Online learning platform Udemy (NASDAQ:UDMY) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Udemy beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $199.9 million, up 5.5% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 17,096 active buyers, up 8.7% 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 be flat year on year at $197.2 million, slowing from the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Udemy has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.1% on average.
Looking at Udemy’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 2.3%, and Netflix reported revenues up 12.5%, in line with consensus estimates. Coursera traded up 14.1% following the results while Netflix was also up 1.4%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Udemy is down 10.4% during the same time and is heading into earnings with an average analyst price target of $10.15 (compared to the current share price of $6.95).
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