Udemy secures $200 million credit facility for growth

SAN FRANCISCO - Udemy Inc. (NASDAQ: UDMY), a globally recognized AI-driven skills development platform with a market capitalization of $1.12 billion, has finalized a $200 million senior secured revolving credit facility. This strategic financial move, completed on May 30, 2030, aims to bolster the company’s long-term growth initiatives. According to InvestingPro data, the company maintains impressive gross profit margins of 63.39%.

The new credit line, which remains undrawn, is a testament to Udemy’s strong financial health, evidenced by its lack of outstanding debt and substantial liquidity reserves. As of March 31, 2025, the company reported over $350 million in cash, cash equivalents, and marketable securities. InvestingPro analysis indicates the company is currently trading below its Fair Value, with analysts expecting net income growth this year. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.

Hugo Sarrazin, President and CEO of Udemy, highlighted the significance of the facility, stating it enhances the company’s strategic flexibility during an essential phase of both Udemy’s progression and the evolving global workforce skills development market. With annual revenue of $790.02 million and strong growth prospects, Sarrazin emphasized the company’s readiness to accelerate its AI innovation, invest in high-return growth endeavors, and seize strategic opportunities within the dynamic market environment.

The credit facility is supported by a syndicate of lenders, including Citibank, N.A., MUFG Bank, Ltd., JPMorgan Chase Bank, N.A., and Morgan Stanley Senior Funding, Inc. Further details regarding the credit agreement can be found in the Form 8-K filed with the Securities and Exchange Commission, accessible through Udemy’s investor relations website. Discover Udemy’s complete financial story, including detailed valuation metrics and growth potential, in the comprehensive Pro Research Report available exclusively on InvestingPro.

Udemy’s platform is leveraged by companies worldwide to address the urgent need for reskilling due to AI transformation and changing workforce demands. With its enterprise solutions, Udemy serves thousands of businesses, including prominent names like Ericsson, Samsung SDS America, and Volkswagen, to develop agile, future-ready teams.

The establishment of the credit facility is based on a press release statement and reflects Udemy’s commitment to maintaining a robust financial foundation to support its strategic aspirations in the competitive skills development landscape.

In other recent news, Udemy Inc. reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.12, above the forecasted $0.10. The company’s revenue reached $200.3 million, exceeding the projected $197.3 million. Canaccord Genuity adjusted its outlook on Udemy, reducing the price target to $12 from $14 but maintained a Buy rating, following the company’s positive earnings report. Despite this, Udemy revised its FY25 revenue forecast downwards due to macroeconomic uncertainties, particularly in the Consumer marketplace segment, although no significant impact on the sales pipeline was observed.

Udemy also launched an AI-driven feature called Role Play, aimed at enhancing soft skills through conversation simulations. This new tool is part of Udemy’s broader efforts to integrate AI into reskilling at scale. Additionally, the company has secured significant enterprise agreements, including becoming the preferred reskilling platform for a firm consolidating from three learning vendors to one. The newly appointed CEO, Hugo Sarrazin, emphasized the importance of transitioning Udemy from a content provider to an AI-powered reskilling platform.

The company’s Q2 guidance slightly exceeds market expectations, with revenue projected between $195 million and $199 million. Udemy’s Business Annual Recurring Revenue (ARR) grew by 8% year-over-year, highlighting its strong enterprise customer base. Despite challenges, Canaccord Genuity remains confident in Udemy’s strategic initiatives designed to increase its market share and secure new contracts when economic conditions improve.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.