Growth ChallengesThe company's guidance for 2025 includes growth of roughly 1%, which is a far cry from its prior long-term targets of 25%-30%.
Sales And Marketing ChangesQ1 and FY25 revenue guidance were slightly below consensus while the adj. EBITDA outlook was ahead of expectations for both periods, reflecting the continued expectation that 2025 will be a transition year as the company works through changes to its sales and marketing approach.
Valuation ConcernsThere is a downgrade to Underweight due to Udemy's premium valuation relative to a core competitor.