SAN FRANCISCO—Bali Eren, the Chief Technology Officer of Udemy, Inc. (NASDAQ:UDMY), has recently sold 35,518 shares of the company's common stock. The transaction, which took place on November 6, 2024, was conducted under a pre-established Rule 10b5-1 trading plan. The shares were sold at a weighted average price of $9.0001, totaling approximately $319,665.
Following this transaction, Eren retains ownership of 2,225,532 shares in Udemy. The sale was executed in multiple trades, with prices ranging between $9.00 and $9.03 per share. This move is part of Eren's ongoing financial strategy within the company.
In other recent news, Udemy, Inc. reported a year-over-year revenue increase of 6% to $195 million in the third quarter of 2024, surpassing its own financial expectations. The company's strategic focus on targeting large enterprise customers has contributed to a 14% growth in annual recurring revenue (ARR), exceeding $500 million. Udemy also highlighted its operational efficiency and AI-driven product enhancements leading to significant profitability improvements.
The company's adjusted EBITDA margins reached record highs, with the Udemy Business segment adding over 250 new customers and improving gross margins to 74%. Despite a decline in consumer revenue, Udemy raised its full-year 2024 revenue outlook to $780-$783 million, with a long-term goal of $130-$150 million in adjusted EBITDA by 2026.
Udemy's founder, Eren Bali, has rejoined the team as CTO, focusing on product strategy and operational efficiency. The company's partnership with Workday (NASDAQ:WDAY), integrating Udemy's content with Workday's skills cloud, is expected to promote internal mobility and customer engagement. These are some of the recent developments that reflect Udemy's strategic focus on large enterprises and operational efficiency.
InvestingPro Insights
While Udemy's CTO Bali Eren has recently sold a portion of his shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, Udemy's market capitalization stands at $1.27 billion, reflecting its position in the online education sector.
InvestingPro Tips highlight that Udemy holds more cash than debt on its balance sheet, which could be seen as a positive sign of financial stability. This strong cash position may provide the company with flexibility for future investments or to weather potential market uncertainties.
Additionally, Udemy has shown impressive gross profit margins, with the latest data indicating a gross profit margin of 61.14% for the last twelve months as of Q3 2024. This robust margin suggests that the company has been effective in managing its direct costs relative to revenue.
It's worth noting that Udemy has experienced significant returns over various time frames. The company's stock has shown a strong return of 21.61% over the last month and 26.28% over the last three months. These positive trends could indicate growing investor confidence in Udemy's business model and future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Udemy, providing a deeper understanding of the company's financial health and market position.
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