Online learning platform Udemy (NASDAQ:UDMY) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Udemy beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $200.3 million, up 1.8% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. It reported 17,216 active buyers, up 7.1% 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 1.4% year on year to $197 million, slowing from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.9% on average.
Looking at Udemy’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.7%, and Netflix reported revenues up 15.9%, in line with consensus estimates. Coursera traded up 36.2% following the results while Netflix was down 5.2%.
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 4.7% on average over the last month. Udemy is up 5.7% during the same time and is heading into earnings with an average analyst price target of $10.12 (compared to the current share price of $7.43).
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