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SAN FRANCISCO - Udemy (NASDAQ:UDMY), the $1.03 billion market cap education technology company with annual revenues of $790 million, has acquired Lummi, a creative technology group specializing in AI-driven design tools, the company announced in a press release Wednesday. According to InvestingPro analysis, Udemy appears undervalued at current levels, with 8 analysts recently revising their earnings estimates upward.
The acquisition aims to enhance Udemy’s platform by enabling instructors to create custom illustrations and visual content for courses. Lummi’s team will join Udemy’s Innovation Studio to advance product development across the platform. With impressive gross profit margins of 63.39% and a strong balance sheet showing more cash than debt, Udemy appears well-positioned to fund its growth initiatives.
Founded in 2020 by CEO Pablo Stanley and CTO Jason Donnette, Lummi has built tools that integrate with platforms like Canva, Figma, and Adobe Express. Udemy plans to both enhance Lummi’s existing products and integrate them into its core platform.
"At Udemy, we believe skills development should go beyond content consumption," said Hugo Sarrazin, President and CEO of Udemy. He added that the integration advances the company’s strategy to become a comprehensive platform for upskilling and reskilling.
For enterprise customers, Lummi Pro will be offered as an add-on to current business plans, allowing teams to generate branded visuals for training materials without copyright concerns.
The acquisition represents an early step toward Udemy’s planned Instructor Academy, which will provide instructors with integrated tools including Lummi, Role Play, Assessments, and Labs to create more interactive courses.
Udemy also plans to develop a design-focused offering inspired by its Career Accelerators program, combining design courses with Lummi’s creative tools to support careers in the creative economy.
Udemy serves thousands of companies including Ericsson, Samsung SDS America, and Volkswagen through its enterprise solutions. The company is headquartered in San Francisco with offices across the United States, Australia, India, Ireland, Mexico, and Türkiye. For detailed insights into Udemy’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find expert research reports and in-depth metrics for over 1,400 US stocks.
In other recent news, Udemy has introduced new AI upskilling packages aimed at enhancing organizations’ artificial intelligence capabilities. These offerings include the AI Readiness Package and the AI Growth Package, which provide curated courses and specialized learning paths, respectively. The company continues to serve nearly 80 million learners globally, positioning these packages as tools to address skills gaps in AI. In a strategic move, Udemy has appointed Ozzie Goldschmied as Chief Technology Officer, while founder Eren Bali transitions to Head of Innovation, focusing on AI advancements. Morgan Stanley has upgraded Udemy’s stock rating from Underweight to Equalweight, raising the price target to $9.00, reflecting a more optimistic view of the company’s financial prospects. Meanwhile, Truist Securities has maintained its Hold rating with a $7.00 price target, noting Udemy’s strategic initiatives, including a partnership with Indeed. This collaboration aims to connect learning with employment opportunities, offering professionals access to career advancement through skills-based hiring. The partnership with Indeed is expected to broaden Udemy’s reach, providing job seekers with access to Udemy’s educational content and career services.
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