Udemy launches AI-driven Role Play for soft skills development

SAN FRANCISCO - Udemy (UDMY), a prominent reskilling platform with annual revenues of $790 million and impressive gross profit margins of 63%, announced the introduction of Role Play, an AI-powered feature designed to enhance soft skills through realistic conversation simulations. According to InvestingPro analysis, the company appears undervalued, with 8 analysts recently revising their earnings expectations upward for the upcoming period. This innovative tool allows learners to engage in instructor-designed scenarios that mirror real workplace challenges, offering personalized, contextual learning experiences at scale.

The recent launch signifies a move towards more active and immersive learning techniques, with over 3,100 Role Plays already published by Udemy creators within four weeks. Role Play is a result of Udemy’s Innovation Studio, which focuses on creating and delivering personalized learning experiences. It represents a shift from traditional content consumption to interactive skill-building practices. While the company’s stock has seen some volatility, showing a significant 8.7% return over the last week, InvestingPro subscribers can access 10+ additional exclusive insights about Udemy’s financial health and market position.

Eren Bali, Udemy’s Chief Technology Officer and founder, stated that the combination of human expertise and AI in Role Play will revolutionize the teaching and learning of essential skills, preparing learners for real-world challenges with measurable business impact.

The platform caters to different user groups:

• Organizations can customize scenarios to address specific business challenges, allowing employees to practice communication, problem-solving, and leadership skills in a safe environment.
• Professionals seeking career growth can develop communication and leadership skills, which are increasingly important in today’s job market.
• Creators and instructors can incorporate interactive, hands-on practice into their Udemy courses, enhancing learner engagement and outcomes.

Udemy’s analysis indicates a stark contrast between the importance senior leaders place on effective leadership for skills-based transformation and employees’ perception of their leaders’ communication effectiveness. Role Play addresses this gap by providing AI-driven coaching and immediate feedback.

The offering is part of Udemy’s broader efforts to integrate AI and human interaction into reskilling at scale, as demonstrated by the company’s continuous innovation through its Innovation Studio.

For more information on Role Play and other reskilling opportunities, interested parties can visit Udemy’s business website. This announcement is based on a press release statement from Udemy. Analysts maintain a positive outlook on the company, with consensus forecasts predicting profitability this year. For deeper insights into Udemy’s financial performance and growth potential, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers what really matters about 1,400+ top stocks through intuitive visuals and expert analysis.

In other recent news, Udemy Inc. has reported its first-quarter 2025 earnings, surpassing both earnings and revenue forecasts. The company recorded an earnings per share (EPS) of $0.12, exceeding the forecasted $0.10, and achieved a revenue of $200.3 million, slightly above the projected $197.3 million. Canaccord Genuity has adjusted its outlook on Udemy, reducing the price target to $12 from $14, while maintaining a Buy rating. This change comes after Udemy’s announcement of first-quarter results that surpassed expectations in terms of revenue and profitability. Despite the positive earnings, Udemy has revised its revenue forecast for FY25 downwards, citing macroeconomic uncertainties and anticipated weakness in the Consumer marketplace segment. The company has offered a Q2 guidance that slightly exceeds market expectations, projecting revenue between $195 million and $199 million. Additionally, Udemy’s Business Annual Recurring Revenue (ARR) grew by 8% year-over-year, highlighting its robust enterprise customer base. The company continues to focus on expanding consumer subscriptions and enhancing AI-powered learning offerings under the leadership of its newly appointed CEO, Hugo Sarrazin.

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