Photo Credit: Peggy_Marco / Pixabay

According to a recent report, while the North American market will continue to dominate the fast-growing online education market, the Asia Pacific markets will emerge as the second dominant region. Overall, the global online education market is expected to grow 23% annually to $198.9 billion by 2030. San Francisco-based Udemy (Nasdaq: UDMY) is tying up with several partners in the Asia Pacific region to expand its presence in the market.

Udemy’s Financials

Udemy recently announced its second-quarter results. Revenues grew 21% to $153.1 million. Net loss was $13.6 million or $0.10 per share, compared with a loss of $5.4 million or $0.15 per share a year ago. The market was looking for revenues of $150 million and a loss of $0.20 per share.

By segment, Business revenues grew 77% to $74.6 million, and Consumer revenues fell 7% to $78.5 million.

Among key metrics, Business segment customers grew 44% to 12,514. Business segment’s ARR grew 74% to $316.1 million and net dollar retention rate was 118%. The monthly average buyers for the Consumer segment fell 2% to 1.29 million.

For the third quarter, Udemy expects revenues of $153-$157 million. For the fiscal year, it expects revenues of $615-$640 million. The market forecast revenues of $167.2 million for the quarter and $627.8 million for the fiscal year.

Udemy’s Growth Focus

During the quarter, Udemy continued its international expansion. It entered into a partnership with Benesse to support the Tokyo Metropolitan Government in their efforts to accelerate the digital transformation of small and medium-sized enterprises in Tokyo. Udemy estimates that by the end of March 2023, Udemy and Benesse will provide more than 250 SMEs in Tokyo with access to in-house training support to help in the digital transformation skill development.

It also announced its entry into China through a partnership with Sanjieke, China’s leading provider for digital transformation training. The partnership with Sanjieke will help Udemy provide business and technology upskilling courses to Chinese organizations. Prior to tying up with Udemy, Sanjieke has been meeting the digital skills gap for professionals in China through its vocational education platform. Sanijeke already had more than 3,000 customers in the country. In partnership with Sanjieke, Udemy has introduced over 8,000 courses on technology, management, and business in China, with almost 600 of them in Mandarin. Additional courses in English are being embedded with Mandarin subtitles to help the learners in the region.

In other markets, it introduced five new payment methods in Belgium, Malaysia, Singapore, and the Philippines to help drive higher conversion and faster time to content.

Currently, Udemy is trading at $13.38 with a market capitalization of $1.9 billion. It hit a 52-week high of $32.62 in November last year and a 52-week low of $9.47 in June. Last October, Udemy had listed at $29 apiece at a valuation of $4 billion.

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