Photo Credit: Peggy_Marco / Pixabay

According to a recent report, the online education market is estimated to grow at 9% CAGR by 2025. The biggest growth in the market is a 37% CAGR growth from the Asia Pacific region. San Francisco-based Udemy (Nasdaq: UDMY) is cashing in on this growth projection by expanding its presence in the region.

Udemy’s Financials

Udemy recently announced its first-quarter results. Revenues grew 22% to $152.2 million and loss was $0.08 per share. The market was looking for revenues of $146.6 million and a loss of $0.15 per share.

By segment, it saw business revenues grew 77% to $64.9 million, and consumer revenue fell 1% to $87.3 million. Business segment ARR grew 80% to $279.6 million, and business net dollar retention rate was 120%.

For the second quarter, Udemy forecast revenues of $147-$151 million. For the fiscal year, it forecast revenues of $610-$640 million. The market forecast revenues of $149.95 million for the quarter and $625.7 million for the fiscal year.

Udemy’s Growth Focus

Recently, Udemy announced the expansion of Udemy Business to the Asia-Pacific Region. In April, it launched in South Korea and partnered with Woongjin ThinkBig, a Korean AI education company. In the first full quarter of its partnership, Udemy already generated nearly $500K in ARR through the partnership with Woongjin ThinkBig. It is targeting for a strong growth in the Chinese market through its partnership with Sanjieke.

It has entered into agreements with companies like Commonwealth Bank of Australia; LG Uplus Corp and NCSOFT in Korea; Western Union Services India Private Limited and Hyundai Mobis in India; Kereta Api in Indonesia; The Ricoh Company Ltd and Panasonic Connect in Japan, and the National Library Board of Singapore, to create a Learning Marketplace that will fulfill learning needs.

It also announced a partnership with Randstad US. The partnership will provide free courses to American workers who are either already placed or are looking for roles through Randstad’s job network. The partnership focuses on providing access to the skills necessary to increase career mobility in primarily technical sectors.

Additionally, it announced a partnership with First National Bank that will allow First National Bank customers to access Udemy courses and reduce barriers to education through accessibility and affordability. This is the first partnership in which Udemy has created a mobile app experience within a partner’s mobile application. Customers will have the ability to select and enroll in up to six Udemy courses per year within the eBucks mobile app for a small activation fee.

Currently, Udemy is trading at $11.18 with a market capitalization of $1.56 billion. It reached a 52-week high of $32.62 in November last year and reached 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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