# EDGAR Filing Document

**Accession Number:** 0001607939
**File Stem:** 0001607939-23-000025
**Filing Date:** 2023-2
**Character Count:** 51474
**Document Hash:** 36b59e40db965382fe9bbe5da8d94761
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001607939-23-000025.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001607939-23-000025

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Cost Associated with Exit or Disposal Activities

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Udemy, Inc.
- **CENTRAL INDEX KEY:** 0001607939
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **IRS NUMBER:** 271779864
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40956
- **FILM NUMBER:** 23629185

**BUSINESS ADDRESS:**
- **STREET 1:** 600 HARRISON STREET
- **STREET 2:** 3RD FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94107
- **BUSINESS PHONE:** (510) 378-4789

**MAIL ADDRESS:**
- **STREET 1:** 600 HARRISON STREET
- **STREET 2:** 3RD FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94107

?xml version="1.0" ? udmy-20230214

**UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 14, 2023**

**Udemy, Inc.**

**(Exact name of Registrant as Specified in Its Charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40956** | **27-1779864** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| **600 Harrison Street, 3rd Floor** | | |
| **San Francisco, California** | | **94107** |
| **(Address of Principal Executive Offices)** | | **(Zip Code)** |

---

**(415) 813-1710**

(Registrant's Telephone Number, Including Area Code)

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.00001 par value per share | UDMY | The Nasdaq Stock Market LLC <br>(The Nasdaq Global Select Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition**

On February 14, 2023, Udemy, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

*The information in Item 2.02 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.*

**Item 2.05. Costs Associated with Exit or Disposal Activities**

On February 13, 2023, the Company committed to a reduction in force that is expected to result in the termination of approximately 10% of the Company's global workforce. The Company took this step to decrease its costs during the current macroeconomic environment and create a more streamlined organization to support its business. As a result, the Company expects to recognize restructuring charges between $9 million and $11 million in the first quarter of 2023, primarily consisting of personnel expenses such as salaries and wages, one-time severance payments, and other benefits. Cash payments related to these expenses will be paid out primarily during the first and second quarters of 2023. Also included in the indicated range is an immaterial amount of stock-based compensation expense that will be recognized in the first quarter of 2023 as a result of modifications to allow vesting of certain stock-based awards held by impacted personnel. The reduction in force is expected to be completed by the end of the second quarter of 2023.

The estimates of costs and expenses that the Company expects to incur in connection with the reduction in force are subject to a number of assumptions and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the reduction in force.

A message to the Company's employees from Gregg Coccari, the Company's chief executive officer, regarding the reduction in force is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.

This Current Report on Form 8-K, including the accompanying exhibits, contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, those related to the expected costs and benefits associated with the reduction in force as well as the Company's timeline for completing the reduction in force and recognition of associated costs. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties, including those described in the Company's most recent Quarterly report on Form 10-Q and Annual Report on Form 10-K. Therefore, the Company's actual results could differ materially from those expressed, implied or forecast in any such forward-looking statements. For example, the expected costs associated with the reduction in force may be greater than anticipated, completion of the reduction in force may take longer than anticipated, the Company may be unable to realize the contemplated benefits in connection with the reduction in force, and the reduction in force may have an adverse impact on the Company's performance. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this Current Report on Form 8-K, whether as a result of new information, future events or otherwise.

------

**Item 9.01 Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exhibits</u>

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 99.1 | <u>[Press release dated](fy22q4pressrelease.htm)[February 14](fy22q4pressrelease.htm)[,](fy22q4pressrelease.htm)[2023](fy22q4pressrelease.htm)</u> |
| 99.2 | <u>[Message to Udemy, Inc. employees from Gregg Coc](ceomessage.htm)[c](ceomessage.htm)[ari on February 13, 2023](ceomessage.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | **UDEMY, INC.** |
| Date: | February 14, 2023 | By: | /s/ Ken Hirschman |
|  |  |  | Ken Hirschman<br>SVP Operations and General Counsel |

---

## Exhibit 99.1

**Udemy Reports Fourth Quarter and Full Year 2022 Results**

*• Total revenue increased 22% year-over-year for both the fourth quarter and full year*

*• Announced strategic actions to further accelerate path to profitability*

**San Francisco, CA / February 14, 2023** - Udemy (Nasdaq: UDMY), a leading destination for learning and teaching online, today reported results for the three- and twelve-month periods ended December 31, 2022.

"Udemy ended its first full year as a public company strong, despite a very challenging macro environment," said Gregg Coccari, Udemy's Chairman and CEO. "We continue to be encouraged by the strength of our leading growth engine, Udemy Business, which is supported by an accelerating shift from offline to online skills development, and the health of our Consumer marketplace. We are cautiously optimistic about the year ahead as we focus on balancing long-term sustainable growth and margin expansion, driving toward delivering a profitable second half of 2023 on an adjusted EBITDA basis."

**Fourth quarter 2022 financial performance highlights include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue increased 22% year-over-year to $165.3 million. Revenue growth includes a negative impact of 4 percentage points from changes in foreign exchange (FX) rates year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enterprise segment, or Udemy Business, revenue increased 57% year-over-year, including the negative impact of 4 percentage points from changes in FX rates year-over-year, to $90.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Udemy Business Annual Recurring Revenue increased 55% year-over-year to $371.7 million and Net Dollar Retention Rate was 115%. Net Dollar Retention Rate for Udemy Business Large Customers, or customers with at least 1,000 employees, was 123%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer segment revenue decreased 4% year-over-year, including the negative impact of 5 percentage points from changes in FX rates year-over-year, to $74.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Monthly Average Buyers on Udemy's Consumer marketplace decreased by 2% year-over-year, but increased 3% sequentially from Q3 2022, to 1.36 million.

------

**Fourth Quarter and Full Year 2022 Financial Results and Key Operating Data Summary**

*(in millions, except customers, percentages and basis points)*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **% Change** | **% Change** | **Fiscal Year Ended<br>December 31,** | **Fiscal Year Ended<br>December 31,** | **Fiscal Year Ended<br>December 31,** | **Fiscal Year Ended<br>December 31,** | **% Change** | **% Change** |
| | **2022** | **2022** | **2021** | **2021** | **YoY** | **YoY** | **2022** | **2022** | **2021** | **2021** | **YoY** | **YoY** |
| **Revenue** | $165.3 |  | $135.5 |  | 22 | % | $629.1 |  | $515.7 |  | 22 | % |
| GAAP Gross Profit | $91.3 |  | $71.3 |  | 28 | % | $353.8 |  | $279.6 |  | 27 | % |
| **% of Revenue** | 55 | % | 53 | % | 260 | bps | 56 | % | 54 | % | 200 | bps |
| **Non-GAAP Gross Profit** | $94.0 |  | $72.8 |  | 29 | % | $362.0 |  | $282.3 |  | 28 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;% of Revenue | 57 | % | 54 | % | 320 | bps | 58 | % | 55 | % | 280 | bps |
| **GAAP Net Loss** | $(52.2) |  | $(41.4) |  | 26 | % | $(153.9) |  | $(80.0) |  | 92 | % |
| **Non-GAAP Net Loss** | $(22.8) |  | $(29.3) |  | (22) | % | $(68.3) |  | $(43.8) |  | 56 | % |
| **Adjusted EBITDA** | $(20.2) |  | $(25.1) |  | (19) | % | $(48.7) |  | $(27.9) |  | 74 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;% of Revenue | (12) | % | (19) | % | 630 | bps | (8) | % | (5) | % | (230) | bps |
| ***Enterprise Segment*** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Total Customers** | 13920 |  | 10515 |  | 32 | % |  |  |  |  |  |  |
| **Annual Recurring Revenue** | $371.7 |  | $239.3 |  | 55 | % |  |  |  |  |  |  |
| **Net Dollar Retention** | 115 | % | 118 | % | (300) | bps |  |  |  |  |  |  |
| **Segment Revenue** | $90.6 |  | $57.8 |  | 57 | % | $314.0 |  | $187.0 |  | 68 | % |
| **Segment Gross Profit** | $60.4 |  | $38.6 |  | 56 | % | $209.5 |  | $123.0 |  | 70 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;% of Segment Revenue | 66.6 | % | 66.9 | % | (30) | bps | 66.7 | % | 65.8 | % | 90 | bps |
| ***Consumer Segment*** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Monthly Average Buyers** | 1.36 |  | 1.39 |  | (2) | % | 1.34 |  | 1.35 |  | (1) | % |
| **Segment Revenue** | $74.7 |  | $77.7 |  | (4) | % | $315.1 |  | $328.7 |  | (4) | % |
| **Segment Gross Profit** | $37.4 |  | $36.9 |  | 1 | % | $165.8 |  | $169.4 |  | (2) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;% of Segment Revenue | 50.0 | % | 47.6 | % | 240 | bps | 52.6 | % | 51.5 | % | 110 | bps |

---

**Business and Operational Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Announced leadership changes at the start of Q1 2023, including the retirement of current Chairman and CEO, Gregg Coccari; the promotions of current President of Udemy Business Greg Brown to CEO and current Senior Vice President of Customer Success Stephanie Stapleton Sudbury to President of Udemy Business; and the hiring of Karen Fascenda as Chief People Officer and Nathan Blain as General Manager of Cohort Learning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Udemy Business added new, or expanded existing, relationships with global customers including European multinational chemical company, BASF SE (Germany); the world's largest manufacturer of construction equipment, Caterpillar, Inc. (U.S.); global technology platform for Business Spend Management, Coupa Software (U.S.); the leading global platform for the luxury fashion industry, FARFETCH Limited (UK); multinational retailer Grupo Falabella (Chile); and global supplier of premium and luxury cars and vans, The Mercedes-Benz Group AG (Germany).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recently closed a multi-year deal with Capgemini, a global technology services company, in which Udemy Business was selected as its learning content partner to support the launch of their new Capgemini Engineering and Industry Academies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued Udemy Business's expansion in the Asia-Pacific region with new customer wins through strategic reseller partnerships, including the fintech and software developer, Kaitai Vision Information Technology (China); shipping and logistics company, Nippon Yusen Kaisha (Japan); and provider of outsourcing, software development and security services, Ryobi Systems Co., Ltd. (Japan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Established new reseller partnerships in Latin America (LATAM), including HSM, an executive education provider in Brazil; CognosOnline, a leader in LATAM for digital learning solutions; and eClass, an e-learning content and technology vendor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Launched a collection of courses for in-demand skills compliant with 508 accessibility standards; a redesigned instructor performance dashboard with enhanced insights into Udemy Business course engagement; and a set of immersive learning data-science labs and coding exercises for new learners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Added a new Hindi collection, the 14th language to be included in the Udemy Business International Collection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Named to Built In's Annual List of Best Places to Work, which recognized Udemy as a top employer in the U.S., Colorado, Austin and San Francisco.

**Business Update**

On February 13, 2023, Udemy announced to its employees that in response to macroeconomic conditions and to further streamline its operations and cost structure, it made the difficult decision to reduce its global workforce by approximately 10%. Employee notifications are complete and this action will result in a one-time charge in Q1 2023 of $8 to $9 million in non-GAAP severance costs, primarily consisting of personnel expenses, such as salaries and wages, one-time severance payments, and other benefits. Udemy expects these actions to result in annualized non-GAAP savings of approximately $30 to $32 million. Udemy believes these actions will accelerate its path to profitability and now expects to be profitable on an adjusted EBITDA basis for the second half of 2023.

**Financial Outlook**

Udemy provides guidance based on current market conditions and expectations. Actual results may differ materially. Please refer to the comments below regarding forward-looking statements.

The following table reflects Udemy's financial outlook for its first quarter and full year ending December 31, 2023.

---

| | | |
|:---|:---|:---|
| | **Three Months Ending March 31, 2023** | **Year Ending December 31, 2023** |
| **Revenue** | $168 - $172 million | $700 - $730 million |
| Adjusted EBITDA Margin\* | (10)% - (8)% | (4)% - (2)% |
| **Weighted Average Share Count** | 146 million | 149 million |
| *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* | *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* | *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* |
| *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* | *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* | *\*Udemy has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this earnings release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. Adjusted EBITDA Margin outlook excludes the impact of restructuring charges.* |

---

The revenue guidance range above assumes foreign currency exchange rates will remain constant. As a result of changes in FX rates during 2022, FX is expected to impact total revenue year-over-year growth by approximately 6 percentage points in the first quarter and 3 percentage points for the full year 2023.

**Webcast Information** 

Udemy will host a conference call and webcast at 2:00 p.m. PT / 5:00 p.m. ET today, Tuesday, February 14, to discuss its fourth quarter and full year 2022 financial results and 2023 outlook. A link to the live webcast and recorded replay of the conference call will be available on the "Quarterly Results" section of Udemy's Investor Relations website at https://investors.udemy.com/. The live call may also be accessed via telephone at (877) 270-2148 toll-free domestically and at (412) 902-6510 internationally. The archived replay of the webcast will be available for approximately one year.

**Non-GAAP Financial Measures**

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), Udemy's key non-GAAP performance measures include Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP net loss.

------

We calculate Adjusted EBITDA as net loss determined in accordance with GAAP, excluding i) interest (income) expense, net; ii) provision for income taxes; iii) depreciation and amortization; iv) other expense, net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency and v) stock-based compensation expense. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the same period. We have not reconciled our expectations for Adjusted EBITDA and Adjusted EBITDA Margin to net loss and net loss margin, respectively, the most directly comparable GAAP measures, because certain items are out of our control or cannot be reasonably predicted and a reconciliation for the guidance for Adjusted EBITDA and Adjusted EBITDA Margin is not available without unreasonable effort. As Adjusted EBITDA and Adjusted EBITDA Margin facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges. We define non-GAAP loss as net loss attributable to common stockholders, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We define non-GAAP gross profit as gross profit, adjusted to exclude stock-based compensation expense and the amortization of acquired intangible assets. We calculate non-GAAP gross margin as non-GAAP gross profit divided by revenue for the same period. We believe the presentation of operating results that excludes these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

Udemy's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Udemy's financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

**Forward Looking Statements**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Udemy's expectations relating to future operating results and financial position, including the first quarter of 2023, the full year 2023, and future periods; anticipated future expenses and investments; our business strategy and plans; market growth; our market position and potential market opportunities; the costs and benefits associated with Udemy's reduction in force; and the timing of completion of the reduction in force and the recognition of associated costs. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission ("SEC"), including, without limitation, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the SEC on November 2, 2022. All information provided in this release is as of the date hereof, and we undertake no duty to update this information unless required by law.

**About Udemy**

Udemy (Nasdaq: UDMY) improves lives through learning by providing flexible, effective skill development to empower organizations and individuals. The Udemy marketplace platform, with thousands of up-to-date courses in dozens of languages, offers the tools learners, instructors, and enterprises need to achieve their goals and reach their full potential. Millions of people learn on the Udemy platform from real-world experts in topics ranging from programming and data science to leadership and team building. Udemy Business enables employers to offer on-demand learning for all employees, immersive learning for tech teams, and cohort learning for leaders. Udemy Business customers include FenderⓇ, Glassdoor, On24, The World Bank, and Volkswagen. Udemy is headquartered in San Francisco with hubs in Istanbul and Ankara, Türkiye; Austin, Texas; Boston, Massachusetts; Mountain View, California; Denver, Colorado; Dublin, Ireland; Melbourne, Australia; New Delhi, India; and Sao Paulo, Brazil.

------

**Udemy, Inc.**

**Condensed Consolidated Statements of Operations**

(*in thousands, except share and per share amounts*)

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Fiscal Year Ended December 31,** | **Fiscal Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenue | $165330 | $135451 | $629097 | $515657 |
| Cost of revenue (1)(2) | 73990 | 64122 | 275320 | 236024 |
| Gross profit | 91340 | 71329 | 353777 | 279633 |
| Operating expenses (1)(2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 88558 | 70624 | 301347 | 227023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 29961 | 19208 | 104556 | 66107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 26917 | 22442 | 99064 | 64410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 145436 | 112274 | 504967 | 357540 |
| Loss from operations | (54096) | (40945) | (151190) | (77907) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income (expense), net | 3335 | 436 | 4297 | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (257) | (206) | (4696) | (920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | 3078 | 230 | (399) | (936) |
| Net loss before taxes | (51018) | (40715) | (151589) | (78843) |
| Income tax provision | (1135) | (669) | (2286) | (1183) |
| Net loss attributable to common stockholders | $(52153) | $(41384) | $(153875) | $(80026) |
| &nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(0.36) | $(0.38) | $(1.09) | $(1.46) |
| &nbsp;&nbsp;&nbsp;Weighted-average shares used in computing net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 143120852 | 108168420 | 140873504 | 54972827 |

---

(1)Includes stock-based compensation expense as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Fiscal Year Ended December 31,** | **Fiscal Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Cost of revenue | $1920 | $736 | $5360 | $1623 |
| Sales and marketing | 10538 | 2852 | 29054 | 8637 |
| Research and development | 7547 | 2370 | 20850 | 6816 |
| General and administrative | 8245 | 5018 | 26029 | 17604 |
| Total stock-based compensation expense | $28250 | $10976 | $81293 | $34680 |

---

(2) &nbsp;&nbsp;&nbsp;&nbsp;Includes amortization of intangible assets as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Fiscal Year Ended December 31,** | **Fiscal Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Cost of revenue | $725 | $729 | $2900 | $1022 |
| Sales and marketing | 341 | 384 | 1366 | 481 |
| Total amortization of intangible assets | $1066 | $1113 | $4266 | $1503 |

---

------

**Udemy, Inc.**

**Condensed Consolidated Balance Sheets**

(*in thousands, except share and per share amounts*)

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $313685 | $533868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 151687 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 104530 | 73180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 14878 | 15927 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs, current | 30234 | 18898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 615014 | 641873 |
| Property and equipment, net | 7012 | 9887 |
| Capitalized software, net | 27412 | 20054 |
| Operating lease right-of-use assets | 11377 |  |
| Restricted cash, non-current | 3629 | 2900 |
| Deferred contract costs, non-current | 35411 | 25647 |
| Strategic investments | 12104 | 10000 |
| Intangible assets, net | 9331 | 13597 |
| Goodwill | 12646 | 12646 |
| Other assets | 3632 | 3247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $737568 | $739851 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $14529 | $34627 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 31247 | 40140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Content costs payable | 37310 | 35961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 22882 | 22341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 7002 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 273937 | 208274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 386907 | 341343 |
| Operating lease liabilities, non-current | 6545 |  |
| Deferred revenue, non-current | 4342 | 2280 |
| Other liabilities, non-current | 464 | 6528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 398258 | 350151 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 951946 | 848229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (233) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (612404) | (458529) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 339310 | 389700 |
| Total liabilities and stockholders' equity | $737568 | $739851 |

---

------

**Udemy, Inc.**

**Condensed Consolidated Statements of Cash Flows**

(*in thousands*)

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **Fiscal Year Ended December 31,** | **Fiscal Year Ended December 31,** |
| | **2022** | **2021** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(153875) | $(80026) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 21216 | 15297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred sales commissions | 32279 | 17801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 81293 | 34680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 960 | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of marketable securities | (896) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating lease expense | 6205 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on strategic investments | 2896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 690 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (32309) | (27000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (4) | (9903) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs | (53379) | (36508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | (28620) | 7272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Content costs payable | 1349 | 4389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (6487) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 67725 | 66568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (60957) | (7104) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of marketable securities | (158503) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of marketable securities | 7500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1564) | (5335) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized software costs | (14160) | (12868) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of strategic investments | (5000) | (10000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments related to business combination, net of cash acquired | (1500) | (24490) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (173227) | (52693) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from exercise of stock options | 7149 | 10878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from issuance of redeemable convertible preferred stock |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from share purchases under employee stock purchase plan | 9192 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of redeemable convertible preferred stock issuance costs |  | (2250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred offering costs | (1586) | (5183) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash proceeds from initial public offering |  | 415187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 14755 | 418634 |
| Effect of foreign exchange rates on cash flows | (25) |  |
| **Net increase (decrease) in cash, cash equivalents and restricted cash** | (219454) | 358837 |
| Cash, cash equivalents and restricted cash—Beginning of period | 536768 | 177931 |
| Cash, cash equivalents and restricted cash—End of period | $317314 | $536768 |

---

------

**Udemy, Inc.**

**Reconciliation of GAAP to Non-GAAP Financial Measures**

(*in thousands, except share and per share amounts*)

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| | **GAAP** | **Stock-based Compensation** | **Amortization of Intangible Assets** | **Non-GAAP** |
| | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** |
| Revenue | $165330 | $— | $— | $165330 |
| Cost of revenue | 73990 | (1920) | (725) | 71345 |
| Gross profit | 91340 | 1920 | 725 | 93985 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 88558 | (10538) | (341) | 77679 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 29961 | (7547) |  | 22414 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 26917 | (8245) |  | 18672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 145436 | (26330) | (341) | 118765 |
| Loss from operations | (54096) | 28250 | 1066 | (24780) |
| Other income (expense) |  |  |  |  |
| Interest income, net | 3335 |  |  | 3335 |
| Other expense, net | (257) |  |  | (257) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 3078 |  |  | 3078 |
| Net loss before taxes | (51018) | 28250 | 1066 | (21702) |
| Income tax provision | (1135) |  |  | (1135) |
| Net loss attributable to common stockholders | $(52153) | $28250 | $1066 | $(22837) |
| Net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | $(0.36) |  |  | $(0.16) |
| Weighted-average shares used in computing net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 143120852 |  |  | 143120852 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fiscal Year Ended December 31, 2022** | **Fiscal Year Ended December 31, 2022** | **Fiscal Year Ended December 31, 2022** | **Fiscal Year Ended December 31, 2022** |
| | **GAAP** | **Stock-based Compensation** | **Amortization of Intangible Assets** | **Non-GAAP** |
| | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** |
| Revenue | $629097 | $— | $— | $629097 |
| Cost of revenue | 275320 | (5360) | (2900) | 267060 |
| Gross profit | 353777 | 5360 | 2900 | 362037 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 301347 | (29054) | (1366) | 270927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 104556 | (20850) |  | 83706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 99064 | (26029) |  | 73035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 504967 | (75933) | (1366) | 427668 |
| Loss from operations | (151190) | 81293 | 4266 | (65631) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income, net | 4297 |  |  | 4297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (4696) |  |  | (4696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (399) |  |  | (399) |
| Net loss before taxes | (151589) | 81293 | 4266 | (66030) |
| Income tax provision | (2286) |  |  | (2286) |
| Net loss attributable to common stockholders | $(153875) | $81293 | $4266 | $(68316) |
| &nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(1.09) |  |  | $(0.48) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares used in computing net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 140873504 |  |  | 140873504 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| | **GAAP** | **Stock-based Compensation** | **Amortization of Intangible Assets** | **Non-GAAP** |
| | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** |
| Revenue | $135451 | $— | $— | $135451 |
| Cost of revenue | 64122 | (736) | (729) | 62657 |
| Gross profit | 71329 | 736 | 729 | 72794 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 70624 | (2852) | (384) | 67388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 19208 | (2370) |  | 16838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 22442 | (5018) |  | 17424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 112274 | (10240) | (384) | 101650 |
| Loss from operations | (40945) | 10976 | 1113 | (28856) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income, net | 436 |  |  | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (206) |  |  | (206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 230 |  |  | 230 |
| Net loss before taxes | (40715) | 10976 | 1113 | (28626) |
| Income tax provision | (669) |  |  | (669) |
| Net loss attributable to common stockholders | $(41384) | $10976 | $1113 | $(29295) |
| &nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(0.38) |  |  | $(0.27) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares used in computing net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 108168420 |  |  | 108168420 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fiscal Year Ended December 31, 2021** | **Fiscal Year Ended December 31, 2021** | **Fiscal Year Ended December 31, 2021** | **Fiscal Year Ended December 31, 2021** |
| | **GAAP** | **Stock-based Compensation** | **Amortization of Intangible Assets** | **Non-GAAP** |
| | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** |
| Revenue | $515657 | $— | $— | $515657 |
| Cost of revenue | 236024 | (1623) | (1022) | 233379 |
| Gross profit | 279633 | 1623 | 1022 | 282278 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 227023 | (8637) | (481) | 217905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 66107 | (6816) |  | 59291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 64410 | (17604) |  | 46806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 357540 | (33057) | (481) | 324002 |
| Loss from operations | (77907) | 34680 | 1503 | (41724) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income, net | (16) |  |  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (920) |  |  | (920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (936) |  |  | (936) |
| Net loss before taxes | (78843) | 34680 | 1503 | (42660) |
| Income tax provision | (1183) |  |  | (1183) |
| Net loss attributable to common stockholders | $(80026) | $34680 | $1503 | $(43843) |
| &nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(1.46) |  |  | $(0.80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares used in computing net loss per share attributable to common stockholders |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 54972827 |  |  | 54972827 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Fiscal Year Ended December 31,** | **Fiscal Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net loss | $(52153) | $(41384) | $(153875) | $(80026) |
| Adjusted to exclude the following: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest (income) expense, net | (3335) | (436) | (4297) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 1135 | 669 | 2286 | 1183 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 5600 | 4897 | 21216 | 15297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 28250 | 10976 | 81293 | 34680 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | 257 | 206 | 4696 | 920 |
| Adjusted EBITDA | $(20246) | $(25072) | $(48681) | $(27930) |

---

**Investor Contact**

Dennis Walsh

Vice President, Investor Relations

dennis.walsh@udemy.com

**Media Contact** 

Abby Welch

Senior Director, Corporate Communications

abby.welch@udemy.com

## Exhibit 99.2

**Exhibit 99.2**

Message to Udemy, Inc. employees from Gregg Coccari on February 13, 2023

My fellow Udemates,

Udemy has served as an invaluable resource to millions of people and thousands of organizations across the world as they've navigated through a pandemic and a rapidly changing macroeconomic environment. Together, we have all made a valuable impact on so many lives. This makes today's announcement an incredibly difficult one to share. In order to position ourselves for long-term sustainable growth, we have made the difficult but necessary decision to reduce our global workforce by 10%.

In previous All Hands meetings, the executive team has endeavored to be as transparent as possible with you about the cautious approach we have taken to navigate through these challenging macroeconomic conditions. We made strategic decisions last year to adjust our cost structure to ensure Udemy came out on the other side a stronger, more efficient company. Over the past few quarters, we slowed hiring and reduced spending across the company, and focused on driving efficiencies and preserving resources.

These steps were taken thoughtfully and aimed at avoiding the necessity of making any adjustments to our Udemate team. Unfortunately, the macroeconomic environment continued to deteriorate in the back half of last year and we are not immune to this challenging environment.

We want everyone to know that taking care of our impacted Udemates is a top priority. It is of the utmost importance that we provide everything we can for their needs, as well as resources to help them find their next role. We want to openly share what each impacted Udemate will be offered.

While some of this varies by employee and location, this includes (but is not limited to):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Minimum 13 weeks pay (or more for tenure)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Six months of benefits coverage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Extended Udemy Business subscription

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Their Udemy laptop

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual bonus payout

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Immigration assistance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Partial accelerated vesting of equity awards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Access to Crosschq, a tech recruiting tool

I want to be very clear with all of you; this decision is not a reflection of the work or contributions of those impacted — nor is it a reflection of the long-term health of our business. It's also a decision I don't take lightly as the CEO of this company. I can't express enough how sorry I am to have to say goodbye to so many important members of our team.

We're committed to always learning inside and outside of Udemy, and one of my greatest learning opportunities was being able to learn from all of you over the last four years. This team brings the magic to what we do every day and I've been constantly inspired by your authenticity, passion, empathy and unwavering dedication to our mission.

------

No matter how long you've been with us and no matter what your position is, I thank each and every one of you from the bottom of my heart for your commitment to improving lives through learning and letting me learn from you. We will deeply miss our departing Udemates, hold them close to our hearts and encourage everyone to support them as best as we can.

I look forward to connecting with you all in our scheduled All Hands meetings throughout the day. Thank you for everything.

<br>