Udemy, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Udemy, Inc. has filed its 2023 Form 10-K detailing financial performance and operational aspects for the fiscal year ending December 31, 2023.</b>

AI Summary

Udemy, Inc. (UDMY) filed a Annual Report (10-K) with the SEC on February 26, 2024. Udemy, Inc. filed its 2023 Form 10-K on February 26, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial data points and segment information are detailed within the report. The company's principal executive offices are located at 600 Harrison Street, 3rd Floor, San Francisco, CA 94107. The filing includes information on common stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings for various fiscal years.

Why It Matters

For investors and stakeholders tracking Udemy, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Udemy's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors to assess the company's performance and future outlook. The detailed segment reporting within the 10-K allows stakeholders to understand the performance drivers of Udemy's Enterprise and Consumer segments, aiding in investment decisions.

Risk Assessment

Risk Level: medium — Udemy, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial and operational information, it does not present immediate, significant positive or negative news that would drastically alter the risk profile without further analysis of the specific figures and disclosures.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Udemy's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 10-K report)
• 2024-02-26 — Filing Date (Date the 10-K was filed)

Key Players & Entities

• Udemy, Inc. (company) — Filer of the 10-K report
• 600 Harrison Street, 3rd Floor, San Francisco, CA 94107 (location) — Business and mailing address

FAQ

Risk Factors

• Financial Performance [medium — financial]: The report details Udemy's financial results, including revenue, net income, and other key financial metrics for the fiscal year 2023.
• Market Competition [medium — market]: Udemy operates in a competitive online learning market, facing challenges from various platforms and educational providers.
• Platform Operations [medium — operational]: The company's ability to maintain and grow its platform, attract instructors and learners, and manage technological infrastructure is critical.

Industry Context

Udemy operates in the online education and professional development sector, a rapidly growing industry driven by the demand for flexible and accessible learning solutions.

Regulatory Implications

As a publicly traded company, Udemy is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the detailed financial statements and segment performance within the 10-K to understand revenue drivers and profitability.
2. Review the risk factors section to identify potential challenges and Udemy's mitigation strategies.
3. Compare key financial metrics from the 2023 10-K with previous years to assess trends and growth.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Official date Udemy submitted its 2023 Form 10-K to the SEC.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing the annual update on Udemy's financial and operational status compared to previous filings.

Key Financial Figures

• $0.00001 — ange on which registered Common Stock, $0.00001 par value UDMY The Nasdaq Stock Market
• $208.2 million — uring 2023. In 2023, instructors earned $208.2 million. Udemy's top 18 instructors each earned
• $1 million — op 18 instructors each earned more than $1 million and nearly 1,700 instructors earned mor

Filing Documents

• udmy-20231231.htm (10-K) — 2126KB
• udemy-outsidedirectorcompe.htm (EX-10.7) — 45KB
• udemy-changeincontrolandse.htm (EX-10.17) — 103KB
• fy2310-kdtconsent.htm (EX-23.1) — 2KB
• udemy-10xk_exx311q42023.htm (EX-31.1) — 11KB
• udemy-10xk_exx312q42023.htm (EX-31.2) — 11KB
• udemy-10xk_exx321q42023.htm (EX-32.1) — 7KB
• udemy-10xk_exx322q42023.htm (EX-32.2) — 7KB
• udemy-amendedclawbackpolic.htm (EX-97.1) — 38KB
• udmy-20231231_g1.jpg (GRAPHIC) — 88KB
• 0001607939-24-000037.txt (&nbsp;) — 11517KB
• udmy-20231231.xsd (EX-101.SCH) — 70KB
• udmy-20231231_cal.xml (EX-101.CAL) — 104KB
• udmy-20231231_def.xml (EX-101.DEF) — 346KB
• udmy-20231231_lab.xml (EX-101.LAB) — 1024KB
• udmy-20231231_pre.xml (EX-101.PRE) — 652KB
• udmy-20231231_htm.xml (XML) — 1694KB

Risk Factors

Item 1A. Risk Factors 13

Unresolved Sta ff Comments

Item 1B. Unresolved Sta ff Comments 43

Cybersecurity

Item 1C. Cybersecurity 43 I tem 2. Properties 44

Legal Proceedings

Item 3. Legal Proceedings 44

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of E quity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of E quity Securities 46 I tem 6. [Reserved] 47

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Qualitative and Quantitative Disclosures about Market Risk

Item 7A. Qualitative and Quantitative Disclosures about Market Risk 67

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 68 Consolidated Balance Sheets 71 Consolidated Statements of Operations 72 Consolidated Statements of Comprehensive Loss 73 Consolidated Statements Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) 74 Consolidated Statements of Cash Flows 75

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 77 I tem 9. Changes in and Disagreements W ith Accountants on Accounting a n d Financial Disclosure 108

Controls and Procedures

Item 9A. Controls and Procedures 108

Other Information

Item 9B. Other Information 110

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 110 PART III.

Directors, Executive Offi cers and Corporate Governance

Item 10. Directors, Executive Offi cers and Corporate Governance 111

Executive Compensation

Item 11. Executive Compensation 111

Security Ownership of Certain Benefi cial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Benefi cial Owners and Management and Related Stockholder Matters 111

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 111

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 111 P ART IV.

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 112

Form 10-K Summary

Item 16. Form 10-K Summary 116

Signatures

Signatures 117 Table of Contents Summary of risk factors Our business is subject to numerous risks and uncertainties, including those highlighted in the section of this report titled "Risk Factors." The following is a summary of the principal risks we face, any of which could adversely affect our business, operating results, financial condition, or prospects: We have a history of losses, and we may not be able to generate sufficient revenue to achieve or maintain profitability in the future. We operate in an emerging and dynamic market, which makes it difficult to evaluate our future results of operations. Our results of operations may fluctuate significantly from period to period due to a wide range of factors, which makes our future results difficult to predict. Our rapid growth may not be sustainable and depends on our ability to attract new learners, instructors, and organizations and retain existing ones. Our platform relies on a limited number of instructors who create a significant portion of the most popular content on our platform, and the loss of these instructor relationships could adversely affect our business, financial condition, and results of operations. If we fail to maintain and expand our relationships with Udemy Business ("UB" or "Enterprise") customers, our ability to grow our business and revenue will suffer. We operate in a highly competitive market, and we may not be able to compete successfully against current and future competitors. The market for online learning solutions is relatively new and may not grow as we expect, which may harm our business, financial condition, and results of operations. Adherence to our values and our focus on long-term sustainability may negatively impact our short- or medium-term financial performance. Failure to effectively leverage our strategic partnerships to market and sell our products could impact our ability to increase brand awareness and grow our revenue. Changes in laws or regulations

Business

Item 1. Business Our mission Udemy's mission is to improve lives through learning. About Udemy Udemy is a global learning company whose online platform empowers organizations and individuals with flexible and effective skill acquisition, development and validation. Udemy's learning marketplace enables tens of thousands of instructors to develop, distribute and enhance content that reaches Udemy's broad global audience of 69 million learners. Udemy leverages technology, including artificial intelligence ("AI"), as well as data and insights, to deliver personalized, immersive and effective learning experiences. We curate our highest-quality content from our marketplace for Udemy's enterprise SaaS platform, Udemy Business, which enables companies around the world to offer engaging and effective on-demand learning for all employees, immersive laboratory-style learning for tech teams and cohort-based learning focused on leadership development. In today's rapidly evolving labor environment, there are two key trends currently reshaping the future of work: the rise of the skills-based organization and the widespread adoption and application of generative AI across various industries, regions and professional roles. By leveraging our comprehensive learning solutions and strategic customer success approach, we believe we are uniquely positioned to empower organizations with the tools to build a future-ready workforce, increase employee engagement and retention, and achieve critical business outcomes, while also helping individuals to stand out in an increasingly competitive job market. We believe that our dual focus on organizational and individual skills development places us at the forefront of addressing the evolving needs of the modern workplace. As automation and technological innovation accelerates changes in the workforce, there is a growing need to offer more flexible training to continuously re-skill and upskill workforces to keep up with the pace of change. Sk

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View this 10-K filing on SEC EDGAR