Udemy, a massive open online course (MOOC) provider, announced a non-GAAP loss of USD 0.16 per share in Q4 2022, above the consensus estimate of a loss of USD 0.23 per share. Udemy’s revenue rose 22% YoY to USD 165.3 million in Q4 2022, missing consensus expectations by 0.29%. For the full-year 2022 (FY2022), the company reported a non-GAAP loss of USD 0.48 per share (2021: loss of USD 0.80 per share), and a 22% YoY increase in revenue to USD 629.1 million.

The business segment contributed the most to revenue during the quarter with USD 90.6 million (54.8% share), up 57% YoY. This was followed by the consumer segment which contributed USD 74.7 million (45.2% share), down 5% YoY. Additionally, the business segment recorded a net dollar retention rate of 115% and an annual recurring revenue (ARR) growth rate of 55% YoY to USD 371.7 million.

Udemy’s gross margin expanded 2.6 percentage points YoY to 55.2% in Q4 2022 supported by the growth in revenue. The company’s operational loss widened by 32.1% YoY to USD 54.1 million in Q4 2022, driven by the increase in sales and marketing (25.4% YoY) and R&D (56% YoY) costs. The adjusted EBITDA loss narrowed by 19% YoY to USD 20.2 million in Q4 2022. For FY2022, the company reported an operational loss of USD 151.2 million (+94% YoY) and an adjusted EBITDA loss of USD 48.7 million (+74% YoY). 

For the full-year 2023 (FY2023), the company expects revenue to range from USD 700 million–USD 730 million, and the adjusted EBITDA margin is estimated at (4)%–(2)%.