#11 Udemy Investor Presentation Q2 2022 For general public use ûdemy#2Notice This presentation and any accompanying oral commentary include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than those of historical fact, including information concerning our future operating results and financial position, anticipated future expenses and investments, business strategies and plans, market growth, market position and potential market opportunities, and the impact of acquisitions and business alliances. These forward-looking statements are based on our current expectations, plans, and assumptions, which we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate under the circumstances, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. Various factors, including those identified in the "Risk Factors" section of our most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the Securities and Exchange Commission ("SEC") on May 4, 2022, could cause our actual results, level of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and is expressly qualified in its entirety by the cautionary statements included in this presentation. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements. This presentation contains "non-GAAP measures" that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). These measures have limitations as an analytical tool and should not be considered in isolation, or as a substitute for our results as reported under GAAP. These non-GAAP measures may also differ from non-GAAP measures used by other companies. See the appendix for a reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP financial measure. Unless otherwise noted, historical numerical figures and related graphics used in this presentation are accurate as of June 30, 2022. Numerical figures in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. The Udemy design logo, "Udemy," and our other registered or common law trademarks, service marks or trade names appearing in this presentation are our property. This presentation contains additional trademarks, trade names, and service marks of other companies that are the property of their respective owners. We do not intend our use or display of other companies' trademarks, trade names, or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. This presentation contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legaldisclaimers. 2 ûdemy#33 Improving lives through learning Our mission is to provide flexible, effective skill development to empower organizations and individuals. ûdemy#4Udemy at a glance 4 Reach 54M learners globally 12.5K+ Q2 2022 Udemy Business customers 44% Y/Y Note: Data as of June 30, 2022, unless otherwise noted Scale $153M Q2 2022 revenue 21% Y/Y $316M Q2 2022 Udemy Business ARR- 74% Y/Y Content 204K courses from 71K instructors $184M Last 12 months of instructor payments Usage 130M Last 12 months of enrollments 2.9B Q2 2022 minutes watched ûdemy#5The Udemy difference: our symbiotic ecosystem Udemy sits at the intersection of the creator economy and the skills economy. We've built a world-class SaaS company on top of a consumer marketplace a powerful combination that enables us to offer fresh, high-quality, affordable learning to organizations and individuals around the world and help them reach personal and professional goals and achieve critical business outcomes. 5 Organizations Companies looking to upskill and reskill their teams, keep up with new technologies, and develop and retain talent The business is powered by: Learners Individuals looking to advance their careers and pursue personal passions Instructors Real-world experts looking to share and monetize their knowledge ûdemy#6Our robust content-generation engine Dynamic supply 6 Instructors High-quality, fresh content Incentives כ) Learning engine • Global . Data-driven with ML & Al • Personalized, immersive learning capabilities Upskilling & reskilling Feedback Feedback Knowledge Organizations Learners ûdemy Robust demand#7Building a comprehensive learning platform Our current offering and innovation pipeline 7 On-demand learning Marketplace model Curated course collections Real-world experts Custom course creation Guided learning Career guidance Occupational guidance Learning paths Al-enabled personalization ûdemy Immersive learning 1. Labs Assessments Workspaces Cohort learning Cohort-based learning Communities of practice Moderators and faculty Toolkits Applied learning ûdemy#8Udemy Business: unique content, exceptional growth Organizations are prioritizing skills-based learning to support digital transformation, drive business outcomes, and increase employee retention 8 The Udemy marketplace offers the range of fresh, relevant, local content necessary to satisfy this demand New features like hands-on immersive learning, cohort-based learning, and enterprise-grade tools and analytics increase our momentum 74% growth in Udemy Business ARR in Q2 2022 (Y/Y) 118% Q2 2022 net dollar retention rate for Udemy Business 1 ûdemy#99 The future of work & learning ûdemy#10Accelerating change in the workplace A changing world requires a global workforce that can continually upskill and reskill 97M new roles may emerge by 2025 $200B estimated total addressable online learning market opportunity 94% of business leaders surveyed expect employees to pick up new skills on the job 84% of employers surveyed report COVID has increased the need to digitize 10 Source: World Economic Forum (2020) [new roles, business leaders]; Cybersecurity Insiders (2020) [need to digitize]; Arizton (2020) [market opportunity] ûdemy#11What today's learners and organizations want 11 Quality Ease discovering high-quality content 0 Freshness Course content that adapts to swift market changes ► Relevance & Breadth Broad and diverse content for multifaceted, modern learners Access & Reach Affordability to facilitate skills advancement Pricing adjusted to local markets Training that can scale across larg organizations ûdemy#12Why most learning models fail to deliver Modern learning needs 12 Quality Freshness Relevance & Breadth Access & Reach Publisher model challenges * Inflexible: One-size-fits-all teaching approach; limited use of ratings, reviews, and enrollments for quality signals and improvement * Slow: Lengthy production timeline; delayed response to trends * Theoretical and limited: Academic approach to subject matter; narrow range of topics and teaching styles Not scalable: Challenging to localize content effectively and authentically for different markets ûdemy#13The solution: Udemy's differentiated marketplace Modern learning needs 13 Quality Freshness Relevance & Breadth Access & Reach Marketplace model Quality-driven: Real-time ratings and reviews; data and insights help instructors improve quality and increase engagement Fast and agile: Production as fast as market changes Relevant and expansive: Taught by industry experts for real-world applications; thousands of courses on a range of topics; multiple teaching styles Global and affordable: Thousands of international instructors teaching in native languages; market-adaptive pricing engine ûdemy#14For organizations A flexible solution that works for companies of any size anywhere to drive business outcomes Leaders and admins • Insights: Comprehensive analytics dashboard ● Empowerment: Admin tools for learner engagement • Support: Customer success services and playbooks • Integration: Fits seamlessly in the flow of work Employees Engaging: Quality content focused on relevant skills and taught by real-world experts Inclusion: Extensive international content collection Guidance: Personalization (Learning Paths) ● ● 14#15For learners A broad selection of fresh, high-quality content from real-world experts to achieve professional and personal goals Quality: Relevant, expert instruction Freshness: Up-to-date content Support: Direct instructor interaction (Q&A) • Practice: Hands-on exercises 15 Guidance: Personalized course recommendations based on goals and interests#16For instructors A wealth of data and insights difficult to replicate elsewhere 16 Growth: Large global audience Guidance: Marketplace data and insights Improvement: Ratings, reviews, and learner Q&A provide valuable feedback for improving quality Clarity: Advanced learner engagement analytics Enablement: Dashboards to manage business#17Advanced technology infrastructure 17 U Learning engine Acquiring content and learners globally Matching learners to the right content Optimizing pricing per course per country Ensuring learner success through skills tagging and assessments Personalized learning guidance to drive career success ûdemy#18Instructor partnership drives engaged innovation Udemy invests heavily in instructors by offering compelling incentives and powerful tools that deliver insights. This fuels a steady supply of quality content that evolves with the market. 18 Note: Data as of June 30, 2022, unless otherwise noted What's in it for instructors? $184M instructor payments in the last 12 months $1M+ annual earnings for top instructors -5K courses added per month ûdemy#19A quality-first approach to online learning Udemy attracts world-class experts to our platform Ranga Karanam Founder and Trainer at In28Minutes with over two decades of experience in architecture, design and programming. In28Minutes has over 50 courses on the Udemy platform and trains and certifies professionals in DevOps, Azure, GCP, Docker, Kubernetes, Java and more. Chandra Lingam Expert on Amazon Web Services, mission-critical systems, and machine learning. Chandra teaches 10 courses on the Udemy platform on systems development in both traditional IT data center and on the AWS Cloud Platform. 19 Note: Data as of June 30, 2022, unless otherwise noted Total students 1M+ Average rating 4.5 Total students 90K+ Average rating 4.5 Our instructors update courses at the speed of change 59% of top 2,000 Udemy courses were updated in the last 90 days ûdemy#20Global reach propels Udemy forward Each language acts as a mini marketplace, allowing Udemy to easily grow and expand into new markets. The learner side of the marketplace surfaces the best courses through reviews and ratings and creates an environment for Udemy Business to build upon. 204K courses in over 75+ different languages International expansion playbook Local payments methods Local languages 32M+ unique global visitors per month 20 Note: Data as of June 30, 2022, unless otherwise noted Local currency and prices -60% of revenue outside North America Local marketing 28 currencies supported Go-to-market teams ûdemy#21Competitive advantage with local language coverage Udemy offers a broad collection of courses in over 75 different languages. The Udemy Business collection includes courses in Spanish, German, French, Portuguese, and Japanese. In 2021 alone, we added Mandarin, Turkish, Arabic, Italian, Indonesian, Korean, Polish, and Russian to Udemy Business. During the second quarter of 2022, we added more than 1,000 courses in local languages to the Udemy Business collection. 21 Udemy Business language coverage prior to 2021 Udemy Business language coverage new in 2021 ûdemy#22Strong customer benefits Udemy Business enables companies to keep pace with the need to continuously upskill and reskill employees in a changing workplace. 869% three-year ROI 22 2 months to payback >3x more employees on learning platform 29% less productive time lost during employee onboarding 6% higher developer and designer team productivity 5% higher IT team productivity 10% higher employee satisfaction Source: IDC was commissioned by Udemy to interview eight organizations about their experiences with the Udemy Business corporate learning platform. These organizations varied in size, ranging from large multinational enterprises to service providers. Average employee size was almost 12,000 (median of 6,425) and annual revenue of $11.26 billion (median of $1.4 billion). Organizations were located in North America and EMEA and from a number of industries. Data as of 2019. ûdemy#23Udemy Business and Booz Allen Hamilton Booz Allen Hamilton, a global firm providing world-class, industry-leading expertise across industries, utilizes Udemy Business for their upskilling efforts. Using Udemy Business to power a program for thousands of data scientists, nearly 94 percent of Booz Allen Hamilton learners are now highly proficient in data science, and their Udemy-trained graduates now have a 93 percent employee retention rate. Booz Allen Hamilton also has seen a 3 percent increase in consultant billability since beginning their work with Udemy Business. 23 Booz | Allen | Hamilton 94% of program learners are now highly proficient in data science Booz Allen Hamilton's Udemy-trained graduates now have an employee retention rate of 93% ûdemy#24Committed to ESG 1st ESG Risk Rating¹ ûdemy ESG Impact Report Improving lives through learning percentile in Internet Software and Services assessed by Sustainalytics Hans SUSTAINALYTICS a Morningstar company ESG INDUSTRY TOP RATED Launched Udemy's inaugural ESG Impact Report in July 2022 In July, certified by Fair Pay Workplace, the trusted symbol of pay equity around the world In January, recognized by Sustainalytics as an ESG Industry Top Rated Company Fair Pay Workplace CERTIFIED TM Note: Data as of June 30, 2022, unless otherwise noted. 1. ESG risk rating as of July 2021. 2. Copyright ©2022 Sustainalytics. All rights reserved. This publication contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics 24 and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers). ûdemy#25Our social impact partners 25 LASTMILE PAVING THE ROAD TO SUCCESS THE The Last Mile (TLM) provides Udemy courses to incarcerated and formerly incarcerated people to help them thrive in a rapidly evolving job market. no* AnnieCannons partners with Udemy to help survivors of human trafficking and gender-based violence learn skills to become software engineers and entrepreneurs. SENTINELS OF FREEDOM Udemy and The Sentinels of Freedom partner to help severely wounded post-9/11 veterans identify and achieve the skills they need to build long-lasting and successful careers in their chosen disciplines. Upwardly Global Udemy supports Upwardly Global, a nonprofit that aims to eliminate the employment barriers that skilled immigrants and refugees encounter when entering the U.S. workforce. SVAcademy Udemy and SV Academy with Gainsight support over one million underrepresented job-seekers with access to the skills and resources necessary to begin careers in the tech industry. ûdemy#26Financial Highlights 26 ûdemy#27Revenue and Gross Margin Q2'22 Revenue $153.1M +21% y/y Driven by strong Udemy Business growth Q2'22 Gross Margin 58% Gross margin expected to increase over time based on anticipated growth of Udemy Business as a portion of our overall revenue (in millions) T Revenue Gross margin Y/Y: $126.1 $129.6 56% Q2'21 +15% 27 Note: Gross Margin figures are non-GAAP, which excludes stock-based compensation and amortization of acquired intangibles. 56% Q3'21 +9% $135.5 54% Q4'21 +23% $152.2 57% Q1'22 +22% $153.1 58% Q2'22 +21% ûdemy#28Udemy Business Q2'22 Revenue $74.6M +77% y/y Y/Y: Revenue $42.1 66% Q2'21 +79% Segment Gross Margin $50.4 65% Q3'21 Strong revenue growth driven by both new logo acquisition and expansion within existing customers +84% $57.8 67% Q4'21 +81% $64.9 66% Q1'22 +77% (in millions) $74.6 28 Note: Segment margins exclude stock-based compensation, depreciation, and amortization. 67% Q2'22 +77% Q2'22 Revenue Contribution 49% +16pp y/y 33% 67% Q2'21 Consumer Continued revenue mix shift to Udemy Business Revenue Contribution 39% 61% 43% 57% Q3'21 Udemy Business Q4'21 43% 57% Q1'22 49% 51% Q2'22 ûdemy#29Udemy Business Q2'22 ARR¹ $316.1M 12.5K +74% y/y +44% y/y Y/Y: $181.9 Q2'21 +80% 29 1 Annual Recurring Revenue. Annual Recurring Revenue (in millions) $207.4 $239.3 Q3'21 +80% Customers Q4'21 +74% $279.6 Q1'22 +80% $316.1 Q2'22 +74% • Crossed $300M in Udemy Business ARR, with continued 70%+ Y/Y ARR growth ● 118% Udemy Business Net Dollar Retention Rate 8.7 Q2'21 Y/Y: +36% 9.6 Q3'21 +42% Customers (in thousands) 10.5 11.6 Q4'21 +44% Q1'22 +49% 12.5 Q2'22 +44% ûdemy#30Consumer Q2'22 Revenue $78.5M 1.3M -7% y/y -2% y/y Revenue $84.0 54% Q2'21 Y/Y: (2%) Segment Gross margin $79.2 $77.7 53% Q3'21 Monthly Average Buyers (13%) 48% Q4'21 (1%) $87.3 54% Q1'22 (1%) 30 Note: Segment margins exclude stock-based compensation, depreciation, and amortization. (in millions) $78.5 54% Q2'22 (7%) • Y/Y Monthly Average Buyers stable in Q2'22 • Robust traffic with 30M unique visitors per month Y/Y: 1,316 Q2'21 (26%) Monthly Average Buyers 1,263 1,388 Q3'21 (6%) Q4'21 1% 1,383 Q1'22 (2%) (in thousands) 1,290 Q2'22 (2%) ûdemy#31Guidance Revenue Adjusted EBITDA Margin Weighted Average Share Count Q3'22 $153.0 157.0 million (14%) - (12%) 141 million FY22 $615.0-640.0 million (12%) - (10%) 142 million 31 Note: Adjusted EBITDA represents net loss attributable to common stockholders, adjusted to exclude interest expense (income), net; provision for income taxes; depreciation and amortization; stock-based compensation expense; and other expense (income), net. We have not reconciled our expectations for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for the guidance for Adjusted EBITDA is not available without unreasonable effort. ûdemy#32A global, disruptive learning company designed to scale Enhanced Learning 32 On-Demand Learning Skills building anytime, anywhere Fresh, relevant content • Real-world experts ● Personalization Breadth . Depth Guided Learning Career-based learning guides Career-specific skills recommendations AI/ML-based personalized learning Content Expansion Recommendations . Languages Cohort Learning Data-Driven Platform Online, cohort-based programs for collaborative learning Partner with top universities Pricing Learners Immersive Learning Empower adaptation to rapidly evolving technical roles Learning paths combine Udemy's best courses with assessments and labs Global Expansion Instructors Retention Enterprises ûdemy#33Positioned for enduring growth ‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒ A Rapid Enterprise Growth Consumer business adds tailwinds to Udemy Business, achieving $316M in ARR¹ at 74% y/y growth and 118% NDRR², driving increased visibility, growth, and margins Strong Learner Demand & Engagement High-quality content attracts 54M learners to our platform for a virtuous cycle of monetization, engagement, and feedback Note: Data as of June 30, 2022, unless otherwise noted 33 ¹ Annual Recurring Revenue 2 Net Dollar Retention Rate </>\b*Oh! Compelling Two-Sided Marketplace Revenue incentives attract and motivate 71K instructors to create and regularly refresh platform content, now totalling 204K courses Global Reach, Local Content Integrated international reach coupled with local approach key to successful global flywheel: -60% of revenue generated outside North America; content in over 75 languages ûdemy#34Appendix 34 ûdemy#35Key Business Metrics Definitions Monthly Average Buyers Udemy Business Customers Udemy Business Annual Recurring Revenue Udemy Business Net Dollar Retention Rate 35 A buyer is a consumer who purchases a course or subscription through our direct-to-consumer offering. Monthly average buyers is calculated as the average of monthly buyers during a particular period, such as a fiscal year. We count the total number of UB customers at the end of each period. To do so, we generally count unique customers using the concept of a domestic ultimate parent, defined as the highest business in the family tree that is in the same country as the contracted entity. In some cases, we deviate from this methodology, defining the contracted entity as a unique customer despite existence of a domestic ultimate parent. This often occurs where the domestic ultimate parent is a financial owner, government entity, or acquisition target where we have contracted directly with the subsidiary. We define a UB customer as a customer who purchases Udemy via our direct sales force, reseller partnerships, or through our self-service platform. We disclose our UB Annual Recurring Revenue, or ARR, as a measure of our enterprise revenue growth. ARR represents the annualized value of our UB customer contracts on the last day of a given period. Only revenue from closed UB contracts with active seats as of the last day of the period are included. We disclose our UB Net Dollar Retention Rate, or NDRR, as a measure of our enterprise revenue growth. We believe NDRR is an important metric that provides insight into the long-term value of our subscription agreements and our ability to retain, and grow revenue from, our UB customers. To calculate NDRR, we begin with UB customers who are active at the beginning of a twelve-month period. Then, we divide the ending annualized recurring revenue, or ARR, for those same UB customers at the end of the twelve-month period by the total ARR for those UB customers at the beginning of that twelve-month period. We calculate ARR as the total annualized run-rate revenue of all UB customers with active licenses on the last day of a given period. ûdemy#36GAAP to Non-GAAP Reconciliation Revenue Cost of revenue Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Loss from operations Other income (expense) 36 Interest income (expense), net Other expense, net Total other expense, net Net loss before taxes Income tax provision Net loss attributable to common stockholders Net loss per share attributable to common stockholders Basic and diluted Weighted-average shares used in computing net loss per share attributable to common stockholders $ $ Three Months Ended June 30, 2022 Stock-based Amortization of Compensation Intangible Assets (in thousands, except share and per share amounts) 153,112 $ 65,812 87,300 GAAP 68,421 23,963 23,443 115,827 (28,527) 127 (672) (545) (29,072) (308) (29,380) (0.21) 140,035,203 (989) 989 (5,007) (3,711) (5,025) (13,743) 14,732 14,732 14,732 - (726) 726 (341) (341) 1,067 1,067 1,067 $ Non-GAAP 153,112 64,097 89,015 63,073 20,252 18,418 101,743 (12,728) 127 (672) (545) (13,273) (308) (13,581) (0.10) 140,035,203 ûdemy#37GAAP to Non-GAAP Reconciliation Revenue Cost of revenue Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Loss from operations Other income (expense) 37 Interest income (expense), net Other expense, net Total other expense, net Net loss before taxes Income tax provision Net loss attributable to common stockholders Net loss per share attributable to common stockholders Basic and diluted Weighted-average shares used in computing net loss per share attributable to common stockholders $ $ GAAP Six Months Ended June 30, 2022 Stock-based Amortization of Compensation Intangible Assets (in thousands, except per share amounts) 305,335 132,250 173,085 135,299 46,533 45,096 226,928 (53,843) 370 (916) (546) (54,389) (640) (55,029) (0.39) 139,691,508 (1,829) 1,829 (9,144) (7,045) (10,056) (26,245) 28,074 28,074 28,074 (1,450) 1,450 (683) (683) 2,133 2,133 2,133 $ $ Non-GAAP 305,335 128,971 176,364 125,472 39,488 35,040 200,000 (23,636) 370 (916) (546) (24,182) (640) (24,822) (0.18) 139,691,508 ûdemy#38GAAP to Non-GAAP Reconciliation Three Months Ended June 30, 2021 Stock-based Compensation Non-GAAP (in thousands, except share and per share amounts) Ś $ Revenue Cost of revenue Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Loss from operations Other income (expense) Interest expense, net Other expense, net Total other expense, net Net loss before taxes Income tax provision Net loss attributable to common stockholders 38 Net loss per share attributable to common stockholders Basic and diluted Weighted-average shares used in computing net loss per share attributable to common stockholders $ GAAP 126,093 55,993 70,100 50,902 14,783 15,389 81,074 (10,974) (173) (90) (263) (11,237) (154) (11,391) (0.31) 37,269,650 (237) 237 (1,712) (1,052) (2,971) (5,735) 5,972 5,972 5,972 $ 126,093 55,756 70,337 49,190 13,731 12,418 75,339 (5,002) (173) (90) (263) (5,265) (154) (5,419) (0.15) 37,269,650 ûdemy#39GAAP to Non-GAAP Reconciliation Six Months Ended June 30, 2021 GAAP Stock-based Compensation (in thousands, except per share amounts) $ Revenue Cost of revenue Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Loss from operations Other income (expense) 39 Interest expense, net Other income, net Total other expense, net Net loss before taxes Income tax provision Net loss attributable to common stockholders Net loss per share attributable to common stockholders Basic and diluted Weighted-average shares used in computing net loss per share attributable to common stockholders $ $ 250,643 113,916 136,727 104,141 30,196 29,802 164,139 (27,412) (391) (518) (909) (28,321) (1,059) (29,380) (0.80) 36,726,992 (537) 537 (3,636) (3,142) (9,169) (15,947) 16,484 16,484 16,484 Ś Non-GAAP 250,643 113,379 137,264 100,505 27,054 20,633 148,192 (10,928) (391) (518) (909) (11,837) (1,059) (12,896) (0.35) 36,726,992 ûdemy#40GAAP to Non-GAAP Reconciliation Adjusted EBITDA ($ in thousands) Net loss Adjusted to exclude the following: Interest (income) expense, net Provision for income taxes Depreciation and amortization Stock-based compensation expense Other expense, net Adjusted EBITDA 40 $ $ Three Months Ended June 30, 2022 2021 (29,380) $ (127) 308 5,233 14,732 672 (8,562) $ (11,391) $ 173 154 3,387 5,972 90 (1,615) $ Six Months Ended June 30, 2022 2021 (55,029) $ (370) 640 10,200 28,074 916 (15,569) $ (29,380) 391 1,059 6,457 16,484 518 (4,471) ûdemy#41GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) Revenue: Consumer Enterprise Total Revenue Gross Profit Consumer Enterprise Total Segment Gross Profit Less: Amortization of Capitalized Software Less: Depreciation Non-GAAP Total Gross Profit Less: Stock-Based Compensation Less: Amortization of Intangible Assets GAAP Total Gross Profit Gross Margin: Consumer Enterprise Total Segment Non-GAAP GAAP 41 Three Months Ended June 30, 2022 2021 78,485 $ 74,627 153,112 42,274 49,945 92,219 (3,015) (189) 89,015 (989) (726) 87,300 53.9% 66.9% 60.2% 58.1% 57.0% 83,964 $ 42,129 126,093 45,051 27,674 72,725 (2,176) (212) 70,337 (237) 70,100 53.7% 65.7% 57.7% 55.8% 55.6% Six Months Ended June 30, 2022 2021 165,797 $ 139,538 305,335 89,789 92,693 182,482 (5,739) (379) 176,364 (1,829) (1,450) 173,085 54.2% 66.4% 59.8% 57.8% 56.7% 171,837 78,806 250,643 90,474 51,393 141,867 (4,188) (415) 137,264 (537) 136,727 52.7% 65.2% 56.6% 54.8% 54.6% ûdemy