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Organization and description of business
3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and description of business
1. Organization and description of business
Description of business
Udemy, Inc. (“Udemy” or the “Company”) was incorporated in January 2010 under the laws of the state of Delaware. The Company is headquartered in San Francisco, California.
Udemy is a global learning company whose online platform empowers organizations and individuals with flexible and effective skill acquisition and development. The Company’s learning marketplace platform enables tens of thousands of subject matter experts to develop, distribute and enhance content that reaches Udemy’s broad global audience of learners. Udemy leverages technology, data and insights to deliver personalized and effective learning experiences. The Company further curates its highest-quality content from the marketplace for Udemy Business, which enables companies around the world to offer engaging, effective, on-demand learning for all employees, immersive laboratory-style learning for tech teams, and cohort-based learning focused on leadership development.
Leadership Transition
Effective March 12, 2025, the Company’s Board of Directors appointed Hugo Sarrazin to succeed Greg Brown as the Company’s President and Chief Executive Officer. As of the same date, the Board appointed Mr. Sarrazin to serve as a Class III director, with a term expiring at our 2027 annual meeting of stockholders. Pursuant to the terms of his offer letter, the Board granted Mr. Sarrazin a new hire equity award consisting of 1,062,055 restricted stock units (“RSUs”). One third of the RSUs vest after one year, and the remaining two thirds will vest equally over the following 8 quarters, subject to continual service.
Effective March 12, 2025, Mr. Brown ceased to be the Company’s President and Chief Executive Officer. He is expected to maintain status as a full-time, non-executive employee through June 30, 2025, at which time, subject to the parties’ execution of a separation agreement and release of claims, Mr. Brown is expected to become eligible to receive certain benefits pursuant to his change in control and severance agreement. Provided that Mr. Brown remains employed by the Company through June 30, 2025 and both parties sign the separation agreement referenced above, the Company and Mr. Brown have agreed that Mr. Brown will continue his relationship with the Company as a consultant pursuant to a consulting agreement, the term of which will commence immediately following Mr. Brown’s last day of employment. The consulting agreement will expire on December 31, 2025, unless terminated earlier in accordance with its terms. Mr. Brown’s existing equity incentive awards will continue to vest during the term of the consulting period, and he will continue to be deemed a service provider for purposes of the Company’s equity incentive plans. The Company determined that there was a substantive reduction in the scope of services to be provided by Mr. Brown subsequent to March 12, 2025. As a result, the Company recognized $0.9 million in severance and personnel costs and $1.2 million in stock-based compensation within general and administrative expenses in the Company’s condensed consolidated statement of operations during the three months ended March 31, 2025, that would have otherwise been recognized from April 2025 to December 2025.