UPDATE: Piper Sandler Starts Udemy Inc (UDMY) at Overweight as a Premier Instruction Content Destination

(Updated - November 23, 2021 9:18 AM EST)

Piper Sandler analyst Arvind Ramnani initiates coverage on Udemy Inc (NASDAQ: UDMY) with a Overweight rating noting that the company has built a global online learning marketplace with a scaled flywheel effect: >183K courses, >44M students, >66K teachers, >5,900 enterprise customers.

The analyst stated "The company’s platform has become a premier location for independent instructors to host content (given platform reach & instructor rev. share) driving 20%+ growth across its Consumer (76% of FY20 revenue) & Business (24%) offerings. We see upskilling tailwinds and a shift toward digital learning as secular growth drivers in its $220B TAM. On balance, we acknowledge that the market is competitive, particularly with enterprise learning (which is an important growth vector for UDMY) and freemium offerings pose added risk to UDMY’s long-term trajectory. However, near/medium term, we view the company’s content engine, global expansion strategy, and subscription mix shift to serve as durable drivers—supporting a 20%+ revenue CAGR (FY20-FY23E) and -6% margins through FY23E (profitability inflection in FY25E+). Initiating at $37 PT on 6.5x CY23E EV/S."

For an analyst ratings summary and ratings history on Udemy Inc click here. For more ratings news on Udemy Inc click here.

Shares of Udemy Inc closed at $29.29 yesterday.

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