Udemy, Inc. (NASDAQ:UDMY) Q4 2023 Earnings Call Transcript

Operator: Thank you. The next question is from Arvind Ramnani with Piper Sandler. Please go ahead.

Arvind Ramnani: Hi, thanks for taking my question. I wanted to ask about, kind of staying disciplined on the kind of operational efficiencies and kind of being prudent on where you’ll spend money, but also at the same time making investments. I heard both of that through the call. So I just want to kind of reconcile those two dynamics on the expense side?

Sarah Blanchard: Yes, I’ll take that question. Thanks, Arvind. So if you just look across, ’22 and ’23, from a percentage of revenue, what we are spending on the different functions in the organizations that has come down dramatically. And that is because of the operational efficiencies, the systems that we’re investing in, the processes that we’re investing in to drive that operational efficiency. And we’re going to continue doing that. You heard Greg say that we have, done an AI boot camp across the organization. There are AI investments that we can make for our operations, not just our platform, but for operations that will continue to drive operating efficiency. At the same time, we are going to be investing in the R&D capabilities that we spoke about and our brand spend that is new.

And so those two things are balanced out. And that’s why you’re seeing we had a significant margin expansion on the bottom line in 2023. But it’s only going to be modest in 2024 as we make those investments and continue to focus on capturing the long-term growth.

Operator: Thank you. This concludes our question and answer session. I would now like to turn the call back to Greg Brown for closing remarks.

Greg Brown: Thank you. I’d just like to thank you all for joining the call today. And we look forward to connecting again in May for the Q1 update. So thank you again. Have a great afternoon.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.