide. First, I wanna address our updated long-term targets. Given that the revenue mix of Udemy business and consumer has changed significantly since our IPO when we first shared our targets, and since we are almost at our original target of sixty percent plus Udemy business revenue mix, we're updating our long-term targets today to reflect Udemy business being an even more meaningful portion of our revenue over time. We believe we can achieve at scale twenty-five to thirty percent revenue growth with sixty-five to seventy percent gross margin and fifteen to twenty percent adjusted EBITDA margin. We also believe that at scale, our Udemy business segment will account for approximately seventy-five percent of total revenue. Now let's dive into levers to achieve profitability. We are targeting adjusted EBITDA breakeven by twenty twenty-four. On the gross margin side of things, as Udemy Business revenue continues to grow as a% of total revenue, we will see expansion in our gross margin due to lower content costs. We will also launch higher-margin innovative new products over time, as you heard from Prasad and Seth. Longer term, our personal subscription model will deliver stronger gross margins, setting up our consumer marketplace to run at break-even or better over time. The levers to increase our operating margin include improvement in sales and marketing efficiency as we scale and slow the pace of growth in our go-to-market team. We'll also see efficiency that comes from selling more products into existing customers and larger deal sizes. We will continue to see leverage in our R&D investment as we have built our platform to be API-first and allow us to deploy our innovation across both of our business segments with minimal additional investment. We also continue to build out our lower-cost, highly effective overseas teams. We also expect to gain near-term leverage on our G&A spend as we recently built out our team to support our IPO, but we'll continue to put systems and processes in place that allow us to scale efficiently. We are confident that Udemy has multiple opportunities to drive long-term sustainable growth, including increasing Udemy Business penetration, more international expansion and localization, expanding learning experiences, launching innovative products that drive measurable learning outcomes and increase retention, increasing brand awareness, optimizing our business model and pricing, and of course, pursuing strategic acquisitions when appropriate. As you can see, we are really excited about the opportunity available to Udemy and the business we are building. I'd like to leave you with a few important takeaways. Udemy is addressing a massive and growing TAM with our unique business model, which gives us diversified revenue streams and a global footprint. Since 2019, Udemy has delivered a 32% revenue CAGR and expanded gross margin by 900 basis points. We have a very long runway for growth ahead of us, and importantly, we have a clear path to profitability by 2024 and compelling long-term targets. I wanna thank you for your time, and now I'll hand it back to Greg. Thank you, Sarah, and thank you to all of today's speakers. I wanna quickly highlight four key takeaways from today. First, Udemy has a differentiated and efficient go-to-market strategy and global customer acquisition engine. Second, our global marketplace is data-driven and is home to the most complete collection of high-quality and relevant learning content. Third, Udemy Business is growing fast and our retention is on par with best-in-class SaaS companies. Finally, Udemy is a leader in a massive and growing market, and we have a clear path to profitability. I hope that you have enjoyed our presentation today and that you are as excited as we are for the journey ahead. We appreciate your continued support and trust in us. With that, we're here to answer your questions. Thank you, Greg, and thank you to everyone joining us for the Q&A session of Udemy's 2022 Investor Day. As you can see, we are joined by members of Udemy's Senior Leadership Team who are here to answer your questions about today's presentation. Questions will be asked by Udemy's covering sell-side analysts. In order to ask a question, please use the Raise Hand feature, which you'll find when you click the Reactions button at the bottom of your screen. Once called upon, you'll need to unmute yourself before asking a question. Okay, let's get to your questions. Our first question is from Ryan MacDonald of Needham. Please unmute yourself. Excellent. Thanks everyone for putting on such a great analyst presentation. Great day today and all the helpful color with just diving deeper into the business and the outlook moving forward. Maybe first for Sarah, as you think about this pathway to hitting adjusted EBITDA breakeven in fiscal 2024, can you talk about, you know, what the assumptions you're making for sort of the broader macro environment as you progress towards that breakeven target? Sort of how do you think about the ability to sort of flex investment level as we move into 2023 and beyond to adjust with that? Thanks for the question, Ryan. You know, as we think about 2024 and 2023, you know, right now we are all facing some macroeconomic headwinds. That being said, you know, we continue to see strength in Udemy Business. Our consumer platform is stable. For us, it's really about managing the business really carefully as we watch how this plays out. You know, we do expect some of the quarters ahead to be a little bit bumpy, and we've been really responsive to the macroeconomic from the perspective of, you know, we've pulled back our marketing spend. We increased our ROI targets. We started slowing our growth, except where we continue to really see that strong demand in the enterprise side in certain segments, in certain regions. For us, it's about managing the business carefully, being really thoughtful. We do expect 2023, we'll continue to see some of the same trends, the softness on the commercial side. UB, you know, growing strong and a stable consumer platform. You know, for us, the levers we have are really around making sure that we're balancing thoughtfully this opportunity in front of us and the growth opportunity with that path to profitability. Just being thoughtful in where we invest around our immersive learning capabilities, around things that are gonna continue to drive learner engagement and retention while driving operational efficiencies across the business. Super helpful. Maybe as a follow-up, this one for Greg Brown. You know, thanks for sort of quantifying, I guess, the opportunity or large opportunity that lies ahead, you know, especially within the customer base being less than 10% penetrated. As you think about sort of the components of that $2 billion opportunity, how much of that comes from seat-based expansion versus sort of the additional cross-sell or upsell of some of the newer modules when we think about Udemy Business Pro or the CorpU cohort-based learning over time? You know, as you're having conversations around this consolidation, what does the relationship with the CXO do in terms of unlocking additional opportunity for expansion within that customer base? Thanks. Thanks for that, Ryan. You know, as far as expansion and the drivers, it's really both. It's seat expansion. As we highlighted, you know, land and expand has really been, you know, our entry point model and then, you know, onward to expansion from there. It's been primarily on the tech side historically. That being said, you know, as we talked about, we're really investing heavily is in sales enablement and our sales and CS teams to be able to sell high into the CXO with a much broader value proposition, hence the platform of solutions that we do have now, on-demand learning, then coupled with immersive learning as well as cohort-based learning. We're seeing really strong signals of demand coming to us now from the C-suite as a result of what's happening in the macroeconomic environment right now. You know, organizations, CXOs, are looking to leverage digital platforms more now than ever to drive efficiency and economies of scale. You know, as a result of that, you know, we're starting to see, you know, seat expansion both of on-demand as well as, you know, our, you know, additional suite of services, cohort and leadership as well as immersive. An example of that, large professional services organization that we onboarded just about 2.5 months ago now, heavy user of on-demand, and made the decision after a lengthy assessment to deploy 10,000 seats of our immersive uPro product, immersive learning product, as well as bringing in cohort learning into the leadership arena in the organization. We're starting to see more of that, and we expect that to continue, and we are really pleased with the early signs we're seeing out of our leadership development solution. Thanks again for hosting today, and I'll hop back in the queue. You're welcome. Thank you. Our next question comes from Jason Celino of KeyBanc. Hey, everybody. Sorry I'm not on video. Let's just say I'm on a bad hair day. Great model deep dive, I think. Just two questions from me. On kind of the implied 2024 guidance, it assumes we kind of accelerate from here. You know, I know the puts and takes, but I guess, is that acceleration just driven by mix shift? Any comments on what it might imply for consumer growth? Yeah. Thanks for the question, Jason. You know, you're absolutely right. We continue to see strength on the Udemy Business side. We know we're not immune to the macroeconomic environment, but that being said, our solution really is a great solution for what our CLOs are looking for right now in order to upskill and reskill. We think we're gonna continue to see that growth. As, you know, Udemy Business is now more than 50% of our overall mix, and that mix shift continues to move towards UB. You know, the growth rate was about 70% this last quarter, and so that's why you'll see that overall business acceleration. For us on the consumer side, you know, what's most important is that that platform is stable and the marketplace is really healthy. What that means is we're able to attract new instructors, and that existing instructors continue to produce this really high-quality, broad, fresh, local content that we then can curate into our Udemy Business offering. Stability on the consumer side, we expect to continue to see. Okay. The EBITDA margin improvement, you know, if you straight line it's 500 basis points each year, you know, really impressive. Since the growth guidance is, you know, still unchanged, what gives you confidence that the level of expense management, you know, won't be disruptive to that top line? Thanks. Yeah. We've been, you know, really thoughtful about our investments. As an example, you know, our go-to-market team, which we've been building out pretty quickly over the past few years, we have a lot of reps that are still ramping. Inherently, without an additional body, there's growth in just our existing team. What we've been focused our investments on are the highest growth opportunities for us and just been really thoughtful. We feel like we have the team that we need. We're really pleased with how we've built out our skill set on the R&D side. We have confidence that we're gonna be able to push through what is likely to be some tough macroeconomic conditions over the next few quarters and continue on this growth path. Thank you, Jason. Our next question comes from Rob Oliver of Baird. Great. Thank you, guys, very much. Appreciate it. Thanks, Dennis. Thanks, everyone. Couple questions for me. I'll get them both in, and then I'll hop back into the queue. Greg Brown, my first one's for you. Just love to get your updated take on the macro. You touched on it a little bit earlier. Yeah. In response to one of the questions, you know, you made a comment on the last call, and you've talked a little bit about the opportunity around vendor consolidation. Wanted to just get, you know, a firmer sense of, you know, why you guys win in those contexts, why customers at the enterprise level choose Udemy? My follow-up question could be either for you, Greg, or for you, Sarah, just around how you guys think about pricing and whether any pricing, you know, levers are gonna be pulled or whether any increased pricing, and I'm thinking particularly about UB, are contemplated in the long-term targets at all, and if not, if that's an opportunity. Thank you guys very much. Sure. I'll go first, Rob. Thanks for the question. So on the enterprise side, uh, you know, we continue to be encouraged by the, by the signals and the strength, uh, that, uh, that we're seeing on a global basis in our enterprise segment. And, uh, you know, case in point, you know, just a week ago, uh, we closed a very competitive, uh, hotly contested RFP, uh, with a large, uh, European auto manufacturer, uh, for six hundred and fifty thousand dollar expansion to make that customer our largest EMEA customer, uh, at just under two million in annual recurring revenue. You know, again, our teams continue to execute very well on the enterprise side, taking advantage of the opportunity to consolidate vendors, and this was a consolidation play to consolidate and become the primary, you know, platform that organizations are using to upskill and reskill their employees. That being said, you know, I mentioned this on the last call, you know, we are seeing softness down market in our SMB business, and that persists, right? You know, we have made appropriate adjustments. Sarah alluded to this. We slowed hiring significantly in our commercial segment over six months ago, and we're monitoring closely, but, you know, as things evolve, we'll be adjusting, but right now we really have throttled back in that segment. On the enterprise side, it continues to remain, you know, very positive in terms of the signals. We're optimistic. I'll take the pricing question, Rob. For us, you know, it's really important that we continue to see traction in Udemy Business Pro and in CorpU. While I think there is some opportunity for a price increase over time, we haven't built it in, and it's not something we're focused on. We were for a period of time seeing less discounting happening. That may continue, it may stop for a few quarters as things are tougher, and we're working with our customers to be really good partners to them as they're trying to work through this. Where we're focused on expanding our LTV is these new products, U Pro, CorpU, and then over time, some higher margin products that we'll be launching. Great. Very helpful. Thank you both. Thanks, Rob. You're welcome. Thanks, Rob. The next question comes from Terry Tillman at Truist. Hey, thank you all for taking my questions. I'm having a bad hair day, too, but I don't care. I just had two questions, and it was great to get all the perspective from so many different executives. I think that's one of the most beneficial things. Thanks for everybody taking the time with us. The first question is this for Stephanie. On the customer success side, you know, not all businesses are feeling the impact the same with the macro right now. In either more hard-hit industries or companies that have company-specific issues that are greater, maybe give some examples of how you're actually able to still have conversations with them and actually expand ARR, even though maybe their overall training and development budgets are lower. It may kind of relate to a couple of the other questions, but I'm wondering if you could give examples on how you actually can win more and expand with tough situations with customers. I have a follow-up. Okay, cool. Yeah, thank you, Terry. That's a great question. Like Greg said and Sarah said, we're obviously not immune to the macro, but what we do know is that in times of trouble, companies really lean into learning as a way to both keep employees engaged, but also to reskill and upskill workforces because skills required to lead or innovate when times are tough can be different, right? We saw this during COVID. A couple things I'll share. We were recently at our Executive Advisory Council summit talking a lot about the macro and how this is impacting L&D budgets. We did hear from our enterprise customers that for the most part, budgets for L&D are staying flat or increasing next year in the enterprise. A couple of examples where we've seen some kind of early signals that this trend that we expect companies to lean into learning as a way to help their companies get ahead and keep their employees engaged. We're working with a large enterprise American retailer. Recently went through layoffs, and they have a foothold with us in their technical audience. They've been using us for a little while to upskill on programming languages and cloud technologies. After they did these layoffs, we engaged with them. We have a lot of industry research playbooks that our teams use to have discussions around what this really means for your organization going forward. What are the things that you're thinking about over the coming years? Here's ways that learning can help you get ahead. From that conversation, we identified there's actually a lot of leadership skills that they're hoping to build capability with in their team in order to help them lead in different ways through this. There's a lot of functional skills, new technologies that they really wanna upskill their tech teams on in order to enable them to innovate in times of crisis. Despite having a rather significant layoff, we're talking right now about 10x-ing their seat count to cover all of their corporate functions because of these really important corporate initiatives. Another example I'll give you is we're recently in a renewal cycle, large enterprise, EMEA tech firm, and they have been using us for cloud technology skills because certifications on cloud are how they staff customer projects, and they need to keep up to date. In the middle of this renewal negotiation, our main point of contact got laid off, and the learning and development team was impacted. Obviously, they were having tight budget cuts. Despite that, the company still chose to renew, sign a 3-year deal, and double their seat count. That's great. Thank you for that. Maybe I'll ask one more question as it shows my internet connection is becoming unstable. Perfect timing for me. The other question, maybe, Sarah, for you is, you know, we've asked repeatedly across a number of quarters about the subscription offering or the Personal Plan. I think on the last call, you all had that available in seven or eight countries. I think India launched, which we have a lot of presence in India. I know it's only just been a few weeks, but would love a little bit more color on how the pricing is actually the realization on pricing versus what you assumed. In this model through 2024, you know, when could you foresee materiality with the Personal Plan? Thank you. Yeah, thanks for the question. I'm gonna hand it over to Greg to talk a little more about subscriptions. I think for us, Terry, the thing to remember is, you know, we're being really thoughtful about this rollout, both on the pricing side of things, but also bringing our instructors along, because, you know, a lot of our instructors, we are the way in which they make money. We have a really thoughtful rollout that we're doing, but Greg, maybe I'll turn it over to you. Yeah. As we talked about in our last earnings, that we're in eight countries right now, and we're launching India at the end of this month. We typically don't do a major launch during our peak consumer period. We were waiting till after Black Friday, and then we're gonna launch India. We don't have any data on that currently. From a pricing perspective, you know, we're still doing some tests. We did a really interesting test in Australia. Again, we're slowly testing to make sure that we're bringing our instructors along and that we're not impacting their businesses and their revenue and their ability to make a living. Llibert, is there anything you wanna share on those tests we're doing? Basically, as I discussed on the presentation, we do tests based on price elasticity, right? Every time we enter a market, we assess what's the right price point that's gonna cater to the vast majority of the audience and maximize the revenue for us. Every market we enter, we do this price testing, and we price for the market specifically. We'll have a Personal Plan, the monthly version and the annual version at different levels across the U.S., Australia, India, and all the countries that we're launching in. We continue iterating, we continue learning about the response rates, the retention, how long learners stay involved and retained in the subscriptions. We adapt our product roadmap and our learning experience to really cater for those results. Thank you. Thanks, Terry. The next question comes from Stephen Sheldon at William Blair. Hey. Thanks. And, and, uh, thanks for the breadth and depth of info today. It's been incredibly helpful. Um, so fir-first question here, just as you think about immersive learning, I guess, where are some of the areas you could expand those solutions over time for your enterprise customers? It sounds like that's an area you'll continue to invest behind. So what could that look like? Would these be more organic developments or could M&A maybe factor in it there, too? All right. Thank you, Stephen. I'll take that one. Thank you for that question. When you think about immersive learning, I think what we start with is our focus on impact for our learners. The way we think about it is which of the areas where hands-on authentic experience is most valuable, and they tend to be tech areas, as you mentioned. Our roadmap is pretty expansive. We've started with cloud computing and the different areas of cloud computing like AWS and Azure and others. We've also expanded into web development and data science. Those have been our initial areas of focus. We'll continue expanding in different areas of technology. The drivers, I think, are a combination of both organically, you know, we are a tech company ourselves. We pride ourselves on sort of, you know, testing out internally first so we know what the fast-growing areas of technology are. We also talk to our customers in the UB space as well as hear from our learners. We learn a lot from our instructors as well. I think it's a combination of sort of, you know, organic as well as requests from customers that drives our roadmap. Our focus going forward is basically a combination of going broad so that we cover more and more vertical areas, if you will, or domains, as well as going deep, because what we're looking to do is to be able to provide labs, workspaces, assessments, learning paths, everything that you need, so you can have either just-in-time learning or if you so desire, learn, you know, in great depth, you know, whatever the need of the learner is. That's the way we're sort of looking at it. In terms of where, you know, M&A activity falls, I'll turn that over to Greg to comment. Yeah. On the M&A front, it all starts with our long-term strategy. We have a five-year plan. We know the kind of things we wanna build. You know, we could do technology tuck-ins. If we find a company that's out a couple of years that we could buy something that works for us, gets us there faster, you know, we'll do a build versus buy, you know, look at it. Those are certainly opportunities. Got it. Just as a follow-up, I guess from a content creator's perspective, how do you think about the attractiveness of being plugged into Udemy's marketplace versus, you know, how do you think that's changed as you think about the last few years, you know, especially with the growth in consumers and businesses that they can monetize? I think a lot of these content creators have numerous kinda options to distribute and monetize their content. Have you seen any major changes in terms of, you know, these creators focusing more on your platform, and what has that meant to overall content quality and breadth? Thank you for the question, Stephen. We're seeing increased excitement from our instructors around the Udemy platform. As you might have heard earlier this morning, over the last 12 months, we paid $189 million to instructors. There's a massive pot of gold for those instructors who come to our platform and engage. What we're seeing is that instructors love what our system provides, that learner feedback, that ability to understand what learners are consuming. You can't get this from other platforms. Not only can you get it from our platform, but you can use it to improve your solution and then impact not only the learner experience, but your ability to earn on our platform. As a result, word of mouth is increasing. Instructors telling other instructors. Our visibility of our brand is increasing, and they're coming to Udemy to the tune of 1,000 new instructors come to our platform every single month. 40% of those are creating courses in local non-English languages, and that fuels our supply side. Every month, we publish or have published about 5,000 courses on our platform. Overall, what we see is increasing awareness, which is driving increasing both instructors and supply coming to our platform. Great. Thank you. Thank you, Stephen. The next question comes from John Nutt at Piper. Hi. Thank you for taking my question. Just looking at the consumer side specifically, we've seen a fair bit of macro pressures surrounding general consumer spend. Do you still see an opportunity here for stabilization? Is there downside risk kinda looking into 2023? Thank you. Thanks for the question. You know, our platform continues to be stable. We pulled back our marketing spend on the consumer side pretty significantly this year, and yet our traffic is up, our monthly average buyers are stable and even up a little bit. You know, no one knows what the future holds, and certainly, there are macro pressures. We think there, you know, is some countercyclicality to our business. As, you know, unemployment has been at historical lows, and with the macro environment continuing to deteriorate a bit and unemployment rates increase, we actually think that provides some stability to our consumer platform. Okay. Great. Great. Yeah. Great. Thanks. I'll turn it back. Appreciate you coming in. Thank you, John. The next question comes from Josh Barrett, Morgan Stanley. Great. Thanks for the time and the question. My hair commentary, I'm either having a good hair day or a bad hair day. For obvious reasons. Wanted to ask one to start on the partnership side. Yeah. SumTotal as a tech reseller, I'm just wondering, are there other relationships or potential relationships with learning management systems that you could build or that you have, and really how meaningful is that part of the partnership program? Hey, Josh. Thanks for the question. It's very meaningful, and we've made a big investment, and we'll continue to make significant investments in integrating into really the entire tech stack that our HR leaders are using to enable learning to happen in their organizations. Degreed, very close partner. May surprise you, we're integrated to LinkedIn's LXP, right? You know, we work closely with LinkedIn largely because our customers were telling both them and us that they wanted to be able to get access to our content through LinkedIn's LXP as they went live with that this last year. Really our approach is to integrate with all of the LMSs, LXPs, and again, the entire tech stack to make it really easy for customers of all sizes to make the right decision based off the quality of the content, the quality of the experience that they're looking for, and not have to make decisions based off whether or not we're integrated to the tech stack that they use. It's a big area of focus and investment for us, and, you know, really happy with the level of partnership we have with all of our, you know, tech partners. Be it SumTotal via Cornerstone, as you mentioned, LinkedIn, Degreed, Microsoft Teams, Prasad talked about that, as well as, you know, a number of other tech partners. You know, we'll continue to evolve that over time. Great. Really helpful. One for Sarah on the 2024 targets. Just was wondering if, like, to have the growth target out there and the EBITDA breakeven target, like, if things out of your control or if the macro or the demand impacts the growth side of things and you come, you know, above or below your growth target, say 15% growth or 30% growth, how does that impact EBITDA? Is there a framework for thinking about that trade-off for growth and margins? Yeah. Thanks for the question. You know, it's really important to us that we are very balanced. Certainly, there could be macroeconomic conditions that are much worse than we expect or significantly better. If it's significantly better, I think, you know, that's an easier one. It's continued investment. There's a very large opportunity in front of us, and we are well-positioned to take advantage of it. If it goes the other way, we're gonna be just as focused as we've been this year on driving operational efficiencies, but balancing that with sustainable growth and thinking about the opportunities that we have in front of us. You know, like, it's in our DNA to be diligent and really thoughtful about our spend. We are committed to delivering on the profitability side of things, but we're gonna be smart and thoughtful. If it were to be too harmful to growth, that's something we have to consider. Got it. Just to follow up on the gross margins, I think it's really easy to see the path for expanding margins with the mix shift toward UB. For the long-term targets, that 65%-70%, I'm just wondering, like, with UB. Pretty consistently around 66% the last few years. Does that imply a different type of content model or revenue from products that don't have content that would drive UB gross margins, I guess, above 70% to pull the overall up? Yes, thank you. That's a great question. There's a few contributing factors. On the UB side of things, you know, first and foremost, we are very protective of the investments that we make in content and our instructors. They are part of our secret sauce. They're the reason why our content is so high quality and so fresh and so broad and localized. We are also sitting on a lot of data. There's a lot we can do with skills, insights, and different things that are, you know, Udemy-built and our content that will sit on top of a growing base of the instructor-provided content, programs and products that we have. That's gonna drive our UB gross margin. On the consumer side over time, it'll be the consumer subscriptions. Those are a higher-margin product as well. The two of those are what contribute in addition to the shift toward Udemy Business from a revenue mix perspective to those long-term targets. Thank you, Josh. Our next question comes from Tom Singlehurst at Citi. Well, yeah, thank you very much for both the presentation and doing the Q&A. It's great. It's Tom here from Citi. I had a question on partnerships to begin with, and given Cody isn't here, maybe Ron, maybe it's for Greg. It obviously makes sense for partnerships in international markets, both for access to local content and distribution. I'm interested in sort of English language markets, whether there's, you know, any scope to distribute sort of professional content on the platform, given you've got such scale and such a great model. Does the content have to be sourced from sort of individual instructors, or is there scope within the sort of the U.S. or the U.K. or other established markets to distribute? Thanks for the question, Tom. Yeah. Happy to provide a little bit more color on, you know, one of the partnerships that we announced not too long ago, which is with Amazon. You know, there's a tremendous opportunity for us with the hyperscalers, if you will, you know, Amazon and the like, to provide very complementary, you know, content, products and services to support their focus, which is to sell more, you know, of their technology and enable that technology to be used by learners within organizations large and small. You know, in the conversations with Amazon, this is very similar with the rest of, you know, the technology partners that we talk with. Many of their, you know, folks in the technology arena within the organization, the devs and what have you, they use our content today to upskill themselves and prepare themselves for the next release or what have you. You know, it's a very easy conversation with us to, you know, begin that dialogue and then to, you know, start to work through the mechanics around how a joint partnership would evolve in market. That's exactly where we're at with Amazon right now. We're really happy with the progress we're making, Cody and team. We'll be able to report more on that as we flow into next year and, you know, as that partnership evolves. Suffice it to say, there's a number of those conversations going on right now in English-speaking markets, North America and otherwise, that we'll be reporting on in future quarters. That's great. Maybe a follow-up for Scott. I mean, we were just talking about the 1,000 new instructors coming onto the platform, 5,000 new courses. I'm interested in how you make sure that the quality is good enough and also how you make sure that that content is relevant. Some insights on that would be very much appreciated. Absolutely. Thanks for the question. In essence, our entire platform is about delivering high-quality experience for learners, and we do that through those feedback loops that I talked about earlier. Perhaps the most important is that ratings and review feedback, where learners can tell instructors exactly how the content is resonating with them. Of course, instructors can also see the data about learners that are using their courses and use that through the platform to update the courses to make sure that it continues to be relevant for their learners over time. When you take a big step back, there are hundreds of thousands of courses competing on our platform to each win out in any given topic area. As that's happening, our algorithm is looking at the content and all of these interactions, the learner and the instructor and the behaviors, and ranking content based on how effective or high quality that content is. At the end of the day, that's how we ensure that there is high-quality solutions for our learners. It doesn't just impact our marketplace. It, of course, impacts our UB corporate offering. We're able to see what is resonating and pick from the best of the best and add it to our corporate collection to serve our organizations around the world. That's very clear. One final quick one for Prasad, if that's okay. Personalization in product development, can you just put a bit more color around that, how personalization works, and how you've implemented it? Yeah, absolutely. Thank you for that question, Scott. Tom, I think the way to think about it is learning isn't one-size-fits-all, right? Everyone likes to learn in slightly different ways, and we try to apply personalization where we can. I'll give you one simple example, which is from the international space. When we expand into new markets, we are able to infer from a user's search queries what their preferred language is. By knowing that and inferring it correctly, we are able to place courses in their preferred language higher than courses in English, for instance. That's one way that, you know, in a market where they speak multiple languages, we're able to show them the content which makes the most sense. You can imagine that's not even by asking a lot of questions. It's simply by inferring their search queries. That's one example. I think the other thing I'd say is that, you know, because of the amount of content and interaction data that we have, we are able to get very quickly both implicit and explicit signals about the topics and areas of interest that a person has. As they land on the site, we can very quickly spool up homepages which are very specifically focused on the topic area of their interest, and that gets them involved, that gets them into the product, and gets them closer and closer towards their ultimate career goal. Those are a couple of examples of how, you know, both implicit and explicit signals are used to drive personalization for our users. That's great. Thanks again. Thank you, Tom. Thank you. Just a reminder, if you'd like to ask a question, please use the Raise Hand feature that you'll find in the Reactions button at the bottom of your screen. Our next question comes from David Lusberg at Jefferies. I think you're muted, David. Sorry. Thank you. I had the double mute on. Appreciate the time, guys, and thanks for the great presentation. Two, if I may. Maybe to kick off, on CorpU, is there any color you guys can add into the penetration you guys have there against your current customer base? Maybe any color around the ARPU uplift and margin impact that you get from that product? Yeah, happy to take that for you, David. We're not disclosing and guiding on margin uplift, you know, by product. You know, I'll really give you a little bit more detail, which I think is gonna give you some perspective on, you know, how excited we are about what we're seeing with the momentum in market. Most recently, you know, as an example of, you know, a large U.S. multinational that we had already done quite a bit with and we're heavily engaged on the on-demand side, but uncovered an opportunity that they had in their middle manager segment. There were 3,000 middle managers that they had a desire to really start to focus on training and enabling to get them prepared for the next opportunity within the organization, and they didn't have the tools or resources necessary to do it. When they learned and we, our team started working with them and let them know that we'd acquired this company, CorpU, and everything that we were doing with leadership development, and as that unfolded, it became clear this was an ideal solution for them. That resulted in a multiyear contract, $1.6 million a year, that they're now spending with us to upskill and up-level 3,000 middle managers across the organization over the next two years plus. That's just one example of the momentum we're starting to see in market, and it's been primarily focused on North America initially. As we move forward and develop out, you know, our broader international strategy, we're gonna start to do more in EMEA and then obviously move to Asia and Latin America. Yeah, early signs are very positive and excited about, you know, the team's ability to execute. Got it. Thanks. Maybe just as a follow-up, thinking outside the box a little bit, obviously you guys have this rich consumer data set of who's taking what courses, their kind of skills, so to speak. You also have a great relationship with half of the Fortune 100. Is there an opportunity for you guys to serve in some sort of, you know, H.R. capacity where, you know, Company A is looking for engineers, and you can kind of plug in knowing that someone has these credentials from the courses they've taken on your platform? Yeah, it's a great question, David. You know, I think long-term, you know, we're thinking a lot about how can we really help our organizations have the skills they need. Obviously, upskilling and reskilling is what we're doing right now within their organizations, but we will be able to see what skills learners have, and conversely, we'll be able to see what skills are needed by organizations that they might not have enough bodies or might not have enough adjacent skillset. You know, it's something longer-term that we're thinking about. Right now we really are focused on we have a great product set with Udemy Business Pro, with CorpU, and with, you know, consumer subscriptions that we're working on our engagement, our retention, and really learner success and driving measurable learner outcomes. In the long term, you know, we're definitely thinking about these things you're talking about. Great. Thanks, guys. Appreciate it. Thanks. You're welcome. Thank you, David. The next question comes from Brett Knoblauch at Cantor. Okay, thanks, guys. Thanks for putting this together today. It was really well done. I guess my first question is on the partner channel. Seems like what you're doing with Benesse is really executing on all cylinders. I guess my question is, as you enter new markets, and you talked about those three new markets, you know, how long does it take for you once you get boots on the ground to get the content breadth that is needed to really activate the U.B. motion? Hey, Brett. Thanks for the question. It really does vary, you know, based on, you know, the nature of the partner in each of these countries, the resources they have already in the organization to start to, you know, partner with us to identify the instructors and develop that content engine in market. It does vary, but, you know, within all three countries that, you know, we are now in addition to Benesse in Japan, which is in China, South Korea, and Vietnam, we expect next year to really start to see some momentum and velocity as a result of the investments we made this year. It really kinda is in the second year, but it does vary by partner and by country. You know, there's nuances, you know, in each of these countries, as well as, you know, the different size and resources available within each of the partners. We expect next year to, you know, start to see some exciting, you know, momentum and movement in each of the three, and we'll be happy to share that with you as we evolve. Perfect. Looking forward to it. Second question, you know, I think we get a lot of questions about the UB reliance on the consumer segment. I guess, is there a certain size or threshold that the consumer segment needs to be or to grow at in order to drive, you know, then drive growth for the UB segment? Are we at a point where there's enough content on the marketplace that is constantly refreshed that keeps the organizations happy? Do we need continued growth in that catalog to further drive UB growth? Does that make sense? Yes. I'll talk a little bit about size, and maybe Scott, you can talk a little bit about supply and supply gaps and how we handle that. You know, that flywheel is working really well for us. It's at a size that it is giving us almost all the content that we need. With the amount of publishing that's happening, you know, we have almost 5,000 courses that are coming on a month. That's more than enough. It really is the top courses that we need. Because the incentive structure is so aligned, and we're able to attract instructors in the areas that and the categories that are most impactful for Udemy Business, it feels like we're in a pretty good place. It could go, you know, up or down a bit and really not impact UB at all. We do have a supply strategy. Scott, maybe you could talk a little bit about that. Yeah, Sarah, I think you nailed it. Essentially, the marketplace is healthy. I mentioned how much of our content is currently coming from local in addition to the English language course creators. Essentially what we're trying to do now is to continually improve those feedback loops, so enable the instructors on our platform to understand where they can best orient their next course and their creation efforts to provide the emerging supply, whether it's the organizations that are in the forefront of technologies or the data that we're seeing from our learners in the marketplace who are searching for content and so on. In essence, as Sarah mentioned, very healthy, and the influx of new talent continues to increase the health of both the instructor and the course supply. Really what we're trying to do now is re-orient or provide additional information to instructors so they can make better decisions to serve learner needs, which we think will keep the supply engine working. One of the other things that the consumer marketplace does for Udemy Business is it provides a significant amount of leads. We've really invested in our outbound marketing engine on the UB side such that it's less reliant on those leads that come over. We love them. We love that symbiotic ecosystem that we have, both from the content perspective, from the leads and the information that can go back and forth that allows our offering together to really be a differentiated offering. We did build out that outbound motion starting about two years ago, and we're feeling really good about where that is. Yep. Perfect. If I could just ask one more, maybe it was on the long-term financial framework, you know, targeting 15%-20% on adjusted EBITDA margins. I guess stock-based comp last quarter was above 15%, so I guess on a long-term framework, you're looking at kind of stock or GAAP operating income close to breakeven. I guess how do we kind of reconcile that with kind of the, you know, what's in vogue right now in terms of kind of GAAP profitability and GAAP earnings? Should we expect stock-based comp to come down over the long term, or just any color on that? Yeah. Thanks for that. You know, we did see an increase, and over the next few years, there is an increase in stock-based comp. We've been hiring a lot of people, and so as just a percentage of the top line, but also our programs where, you know, we have a large number of RSUs that are vesting over the near term. Over time, you will see that. For the next few years, we will have a decent amount of stock-based compensation in our GAAP financials. I guess any plans to maybe offset that dilution, which has been about 2 million shares a quarter, it seems like? You know, the plan for us is on. 1 million. Yeah. Thanks. You know, the plan for us is really on driving that growth and that bottom line to drive the value over time. The investments that we're making in the team and focusing on these high-growth opportunities, that's gonna build that value. Okay. That's appreciated, guys. Thanks, Brett. You're welcome. Thank you, Brett. The next question comes from Ryan MacDonald of Needham. Hello again. Looks like from the hand-raising I might have driven a second follow-up train of questions. I hope none of you had plans today. Maybe first up for Brett Sicari. You know, I thought it was interesting on the international opportunity, you called out Japan and sort of the government-led initiatives there, reskilling and upskilling over the next 5 years in terms of the incremental investment. We've seen that also in India as well. I think they want 50% increase in gross enrollments over the next 5-10 years as well. As you look at continuing to go after some of those international opportunities, given these sort of government-driven motions, what do you think is the best way for Udemy to go after that opportunity? Do you think it's on the consumer side? Is it on Udemy Business, or is there an opportunity for you to move into more sort of government side end market type business over time? Thanks. Yeah. I think that it's a big opportunity, I think, for us, and it tends to be on the Udemy Business side. They act, you know, they upskilling and reskilling, you know, their people. It's very similar to a corporation. We talked about Benesse. Benesse is a very, a progressive partner of ours. Today, they're in 60% of the Nikkei 225, and we did that in just a few years. They were able to scale our business quite dramatically, but they're also very progressive. They have good relationships with the government. You know, we started with the Tokyo government, but, you know, we're looking to expand those in Japan and then using the learnings there to go into other countries. We see it as a big opportunity long term. Excellent. Maybe as a follow-up question for Stephanie, I'm just curious, as you think about the expansion motion within these customers, can you talk, one, how the engagement strategy helps to drive those expansions and whether or not, you know, there's a typical standard that your customers like to see in terms of engagement rate before hitting that expansion opportunity? Yeah. Thanks for the question, Ryan. When we partner with customers on driving success, right? Success is making sure they use it, making sure they renew, making sure they grow with us. It looks like really understanding the company's business, making sure we really understand their business outcomes, and then we have a series of playbooks that help them drive success, right? Part of that, lots of guidance for the customer, tools that we can give them, and then internally, sales and customer success really partner together on that team selling motion that I was talking about. How do we identify opportunities where we can expand seats or new products? Let me give you an example maybe to illustrate, like, how this can work in practice. I had a customer that came to us, a large Australian bank, and they wanted to start with their tech teams, right? They were saying, "Hey, we know on-demand learning can be helpful for tech teams, so we wanna start with a small pilot." We partnered with them, and originally, you know, it's, "Hey, we'll just get it out there, see if they like it." We know even self-directed learning needs to be directed. Worked with all of their business line units to understand the skills that were really important to each of the departments, developed learning programs, matched content, and then made sure that we had a really strong launch. We were able to get those pilot seats out, super successful, and then from there, and that was an $11 thousand seed, it expanded over the course of the year, and by the end of the year was $550 thousand. We like to set goals, make sure that we achieve those goals for launch, paint a picture for what's next, and then grow together once they start to see the value. That's pretty illustrative of how we work. That's helpful. Sorry, maybe one just quick one more for you, Stephanie. You know, we've talked a lot about this move from offline to online. I'm curious what you hear in your conversations or how your conversations go in trying to convince or sort of urge that motion from organization that might be heavy offline usage that is looking potentially to make that expansion online. Is that a sticking point for your customer conversations at all? You know, not really. I think we definitely saw COVID help us in that way because everyone had to go to virtual really in a short period of time. These learning leaders actually were called on doing really important things for the business, right? It was help us get through this crazy time that we're going through, and it worked when they did it virtually. They were able to convert all of their instructor-led programs to virtual onboarding, manager training, all the functional upskilling, and there was great ROI for the business on these investments. We've seen now there's been a shift, right? Now online learning is actually the norm, and most companies are continuing to invest there or in hybrid learning experiences. We were just talking at EAC. uh, two of my execs on the council were like, "We're never going back. It's always gonna be virtual a hundred percent." So I think that's more what we're seeing, and it's, and it's here to stay. Awesome. I promise I'm done asking questions. Thank you, Ryan. Just a final reminder to everyone, if you have a question, just raise your hand. The next question we have is from Terry Tillman at Truist. Thank you. Maybe Greg Brown, a quick question for you. I don't think you all discussed this recently, but where are we? I know you don't like to give sales headcount, which I could ask if you would this time, but maybe you won't, that's fine. On the enterprise side of UB. Yeah. Maybe you could at least help us a little bit with where you are on ramp capacity, which I know is maybe not a real kind of clear definition, but you know, folks who have been on staff for a while and some sort of productivity is playing out versus really unramped. Where are you in kind of that ramped versus really not ramped at all? Because I'm kinda curious what kind of benefit this could have next year as you just unleash more productivity. The second part of that first question is just how are you thinking about sales hiring going into next year? Because I think the war for talent has been shifting. Maybe it's a little bit easier, not that it's ever really easy, but maybe it's easier to get some opportunistic hiring. How are you thinking about capacity growth from here? Yeah. Thanks for the questions. First question in terms of leverage is what I hear you asking. You know, do we expect to get leverage out of the hiring that we've done this past year? The answer moving into next year is yes. Sarah touched on this a little bit, but, you know, it has been significant in terms of, you know, the ramp and scale that we've experienced this year as far as building out our sales organization. Our, you know, time to fully burden, you know, quotas is roughly nine months for our enterprise sales reps. Based on sales cycles and, you know, the ramp schedule that we have defined. What you're gonna start to see next year is, you know, a number of those folks coming online fully ramped and fully productive. Yeah, we expect to see leverage next year as a result of that. The second question, refresh my memory. Ease of hiring. Staffing. Yeah, look, you know, those of us who have been through, you know, recessionary times, and we're surely moving into, you know, a deeper, you know, economic, you know, environment that's challenging. It is becoming easier, there's no doubt. We're being very surgical with respect to the staffing that we're doing now in Q4, as well as moving into next year. Based on the signals we're getting from the marketplace, as we've talked about, we're not immune to, you know, the economic climate and the conditions that are transpiring right now. As we move through the quarter and move through next year, we are gonna continue to staff where we have signals of strength, and we're gonna throttle back where we don't. You know, as that, you know, as that transpires, you know, and evolves, you know, we'll be able to share a little bit more. You know, right now, as we discussed, feel good about the enterprise business right now, but again, monitoring very closely. We have already throttled on the commercial side of our business, downmarket in the SMB side. Got it. Thank you, Greg. Sarah, maybe just a quick question in terms of the greater vitality in multiyear new business or expansion deals. Does that have any kind of cash flow implications we should think about, assuming that you invoice folks up front, or will you not be doing multiyear invoicing up front? Thank you. Thanks for the question. We don't do multiyear invoicing up front, so it will not have an impact on cash flow. We just do an annual invoice on that. We love to see these deals. We love that people are leaning in, especially in these times. The fact that 40% of our revenue is coming from a multiyear deal, and that's up 135%, I think that's a real testament to how we can help businesses get through what the next few quarters are gonna look like and the upcoming years. Thank you, Terry. Our last and final question comes from Thomas Singlehurst of Citi. Go ahead. Oh, some pressure now. Pressure. It is pressure. Well, I feel bad because there's a question actually for Greg Capuano, but actually about one of your shareholders, Naspers' Prosus. I mean, obviously, a company that has a sort of constellation of investments in the education space. I'm just wondering whether you can talk about, you know, what having Prosus as a shareholder does for you as an organization and whether there is scope to cooperate with some of those other sort of Prosus links. Yeah ... entities. Prosus has been a long-term shareholder. They've been in Udemy for many years. They were a very early investor, and they've been a good partner the whole way. They have a big portfolio of edtech companies. They've invested in a number of them. They bought a couple of them recently. We just see them as sister companies. It's relationships that we have that we can talk to. We talk about other ways we can work together and help each other. It is an advantage. It's nice to have somebody that has that kind of reach. It's helped us, right? We're working on some partnerships with some people in their portfolio, and it doesn't always work, but sometimes it does. You know, the doors are open for both of us, so it's useful. That's great. Thank you. Great. Thank you, Tom. At this time, we've reached the end of our Q&A session, so I will turn it back to Greg for any final statements. I wanna thank all of you for the time. We appreciate you spending the time with us, and we look forward to seeing you in February. Thank you. Thanks, everybody. Thank you. Thank you.