The shares of Udemy Inc (NASDAQ: UDMY) have received a $25 price target from Truist. And Truist analyst Terry Tillman reiterated a “Buy” rating on the shares.
Tillman adjusted the rating after hosting investor meetings with CEO Greg Coccari and CFO Sarah Blanchard. And Tillman pointed out that the company management described a fundamental change in online learning post the pandemic that is elevating demand for corporate learning, not a cyclical bump but a secular change.
“Udemy’s enterprise segment, Udemy Business (UB) continues to show strength and we expect continuation of new business momentum in Q1 2022. Importantly, the enterprise business is becoming a larger overall percentage of the business,” wrote Tillman in a research note. “The enterprise segment grew 81% year-over-year in 2021 to $187 million. This represented 36% of total revenue. We forecast 2022 enterprise revenue of $305 million, representing 63% year-over-year growth and 49% of total revenue. The company characterizes UB as being greatly impacted by the pandemic as there was a fundamental change in the macro-environment rather than a pull forward in demand where companies now realize they need to be flexible in upskilling and reskilling their workforce.”
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