Udemy (UDMY), mcap=$2.1bn, price $15.17 vs $13.23

$UDMY pitch:
– Online learning platform offering free and paid courses.
– SaaS platform business where content is produced and maintained by incentivized “instructors” and consumers/enterprises pay a subscription or one-off fees to access the content.
– Trades at 2x sales multiple.
– The company is now focusing on higher margin and growth enterprise customers.
– Strong margin expansion potential with a lot of room for growth.
– Historically robust growth/margin expansion/monetization levels.
– IPO of Oct’21 and has materially sold off with the rest of the market.

$UDMY valuation:
– Cheap at 2x sales multiple.
– $500m in cash on the balance sheet (25% of the mcap).

Exp. gain: Not specified.

Full write-up (free guest account required):

Leave a Comment