Udemy, a massive open online course (MOOC) provider, announced a non-GAAP loss of USD 0.01 per share in Q2 2023, above the consensus estimate of a loss of USD 0.80 per share. Udemy's revenue rose 16% YoY to USD 178.2 million in Q2 2023, beating the consensus estimate by 2.94%.

The business segment contributed the most to revenue during the second quarter, with USD 101.6 million, reflecting a 36% YoY growth, surpassing the USD 100 million mark for the first time. This was followed by the consumer segment which contributed USD 76.6 million, down 2% YoY. Additionally, the business segment recorded a net dollar retention rate of 108% and an annual recurring revenue (ARR) growth rate of 33% YoY to USD 420.4 million.

Udemy’s gross margin remained broadly unchanged YoY at 57% in Q2 2023, supported by the growth in revenue. The company’s operational loss narrowed by 3.73% YoY to USD 27.5 million in Q2 2023, supported by the growth in top-line. However, the sales and marketing expenses and R&D expenses have increased by 13.1% YoY and 23.7% YoY respectively. The adjusted EBITDA improved to USD 1.9 million in Q2 2023, compared to the loss of USD 8.6 million in Q2 2022. 

The company has made slight adjustments to its revenue target for FY2023, increasing the lower end of the range to USD 712 million (from USD 702 million) and reducing the upper end to USD 720 million (from USD 730 million). It also revised the estimated EBITDA margin to be 1.0%–0.0% from 3.5%–1.5%.