Udemy Reports Strong Revenue Growth in Q3 2023, Driven by Enterprise Segment
Segments of revenue
In the third quarter of 2023, Udemy reported total revenue of $184.7 million. The revenue was generated from two segments: Enterprise and Consumer. The Enterprise segment accounted for $109.2 million, representing 59% of total revenue, while the Consumer segment contributed $75.6 million, representing 41% of total revenue.
Udemy's strong revenue performance in Q3 2023 can be attributed to the growth in its Enterprise segment. The Enterprise revenue increased by $25.2 million, or 30%, compared to the same period in the prior year. This growth was primarily driven by an increase in the number of Udemy for Business (UB) customers and net expansions in the existing UB customer base. The company's management highlighted the positive impact of these factors on revenue growth.
While Udemy experienced growth in its Enterprise segment, its Consumer segment faced challenges. The Consumer revenue increased by only $1.1 million, or 1%, compared to the same period in the prior year. This slower growth indicates a potential weakness in attracting and retaining individual consumers. The company may need to focus on strategies to drive consumer revenue growth in the future.
It is worth noting that Udemy's revenue growth in the nine months ended September 30, 2023, was primarily driven by the Enterprise segment. The total Enterprise revenue increased by $82.6 million, or 37%, compared to the same period in the prior year. This growth was fueled by an increase in the number of UB customers and net expansions in the existing UB customer base. However, the company experienced a decrease in Consumer revenue during the same period, which declined by $6.9 million, or 3%.
Udemy delivered a strong performance in the latest quarter, with total revenue of $184.7 million. The growth was primarily driven by the Enterprise segment, which saw a significant increase in revenue due to the expansion of UB customers and net expansions in the existing UB customer base. However, the company faced challenges in its Consumer segment, with slower revenue growth. Udemy should focus on strategies to attract and retain individual consumers to drive consumer revenue growth in the future. Overall, Udemy's revenue performance highlights the strength of its Enterprise segment and the potential for further growth in the online learning market.