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Udemy IPO

How to trade on Udemy’s IPO

San Francisco-based online learning platform Udemy is planning an IPO that will debut the company on the Nasdaq exchange on 29 October 2021. Continue reading for an overview of Udemy’s financials, potential share price and valuation, and register your interest for Udemy’s upcoming listing.

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29 October 2021

Udemy's IPO date

$4bn+

Udemy’s valuation

55.6% YoY

Udemy’s revenue growth

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What does Udemy offer?

Udemy is an online learning and teaching marketplace that offers over 180,000 courses to 44 million students worldwide. It was founded in 2010 and has courses that span over a wide range of categories, including design, business, music, personal development, marketing, IT, and software. These are taught in 75 languages.

Udemy belongs within the EdTech field as a massive open online course (MOOC) provider. Its target audience is individual learners, such as students and professional adults, and the company also boasts corporate followers such as Apple, Volkswagen, Eventbrite and Netflix for employee training purposes. As of October 2021, there have been over half a billion course enrolments.

When is Udemy’s IPO date?

Udemy is expected to list on 29 October 2021. It filed with the Securities and Exchange Commission (SEC) in early October 2021, so watch out for any updates on our upcoming IPOs page, as this could happen at any time from now on. Udemy intends to list on the Nasdaq exchange in New York using the ticker UDMY.

Register your interest below and we’ll send you a one-time notification via email when Udemy is officially listed. You’ll be able to spread bet or trade CFDs on our Udemy share price when the derivative is listed on our Next Generation platform.

Udemy’s share price and valuation

Udemy expects to price its shares between $27 and $29 apiece.

The company was last valued at $3.3bn during a financing round in November 2020, according to Reuters. Analysts are predicting a higher valuation when it actually goes live, perhaps around $4bn. This was the most recent round of funding, led by technology conglomerate Tencent, where Udemy managed to raise $50m. As a private company, it has raised over $300m in total from investors such as Insight Partners, Lightbank, Groupon, and Norwest Venture Partners.

How to trade on Udemy’s IPO

1. Register your interest

By entering your email into the sign-up box above, we will notify you when Udemy has listed on our platform.

2. Open an account

While you wait for our derivative to become available, you can spread bet or trade CFDs on competitors such as Coursera and 2U.

Open a live account

3. Pick a trading strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Use risk-management tools

We offer a range of execution types and stop-losses to help you manage your risk, as the IPO market can be volatile.

Learn about risk-management

How are Udemy’s financials?

The Covid-19 pandemic proved to be supportive of Udemy’s financials as the world shifted to remote learning in 2020. In its S-1 filing, Udemy reported that revenue grew by 55.6% to $429.9m in comparison with the previous year’s figure of $276.3m. The company also incurred a net loss of $77.6m over the same time period, which is less than previous years, indicating that the company may be becoming more profitable.

The company also reported a $250.6m total revenue in the first half of 2021, which is an increase of 24.5% compared with the previous year. Reuters expects Udemy’s addressable market to grow in multiples as the world transitions to online learning, in a $200bn market opportunity.

Please remember that past performance is not a reliable indicator of future results.

Trade on Udemy’s competitors

Duolingo
- All clients
100%
Long

100% of CMC client accounts with open positions on Duolingo expect the price to rise.

Chegg
- All clients
82%
Long

82% of CMC client accounts with open positions on Chegg expect the price to rise.

2U
- All clients
100%
Long

100% of CMC client accounts with open positions on 2U expect the price to rise.

Coursera
- All clients
100%
Long

100% of CMC client accounts with open positions on Coursera expect the price to rise.

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Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

Why may investors be interested in Udemy’s IPO?

Throughout 2021, EdTech companies have managed to raise a record $14bn from private investors, which tops last year’s decade-high of $12.bn, according to data from PitchBook. Several of Udemy’s competitors have also gone live on the stock market in 2021 due to a surge in pandemic-facilitated revenue and investor funding.

According to its filing, over 40% of Fortune 100 companies use Udemy Business (UB), which is the company's corporate learning service. This helped revenue to more than double in 2020, showing that Udemy’s services aren’t limited to individual learners but also large businesses.

What are the risks of trading on Udemy’s IPO?

Given that the company blossomed during the Covid-19 crisis due to increase on remote learning, investors may expect slower growth for the next year. There is no way of knowing if these consumer habits will revert back to pre-Covid levels or continue pushing forward in the digital world.

There isn’t a success story for every MOOC that has gone public this year. Duolingo debuted on the Nasdaq exchange in July and has seen a surge in share price since, whereas Coursera debuted in May and has lost around 30% of its valuation, as of October 2021. Therefore, whether an IPO will be successful can depend on the individual company, the volatility of the market, and the overall global economic situation.

FAQS

Who are the underwriters for Udemy’s IPO?

Morgan Stanley and JP Morgan Chase are the lead underwriters for Udemy’s IPO, which will list the company on the Nasdaq exchange in New York.

What are some similar EdTech companies to Udemy?

Companies within the EdTech sector with similar offerings to Udemy include Duolingo [DUOL] and Coursera [COUR], which are publicly available to trade, as well as LinkedIn, edX, and Skillshare.

How can I receive notifications for Udemy’s IPO?

To receive an email when Udemy has finally listed on its chosen exchange, enter your email address into the box at the top of this article. We’ll send you a one-time notification when it’s listed on our platform, and you can choose to spread bet or trade CFDs on our derivative share price.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on-the-go

Download our mobile app for iOS or Android to get started. Once Udemy has listed on the Nasdaq, you will be able to spread bet or trade CFDs on our Udemy share price.