Udemy, Inc.UDMY

Udemy, Inc. Revenue Disclosure

10-KFiled Feb 19, 20262 min read
3. Revenue recognition
Disaggregation of Revenue—The following table presents revenue disaggregated by product offering for each segment (in thousands):

Fiscal Year Ended December 31,
202520242023
Enterprise:
Subscription
$521,493 $491,444 $419,369 
Other
2,581 3,014 1,277 
Enterprise revenue
$524,074 $494,458 $420,646 
Consumer:
Subscription
$44,514 $31,006 $20,029 
Transactional and other
221,256 261,101 288,262 
Consumer revenue
$265,770 $292,107 $308,291 
Total revenue
$789,844 $786,565 $728,937 
Deferred revenue—Revenue recognized for the fiscal year ended December 31, 2025, from amounts included in deferred revenue as of December 31, 2024 was $286.1 million. Revenue recognized for the fiscal year ended December 31, 2024, from amounts included in deferred revenue as of December 31, 2023 was $270.7 million. Revenue recognized for the fiscal year ended December 31, 2023, from amounts included in deferred revenue as of December 31, 2022 was $268.3 million.

The below table presents a summary of deferred revenue balances by reportable segment (in thousands):
December 31,December 31, December 31, December 31,
2025202420232022
Deferred revenue:
Enterprise
$243,771 $233,466 $220,127 $219,030 
Consumer51,548 60,078 62,287 59,249 
Total deferred revenue$295,319 $293,544 $282,414 $278,279 

Remaining performance obligations— Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations primarily relate to deferred revenue and unbilled revenue related to multi-year Enterprise subscription contracts with future installment billings, as well as unearned revenue from consumer single course purchases and subscriptions at the end of any given period. As of December 31, 2025, the aggregate transaction price for remaining performance obligations was $567.9 million, of which 72% is expected to be recognized over the next twelve months and the remainder thereafter.
Deferred contract costs— The following table represents a roll forward of the Company’s deferred contract costs (in thousands):
Balance at Beginning of PeriodAdditionsAmortization ExpenseBalance at End of Period
Fiscal Year Ended December 31, 2025$73,053 $64,405 $(65,540)$71,918 
Fiscal Year Ended December 31, 2024$74,374 $58,333 $(59,654)$73,053 
Fiscal Year Ended December 31, 2023
$65,645 $56,890 $(48,161)$74,374 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 19, 2025
2023Feb 26, 2024
2021Mar 25, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsCommitmentsStock CompensationNew StandardsPay vs Performance