UDMY
Consumer DefensiveUdemy, Inc. · Education & Training Services · $680M
What is Udemy, Inc.?
Udemy operates one of the world's largest online learning marketplaces, connecting individual learners and enterprise teams with instructors across a wide range of skill categories. The platform serves tens of millions of learners globally across dozens of languages.
Udemy generates revenue through two main channels: direct-to-consumer course purchases and its Udemy Business subscription offering aimed at corporate clients. Instructors create and publish courses on the platform, and Udemy takes a share of each transaction. The enterprise segment allows companies to provide employees with curated access to the course library for reskilling and upskilling purposes. Interactive tools such as quizzes, exercises, and instructor Q&A sessions are embedded throughout the learning experience.
Udemy was incorporated in 2010 and is headquartered in San Francisco, California.
- Online marketplace with approximately 180,000 courses
- Udemy Business enterprise subscription for corporate teams
- Technical, business, and personal development course categories
- Multi-language platform available in approximately 75 languages
- Interactive learning tools including quizzes and instructor Q&A
Is UDMY a Good Stock to Buy?
UQS Score rates UDMY as Below Average overall.
The most constructive aspects of Udemy's profile are its Risk and Valuation pillars, which are rated Good and Attractive respectively. The Risk rating suggests the company carries a relatively manageable financial risk profile for its size, while the Attractive valuation label indicates the stock may be priced below what the underlying business fundamentals would typically command.
The Quality and Moat pillars are both rated Weak, pointing to limited competitive differentiation and below-average business quality metrics relative to peers. Growth is rated Neutral, suggesting the platform has not yet demonstrated a clear acceleration in its expansion trajectory.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does UDMY pay dividends?
No — Udemy, Inc. does not currently pay a dividend.
Udemy does not currently pay a dividend. As a growth-oriented technology marketplace still working toward consistent profitability, the company reinvests available capital into platform development, content expansion, and enterprise customer acquisition rather than returning cash to shareholders through distributions.
When does UDMY report earnings?
Udemy reports earnings on a quarterly cadence, typical for US-listed equities.
The company's results have reflected the dual challenge of growing its enterprise segment while managing costs across a large course marketplace. Revenue trends have been mixed as the business navigates a competitive online education environment and shifting corporate training budgets.
For the most recent quarter's results and guidance, visit Udemy's investor relations page directly.
UDMY Price History
-81.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Udemy, Inc.?
Based on Udemy, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
UDMY Long-term Outlook
Udemy's Growth pillar is rated Neutral, reflecting a platform that has scale but has not yet demonstrated a consistent upward trajectory in its key business metrics. The Attractive valuation label suggests the market may already be pricing in a degree of uncertainty about the pace of future expansion. The Good Risk rating provides some reassurance that near-term financial stability is not a primary concern, though the Weak Moat rating means competitive pressures could weigh on long-term growth potential.
Growth drivers
- Enterprise subscription expansion as companies prioritize workforce reskilling
- International market penetration across the platform's broad language coverage
- Growth in AI and technology course demand from both individual and corporate learners
Key risks
- Weak competitive moat leaves Udemy exposed to well-funded rivals in online education
- Corporate training budget cuts could pressure the Udemy Business segment
- Sustaining instructor quality and course relevance at scale remains an ongoing challenge
UDMY vs Peers
Udemy operates in a competitive online education market alongside several other platforms targeting both individual learners and institutional clients.
Gaotu focuses primarily on the Chinese education market, giving it a geographically concentrated profile compared to Udemy's global marketplace model.
Phoenix Education Partners targets higher education partnerships, differentiating it from Udemy's open marketplace approach for skills-based learning.
Coursera emphasizes accredited degree programs and university partnerships, while Udemy's model centers on a broad instructor-led marketplace without formal credentials.
Frequently Asked Questions
What does Udemy do?
Udemy operates an online learning marketplace where independent instructors publish courses across technology, business, and personal development topics. Learners can purchase individual courses or access the full library through a Udemy Business enterprise subscription. The platform serves tens of millions of learners across dozens of languages worldwide.
Does UDMY pay dividends?
Udemy does not pay a dividend. The company is focused on reinvesting capital into platform growth and enterprise customer acquisition rather than returning cash to shareholders at this stage of its development.
When does UDMY report earnings?
Udemy reports financial results on a quarterly basis, in line with standard US-listed company practice. For the exact timing of upcoming earnings releases, check Udemy's official investor relations page.
Is UDMY a good stock to buy?
UQS Score rates UDMY as Below Average overall. The Attractive valuation and Good risk profile are positive signals, but the Weak Quality and Moat ratings indicate meaningful concerns about business quality and competitive positioning. Investors should review the full pillar breakdown before drawing conclusions.
Is UDMY overvalued?
The UQS Valuation pillar for UDMY is rated Attractive, suggesting the stock is not considered overvalued relative to its fundamentals within the UQS framework. However, valuation should always be considered alongside quality and moat ratings for a complete picture.
How does UDMY compare to its competitors?
Udemy's open marketplace model with a broad course catalog differentiates it from peers like Coursera, which leans on university partnerships and credentials, and Gaotu, which focuses on the Chinese market. Each platform targets overlapping but distinct learner segments and business models.
What is UDMY's market cap bracket?
Udemy is classified as a small-cap stock. This places it in a category that can carry higher volatility and liquidity considerations compared to large- or mega-cap peers in the broader technology and education sector.
Who founded Udemy?
Udemy was founded in 2010. Founding details and the names of its original founders are widely available through public sources including Udemy's own corporate history and press materials.
Is UDMY a long-term quality investment?
As a long-term quality indicator, UDMY's Below Average UQS Score reflects concerns worth monitoring. The Weak Moat rating in particular suggests the platform has not yet established durable competitive advantages that would support sustained outperformance over a long investment horizon. Pro members can view the complete pillar analysis.
What is the main competitive advantage of Udemy?
Udemy's primary advantage is the scale of its course marketplace — approximately 180,000 courses across 75 languages — which creates a broad content library that is difficult to replicate quickly. However, the UQS Moat pillar is rated Weak, indicating this advantage may not yet translate into durable pricing power or switching costs.
What sector does UDMY belong to?
Udemy is classified under the Consumer Defensive sector. This reflects the view that demand for skills-based education tends to hold up across economic cycles, as individuals and companies continue to invest in workforce development even during downturns.
Is UDMY a growth stock or value stock?
Based on the UQS profile, UDMY shows a Neutral Growth rating and an Attractive Valuation rating — a combination that positions it closer to a value-leaning opportunity than a high-growth story. The market appears to be pricing in limited near-term growth acceleration.
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Pro Analysis
UDMY — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 20, 2026 | 46.3 | 33.3 | 28.0 | 45.2 | 66.2 | 80.0 | -1.4 |
| Apr 26, 2026 | 47.7 | 34.9 | 28.0 | 45.2 | 66.4 | 86.2 | +0.1 |
| Apr 19, 2026 | 47.6 | 34.9 | 28.0 | 45.2 | 66.4 | 85.7 | -0.1 |
| Apr 18, 2026 | 47.7 | 34.9 | 28.0 | 45.2 | 66.4 | 86.2 | -2.0 |
| Apr 2, 2026 | 49.7 | 34.9 | 28.0 | 45.2 | 66.4 | 100.0 | — |
UDMY — Pillar Breakdown
Quality
— 33.3/100 (25%)Udemy, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 45.2/100 (20%)Udemy, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 66.2/100 (15%)Udemy, Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 80.0/100 (15%)Udemy, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 28/100 (25%)Udemy, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for UDMY.
Score Composition
Financial Data
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How is the UDMY UQS Score Calculated?
The UQS (Unified Quality Score) for Udemy, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Udemy, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Udemy, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.