Udemy, Inc.(UDMY), the leading onlin e learning platform, has released its condensed consolidated financial results for the third quarter of 2023. The company reported a net loss of $16.8 million, but this was accompanied by robust revenue growth, with total revenue reaching $184.7 million for the quarter, marking a 16% increase from the same period in the previous year. In this article, we delve into Udemy's financial performance in Q3 2023, exploring the factors that contributed to both its net loss and revenue growth.
Revenue Growth Outpaces Cost of Revenue
Udemy's Q3 2023 revenue stood at $184.7 million, a substantial increase from the $158.4 million in the same quarter of the previous year. This growth can be attributed to a variety of factors, including increased demand for online learning and a wider range of courses offered by the platform.
However, to achieve this revenue growth, Udemy also experienced a rise in the cost of revenue, which reached $77.3 million in Q3 2023, compared to $69.1 million in the same period in 2022. Despite this increase in costs, the company's gross profit for the quarter reached $107.5 million, reflecting a healthy 20% gross profit margin.