Online learning platform Udemy (NASDAQ:UDMY) will be reporting earnings tomorrow afternoon. Here's what you need to know.
Udemy beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $189.5 million, up 14.6% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth. It reported 1.37 million active buyers, flat year on year.
Is Udemy a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Udemy's revenue to grow 10.5% year on year to $194.9 million, slowing from the 15.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.4% on average.
Looking at Udemy's peers in the consumer subscription segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Chegg (NYSE:CHGG)'s revenues decreased 7.1% year on year, meeting analysts' expectations, and Netflix (NASDAQ:NFLX) reported revenues up 14.8%, in line with consensus estimates. Chegg traded down 28.1% following the results while Netflix was also down 9.1%.
Read the full analysis of Chegg's and Netflix's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the consumer subscription stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. Udemy is down 7% during the same time and is heading into earnings with an average analyst price target of $15.1 (compared to the current share price of $10.02).