Hugo Sarazin (2:53)

It's, it's pretty, pretty profound. First of all, thank you for having me on the show. It's a pleasure to be here. Udemy, in its original version, ended up being the largest online platform on the B2C. And on the B2B side, we have, as you said on the learner, 80 million plus. But on the enterprise side, 17,000 enterprise are depending on us to learn things. Things from IT to business skills, to communication, to, you know, how, how to collaborate. So pretty broad. At the same time, there's a limitation. This is a distribution play that allows you to take learning in an asynchronous way. But with AI, we have the opportunity to change the game. And I think we're making a pretty big pivot to continuous learning, personalized learning, let's say now you and I take the same class. You may know, actually the first, you know, 30%, but we're going to run through the same class today. But with AI, I can learn and assess what you know and adapt the course in a way that, you know, focuses on the area where you need help. And then when you take the class, I can also notice what issue you're encountering and reinforce that through a lab, through an AI roleplay, in other words. So it's a pretty fundamental, fundamental pivot to the way we're going to deliver the reskilling of the workforce moving forward.

Tim Stankavich (4:25)

Hugo, what are you learning from? I believe it's about 17,000 enterprise customers. I was looking at a recent press release from you guys that you, that you have. What do you learn from them? Because part of what you folks say is you are learning and you're taking in data from those enterprise customers. And what are you learning and then what are you building on that knowledge?

Hugo Sarazin (4:49)

Yeah, we're spending a lot of time learning from our customer. We're a learning platform. We love to learn. I've been in the role six months. I've met more than 400 executive. So a lot of input. But if you turn to the specific, I think right now, this moment, everybody's trying to determine what's the best way to embrace AI. We have on our platform five times more classes being taken every minute. Eight people enroll in AI classes. So we're seeing the demand for that. At the same time, we're seeing the need for adaptive skills, creative thinking, collaboration, communication. That's up 40%. So we're seeing this duality and I think it's very interesting to see that as much as the technical skills are important, enterprises are looking for the human side and keep the human aspect of moving forward.

Carol Massar (5:51)

How are your, your B2B sales right now? Carol mentioned some stats right there, but I'm curious about the environment that you see and what you're hearing from these customers and potential customers.

Hugo Sarazin (6:03)

Yeah, so it's, it's. So we're 60% global. So it's a mix of North American EMEA, Asia Pacific. We are obviously continuing to grow not at the rate that we were growing during the pandemic where there was a very big discontinuity, but we're seeing some robust growth. At the same time, the uncertainty in the economy, there's a lot of wait and see. In some cases people are investing in technology and then are realizing that just the technology is not enough. So there's a catch up and a rush to bring in the reskilling. So it's a bit of a mixed set of signals, but for our business, we're lucky because we have something that is going to be required in the World Economic forum the next five years. 92 million people in developed countries will need to be reskilled for AI and really well positioned for that.

Tim Stankavich (7:00)

Well, and it's interesting if I look at, you know, the FA function on the Bloomberg, which really pulls up your balance sheet and just looking at revenue, the mix between consumer and enterprise, you go back to 2019 or 2020 and it was largely consumer. But the shift has been kind of dramatic. Right. In terms of the percentage of revenues that is now enterprise, I think our data shows something like 63% of what you guys do. That's the growth, that's the model going forward.

Hugo Sarazin (7:26)

It is. Well, we're going to continue to be in the consumer space. I think we've been making a very profound shift towards the enterprise space. It is, you know, we've got the leading platform in the market today. In the consumer space. We do have a business that maybe in the last few years we haven't invested sufficiently and then we're seeing some very interesting signals there too. I think right now, as you know, the job markets, the new graduates are struggling to find jobs. They may not have been prepared for what this economy is requiring and they turn to platforms like Unity to kind of, you know, a bit of a finishing School, they're, they're taking on a specific class to learn and they're building their portfolio of projects. So we're seeing a bit of a, a shift. But what we're going to do is we're going to try to capture that shift instead of via transactional course by course. We're now offering subscription and we're trying to be a place where you can continuously learn and evolve and set yourself career goals. And we're partnering with Indeed and other firms to facilitate that.

Carol Massar (8:38)

Hey Hugo, just 30 seconds on this. Are you using AI to design the courses and actually do that content? How do you do that?

Hugo Sarazin (8:46)

Yeah, so we internally, we have a learner team that focuses on how to use AI to personalize the experience. We have an instructor team that is finding ways to automate and streamline the process so that you can create the curriculum, you can create examples, you can generate images if that's what you needed. So we're making all of that super easy so that the instructor can spend their time where, you know, they're, they're applying their critical thinking, they're finding analogies, they're finding ways to engage the students in better ways.

Tim Stankavich (9:20)

All right, we're going to leave it there. Hey, Hugo, thank you. Really appreciate it. Have a good weekend. Hugo Sarazin, he's chief executive officer of the online learning and teaching marketplace Udemy, joining us from Miami. Ah, come on. Why is this taking so long? This thing is ancient.

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Whoa.

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