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
MOUNTAIN VIEW, Calif., July 28, 2020 /PRNewswire/ -- Udacity, the global online learning platform that trains the world's workforce for the careers of the future, today 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.
Udacity has also continued to develop new content and jointly launched scholarship opportunities with the leading technology companies in 2020, including Amazon, Microsoft, Intel, and Alteryx. The Amazon Web Services scholarship garnered more than 30,000 pre-registrations, representing a $30 million skills investment into the AWS cloud infrastructure, and the Microsoft Azure ML scholarship program had similar application rates, reflecting pent-up demand for training on these platforms.
Other new initiatives launched in the first half of 2020 include Udacity's first executive program, AI for Business Leaders (developed in cooperation with the BMW Group), the AI for Healthcare Nanodegree program, and two new Nanodegree programs designed to train Product Managers.
"New technologies like AI and robotics, and the upheaval caused by COVID-19, have disrupted billions of people's lives and livelihoods and highlighted the need for individuals, companies, and governments to take responsibility for mastering new skills," said Gabe Dalporto, CEO of Udacity. "The strong demand for Udacity's Nanodegree programs the past six months reflects our commitment to deliver transformational, employable job skills in the careers of the future."
For more information on how Udacity is skilling today's workforce for the careers of tomorrow, please visit udacity.com.
About Udacity
Udacity is a global, online training platform powering digital transformation and accelerated time-to-market initiatives for Fortune 500 and Global 2000 enterprises. Udacity programs provide industry-created practitioner skills through a series of "Nanodegree" programs consisting of online courses and real-world projects in artificial intelligence, machine learning, data science, autonomous systems, and cloud computing, among other disciplines. Udacity collaborates with expert instructors and over 200 global industry partners including AT&T, Google, Facebook, Mercedes-Benz, and NVIDIA to power technical education. Headquartered in Mountain View, Calif., the private company has operations in the United Kingdom, Egypt, Germany, India, and the United Arab Emirates. Udacity has raised $163 million in funding to date from investors including Bertelsmann, Andreessen Horowitz, Charles River Ventures, and Drive Capital. For more information, please visit www.udacity.com.
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Andrea Heuer for Udacity
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