UDMY - Earnings call transcript Q3 2021

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Operator

Thank you for joining the Udemy Third Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions ].

As a reminder, today's conference call is being recorded. the harbor. your turn cover Joel, now safe the will conference host, to to I

Taylor Joel

today Gregg me CFO. With are Blanchard, and Udemy Sarah Coccari, Udemy CEO;

we risks statements differ discussed involve make and are results we meaning Before to known materially federal that assumptions this or and could to within actual unknown of These those statements uncertainties anticipated. the may laws. security subject during begin, and from forward-looking call, cause

we XX-Q statements, you risks our September associated quarter, the with to XXXX. December with For SEC to which SEC filed a complete our Xth, forward-looking refer discussion of quarterly these report for ended encourage filings, including on XXXX from XXth, Form this

caution and statements, to forward-looking required obligation you reliance law. on Our duty do disclaim alter we undue our not forward-looking except currently statements forward-looking based We upon place statements, are undertake update or or information any as and not to expressly applicable us. available by to

release. GAAP our submitted replay the call as these also to additional this In to with website. Relations release U.S. are measures contained referred statements accordance the of in call, from may prepared available in today's the Accepted our addition, comparable information, discussed Accounting measures in differ in that at will certain to supplemental earnings Generally Principles A comparable Investor most during with discussed on financial be section website. performance by financial The as and SEC. posted financial assist our These manner consistent and is measures. the measures Exchange financial measures reconciliation operations reconciliations, the evaluating period-to-period our be non-GAAP together performance of more These investors earnings non-GAAP included detail of in schedules to results supplemental comparing and meaningful Securities management measures the and in of press Commission greater non-GAAP our a financial in

and use During risk of risk this therein is subject The to Sustainalytics. limitations. developed rating rating the the ESG call, information an ESG by we included referenced

the call press information, see earnings more Gregg. For to our over will turn now release. I

Gregg Coccari

Thank first public for far. It's journey our on And all a exciting been as so you, an thank you company. Taylor. us, joining call

us a We Udemy of are IPO they trusting had as and them and they to needs to everywhere succeed to people quarter. skill we to knowledge the and Business meet and commitment grateful reskill customers their learners rapidly modern successful instructors for workplace. also a employees incredible need mission connecting third grateful and changing up of our to the Thanks to a the for all, to world. We're in our skills strong

As X,XXX of the Udemy $XXX.X $XXX and million. up and third XX quarter, over Business quarter-end, In customers learners grew Udemy % an year-over-year. ARR % XX subscribing X revenue Business over had free with year-over-year, offering. million the paid million we grew to our ending to Udemy of

its of global its the was strong Business down Udemy increasing content; which fuel quality, It year-over-year which freshness, expected, our of depth, both the its pandemic. offering, provides a Business breadth, the during business meet the content that year waves the Udemy year-to-year Driving of our significant differentiated knowledge its specific result leads direct Business and is the needs users. marketplace. consumer extraordinary due for demand topline As last to ' was growth growth early XX our % our

Business expanded with Italian offering For in language Business offerings. immersive cohort-based learning customers collections well Russian, as specifically, our we've and learning Udemy new Udemy recently and as

chess, up knowledge small he and university. Turkey, Eren everything I'd changed or city to his he outside X-room U.S., soon And start are computer access math nearby at people online entrepreneur. searching to know Eventually, a access. the approach and way new in and life, commitment move founded who no the parents Internet but bought anywhere a across his tap world where the an for Bali rural and dreams. interest attainable. accessible for making an village the with to pursue simply in anywhere, he Suddenly, used family learning far him. shared a Udemy knowledge mathematics would Eren the But he story allows globe. what any using those learning more 's their in and to the knowledge launched serial our Udemy, village, that, math win of learners marketplace they Eren and from was is 's and grew schoolhouse, changed you learning with from love reflects a Online one did so it founder's He than Eren. world's everywhere By and a mentor attended Then share because that For had experts to could Udemy problems online early disrupts education in and experts could field. platform. competition, national a become he into Udemy the and learned

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pick can more learners produce needs quality, of efficiencies the that and than capabilities the all communicate nearly expect across innovation, financial to keep while must the business be courses instructors leaders % report estimate and X up content local in a require opportunity and the XX continues. pricing online meet We companies skills months, the deepest, as also comprehensive and individuals experience approach be and around up skill and they with learning customers marketplace with analytics the to to highest the accessible learning And reskilling them they the and Learners insights The acceleration by new learning learners. real to digital to solutions marketplace allows continuously our To in a platform the to workers We Economic incentive, that through content catalog and Forum, that offer relevant job According will to the up employees next broadest for over directly us in a Machine $XXX market to potential income in with developing on offers can. billion. pace globe. and AI quality which to an World of English, providing of video our We to X,XXX position to course our global instructors each serve build languages workplace. have comprehensive to then enhanced In maintain help immersive reskill. learn other which Again, created instructors model discoverability Udemy skills our provide learner. our courses offer engagement. interactive innovating believe Udemy are increase fast and the new immersive and increasingly continually new number market, these exercises. our our functionality. than Pro, we a Business We us labs in the through order Q&A ability month, courses recommendations verticals. and and learning platform in the of of products. high-quality earn each personalizing to and other launched there's improve affordable the motivates most catalog features best, technology we're enabled assessments a of

leadership partnership year, company the conversion in And We specializes retention learning CorpU, Global quarter, incorporated also capabilities improve the our announced we a China, partnership and X enhance reach cohort-based distribution in one and acquired be platform, with leading for strategic search the education the through media XXX Udemy within training largest We're consumer partnership a to in to leading Africa, Korea. of which with strategic regions, a company functionality companies. machine Earlier education we and focus. Sanjieke, a the called a business. into Sub-Sahara Korean in now with Group, the expand our a expanding new Fortune vocational Woongjin continues also a to in massive via region. ThinkBig, companies also MultiChoice

Udemy the on building Udemy visitors MultiChoice accelerated that Udemy our than Africa Udemy in presence local in further Group, position toward partnerships Udemy thanks XX 's courses These million global focus business market every households learn. 's in destination. unique knowledge. Our is Salesforce, as disrupt XX fuels to This and China XX to by earning to advertise will be month and television million engine to the 's Sanjieke country Over key strategic expansion corporate us will on to which learning. partnership enables will countries. Udemy the Business come

XXX,XXX agreement. you customers work. 's expanded and with like licenses and for multiyear engage digital building provider courses tough Citi’s Citibank now skills largest a We're few chose demonstrate leadership. Citi personalized business Let employees. and started with include into from priorities: topics partner to has Citi the of via content and most me a to Udemy X XXXX give one and is the consumed that technical content Citi with communication to like examples concrete Udemy Business power proud flow to by Agile us. learning the Python X how learning in learning everything Udemy strategic licenses

NOW, Libre. also enterprise Alcoa, verticals, Fortune Mitsubishi with This Europe's and used FREE Fortune quarter, platform Udemy Caravan, Business noting wall-to-wall, and including leading expanded Chemical, Citibank, cars, customers for selling leading like which new that deploying Michelin, is and we buying multi-well the E-commerce XXX is We've essential. added Mecardo customers platform, training continuous XXX ability across

our give for learn Udemy online after him. Let overview of other using limo a you how to me quick came York never learners platform. dabbling driver are former A taxi that offerings New with to and Sequel education in also worked

science in accepted New and he headquartered courses full-time multinational SQL for a at data completing large a bank Imtiaz City. top in from Udemy York after tactical recently Ahmad, Sequel Now instructor, certification position

Udemy signed at Another last through while mile Quentin. for courses the prison serving a sentence program San up learner

a keeping is that teaching from into a this in Microsoft-certified just creating the from our was and or currently and up code also non-profit, around Udemy at top instructors engineer to Udemy, our make instructors. the Udemy Instructor We're Silicon world. X to his we reach plus thousands with platform. million on this instructors XX of incarcerated content in jobs shared million marketplace of the secure even which to software content on differentiation. at are revenue. as program, us skills a now credits supports team course Lindsay marketing our her Udemy, first teaches Kyle XX,XXX established We community and part special. communications so In as He his Lindsay his to dollars real-time. and on a her for on We revenue This formerly learner Valley individual full-time the courses our paid students are our help Kyle to and structures people drive side and providing trainer a technology. September. Udemy crucial resources leading role Pew, enable a learned maintaining at and XXXX, use over Design of instructors hustle over provide and that $XXX now As $X to with years our are job. X job. and turned in on a the the instructors These extremely reached for train how to engaged amazing. after in platform hit look annual he XXXX the ESG full-time and Udemy, Graphic new the in courses posted our She hired platform Firs, help few with learners breath a making recently million, quality assist million filming instructor Udemy a in Marsh, of platform. others has investment,

people is Sustainalytics global millions problematic a As see platform, provided opportunity and our to the too enabling learning our a serve of due for extremely diversity to exacting access been standards serve world. economies skills offering, in in our and of I to connecting of commitment Overall, percentile services with to proud need where that, in people both our expensive. by our inclusion carrying we've turn learners knowledge the committed and to we're the own over software XXXX, will succeed. and and ESG success our learning call in first the ratings Through Internet and to access continuous learning and sub-industry With everyone. to we of education pride workplace to or free huge the Sarah. they learners take risk having we and We're as the everywhere out mission to ranked July around for

Sarah Blanchard

Thank Gregg. expect the with pleased in continue very percentage quarter, over to a we in growth to you, We're particularly which results Business, with the unit grow time, with strong the economics. Udemy of revenue as

lay I explain briefly me revenue the out Before quarter, let model. our

from learners customers. Business comes consumer Udemy Our and paid revenue

learning and organizations has become online As benefits. have mainstream its more realized

revenue year a XX% Udemy consists of to multiyear our subscription of and increased mix Business. starting % adoption revenue our by launched our were revenue Today, ago learners. individual mainly We Business generate advance our while has representing subscription Udemy consumer on of annual an generally shifting annual individual in Udemy Udemy revenue toward a with Business revenue revenue. % revenue purchases versus to subscriptions initially to billed of Consumer basis. subscriptions in terms. contracts year Business consumer rapid solutions, XX XX course made have been which experienced was revenue also primarily ago, Business QX. relates from has our are or We're Udemy XX% from

costs in purchased, the jump ratably recognized to the our as revenue net mention the of purchased I consumer numbers, is Before of same while with course the billing. it's X consumer the in recognized line content the important are our months, following into majority month that course over is majority

margin strong of costs, margin this followed said, Udemy top-line revenue quarter year-over-year, last pandemic business-based no net the with consumer a % our a early driven content gross recognized associated result gross and revenue higher ways by the year. our costs. With is growth we that accelerated comparison third with consumer of in with high As revenue given deferred disconnected This $XXX.X At Business between consumer timing the their extraordinary segment. is content up consumer consumer of during see time, typically extremely quarters by quarter X billings. lower when being million was in had then same growth

revenue We continue from outside American growth growth, customers over outpacing and learners. see of North international delivering North America to % XX our

the was approximately margin year. Gross incurred the explicitly that up in are that third portion in of was the of driven million, third revenue were in otherwise. year. that creating XXXX the of recorded the unusual XXXX, remainder quarter the in revenue the spike of quarter X in Again, stated an COVID all peak in % basis due the happened the was costs COVID QX the of financial prior gross peak discussion, For this significant versus buying timing second XXXX, a quarter quarter associated with of third to metrics margin strong in non-GAAP, by XXXX, instructor while unless QX from profit lower of points revenue, Gross last recognition $XX.X versus XXX results year the Udemy Business. XX.X%

which of cost primarily on we Our instructors. acquire consists how each payments our of learner. costs, costs Content revenue are content to depend

per Business are writer generated by consumption For instructors offers when offerings. Udemy the the specific earnings consumer on versus instructor's of instructors share, for purchases subscription percentage earning courses, learner instructor consumer ' offering, amount a subscription net of for costs based billing a those course,

to content larger overall become over time of a revenue. a cost and portion of as percentage expect Business consumer Udemy We as revenue decrease subscriptions

last XX.X% period, EBITDA X.X% $X.X further with versus the quarter and revenue positive X.X% immersive a ago, expense of and focused to operating Net to personalization continue radar. to cash was million X.X% we With X.X% revenue of investments machine our loss compared we're huge year in company or X.X% a Turning year XX.X% longer-term market driving year-ago development incrementally million ago. on revenue. ramped was to million increase flow and our of was in Adjusted of we growth learning, capabilities. learning as in XX.X% versus expense opportunity, QX QX expense in losses, in consumer or and compared expense revenue and revenue. public as of XXXX. $X.X million General was continue investment Research while and expect $XX.X short-term $X.X to administrative total negative of revenue profitability. improve Free getting prudent top-line represented from we negative incur year. Sales will total XX.X% leverage of in marketing million the that $XX.X XX.X% to was OpEx, versus or subscription,

quarter balance with securities. and sheet. unrestricted ended to million cash cash, We the $XXX.X equivalents, the marketable Moving on of

discuss individually. Now, versus Business year-ago. million, Consumer me revenue % segments our down consumer and let XX $XX.X Udemy was a

buying The third QX strong, XXXX quarter XXXX. exceptionally COVID -related was driven by of in

the expect was million XX it tough year-over-year. see approximately of this to consumer comp million was So or Consumer X.X we buyers, down quarter, % % $XX gross a In X quarter. profit revenue. monthly had active which we

mentioned, Gregg As funnel top source the consumers [Indiscernible] Business. of Udemy for

XX was XXX exited over within as million, During of X.X total revenue up $XXX.X well % quarter QX ARR in retention year. learners, logos, ending compared existing year-over-year, Business $XX.X continue by X,XXX and Udemy the bringing customers, growth added Udemy million, we the base our new as prior and million deliver of in dollar expansion customers. XX.X up strength million. % to was driven the Business We to %, % net to up XX Udemy with exceptional consumer as with new XX quarter, year-over-year. Business Business rate

$XX.X support our Business. Gross like to opportunity Udemy Udemy ahead support strategy. margin share slightly and economy. Udemy increased over land to thoughts Going customers to Success, organizations or investment Business long revenues business growth Customer There on a term. in is some down what and the as see world gross us continue expect we as to was is strong help our new of revenue. skills-based from towards the year-over-year, was profit XX.X% forward, million massive and we I'd a to Business moves individuals of expand the in and

ability in this change others the positioned marketplace intend high-quality content Our need is and to pace create upskilling will with learning that global with cannot. We securing in reskilling dynamic in to global, thoughtfully keep and growth balancing way accelerating new to a uniquely margins. for improvement a unit long-term driving with driving leadership accessible while the with invest EBITDA affordable, on position focus and economics, areas investing in improve our

improve We will on learning learning immersive, Investing as in competitive learning different continuing stages getting learners well which enhance in started continue support will modes leverage create their to and to as and presence invest margins cohort-based journey. our expand in just our work benefit communities. capabilities, ability and over We're subscriptions, to operating ongoing in consumer our furthering of while at international EBITDA all deepening will we time. constituents, to support our

revenue Looking we growth. as to million double-digit to million, $XXX with revenue and COVID Business continues very between strong the similar the Udemy quarter, consumer year, last work XXXX we delivering through absolute $XXX as show expect fourth where dynamics,

of Operator, million negative $XX.X We call please the expect % to question. and an for that, EBITDA adjusted margin between adjusted million or negative EBITDA an with And XX.X%. open loss XX $XX.X

Operator

Thank Instructions]. you. [Operator

comes Our Morgan. first Sterling JP of from Auty question

open. is line Your

Sterling Auty

guys. Hi, Thanks. Yeah.

more adoption that support little doing where detail to subscription the you're can geographically So starting terms of consumer or subscription. mentioned of you kind of Any on side? you'd to bit see either that you're the give the element that to on in traction what business, a the in consumer

Gregg Coccari

question. where will traffic. so phase. but then be, The to consumer a much you right on for It's ramp -- our learning about And our just in learning, really up, of small in of and in it We're -- once then -- find and countries we're now. we It's days it there doing still then subscription the Hey, we journey. sweet we're testing want we're spot percentage yet. we're not testing X very and the Sterling. very Thank the focused early we

Sterling Auty

one Understood. the on And side. then business follow-up

new the in resources of Looking at the the the of if could you ramp regions of and talk just us major to that world. customer success adoption, you're having sales effectiveness around your some in

Gregg Coccari

out build to continuing team. go-to-market our We're

go-to-market about team people. Our today, it's XXX

all it still just we're EMEA, we're we America a we're continuing globe. We're in continuing out but up. to to those then And we Latin building APAC, started then went there's North the because it across lot to to We out and started so people then of we ramp America. areas, But out new went hire. building building

seeing our coming of still with see people very also while the established good continue have in new ramping lot of lot expansion. So up a but we -- salespeople, there's we're as ones we we a trends, global

Sterling Auty

Understood. Thank you.

Operator

you. Thank

Our Morgan next Baer, question comes from Josh Stanley.

Your is line open.

Josh Baer

thesis congrats question the Gregg. enrollment on workforce school. individuals on hearing With that wages Ed Great. the semester, higher are Thanks first that and in we've in higher quarter. this the for pressures is over about for Question one been choosing

with side just demand mind, that consumer the in the workplace. skills picking on I'm so wondering individuals for looking for And increase up to any you're related if in

Gregg Coccari

We're but in think U.S. excuse seeing for tailwind trends me, the they specifically us for we those headwind. that us. is actually a for a schools, the same are headwind in There's a enrollments where college And down. Yes.

helping -- economy, that get we're have we up skills-based we are and the in and people first So reskill job. skill

a something us. for is that's actually trend this So good

Josh Baer

much. exposure Great. on makes was there's with And if currency context growth for for constant impacting was in you thank hoping sense. -- was Any or for this some or just a could quarter. hedging currency That you if overview And international foreign XXXX your very be presence, excellent would program quarter context it the Sarah, great. what there's provide

Sarah Blanchard

great Yeah, question.

cost natural built ways cost, perspective. business. exposure an hedge gains that of is losses but -- have content don't us. into for our FX hedge piece perspective, from is a an there's currency, we ton constant of from and currency for We different us Obviously, and that biggest into a going and FX other countries natural our our the So have different

Josh Baer

Okay. Thank you.

and as top-line [Indiscernible]. the well impacting as it's So

Sarah Blanchard

That's the together. top-line bottom-line and right. Impacts the

Josh Baer

Okay.

Sarah Blanchard

yeah. cost, then and top-line The

Josh Baer

Okay.

Operator

you. Thank

Our from next of Truist Tillman question Securities. comes Terry

Your line is open.

Terry Tillman

congrats, taking for questions, as and Thanks well. Yeah. my

Gregg X mistaken, consumer belt. of IPO or promotions the you've -- do And of week For in under your so of well follow-up. Anything on One given far, curious got or and on share pretty at engagement. you launched side, and IPO I around just Sarah, coverage of you month do quarter-to-date questions. Monday, then kind timing over I'm kind just successful terms quarter think, kind the not a that and if Maybe buying. I just seen your of the IPO. over me, some is we had Cyber all important. consumer can of seasonal -- the have you've Friday what and Cyber I that just a fourth are is, then the I'm Black

Gregg Coccari

you. quarter X quarters. Thank big year the are of business, and -- fourth -- The one the our are -- the next This in big quarter of we quarters. is first quarter fourth consumer the

and of came Black and And very we lot with so do happy we and of Friday lot we're saw saw. a we in promotions a we and what marketing

for that and versus XX it's up. Our year-over-year unique traffic, has over the not first XXXX. million XX been early The is versus holding indicators traffic our and consistently over up is our -- year-over-year, traffic visitors -- things % us

seeing we're is up trends. traffic our and holding So good

Friday, for off was a a solid And so performance. though had little even the bit, Black consumers very we overall,

Terry Tillman

net Pro. you you. on some initiatives? strength you Thank either for about better for initiatives I'm it they follow-up curious you just What have is, drive Sarah, business What my from the engagement, Business customers, base en just like, positive of the is then to on And And the Gregg. have could hear, immersive Udemy potentially just the side. or further do of a to learning, great think outcomes retention? those development UB dollar revenue some That's

Sarah Blanchard

the out customers We're the positive. building are we learning, very in Thanks stages is immersive the response for of for early and what question. from

help lot will just think assessments. products also think workspaces dollar customer and I into obviously There's retention, new dollar it net retention, logos. excitement more our So sell to about but help base having by community because will net in hands-on a not a just of I

there. excited And continue to the so we're progress very

Terry Tillman

Thank you.

Operator

Thank you.

Our of next question comes Baird. Rob Oliver from

is open. line Your

Rob Oliver

me you Can guys evening. Good hear Great. okay?

Sarah Blanchard

Yes.

Gregg Coccari

Yes.

Rob Oliver

Okay. very seems large first you Great. Thanks. is a question, was Udemy strong expansion like Thanks. and the for pretty Citi, it which side. Obviously, with Gregg, Business on deployment. already My nice a

the seeing out it's with and mix large the us curious type that whether whether it's I UB, seeing lands of seasonality commercial. what Just you're know you can if of -- then terms enterprise, called just And just on you're there the mostly remind in guys you had side that of similar for consumer Is buying I business? QX. QX and which And QX the on the expect with makes perfect the sense with business, of can also a in we there side seasonality quick then enterprise a that Sarah. the UB follow-up you,

Gregg Coccari

Yes.

Udemy fourth-quarters. its Business So yes, side in is a seasonality and there

of landing. And small, seeing We're we're enterprise. the that always we're very, month medium, as is far December seeing, type broad-based. for seeing accounts as it's we're our So very biggest seeing

in So of we've about we're a the talked about as only land-and-expand our customers. strategy seats in have seeing everything. And we before. XX We're current %

for expand years. many So many, to we ability the have

And in very people investing in is The so HR and re skilling skills and retention good. the skilling. up are investing market are -- and

So the market's particularly good.

Rob Oliver

that? paying And, maybe deals been wondering, Thanks, on have tape will margins and when Gregg, very economics impact there be the year. element a to on it appreciate that discuss revshare for it. is Thank and and Sarah, guys just should the partnerships ramp example, in out bear about call mind fiscal any with just, next be we partnerships it partnerships to and start early or talked much. just just there. global you Gregg it's -- Are its maybe little But MultiChoice, this it as early any too to these advertising or economic you, whether guys, implications,

Sarah Blanchard

Sure.

partnership that more the existing our of early, similarly. partnerships in similar Some they're Japan, them structured very of some are too to

you a difference shouldn't see economic perspective. So from an

Rob Oliver

Thanks again, guys.

Operator

Thank you.

Our next question William Blair. comes Sheldon of from Stephen

Your open. line is

Stephen Sheldon

like, at coming taking is I want relative question afternoon, than ask least elevated my and -- has about modeled. fourth-quarter looks relative thanks -- also looks to my but questions. we'd better model, good little it I first a little revenue what to the expected, just spending in It Hey, to a wanted for guidance.

guess, any I incremental And there's expense be XXXX? quarter expense hit revenue out activity, revenue anything with the are continued worse fourth relative mismatch, promotional or that expense, spread that given into there some expected? is success you the time growth investments making to you the So on would related to would that over have what but in all early XQ, and previously would

Sarah Blanchard

for expenses few Thanks a on. that we have question. initiatives the There's great. Yeah, increased

is The some top building our advertising of the the and and really are doing first U.S. in funnel internationally brand out TV

are increase mostly, public we in R&D the being sales We marketing a immersive go-to-market so the out global associated some with -- on investing experienced the to side investments learning, team really increasing build obviously and But we've in on are side these of capabilities. cost an the and company. and

Stephen Sheldon

have breadth like too. any then and deployments with And changes new guess employee Curious really of got you're customers, seeing Okay, really, I if it. you strong the basis initial side in seems the growth, customers. these sizable new business the customers some of on across

historically? about bigger so you're employee on Gregg, clearly see are at mentioned, bigger of color total base that a you've opportunities, least of you seen XX you a upselling of only % wins How to any than the that. employee but think lot starting covering I about initial cover percentage

Gregg Coccari

bigger time. over are initial bigger getting and The sales

fact, had land. first -- we land our In million-dollar-plus million-dollar

land So quarter. and built million-dollar but we customers, one did in this We never done in that before. we've we've never

seeing So we over get are that bigger bigger. and time,

Stephen Sheldon

Okay. Thank you.

Operator

you. Thank

comes question from of Bank Nat America. next Our of Schindler

open. is line Your

Nat Schindler

into large follow Great. Can enterprises go that up then Thank you've long you to your basic to more through that and it business typical? actually actually detail. long how How see cycle is and walk if side? then had -- what's you. us on to you sales and on within and can the question, the with And last takes, land, process expand what just

Gregg Coccari

X that X the X can to On taken cycle, as some enterprise months, sales have be years. have we

-- they're we again, over be have to with success to are. the be company and those different, expansion But team together their we with all outcomes, typically, process help And use is good achieve months would the drive. And works think as So it as very can large. time. we the and that And a then playbooks expansion, is X customer far trying but it's I in a sales them work drive goals outcomes work we understand to the what executives whatever that them average.

Nat Schindler

Do expand from at out just on they organizations -- there? business? [Indiscernible] the the look how service do did most the they look using and groups particular for start with organization your within Or

Gregg Coccari

one We come sides. or usually in from two either

side, we technology when were where probably the coming in side We are coming more the the started And now and we -- and that's XX-XX HR we're side. smaller. in technology from in at

it we that way -- be in. can any But get So way. both in go we'll that tends those both to

Sarah Blanchard

re of their that increasing thinking of one the needs being budgets HR trends employees, I -- as are us customers skilling -- retained the we're skilling, think is to that seeing a up about the employer are is as an and all employers today. learning benefit employees the

we so change? budgets How And are up accelerated the those same it's the retain shift now. then skills right are [Indiscernible] do do And that difficult they with as as the of to digital larger becoming Gregg keeping -- and our seen want HR. at are pace and have how time, more more transformation And teams they on larger said, hire they trend, employees? focused we and

their really the it's teams up extent possible. and So about skilling reskilling to

Nat Schindler

you on And the or guys similar they talk offerings things? are or in learning using finally, as the for other businesses a their a they you who Coursera. against you for example, are bit replacement are -- situated Are using Are online seeing you competitively different how who just you can space? coming are little

Gregg Coccari

It's question. up. more the That's you a good bigger have to We than everything almost enterprise, provider. they tend different can pick content X the --

while alongside we'll those sit [Indiscernible] do we'll we s, our competitor all So things. and

and are Coursera. by competitors Skill ones. Those the Soft, big So it just depends business LinkedIn The Plural customer. Sight, are our in Learning, enterprise

in. advantages, have We that though, believe we

We have a marketplace.

is an marketplace advantage. Our

than are we strengths everybody them. much and But have more We people we develop much content else global, sit again, can. weaknesses faster will can different alongside and

Nat Schindler

you. Thank Great.

Operator

Thank you.

from Jason Capital. Our comes Celino KeyBanc next question of

open. line is Your

Jason Celino

taking my Maybe Sarah, one. questions. Great. first Thanks, Gregg. my Thanks, for

we the new Thanks. these can already engines of beginning, AI the consumer talk about you think Maybe I side. at been this conversion and implemented? engine improved Has some mentioned on initiatives?

Gregg Coccari

machine We We for We for places matching. assessments. for number platform. acquire different pricing use in to use use a Thanks Thank learners. We engine it We and for question. recommendations. of skills to it built you. and price tagging Yes. country. We use our the AI learning a us use on allows that course it it individually per

all are And constantly using tested. but we it's so in yes, those being it places,

testing the and there. upgrading You're constantly algorithms

recommendations there time, So and we're especially area. search all getting the in the wins

Jason Celino

in you what content countries Perfect. you that which focus the Korea Sub-Sahara mentioned in expansion do collections languages language you in And building you new have into next? and levers these Africa. Russian, decide to then then and want or in areas? some Italian, And do How

Gregg Coccari

really that we're for. enterprise. Enterprise looking depends what our they're from hearing just languages It Yes. is on the

So beginning the ones are obvious.

the We obvious, it's to we are some build. that want are into less market that getting but

for building now. For side. Korean Udemy build ThinkBig, and deal collection for our a a to us Korea, together with example, our Woongjin the our X right partner, working Korean are consumer did for collection We Business, we're and out of

out So we're from world, one a the of we're places number to the and building in going country next. different collections in just our

Jason Celino

Thank Perfect. you.

Operator

Thank you.

Our next question Ryan Needham. comes from MacDonald,

is open. line Your

Ryan Macdonald

understand and wanted integrated of what think should guide, first taking congrats in about CorpU? just terms Hi be to quarter. Thanks. and what acquisition, nice the as And how Gregg going CorpU platform then is for be we I a fourth-quarter the Thanks Sarah. in that's on with to going questions to and start the the assuming we go-to-market my contribution like look to there. from

Gregg Coccari

to We purchased other courses. Udemy universities. for into and Wharton, -- months professors leadership in are the They then and that into we Business but training plan work across top foray It's is faculty from cohort-based marketplace. bring learning, Harvard, business Stanford take consumer and teaching then our from CorpU is have onto few it with eventually a our -- leadership, start leadership MIT, first our and cohort-based and top ago, have verticals, cohort-based and learning,

Sarah Blanchard

and acquisition the set the QX And that capabilities, really a the from skill was that team technology, perspective, the about had. CorpU

fourth quarter. it we And a don't having so huge anticipate on impact the

integrating are that go-to-market into We team. our

alongside it’ll pipeline. Udemy be Pro, take Business time so it'll sold some and Business get And into but Udemy for the that to

Ryan Macdonald

think are country of the color partnerships And exclusive or Excellent. expansion, then some in we Thanks. model opportunities partnerships? multi-source international to for are as each there on Thanks the about partnership when those these you continue this that.

Gregg Coccari

those unique. We They partnership Africa and China, all are to exclusive. Korea, did And just -- Sub-Sahara in a with are we specific Group. countries, they're in MultiChoice in those

Operator

you. Thank

Our next of question comes Brent Jefferies. Thill from

Your line is open.

David Hager

on the guys. X, for congrats Brent. This I is the questions, on and may. David if Hi, taking IPO. for Thanks

your the Is talk The you you guys after can X, first of maybe doing? instructors? of to little go strategy some sauce a bit that How I sort any there instructors? instructors. guess, are acquiring about top specifically are you secret

Gregg Coccari

instructors $XXX At year the instructor of last in come million spent of to us. our scale that we tend because this our point, marketplace payments, and to

than get top the place any we better we they that So can. because other instructors monetize

in in our a lot spend to time that. time. And have the business did of build the We but spend phases as we don't to so beginning, don't marketplace doing of early to much have our we now

into into into have We local doing and work the to country like online. we in the now. place marketplace. we with go want that put Indonesia new country, right a somebody we we do local content, And the it when new instructors a Now go content to which a bring -- we're we build

we flywheel. to have get to involved. we takes the XXX XXXX flywheel -- get So local it customer more instructors really to the is a then language, then starting don't Once first in off and

courses have we XX,XXX example, today. For Portuguese

to in had not many, many years. get in that have We involved

David Hager

for color. tough going next by increasing years? the the the business a existing is against on follow-up about monetization Thanks new And forward, comps the rate driven last we to year. growth customers? consumer how over Obviously, or this going of Thanks. be it. should customers But Got And thinking business. few growth be for

Sarah Blanchard

Yes.

on a think, things consumer few business. the I

recognizing of QX we The that already we the QX in growth trends seeing. first in we by from XXXX, is, X got XXXX. revenue accelerated -- their years peak quarter what happened COVID really really biggest XXXX. we're And as are

than the -pandemic. like So pre while tough pandemic isn't The perfectly no are some one into can stabilizing. year-over-year business and is are working really we our here. over But bigger it things comps, future through see feels really significantly

there's where higher. are At about consumer we markets growth that -- there we is traffic just significantly back are few getting scratching an as levers. is learning of to going obviously, levels enormous surface when Our we count. to There's, the a the the it's happen. growth, And the think and where

that bring -- going new the we've is business. launched, of We going our increase recently in our that to it's are only to the subscription onto up we can not actually platform. but QX, consumer consumer And themselves, open consumers LTV

which growth in while still behavior out I well. the think Udemy as the through some what immersive with the to back side that with be is but putting in the future subscriptions as launching of learning Business well to then tail-end we're levers getting our modest working hopefully near-term, So we're and are pandemic the building Udemy bigger over as Pro, in Business initially consumer capabilities, out, in that we'll

David Hager

Thanks, Great. guys.

Operator

Thank you.

So over questions further this any back Coccari at no I'd Gregg to like turn for time. to remarks. the closing call

Gregg Coccari

I thank want to your your you Udemy. in questions and for interest

platform built Over instructors, last a the everywhere. of years, organizations needs we meet and the XX global to learners,

employees. teams needs we're to keep mission you. the learning, every disrupting Udemy accessibility, Thank The for of Our and skilling instructor re first according Whether democratize on an up everywhere, their but new about we're course day. of skilling is people is and Udemy, marketplace possibilities corporate or high learners content learning, as talking our companies creating corporate their and possible. able with to and that of ever-changing pace affordability, the quality make

Operator

Ladies and participating. gentlemen, that for concludes today's you-all conference. Thank

great now day. Have a disconnect. may You

Udemy (UDMY) 9 Dec 212021 Q3 Earnings call transcript