Udemy, Inc. Earnings Per Share Disclosure
| Fiscal Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
Net income (loss) | $ | 3,807 | $ | (85,288) | $ | (107,294) | |||||||||||
| Denominator: | |||||||||||||||||
Weighted-average shares used in computing net income (loss) per share | |||||||||||||||||
Basic | 148,205,408 | 151,320,497 | 150,098,776 | ||||||||||||||
| Dilutive effect of awards issued under equity incentive plans | 1,799,990 | — | — | ||||||||||||||
Diluted | 150,005,398 | 151,320,497 | 150,098,776 | ||||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.03 | $ | (0.56) | $ | (0.71) | |||||||||||
Diluted | $ | 0.03 | $ | (0.56) | $ | (0.71) | |||||||||||
| Fiscal Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| RSUs, PSUs, and restricted stock | 11,052,547 | 15,295,173 | 16,240,802 | ||||||||||||||
| Stock options | 170,641 | 1,401,086 | 4,621,021 | ||||||||||||||
| Contingently issuable shares under ESPP | 61,947 | 56,462 | 105,280 | ||||||||||||||
| Total potentially dilutive securities | 11,285,135 | 16,752,721 | 20,967,103 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.