UDMY Stock IPO: 10 Things to Know as Udemy Starts Trading Today

Another highly anticipated initial public offering hits the markets today as education technology company Udemy makes its debut on the Nasdaq stock exchange.

The Udemy app up on an iPhone screen.

Source: sdx15 / Shutterstock.com

The San Francisco-based company sold 14.5 million shares for $29 each, which was the top end of a $27-$29 range.

In total, Udemy raised $421 million from the IPO that will see it begin trading under the ticker symbol UDMY. And, at $29 a share, Udemy debuts with a market capitalization of $4 billion. The company had been valued at $3.3 billion in a private investment round held in 2020.

10 Things to Know About the UDMY Stock IPO:

Here are 10 things to know about Udemy as its shares begin trading today:

  1. As an education technology company, Udemy focuses on providing online, video-based courses on a variety of subjects. Some of its most popular courses touch on programming and web development. Since its launch, Udemy says it has seen 44 million global users and 201 million course enrollments.
  2. All together, Udemy offers 183,000 courses in 75 different languages.
  3. Currently, 8,600 organizations are Udemy customers. Of those, 42 are Fortune 100 companies. Corporate customers include PayPal (NASDAQ:PYPL).
  4. Udemy’s biggest investor is Insight Partners, which will own more than 30% of the company’s shares after the UDMY stock IPO.
  5. Company revenue for the first six months of this year was $251 million, up from $201 million in the first half of 2020.
  6. Udemy remains unprofitable and its net loss between January and June of this year amounted to $29 million, down from $52 million a year earlier.
  7. Udemy operates in a highly competitive market that includes rivals Pluralsight and LinkedIn Learning.
  8. A majority of Udemy’s operating expenses are attributed to sales and marketing.
  9. Udemy’s S-1 filing outlines big growth in the years between 2017 and 2020, when it grew to serve 44 million customers worldwide, up from 10 million. The company says its growth has been helped by the Covid-19 pandemic.
  10. The company sees an addressable global market for “digital learning” of more than $200 billion annually.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/10/udmy-stock-ipo-10-things-to-know-as-udemy-starts-trading-today/.

©2023 InvestorPlace Media, LLC