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Investing.com -- Udemy reported fourth quarter earnings that surpassed analyst expectations, sending its shares up 6.6% in after-hours trading. The online learning platform's revenue also topped estimates, despite a softer outlook for the upcoming quarter.
For the fourth quarter, Udemy posted adjusted earnings per share of $0.10, beating the analyst consensus of $0.06. Revenue came in at $199.9 million, up 5% YoY and above the $194.71 million analysts had projected.
The company's enterprise segment, Udemy Business, saw revenue grow 13% YoY to $130.1 million, while consumer segment revenue declined 7% to $69.8 million.
However, Udemy's guidance for the first quarter of 2025 fell short of expectations. The company forecasts revenue between $195 million and $199 million, below the analyst consensus of $201.4 million.
"Udemy's strong finish to the year underscores the disciplined execution of our strategy and the significant progress we are making to position the company for success," said Greg Brown, Udemy's President and CEO. He added that the company is on track with its strategic pivot to focus resources on serving large enterprise customers.
For the full year 2024, Udemy's total revenue increased 8% to $786.6 million. The enterprise segment grew 18% to $494.5 million, while consumer segment revenue decreased 5% to $292.1 million. The company ended the quarter with $355.7 million in cash, cash equivalents, restricted cash, and marketable securities.
Udemy Business Annual Recurring Revenue (ARR) rose 11% YoY to $516.9 million, indicating continued growth in its enterprise offerings. The company noted that foreign exchange rates negatively impacted revenue growth by 2 percentage points across all segments.
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