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Udemy Is Getting Closer To Profitability

Nov. 01, 2021 9:05 AM ETUdemy, Inc. (UDMY)
Noah Wilson profile picture
Noah Wilson


  • Udemy operates a two-sided marketplace. Although there is a myth that marketplaces tend toward economies of scale and enjoy winner-take-all benefits, this is not supported by evidence.
  • Udemy conforms to the evidence and still lacks economies of scale and profitability, however, its losses have narrowed and the possibility has emerged that it will become profitable.
  • The company is riding high on two major trends: a rising demand in online skills development and continued learning; and a change in the nature of education.
  • Nevertheless, the company remains unprofitable, but its narrowing of its losses suggests that it may become one of the rare network-effects businesses to be a winner.
New York during the COVID-19 emergency.

Massimo Giachetti/iStock Editorial via Getty Images

Online learning marketplace, Udemy, Inc. (NASDAQ: NASDAQ:UDMY) raised $421 million in its initial public offering (IPO). The company had priced its initial share price at $29 per share. The company sold 14.5 million shares at that price and

This article was written by

Noah Wilson profile picture
I'm an independent investor with experience trading forex, cryptocurrency and stocks. I'm particularly interested in tech and biotech stocks with a long term growth philosophy. Originally from the UK, I worked for Barclays bank in London for 10 years before moving to the East coast of England. I currently run several online businesses while writing about investment as a hobby. None of the views I express should be taken as investment advice and is purely my own musings on a stock's investment potential.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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