Udemy (UDMY) Stock Forecast & Price Target

Udemy Inc. demonstrated a robust financial performance with total revenues increasing by 5.5% year-over-year, primarily driven by the Enterprise segment's impressive growth of 13.4%, which now accounts for 65% of total revenue. The company also saw an expansion in its Consumer segment gross margin, increasing by 187 basis points year-over-year to 53%, due to strong growth in consumer subscriptions. Furthermore, Udemy's adjusted EBITDA rose significantly to $19.5 million, reflecting a $15.5 million increase year-over-year, further underlining the company's effective operational management and revenue generation capabilities.

Udemy Inc. has experienced a decline in consumer revenues, posting a 6.8% year-over-year decrease in the fourth quarter, which indicates challenges in stabilizing the segment despite results exceeding expectations. Furthermore, the company reported a decline in Net Dollar Retention Rate (NDRR) for enterprise customers, dropping to 98% from 99%, and a decrease in NDRR for larger customers, signaling weakening customer engagement. Additionally, revenue guidance for the first quarter of 2025 suggests only 0.1% growth, which falls short of market expectations, further underscoring potential challenges ahead for Udemy's financial performance.