William Blair initiated research coverage of Udemy, Inc. (UDMY $30.97), an open-source learning content provider for both individual learners and businesses.
“Udemy is one of the largest learning providers, and its open-source content is created entirely by independent instructors (often practitioners) who are incentivized to create engaging content through revenue-sharing arrangements,” Sheldon said. “This structure has allowed Udemy to create a broad learning content library with over 180,000 courses (average of 5,000 added monthly) spanning subjects like IT, business/soft skills, and personal enrichment. In addition to Udemy’s breadth of courses, content optimization is driven by learner-instructor engagement, providing for a quality, cost-efficient offering.”
Schackart added, “Udemy pegs its target learning market at over $220 billion (two-thirds individual learners and one-third businesses). We believe this will support multiple providers, especially given secular growth tailwinds, with Udemy well positioned to scale considerably. Market drivers include the need for high-quality continuous learning options, hiring challenges that may force companies to focus on upskilling existing employee pools, broader adoption of online learning such as corporate training (historically heavily classroom-based), and personalization in learning pathways.”
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Current Ratings Distribution (as of 11/22/21)
Outperform (Buy): 76%
Market Perform (Hold): 24%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 32%
Market Perform (Hold): 12%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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