Udemy Earnings: What To Look For From UDMY

Online learning platform Udemy (NASDAQ:UDMY) will be reporting results tomorrow after the bell. Here’s what investors should know.

Udemy met analysts’ revenue expectations last quarter, reporting revenues of $194.4 million, up 9% year on year. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth. It reported 16,595 active buyers, up 11% year on year.

Is Udemy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Udemy’s revenue to grow 4.3% year on year to $192.7 million, slowing from the 16.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Udemy has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Udemy’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.

Read our full analysis of Netflix’s results here and Coursera’s results here.

Investors in the consumer internet segment have had steady hands going into earnings, with share prices flat over the last month. Udemy is up 7.4% during the same time and is heading into earnings with an average analyst price target of $12.06 (compared to the current share price of $7.99).

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