XML 46 R25.htm IDEA: XBRL DOCUMENT v3.22.4
Segment and geographic information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and geographic information
16. Segment and geographic information
The Company’s Chief Executive Officer is its CODM. The CODM reviews separate financial information presented for the Company’s two segments, Consumer and Enterprise, in order to allocate resources and evaluate the Company’s financial performance.
The Consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills to advance their professional careers, or learn a new personal skill. The Enterprise segment is focused on helping business and government customers upskill and reskill their employees and public servants. The CODM measures the performance of each segment primarily based on segment revenue and segment gross profit.
Segment gross profit, as presented below, is defined as segment revenue less segment cost of revenue. Segment cost of revenue includes content costs, hosting and platform costs, customer support services, and payment processing fees that are allocable to each segment. Segment gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets allocated to cost of revenue as the CODM does not include the information in his measurement of the performance of the operating segments. Additionally, the Company does not allocate sales and marketing expenses, research and development expenses, and general and administrative expenses because the CODM does not include the information in his measurement of the performance of the operating segments. The Udemy platform supports the operations of each segment.
The CODM does not use asset information by segments to assess performance and make decisions regarding allocation of resources, and the Company does not track its long-lived assets by segment. The geographic identification of these assets is set forth below.
Financial information for each reportable segment was as follows (in thousands):
Fiscal Year Ended December 31,
202220212020
Revenue
Consumer$315,059 $328,703 $326,454 
Enterprise314,038 186,954 103,445 
Total revenue629,097 515,657 429,899 
Segment cost of revenue
Consumer149,254 159,342 165,804 
Enterprise104,577 63,984 35,519 
Total segment cost of revenue253,831 223,326 201,323 
Segment gross profit
Consumer165,805 169,361 160,650 
Enterprise209,461 122,970 67,926 
Total segment gross profit375,266 292,331 228,576 
Reconciliation of segment gross profit to gross profit
Amortization of capitalized software12,586 9,293 6,894 
Amortization of intangible assets2,900 1,022 — 
Depreciation643 760 618 
Stock-based compensation$5,360 $1,623 $418 
Total reconciling items21,489 12,698 7,930 
Total gross profit$353,777 $279,633 $220,646 
Subsequent to the issuance of the Company’s consolidated financial statements as of and for the fiscal year ended December 31, 2020, the Company identified an error in the classification of segment cost of revenue between the Consumer and Enterprise segments. Management corrected the error in the table above by decreasing Consumer segment cost of revenue and increasing Enterprise segment cost of revenue by $6.7 million for the fiscal year ended December 31, 2020. Consumer segment gross profit increased by $6.7 million and Enterprise segment gross profit decreased by $6.7 million for the fiscal year ended December 31, 2020. Management considers such corrections to be immaterial to the previously issued consolidated financial statements.
Geographic information
Revenue: The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands):
Fiscal Year Ended December 31,
202220212020
North America$256,547 $199,268 $168,612 
Europe, Middle East, Africa189,618 168,612 139,005 
Asia Pacific137,829 107,924 85,847 
Latin America45,103 39,853 36,435 
Total revenue$629,097 $515,657 $429,899 
No single country other than the United States represented 10% or more of the Company’s total revenue during the fiscal years ended December 31, 2022, 2021, and 2020.
Long-lived assets: The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands):
December 31,December 31,
20222021
North America$12,782 $6,922 
Rest of world5,556 2,832 
Total long-lived assets$18,338 $9,754