Udemy, Inc.

Welcome to Udemy's third quarter 2022 earnings conference call. There will be an opportunity to ask questions after the prepared remarks. To ask a question during the session, you will need to press star 1-1 on your telephone. Now I'd like to turn the call over to Udemy's Vice President of Investor Relations, Dennis Walsh.

Thank you. And welcome to Udemy's third quarter 2022 earnings conference call. Joining me today are Udemy's Chairman and Chief Executive Officer, Greg Kokari, Chief Financial Officer, Sarah Blanchard, and President of Udemy Business, Greg Brown. During this conference call, we will make forward-looking statements within the meaning of federal securities laws. These statements involve assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated. For complete discussion of risks associated with these forward-looking statements, we encourage you to refer to our most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. Our forward-looking statements are based upon information currently available to us. We caution you to not place undue reliance on forward-looking statements, and we do not undertake and expressly disclaim any duty or obligation to update or alter our forward-looking statements, except as required by applicable law. In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements paired in accordance with U.S. generally accepted accounting principles referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and comparing period-to-period results of operations in a more meaningful and consistent manner as discussed in greater detail in the supplemental schedules to our earnings release. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measure is included in our earnings press release. These reconciliations, together with additional supplemental information, are available on the Investor Relations section of our website. A replay of today's call will also be posted on the website. With that, I will now turn the call over to Greg.

Thank you, Dennis, and good afternoon to everyone on the call. Udemy delivered another strong quarter as we beat expectations at both top and bottom line. Total Q3 revenue came in at 158 million, up 22% year-over-year, driven by solid execution and healthy customer demand. Udemy Business had another impressive quarterly performance and continued to serve as our leading growth engine, as revenue and ARR grew 67% and 59% year-over-year respectively. On the consumer side, we continue to see encouraging signs of resilience as both our traffic and monthly average buyers increase on a year-over-year basis, despite the challenging macro environment. It's clear that customers across the globe are seeing the value of Udemy's platform for their upskilling and reskilling needs. I'd like to take a slightly different approach for our call today. It's been one year since Udemy's IPO, and in celebration of this milestone, I want to reflect on some of our major business achievements. Our team has a lot to be proud of, including, first, we've made significant progress toward establishing Udemy as a leading global provider for high-quality learning. As of Q3, we have more than 70,000 courses rated four stars or higher out of five stars. Second, we continue to recruit expert instructors to produce best in class and relevant courses and practice exercises. Udemy is home to nearly 74,000 instructors that produce the high quality courses that Udemy has become known for. Our instructors add an average of almost 5,000 new courses each month and even more updates to keep existing content current. Third, We are attracting and retaining a growing community of learners worldwide to our platform. Since our IPO, we've added more than 13 million new consumer and business learners, bringing our total learner base to 57 million globally. Fourth, we have dramatically expanded our international footprint. Our vast international presence and localized experience are a clear competitive advantage. We now have nearly 90,000 non-English courses across 75 languages, 14 curated international language collections available to Udemy business customers, and numerous new partners in APAC and Sub-Saharan Africa. Fifth, we have continued to deliver strong Udemy business growth. Since our IPO, Udemy business and recurring revenue grew by nearly 70% to $350 million as of Q3 2022. Udemy Business Now has over 13,000 customers around the world. And as forecasted, the mix of revenue surpassed consumer revenue this quarter. And finally, we consistently delivered strong financial results for Udemy's first four consecutive quarters as a public company. As you can see, we've accomplished a lot. But we are still in the early innings of a massive and growing market opportunity, and only one year into our journey as a public company. There's still much more to do to help instructors, learners, and organizations succeed through the best and most engaging global learning experiences. I'd be remiss if I didn't acknowledge the team effort here at Udemy that makes this all possible. We have some of the brightest talent in the industry, and I'd like to thank all of our more than 1600 Utamates across the globe for their hard work and dedication to our mission. Before I conclude, I wanted to highlight a few exciting events that we have coming up this month. Next week, Udemy Business will host our annual Forward event. Thousands of decision makers, including CLOs, CIOs, and people leaders from some of the world's largest companies will attend the conference virtually to get inspired about new learning strategies. It will be a day packed with key insights and tips from Udemy leaders and customers to help companies upskill and reskill their workforce. And lastly, we hope all of you will be able to join us for our first Investor Day on November 17th. During this virtual event, you will hear about Udemy's long-term growth strategy, products, partnerships, financials, and future expectations. We look forward to diving deeper into our business, introducing our team, and sharing more with you about Udemy's vision. With that, I'll now turn the call over to Sarah to summarize our financial results.