2025 Guidance
Q: What growth range for UV in 2025?
A: Management expects 2025 to be a transition year facing headwinds—such as a $20M reduction in SMB capacity and EMEA challenges—with a target of about $70M adjusted EBITDA, setting the stage for $130–$150M by 2026. "

Expansion Focus
Q: More revenue from existing or new large customers?
A: They stressed that deeper penetration within the current enterprise base—currently below 10%—offers the greatest opportunity to drive growth through strategic, high-value engagements. "

Product Expansion
Q: How will upsell initiatives drive revenue?
A: By leveraging an expanded product platform that now includes key AI enhancements, they plan to secure larger upfront deals instead of relying on incremental growth. "

UV Growth Range
Q: Is UV growth about 14–16% in 2025?
A: They clarified that although overall revenue faces headwinds, the UV segment is expected to grow in the lower double digits once the transition effects are fully absorbed. "

AI Impact
Q: How are AI capabilities affecting enterprise sales?
A: Early signals from AI tools like skills mapping and an AI assistant are already shortening sales cycles and enhancing personalized engagement with large enterprises. "

Net Retention
Q: What are the net retention dynamics?
A: The company reported a stable net dollar retention of about 99% overall and 104% for large customers, reflecting a measured pace in upsell activity amid longer sales cycles. "

Retention Drivers
Q: What will drive improved net retention?
A: By enhancing product adoption and providing strategic support in developing both technical and business skills, they expect to bolster retention gradually over time. "

Enterprise Pipeline
Q: What processes support large enterprise conversion?
A: New initiatives include refined account planning and enhanced sales enablement aimed at engaging senior decision-makers in key verticals to streamline the pipeline. "

L&D Outlook
Q: How is the corporate L&D spending environment?
A: Despite tighter budgets, companies are consolidating their L&D spend, which creates an opportunity for a comprehensive platform that addresses both content needs and skills development. "

EMEA Performance
Q: How is Udemy Business performing in EMEA?
A: In EMEA, growth has been muted with longer sales cycles, though churn has stayed relatively stable, highlighting regional market challenges. "

Regional Performance
Q: Which regions are showing strong performance?
A: APAC and LATAM are driving robust growth, while EMEA lags, all contributing to over 60% of revenue coming from outside the U.S.. "

Net Adds
Q: Why did net customer adds decline?
A: The drop in net adds is mainly due to a strategic reallocation from SMBs toward large enterprises, a shift expected to stabilize as the focus tightens upmarket. "

Workday Integration
Q: What does the Workday integration entail?
A: It connects Udemy’s business content to Workday’s Skills Cloud, enhancing internal mobility and providing joint value when both systems are leveraged together. "

Customer Choice
Q: Will customers lean toward LMS platforms or content providers?
A: The choice is case-by-case; when platforms offer native skills mapping, customers may use those capabilities, but Udemy remains vital for its comprehensive content approach. "

Product Roadmap
Q: Beyond AI, what's next for product innovation?
A: With Eren Bali’s return, they are unifying product and engineering functions to accelerate innovation, though further specifics will emerge in upcoming announcements. "