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3Q 2025 Earnings Presentation October 29, 2025
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This presentation and any accompanying oral commentary include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than those of historical fact, including information concerning our future operating results and financial position, anticipated future expenses and investments, business strategies and plans, market growth, market position and potential market opportunities, and the impact of acquisitions and business alliances. These forward-looking statements are based on our current expectations, plans, and assumptions, which we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate under the circumstances, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. Various factors, including those identified in the "Risk Factors" section of our filings with the Securities and Exchange Commission ("SEC"), could cause our actual results, level of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in our other filings with the SEC which are available, free of charge, on the SEC’s website at www.sec.gov. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and is expressly qualified in its entirety by the cautionary statements included in this presentation. These statements are made as of October 29, 2025. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements. This presentation contains “non-GAAP measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Among other non-GAAP measures, this presentation uses (1) non-GAAP gross profit, which we define as gross profit adjusted to exclude stock-based compensation expense and the amortization and acquired intangible assets; (2) non-GAAP gross margin, which we calculate as non-GAAP gross profit divided by revenue for the same period; (3) non-GAAP net income (loss), which we define as net income (loss) adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, and restructuring charges; (4) adjusted EBITDA (or AEBITDA), which we calculate as net income (loss) adjusted to exclude interest income, interest expense, provision for income taxes, depreciation and amortization, other income (expense), net (including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency), stock-based compensation expense, and restructuring charges; and (5) free cash flow, which we calculate as net cash provided by operating activities, less purchases of property and equipment and capitalized software costs, as we consider these capital expenditures necessary to support our ongoing operations. These measures have limitations as an analytical tool and should not be considered in isolation, or as a substitute for our results as reported under GAAP. These non-GAAP measures may also differ from non-GAAP measures used by other companies. See the appendix for a reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP financial measure. Unless otherwise noted, historical numerical figures and related graphics used in this presentation are accurate as of September 30, 2025. Numerical figures in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. The Udemy design logo, “Udemy,” and our other registered or common law trademarks, service marks or trade names appearing in this presentation are our property. This presentation contains additional trademarks, trade names, and service marks of other companies that are the property of their respective owners. We do not intend our use or display of other companies’ trademarks, trade names, or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. Safe Harbor Notice
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3 The AI-powered skills acceleration platform for the future workplace.
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4 Udemy investment highlights Note: Financial data as of or for the twelve months ended September 30, 2025 Leader in AI upskilling 5k AI focused courses 14M+ AI course enrollments total 560M+ minutes of AI training consumed 13,000+ Role Play simulations Scale and Growth $796M Revenue 15% 5-year revenue CAGR $520M Enterprise Revenue $276M Consumer Revenue $557M Consolidated Subscription Revenue Predictability ~70% of revenue is recurring $527M UB ARR (+4% YoY) 294k+ paid consumer subscribers Profitability and Stability 600 bps AEBITDA margin expansion 75% Enterprise segment GM $372M in cash / no outstanding debt Vibrant Marketplace 85k+ instructors 250k+ courses 1.2B enrollments 38M monthly visitors Large Global Audience 82M learners 75 local languages >60% of revenue ex-N. America >80% of traffic ex-US
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Comment: Course collections for different roles Coverage for technical, business, compliance and adaptive skills Hands-on practice: Labs, Workspaces & Role Play Assessments & certifications Udemy delivers an AI platform for performance Skills Acquisition Skills Mastery Skills Validation Skills Amplification Human connection AI Learning Paths AI Assistant Model Context Protocol AI enabled personalization Create custom content and learning paths Build custom AI Role Plays Deliver just in time reskilling with LLM, LMS, or LXP integration Integrated into the people ecosystem
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6 Revenue of $195.7M exceeded expectations, driven by growth from the enterprise segment and consumer subscriptions Adjusted EBITDA came in above the high end of the guidance range at $24.3M, or 12% margin, the 15th consecutive quarter of outperformance Surpassed FY25 paid consumer subscribers goal ahead of plan, ending the quarter with nearly 295,000 paid subscribers as subscription revenue increased 43% year-over-year AI-powered product innovation accelerating, with hundreds of enterprise customers adopting AI Role Plays and the introduction of Udemy Connect, offering personalized instructor-led coaching and cohort learning Consolidated subscription revenue increased 8% year-over-year, representing 74% of total revenue in Q3 2025, underscoring the strength and stability of Udemy’s recurring revenue base Free cash flow for Q3 was positive $12.1 million. Year-to-date free cash flow was positive $58.2 million, or 10% of revenue Q3 2025 key takeaways
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7 Q3 2025 Change YoY Q3 2025 Guidance Revenue $195.7M 0.1% $190M to $195M Consolidated Subscription Revenue $143.9M 8% Gross Margin 66% 300 bps Net Income $1.6M 106% Adjusted EBITDA1 $24.3M 110% $18M to $20M Adjusted EBITDA Margin1 12% 600 bps 10% UB ARR: +4% YoY $527.2M $504.6M UB Segment Revenue: +5% YoY $132.8M $126.1M Consumer Segment Revenue: -9% YoY $62.9M $69.3M Disciplined execution and financial performance enables strategic pivot to focus on growth opportunities 3Q25 3Q24 Q3 2025 financial results and highlights 1. Non-GAAP metric. Please see Appendix for reconciliation.
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8 ✔ Nearly 13,000 Role Play simulations created, including over 400 Enterprise customers launching custom Role Plays for employees ✔ 14M+ enrollments to date across 5k+ GenAI courses and 560M+ minutes consumed LTM Emphasizing Subscriptions Expanding Partner Ecosystem Executing Global Market Activations ✔ Consolidated subscription revenue increased 8% year-over-year in Q3 ✔ 19% of Consumer segment revenue from subscriptions ✔ Ended the quarter with 294k+ paid consumer subscribers, surpassing our 2025 target of 250,000 early Note: Data as of September 30, 2025, unless otherwise noted Leading AI Skilling Platform Progress on Strategic Priorities ✔ Launched platform in Arabic to drive expansion across Middle East ✔ Hosted enterprise customer-centric engagement tour across four key regions ✔ Entered into a strategic partnership with Pearson with plans to deliver a seamless certification journey ✔ Launched a certification voucher program with first partner, CompTIA
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9 Accelerating mix shift toward recurring revenue streams Note: Data as of September 30, 2025, unless otherwise noted Surpassed FY25 paid consumer subscribers goal ahead of plan Strong unit economics supports strategic pivot to subscription products Consumer subscription LTV:CAC of more than 3x vs ~1x for transactional % of RevenueTotal Revenue OtherSubscription $195.4 $199.9 $200.3 $199.9 $195.7 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Udemy Business 65% 65% 64% 65% 68% Consumer 35% 35% 36% 35% 32% Segment mix of total 69% 68% 70%68% 74%
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Large global and diversified Udemy Business customer base Key Q3 2025 Wins and Expansions 17,111 Total customers 5,822 Large enterprise customers1 Large Enterprise Customer Net Dollar Retention Note: Data as of September 30, 2025, unless otherwise noted 1. Represents enterprise customers with 1,000 employees or more included in the total customer count 97%
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11 ($48.7M) $7.8M $43.0M ~$93.0M Guidance midpoint* 2023 20242022 2025 Adjusted EBITDA Q3 results reinforce clear path to FY25 Adjusted EBITDA guidance $73.8M YTD *Based on the midpoint of AEBITDA guidance issued on October 29, 2025 Significant YoY profitability improvement
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Revenue1 Adjusted EBITDA2 AEBITDA Margin at midpoint $191 to $194 million $18 to $20 million 10% $787 to $790 million $92 to $94 million 12% Q4 2025 Full Year 2025 1. Udemy's revenue guidance assumes FX rates will remain unchanged from the end of the third quarter of 2025. 2. Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this presentation because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Q4 and full year 2025 outlook
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Appendix
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We count the total number of paid Consumer subscribers at the end of each period. Paid Consumer subscribers are defined as users who had an active paid subscription to any Consumer subscription offering at the end of the last day of a given period. The count of paid subscribers does not include users who are currently on a free trial. A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. We first determine the number of monthly buyers by taking the total buyers of single courses during a given month plus the total active, paid consumer subscribers at any point in that month, adjusting for duplicate buyers that may be present in both totals. We then calculate monthly average buyers by taking an average of the monthly buyer totals over a particular period, such as a fiscal year. We count the total number of UB customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite the existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, conglomerate, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships or through our self-service platform. We disclose our UB Annual Recurring Revenue (“ARR”) as a measure of our Enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included. We disclose our UB Net Dollar Retention Rate, or NDRR, as a measure of our enterprise revenue growth. We believe NDRR is an important metric that provides insight into the long-term value of our subscription agreements and our ability to retain, and grow revenue from, our UB customers. To calculate NDRR, we begin with UB customers who are active at the beginning of a twelve-month period. Then, we divide the ending annualized recurring revenue, or ARR, for those same UB customers at the end of the twelve-month period by the total ARR for those UB customers at the beginning of that twelve-month period. We calculate ARR as the total annualized run-rate revenue of all UB customers with active licenses on the last day of a given period. We calculate UB Large Customer NDRR as the total UB Large Customer ARR at the end of a trailing twelve-month period divided by the total Large Customer ARR at the beginning of a trailing twelve-month period for the cohort of UB customers with at least 1,000 employees active at the beginning of the trailing twelve-month period. We believe UB Large Customer NDRR reflects our ability to retain and expand our footprint with larger organizations, who present greater opportunities for us to retain and grow revenue given the wider range of potential use cases and land-and-expand opportunities. Segment revenue represents the revenue recognized from our two segments, Enterprise (or Udemy Business), and Consumer. Segment adjusted gross profit is defined as segment revenue less segment adjusted cost of revenue. Segment adjusted cost of revenue includes content costs, customer support services, hosting and platform costs, and payment processing fees that are allocable to each segment. Segment adjusted gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets included in cost of revenue as our chief operating decision maker does not include the information in his measurement of the performance of the operating segments. Monthly Average Buyers Udemy Business Customers Udemy Business Annual Recurring Revenue Udemy Business Net Dollar Retention Rate Udemy Business Large Customer Net Dollar Retention Rate Segment Revenue and segment adjusted gross profit Key Business Metrics Definitions Paid Consumer Subscribers
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1 We calculate gross margin as gross profit divided by revenue for the same period 2 We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period GAAP to Non-GAAP Gross Margin
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1 For periods presented with a net loss or non-GAAP net loss, potentially dilutive securities were excluded from the computation of net loss per share, diluted, and non-GAAP net loss per share, diluted, because the impact of including them would have been anti-dilutive. GAAP to Non-GAAP Net Income
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1 We calculate net income (loss) margin as net income (loss) divided by revenue for the same period 2 We calculate adjusted EBITDA margin as adjusted EBITDA divided by revenue for the same period Adjusted EBITDA Reconciliation
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Free Cash Flow Reconciliation