#11 Udemy Investor Presentation Q1 2022 For general public use ûdemy#23 Improving lives through learning Our mission is to provide flexible, effective skill development to empower organizations and individuals. ûdemy#3Udemy at a glance 3 Reach 52M learners globally 11.6K+ Q1 2022 Udemy Business customers 49% Y/Y Note: Data as of March 31, 2022, unless otherwise noted Scale $152M Q1 2022 revenue 22% Y/Y $280M Q1 2022 UB ARR - 80% Y/Y Content 196K courses from 68K instructors $180M Last 12 months of instructor payments Usage 170M Last 12 months of enrollments 3.1B Q1 2022 minutes watched ûdemy#4Our robust content-generation engine Dynamic supply 4 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#5Udemy Business: a unique growth opportunity Organizations are prioritizing skills-based learning to support digital transformation, drive business outcomes, and increase employee retention 5 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 80% growth in Udemy Business ARR in Q122 (Y/Y) 120% Q122 net dollar retention rate for Udemy Business 1 ûdemy#6Synergy at scale 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. 6 Organizations Companies looking to upskill and reskill their teams, keep up with new technologies, and develop and retain talent Three pillars power the business Learners Individuals looking to advance their careers and pursue personal passions Instructors Real-world experts looking to share and monetize their knowledge ûdemy#77 The future of work & learning ûdemy#8Accelerating 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 8 Source: World Economic Forum (2020) [new roles, business leaders]; Cybersecurity Insiders (2020) [need to digitize]; Arizton (2020) [market opportunity] ûdemy#9What today's learners and organizations want 9 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#10Why most learning models fail to deliver Modern learning needs 10 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#11The solution: Udemy's differentiated marketplace Modern learning needs 11 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#12For 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) ● ● 12#13For 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 13 Guidance: Personalized course recommendations based on goals and interests#14For instructors A wealth of data and insights difficult to replicate elsewhere 14 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#15Advanced technology infrastructure 15 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#16Instructor 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. 16 Note: Data as of March 31, 2022, unless otherwise noted What's in it for instructors? $180M instructor payments In the last 12 months $1M+ annual earnings for top instructors 5,000 Courses added per month ûdemy#17A quality-first approach to online learning Udemy attracts world-class experts to our platform Rahul G Iyer Founder, CEO, and Lead Trainer at Advanced Innovation Group Pro Excellence (AIGPE) AIGPE has over 44 courses on the Udemy platform and trains and certifies professionals in 175+ countries. Steve Ballinger Personal finance expert with over 25 years of leadership and management experience. Steve teaches over 30 courses on the Udemy platform on topics including personal finance, investment banking, and cryptocurrency. 17 Note: Data as of March 31, 2022, unless otherwise noted Total revenue $310K+ Average rating 4.5 Total revenue $1M+ Average rating 4.6 Our instructors update courses at the speed of change 59% of top 2,000 Udemy courses were updated in the last 90 days ûdemy#18Global 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. 196K courses in over 75 different languages International expansion playbook Local payments methods Local languages 32M+ unique global visitors per month 18 Note: Data as of March 31, 2022, unless otherwise noted Local currency and prices >60% of revenue outside North America Local marketing 28 currencies supported Go-to-market teams ûdemy#19Competitive 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 first quarter of 2022, we added more than 850 courses in local languages to the Udemy Business collection. 19 Udemy Business language coverage prior to 2021 Udemy Business language coverage new in 2021 ûdemy#20Strong 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 20 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 interviewed 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. ûdemy#21Udemy Business and Randstad Randstad, the world's largest provider of flexible work and human resources services, places over 100,000 people weekly in the United States and Canada, with the goal of impacting the working lives of 500 million people by 2030 through career training and development opportunities. Since 2019, Randstad has used Udemy Business to increase talent mobility across their client base, and has since doubled the number of licenses they use to support their efforts. 21 rrandstad 61% of workers placed through Randstad's Technology organization were active Udemy Business learners or course completers 96% of employees said Udemy helped them learn a new skill, gain a promotion, and/or become more effective at work ûdemy#22Innovating for learner success at scale Enhanced Learning 22 ● ● Personalized guidance Career-based learning guides Career-specific skills recommendations AI/ML-based personalized learning Personalization Breadth Content Expansion Depth ● ● Cohort-based learning Online, cohort-based programs for collaborative learning Partner with top universities Data-Driven Platform Recommendations Languages Pricing Learners Immersive learning Empower adaptation to rapidly evolving technical roles Learning paths combine Udemy's best courses with assessments and labs Retention Geographic Expansion Instructors Enterprises ûdemy#23Committed to ESG 1st ESG Risk Rating¹ Environmental 100% percentile in the Internet Software and Services assessed by Sustainalytics targeted renewable- energy-powered cloud resources by 2025 SUSTAINALYTICS a Morningstar company ESG INDUSTRY TOP RATED Governance Data Privacy is a priority in our governance programs 2022 In January, Udemy was recognized by Sustainalytics as an ESG Industry Top Rated Company. Social 20K+ free courses currently offered Note: Data as of March 31, 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 23 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#24Our Social Impact Partners 24 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#25Financial Highlights 25 ûdemy#26Revenue and Gross Margin Q1'22 Revenue $152.2M +22% y/y Driven by strong Udemy Business growth Q1'22 Gross Margin 57% 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: $124.5 54% Q1'21 +36% $126.1 26 Note: Gross Margin figures are non-GAAP, which excludes stock-based compensation and amortization of acquired intangibles. 56% Q2'21 +15% $129.6 56% Q3'21 +9% $135.5 54% Q4'21 +23% $152.2 57% Q1'22 +22% ûdemy#27Udemy Business Q1'22 Revenue $64.9M +77% y/y Revenue $36.7 65% Q1'21 Y/Y: +78% Segment Gross Margin $42.1 66% Strong revenue growth driven by both new logo acquisition and expansion within existing customers Q2'21 +79% $50.4 65% Q3'21 +84% $57.8 67% Q4'21 +81% (in millions) $64.9 27 Note: Segment margins exclude stock-based compensation, depreciation, and amortization. 66% Q1'22 +77% Q1'22 Revenue Contribution 43% +13pp y/y 29% 71% Q1'21 Consumer Continued revenue mix shift to Udemy Business Revenue Contribution 33% 67% 39% 61% Q2'21 Udemy Business Q3'21 43% 57% Q4'21 43% 57% Q1'22 ûdemy#28Udemy Business Q1'22 ARR¹ $279.6M 11.6K +80% y/y +49% y/y Y/Y: $155.2 Q1'21 +82% 28 1 Annual Recurring Revenue. Annual Recurring Revenue (in millions) $181.9 $207.4 Q2'21 +80% Customers Q3'21 +80% $239.3 Q4'21 +74% $279.6 Q1'22 +80% Accelerating growth in customers for the 4th straight quarter 120% Net Dollar Retention Rate Y/Y: 7.8 Q1'21 +30% 8.7 Q2'21 +36% Customers (in thousands) 9.6 10.5 Q3'21 +42% Q4'21 +44% 11.6 Q1'22 +49% ûdemy#29Consumer Q1'22 Revenue $87.3M 1.4M -1% y/y -2% y/y Y/Y: 29 Revenue $87.9 52% Q1'21 +23% Segment Gross margin $84.0 $79.2 54% Q2'21 Monthly Average Buyers (2%) 53% Q3'21 (13%) $77.7 48% Q4'21 (1%) (in millions) $87.3 54% Q1'22 (1%) ● Monthly Average Buyers stable in Q1'22 • Robust traffic with >32M unique visitors per month, above pre-pandemic levels¹ Y/Y: 1,411 Q1'21 +11% Monthly Average Buyers 1,316 1,263 Q2'21 (26%) Note: Segment margins exclude stock-based compensation, depreciation and amortization. Compares average monthly unique visitors during the quarter ended March 31, 2022 to average monthly unique visitors during the quarter ended March 31, 2020. Q3'21 (6%) 1,388 Q4'21 1% (in thousands) 1,383 Q1'22 (2%) ûdemy#30Guidance Revenue Adjusted EBITDA Margin Weighted Average Share Count Q2'22 $147.0 151.0 million (15%) - (12%) 140 million FY22 $610.0 640.0 million (12%) - (10%) 142 million 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 30 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#31Positioned for enduring growth ‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒ A Rapid Enterprise Growth Consumer business adds tailwinds to Udemy Business, achieving $280M in ARR¹ at 80% y/y growth and 120% NDRR², driving increased visibility, growth, and margins Strong Learner Demand & Engagement High-quality content attracts 52M learners to our platform for a virtuous cycle of monetization, engagement, and feedback Note: Data as of March 31, 2022, unless otherwise noted 31 ¹ Annual Recurring Revenue 2 Net Dollar Retention Rate </>\b*Oh! Compelling Two-Sided Marketplace Revenue incentives attract and motivate 68K instructors to create and regularly refresh platform content, now totalling 196K 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#32Key Business Metrics Definitions Monthly Average Buyers Udemy Business Customers Udemy Business Annual Recurring Revenue Udemy Business Net Dollar Retention Rate 32 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#33Appendix 33 ûdemy#34GAAP to Non-GAAP Reconciliation Three Months Ended March 31, 2022 Stock-based Amortization of Compensation Intangible Assets (in thousands, except share and per share amounts) 152,223 $ 66,438 85,785 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 income, 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 34 Weighted-average shares used in computing net loss per share attributable to common stockholders $ $ GAAP 66,878 22,570 21,653 111,101 (25,316) 243 (244) (1) (25,317) (332) (25,649) (0.18) 139,405,294 (840) 840 (4,137) (3,334) (5,031) (12,502) 13,342 13,342 13,342 - (724) 724 (342) (342) 1,066 1,066 1,066 $ Non-GAAP 152,223 64,874 87,349 62,399 19,236 16,622 98,257 (10,908) 243 (244) (1) (10,909) (332) (11,241) (0.08) 139,405,294 ûdemy#35GAAP to Non-GAAP Reconciliation Three Months Ended March 31, 2021 Stock-based Compensation Non-GAAP (in thousands, except share and 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) Interest expense, net Other expense, net Total other expense, net Net loss before taxes Income tax provision Net loss attributable to common stockholders 35 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 124,550 57,923 66,627 53,239 15,413 14,413 83,065 (16,438) (218) (428) (646) (17,084) (905) (17,989) (0.50) 36,178,304 (300) 300 (1,924) (2,090) (6,198) (10,212) 10,512 10,512 10,512 $ 124,550 57,623 66,927 51,315 13,323 8,215 72,853 (5,926) (218) (428) (646) (6,572) (905) (7,477) (0.21) 36,178,304 ûdemy#36GAAP 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 36 $ Ś Three Months Ended March 31, 2022 2021 (25,649) $ (243) 332 4,967 13,342 244 (7,007) $ (17,989) 218 905 3,069 10,512 428 (2,857) ûdemy#37GAAP 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 37 Three Months Ended March 31, 2022 2021 87,312 $ 64,911 152,223 47,515 42,748 90,263 (2,724) (189) 87,350 (840) (725) 85,785 54.4% 65.9% 59.3% 57.4% 56.4% 87,873 36,677 124,550 45,423 23,719 69,142 (2,012) (203) 66,927 (300) 66,627 51.7% 64.7% 55.5% 53.7% 53.5% ûdemy