Udacity Sees 260% Annual Recurring Revenue Growth, Increased Interest in Corporate and Government Upskilling
Growing need for skills development in AI, data science and more driving a 4x increase in monthly NanodegreeⓇ sign-up rates in the first half of 2020
Udacity, the global online learning platform that trains the world’s workforce for the careers of the future, revealed a 260% increase in annual recurring revenue for the first half of 2020, reflecting a continued diversification of its customer base.
This growth is the result of a sharp increase in demand from businesses, government agencies, and learners looking to accelerate digital transformation and develop skills in technologies which include artificial intelligence and machine learning, data science, cloud computing, autonomous systems, and programming. Udacity has entered into a number of new commercial relationships in 2020 that have helped drive this growth, including a new partnership with the United States Air Force’s BESPIN agile development lab to upskill airmen in AI, data analysis, programming, and machine learning. Udacity has also entered into a commitment with Egypt’s Information Technology Industry Development Agency to equip 100,000 young people with tech-forward job skills.
In addition to these new business opportunities, Udacity has seen improved retention among its existing customers — including the world’s leading pharmaceutical company, five of the world’s top seven aerospace companies, three of the Big Four professional services firms, and two of the four branches of the United States Department of Defense. Net dollar retention was over 140% for the company in the first half of 2020 with a significant percentage of business customers expanding their license counts, continuing a trend of customers tripling their deployments after the initial engagement with Udacity.
Following Udacity’s response to COVID-19 to assist laid-off workers, average monthly usage for individuals was up more than 50%, and there was a 4x increase in weekly Nanodegree program sign-up rates. Udacity anticipates continued strong demand in the consumer sector as workers who have been displaced by digital transformation and other technological revolutions seek the skills needed for the careers of the future.
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