Thank you for standing by and welcome to Udemy’s First Quarter 2022 Earnings Conference Call. As a reminder, today's conference call is being recorded. I would now like to turn the conference to your host Ms. Stacey Zolt Hara, Senior Vice President Corporate Communications. Ma'am, you may begin.

Thank you. With me today are Gregg Coccari, Udemy's Chairman and Chief Executive Officer; and Sarah Blanchard, Udemy's Chief Financial Officer. Before we begin, during this conference call, we will make forward-looking statements within the meaning of federal securities laws. These statements involve assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated. For a complete discussion of risks associated with these forward-looking statements, we encourage you to refer to our most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. Our forward-looking statements are based on information currently available to us. We caution you not to place undue reliance on forward-looking statements, and we do not undertake and expressly disclaim any duty or obligation to update or alter our forward-looking statements, except as required by applicable law. In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with the U.S. generally accepted accounting principles referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe these non-GAAP financial measures assist management and investors in evaluating our performance and comparing period-to-period results of operations in a more meaningful and consistent manner as discussed in greater detail in the supplemental schedules to our earnings release. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release. These reconciliations, together with additional supplemental information, are available at the Investor Relations section of our website. A replay of today's call will also be posted on the website. I will now turn the call over to Gregg.

Thank you, Stacey. Good afternoon, everyone, and thank you for joining us. We kicked off the year with a strong first quarter as businesses and consumers alike continue to choose Udemy to provide flexible, expansive, and effective skill development to empower organizations and individuals. Our Q1 results demonstrate several of the large secular forces fueling our growth: hybrid and remote work driving learning on our online platform; accelerating digital transformation requiring massive upskill and reskill demands; and the ongoing great resignation, which has accelerated an urgent need to engage and support employees through ongoing career development paths. As a leading destination for learning and teaching online, Udemy is benefiting from the societal tailwinds. This quarter's numbers clearly speak to this momentum. We grew revenue by 22% year-over-year in Q1 bringing our total revenue to $152 million. This was driven by outstanding Udemy Business performance in Q1, which grew 77% versus the prior year with over 11,600 total Udemy Business customers and $280 million in ARR, up 80% from the prior year. In fact, we now expect the Udemy Business will eclipse our consumer business in Q3 2022 earlier than we previously projected. As I look ahead to the rest of the year, I'm excited to continue to grow our footprint internationally where we have an opportunity to further our tremendous momentum in Udemy Business. I'm also excited to further our innovation leadership in our platform and technology and continue investing in our marketplace by supporting instructors around the world as they produce roughly 5,000 new courses every month. Our Q1 results illustrate these themes at work. Let's dig a little deeper. I will cover 3 critical growth drivers of our Udemy Business and performance in Q1. First, I'll briefly talk about Udemy Business where we saw a very strong demand, solid execution, and continued top-line performance in the quarter. Second, I'll discuss the unprecedented and far-reaching changes we are seeing in the way employers are prioritizing a new always-on approach to workforce skills and learning culture that drives our massive TAM. And third, an update of our marketplace, which continues to serve as the vibrant and healthy engine fueling Udemy Business' rapid growth. Let's start with Udemy Business. We achieved a record ARR of $280 million, up 80% year-over-year in Q1, driven by strength across all regions and multiple verticals, including government, financial services, and manufacturing. New customers this quarter included Baptist Health System, Crocs, Medici, Sparta Global, and Volta Trucks. We also saw strong momentum in larger enterprise organizations as more customers expand their use of Udemy's curated quality content and consumer-driven learning experience. This resulted in 87% year-over-year growth in customers with over $100,000 in ARR and 56% year-over-year growth in customers with over $1 million ARR, both reflective of the expansion trends within our customer base. Speaking of expansion. Our yearly business net revenue retention this quarter was 120%, up from 118% in the prior quarter as we continue to see massive success in growth in our land-and-expand strategy. For example, Randstad, the world's largest provider of flexible work and human resources services, places over 100,000 people weekly in the United States and Canada, with the goal of impacting the working lives of 500 million people by 2030 through career training and development opportunities. Since 2019, Randstad has used Udemy Business to increase talent mobility across their client base, and has since doubled the number of licenses they use to support their efforts. Randstad has built learning paths for key technical roles, and the company's top Udemy Business course categories include IT and cloud certifications, web development, and machine learning. In 2021, 61% of workers placed through Randstad's technology organization were active Udemy Business learners or course completers. In addition, 96% of Randstad employees noted that Udemy has helped them learn a new skill, gain promotion, or become more effective at work. The company recently won an American Staffing Association Elevate Award, recognizing their innovation and effectiveness to train, upskill, and reskill temporary and contract employees for the most in-demand roles, all built on the Udemy platform. Other existing customers growing their Udemy offering this quarter include Grupo Falabella, Abu Dhabi Port, Gympass USA, Indeed, Picsart, and Klarna. As we look into some of the deal highlights this quarter, I'm excited to note that together with our end-market partner, Sanjieke, Udemy Business has closed our first deals in the People's Republic of China and launched a new website in management along with an iOS app for mobile learning. We are pleased with how the pipeline in China is growing as we deepen our presence there. Adding to our wins in APAC, we achieved nearly $500,000 in ARR in our first quarter selling Udemy Business in South Korea through our partner, Woongjin ThinkBig, that we announced last quarter. Our momentum in China highlights the incredible runway ahead of us as we further penetrate the international market in Udemy Business where 53% of our revenue is currently outside of North America. Domestically, Udemy recently closed a large deal with one of the U.S. military's branches and now proudly supports several branches with our learning programs. All of these wins speak of the momentum of our partnership as well as the large investments in time, money, and resources organizations are making to deploy Udemy at scale and to a wider audience. While we do expect Udemy Business to grow larger than our consumer business in Q3, we are truly just getting started on the B2B opportunity for Udemy, and we believe the global market will only serve to accelerate our top line Udemy Business growth over the long term. It's important to recognize that we have quickly reached top line scale at hundreds of millions of dollars in ARR and continue to see exceptional growth in Udemy Business. Over the last 3 years, ARR has grown at a CAGR of nearly 90%. With the massive tailwinds highlighted earlier, a world-class go-to-market team, and a huge addressable opportunity in front of us, it's clear that we are executing, gaining market share, and building the right ecosystem of partners. Building world-class partnerships is a key component of our strategy to scale through market entry or further market penetration, supporting our goal of providing accessible, affordable education for everyone. Our partnerships with well-regarded international brands have served us well in establishing our presence in markets, including Japan, China, South Korea, and Sub-Saharan Africa. To that end, Udemy is excited to announce a partnership with First National Bank, one of South Africa's largest banks, serving over 9 million customers. Through this multimillion dollar partnership agreement, First National customers now have access to hundreds of global courses from Udemy. Not only does this partnership introduce Udemy to a whole new audience, but it aligns our brand with one that First National Bank customers already trust with their finances. Let's move on to the second area of focus in my remarks today, the secular tailwinds we see across employee learning and the digital transformation that are fueling these rapid changes. In February, Harvard Business Review published a study analyzing 50 million recent job announcements to see what skills and degrees are in demand. What the researchers found is the great resignation has dramatically accelerated the trends of organizations moving away from degree requirements and towards skill-based hiring. A brief quote from the article underscores why Udemy is winning: 'What we've learned is that employers are indeed resetting degree requirements in a wide variety of roles. The change is most noticeable for middle-skill positions. In evaluating job applicants, employers are suspending the use of degree completion as a proxy and instead now favor hiring on the basis of demonstrated skills and competencies.' At Udemy, we are uniquely suited to benefit from the trends highlighted in this HBR report and the dramatic changes in the way employees are expanding their skill sets and taking charge of their career development. For example, our marketplace enables learners to not just stay current on the ever-evolving skills required in the digital workplace, but to do so in a practical and efficient manner, what we like to think of as learning at the speed of business. Plus our marketplace accessibility and the ability to rapidly create and curate top-quality content enables these learners to complete these courses at the speed of light with their appetite for knowledge, without waiting months or even years for course creation to catch up with a skills gap. Indeed, to be the leader in defining this category of what HBR calls demonstrating skills and competencies means that we have to continue to push the innovation envelope on our technology and products so that organizations can successfully reskill and upskill their employees. To that end, this quarter, we launched 3 new assessments and 19 new labs within Udemy Business Pro and launched a Learning Paths API that allows learners to bring their curated Udemy Business learning paths directly into their LMS or internal sites to help drive effective learning. We've launched 8 career landing pages on udemy.com to help learners discover the skills they need to start or improve their careers in data science or web development, for example. In addition, we've launched career guides as part of our subscription offering to guide subscribers through their learning journey. Our proprietary skills graph helps learners chart a skill acquisition course journey that matches their professional aspirations. Together with our investments in AI and machine learning, these product enhancements create longer-term learning paths that strengthen the relationship between learners and Udemy, and most importantly, help our learners achieve their goals. We also continue to improve and innovate on how our content is delivered and updated while always ensuring that it remains fresh, relevant, and high quality. This quarter, we launched an integration with Workday, allowing learners and administrators to access course completion data in near-real time. The beauty of Udemy's marketplace model is the ability for us to learn based on the feedback loop from our users and the content they select. Powering this enormously valuable learning data with AI will drive more and more relevant and targeted results for our customers. Speaking of our marketplace, let's now turn to the marketplace community, our valuable instructors and the learner community that they help to thrive. As I've said before, our instructors are our lifeblood. They fuel our rich marketplace with expert-driven content and allow us to provide a unique learning path to 52 million learners. For example, Udemy instructor Steve Ballinger, a personal finance expert based in the United States, earned $1 million in total revenue after publishing over 30 courses on our platform. Steve recently shared that creating and filming courses is now his full-time job and that he's been able to achieve this without accruing any personal expense besides the $900 initial investment for a camera and a microphone. He credits Udemy for providing the platform and the marketing resources to help him reach thousands of learners around the world. Then there's Rahul Iyer based in India. In October 2021, Rahul announced his retirement from the services industry to become a full-time Udemy instructor at age 36. When Rahul began his journey teaching on Udemy, he was $110,000 in debt. Today, 6 years later, he is the owner of 4 villas in Pune, several commercial offices, and recently gifted his father a commercial property for business. Together, our 68,000 instructors help add roughly 5,000 courses each month, and we now have 196,000 courses available on our learning platform that helps filter the best courses to the top. I'd like to take a moment here to thank all the incredible and talented instructors who help make Udemy what it is. Your content fuels our unique, dynamic, and diverse learning engine. We are proud to have welcomed nearly 4,000 new instructors to our Udemy community this quarter. Steve and Rahul typify Udemy's extraordinary instructors. They are real-world experts who deliver high-quality, fresh content. Udemy, in turn, provides the scale to deliver their knowledge to learners worldwide. Our learning platform is fueled by our incredible content engine, our marketplace, which is the engine generating user feedback and their ever-evolving content that we leverage to ensure the quality, breadth, and depth of content sought by corporate and consumer learners alike. Before I conclude, I'd like to briefly cover 3 other topics close to my heart: first, our ESG initiatives and partnerships that we continue to grow and prioritize; second, a brief word on the Ukraine war and the refugee crisis; and third, the company DNA of equity and inclusion that anchors our company mission and workforce. Simply put, Udemy exists to improve lives through learning. ESG is embedded in our mission to provide flexible, effective skill development to empower organizations and individuals. In March, we published a new ESG section on the Udemy website, showcasing our key ESG activities, goals, and procedures. And soon, we'll launch our first ESG impact report, highlighting our ESG efforts and spotlighting how we will support our learners, instructors, customers, and communities. To further our mission, we partnered with a number of amazing nonprofit organizations to provide Udemy's courses to those in need free of cost. One example of many is our partnership with SV Academy, a San Francisco-based organization that prepares over 1 million underrepresented professionals to pursue careers in technology. Through SV Academy's Udemy partnership, its job seekers can now access the latest, most in-demand educational resources in their preparation to work in the technology industry. In 2020, a determination to succeed was evident when she joined SV Academy's customer success program. She accessed training including Udemy courses and a support network that enabled her to launch a career in technology. Immediately after finishing the program, she secured a customer success position with SV Academy's hiring partner, Genesys. In only 4 months, she was promoted to customer success manager, and now she's holding the door open for other immigrant black mothers who want to break into the tech industry. And just as important in this global nonprofit work is what we're doing to assist in Ukraine. We extend our thoughts to all who are impacted by the war in Ukraine and the refugee crisis. We realize there are many Ukrainians who no longer have access to traditional education, and we are therefore partnering with Ukraine's Ministry of Education and Science to provide 1.5 million Ukrainian students at 600 universities and higher education institutions free access to technical business language and other relevant course content. In addition, our free resource center continues to offer over 700 free Udemy courses to learners worldwide. We realize that these are small steps against the greater events taking place, but we believe it's absolutely critical that we do what we can and demonstrate our support for those who have had their lives so devastatingly impacted. Udemy's culture and ability to attract and retain our valuable employees is always top of mind for our leadership team. Our mission to provide flexible, effective skills development to empower organizations and individuals is grounded in equity and inclusion. We are pleased Great Place to Work Ireland has honored Udemy as #5 on the list of Ireland's best midsized workplaces in 2022. Additionally, Udemy's Dublin office has been named a 2022 Best Workplace for Women, which recognizes top organizations with women-friendly policies and benefits. We also recently announced that Udemy has been certified as a Great Place to Work in the United States, a distinction based entirely on what current employees say about their experience working at our company. In order to support our commitment to diversity, equity, and inclusion, we have added new courses covering areas such as unconscious bias, empathy, allyship, psychological safety, and leading with a diverse mindset, which are top of mind across enterprises now. To conclude, at Udemy, we are first and foremost a mission-driven company, addressing one of the largest global workforce issues of the rapidly changing digital age. This is what inspires our employees, instructors, and learners. The beauty of our model is that as we grow content on the Udemy marketplace and engage more and more new learners, Udemy Business' SaaS-based model continues to benefit with the broadest and most relevant content in what is still a very large and underpenetrated market. Together, Udemy employees, instructors, and customers are changing lives while driving a durable learning platform and high-growth business. As I tell our employees every day, one of our core values at Udemy is to be both mission-driven and results obsessed. This quarter's performance proved that we can be both. With that, I'll turn the call over to Sarah to dive into the numbers.

Thank you, Gregg. As Gregg said, we had a great start to 2022 with very strong Udemy business growth. A recent Deloitte study concluded that organizations that foster a learning culture are 92% more likely to develop novel products and services, 17% more profitable, and have as high as 50% greater employee engagement and retention rates than their peers. Our Udemy Business growth speaks to the fact that more and more organizations are increasing investment in employee skills acquisition because of the proven ROI. I'm especially encouraged by our exceptional Udemy Business ARR growth, up 80% versus the prior year as well as acceleration in Udemy Business customer growth, up 49% versus the prior year. Udemy Business continues to serve as a key growth lever for us as we see healthy new logos and expansion among existing customers, wins across a wide range of industry verticals, and good momentum in international growth. Q1 revenue of $152.2 million was up 22% year-over-year and up 12% sequentially. Our net dollar retention rate was 120% this quarter, highlighting the continued success of our land-and-expand motion. Udemy Business revenue was $64.9 million, up 77% from the prior year, continuing to demonstrate our strong growth at this scale. Our consumer business delivered $87.3 million in revenue, down 1% from the prior year. Our consumer business is performing as we expected it to, as we discussed on our last call. A healthy marketplace is one that is able to attract and retain instructors and that provides the incentives for those instructors to publish and update high-quality courses. The consumer marketplace is healthy. We are adding instructors and thousands of courses monthly, and it continues to serve as a vibrant engine that fuels Udemy business growth. The symbiotic system of these two parts of our business is a unique and differentiated model that we believe will continue to drive Udemy business' top-line growth over the long term. For the remainder of this call, all financial metrics are non-GAAP unless stated otherwise. Q1 gross profit was $87.4 million, up 31% year-over-year, driven by Udemy Business. Gross margin was 57% of revenue, up from 54% in Q1 of 2021. This margin expansion was a result of the continued revenue mix shift to Udemy Business from consumer and a reduction in content costs as a percentage of revenue across both segments. For OpEx, total operating expense was $98.3 million or 65% of revenue compared to 58% in Q1 of last year. Sales and marketing expenses represented 41% of total revenue compared to 41% this quarter last year as we continue to invest in the strong growth and clear ROI in Udemy Business by expanding our go-to-market and enterprise marketing teams. R&D expense was 13% of revenue, up 2 points year-over-year. We're investing in innovating on our sophisticated learning platform, which is fueled by our marketplace content engine. Furthermore, we are building capabilities to provide our learners with immersive learning experiences and proactive guidance on the skills and courses they need to achieve their professional goals. These investments in our business will bring a tighter relationship between Udemy, our learners, and our customers. As Gregg mentioned, our innovation focuses on 3 core areas. First, we are rolling out proprietary skills graphs that match courses and skills to real-life professional aspirations. We will first launch these on Udemy Business and then we will launch them as a part of the consumer offering. Second, we are fueling these skills graphs with sophisticated machine learning and AI models that can personalize the learning experience for each individual. Finally, we launched career guides as part of our consumer subscription offering. Ultimately, these investments will lead to superior learning experiences, more tangible outcomes for learners and customers, and higher LTVs over time. They are also the foundation of our future efforts in credentialing. Rounding out our discussion of operating expenses. G&A expense was 11% of revenue versus 7% a year ago as we invested in the team and systems to operate as a public company. Net loss in the quarter was negative $11.2 million or negative 7% of revenue. Adjusted EBITDA was negative $7 million or negative 5% of revenue. In the quarter, we had some consumer marketing project spend that we had previously expected to occur in Q1 shift to Q2, which positively benefited our EBITDA margin in Q1. This was in addition to the gross margin expansion I mentioned earlier. And lastly, free cash flow was negative $17.3 million versus negative $18 million a year ago. Moving on to the balance sheet. We ended the quarter and the year with $511 million of unrestricted cash, cash equivalents, and marketable securities. By segment, consumer revenue was $87.3 million, down 1% year-over-year. In the first quarter, we had approximately 1.4 million monthly average buyers, which was down 2% versus a year ago. Consumer gross profit was $47.5 million or 54% of consumer revenue, approximately 270 basis points higher than in Q1 2021. Gross margin expansion was driven by lower consumer GMV in the quarter as a percentage of revenue. As a reminder, in our consumer transaction business, instructor costs are recorded immediately, but revenue is recognized over a 4-month period. We also added 2.8 million new consumer and business learners, bringing our total order base to 52 million. Of note, we define a learner as someone who has enrolled and spent time learning on the platform. Udemy Business continued its robust growth with Q1 revenue of $64.9 million, up 77% year-over-year. The Udemy Business customer base is now well over 11,000, up 49% from a year ago. Udemy Business ending ARR of $279.6 million was up 80% as compared to a year ago. We are pleased with the trajectory of Udemy Business, and we now expect it to exceed consumer as a percent of revenue in Q3, as Gregg noted earlier in his remarks. Udemy Business gross profit was $42.7 million or 66% of Udemy Business revenue, which represents a roughly 120 basis point increase year-over-year. The improvement was primarily driven by a decrease in Udemy Business content costs as a percentage of Udemy Business revenue. Let's turn now to guidance. Looking ahead to the second quarter of fiscal 2022, we expect revenue to be between $147 million and $151 million. As mentioned earlier, we continue to expect Udemy Business to experience strong growth, becoming the majority of our revenue in Q3 of this year. I want to provide a little more color on our Q2 guidance. Our consumer business continues to be affected by some of the larger macroeconomic factors that have impacted our consumer growth over the last several quarters. While visitor traffic and leads to Udemy Business remain strong, the conversion of those visitors into consumer buyers has slowed a bit compared to last year. We believe these headwinds remain leading into Q2 and will put additional pressure on consumer growth in the near term. We do expect our marketplace to continue to be healthy and fueling Udemy Business. Growth in Udemy Business remains strong, and we are very excited and encouraged by the rapid revenue expansion and strong net dollar retention. For the second quarter, we expect an adjusted EBITDA margin of negative 15% to negative 12%. Let me provide a little more color on our Q2 EBITDA guidance. As I mentioned earlier, in Q1, we benefited from certain consumer marketing projects not impacting our Q1 expenses. As we look ahead to Q2, some of these consumer costs we did not see in Q1 are now expected to land in our Q2 operating expenses. This quarter-to-quarter timing issue is an important consideration in our Q2 EBITDA margin guidance. Of note, our full year revenue, segment revenue, and adjusted EBITDA margin guidance remain unchanged at $610 million to $640 million in revenue, with Udemy Business at $300 million to $310 million in revenue and consumer at $310 million to $330 million in revenue. We continue to expect an adjusted EBITDA margin of negative 12% to negative 10%. To conclude, I'm pleased with our Q1 performance and the strong growth of Udemy Business. Our continued momentum here is providing us with greater visibility into our revenue via more and more recurring revenue streams as well as unlocking further expansionary growth opportunities as we land and expand into even more organizations globally. We continue to demonstrate strong performance with 80% ARR growth and a 120% net dollar retention rate and are excited to see Udemy Business comprise a majority of our revenues next quarter. We look forward to further success and momentum in Q2 and the rest of the year. And with that, we'll open up the call for Q&A.

Our first question comes from the line of Stephen Sheldon from William Blair.

Nice results here. Maybe just starting on the business side. You guys have rolled out a lot of new functionality there with assessments and labs, learning paths, etc. I guess with all of these, what have you seen so far in terms of businesses actually utilizing some of the product improvements? Or maybe where are you expecting the biggest adoption when you think about the next few years?

Thank you for the question. We have discussed how we connect with our customers and their employees through two main strategies. First, our customer success team works closely with customers to understand their business goals. For instance, with newer products like Udemy Pro, which includes assessments and labs, we provide specific ways for employees to engage with these offerings. We are starting to see positive traction with these new products. Secondly, we have robust enterprise tools that learning leaders and product buyers are using to engage their teams across all our offerings. While we are pleased with the level of engagement, we recognize there is always room for improvement, and we are committed to ongoing innovation and the introduction of new features in response to customer feedback.

Our next question comes from the line of Rob Oliver from Baird.

I want to focus on Udemy Business. We saw the acceleration in ARR and the improvement in the net retention rate, acceleration in customer count. Like so taking a step back, I mean, if you could provide any more context really on what's resonating on that side of the business? Anything to call out to start there?

Thank you for the question, Josh. What’s interesting about Udemy Business is the wide range of success we’re experiencing across all regions and sectors. This broad success is what sets us apart. We’re excelling in every area and have new partnerships that are off to a strong start, particularly in Korea, where we achieved nearly $500,000 in annual recurring revenue during our first full quarter. We're also beginning sales in Mainland China. The business is remarkable, and I believe we have an exceptional market fit. Our content stands out compared to what’s available and this is evident in our strong business results across the board.

Our next question comes from the line of Brent Thill from Jefferies.

This is David Lustberg speaking on behalf of Brent. I have two questions. First, can you provide any insights into what percentage of companies and enterprises are currently using an enterprise learning product like yours today? How much opportunity do you think is still available? How much of this market is still untapped? Any information you can share would be helpful. I also have a follow-up question.

It's very early days for this market. Two years ago, the majority of the learning in corporations was done in person. And those days are vastly changed because of the pandemic and hybrid work and the complete future of work has changed. So it's very early days. So we believe that we are very early innings in this business.

Our next question comes from the line of Terry Tillman from Truist.

I just wanted to start on one with international. So congrats on the deal in China. It's really great to hear. Just curious as to what you're seeing in terms of competitive pressure in some of these emerging regions like Japan, South Korea, and China. And then also in terms of these emerging markets, maybe how does the land-and-expand dynamic change as you involve partners more heavily in these deals?

In the Asian markets, particularly Japan, we face minimal competition. We hold the largest local business catalog in Japan, which allows us to grow rapidly. In Korea, while there aren't many international competitors, several local ones exist. We've developed our Korean content significantly, and we're expanding it further. Regarding China, one of our competitors withdrew a quarter or two ago, resulting in reduced international competition, though some local competition remains. The land-and-expand strategy operates similarly across regions; we collaborate closely with our partners as if we are one team, utilizing the same procedures and marketing materials. This approach leads to strong performance, with net retention in Japan exceeding that of other locations. Overall, things are progressing very well.

Our next question comes from the line of Rob Oliver from Baird.

Could you give some color on how you view the competitive landscape in general, given the recent exit of a prominent competitor in China, have you seen a shift in demand or interest from your customers?

Yes, it's definitely helping us build our pipeline. We had a major European multinational looking for a replacement, and now that they know we are in the market, they reached out to us. So we are seeing that it will be easier to build our pipeline in China, without a doubt. There's less competition.

There are no further questions. We will now turn the call back to Gregg Coccari for closing remarks.

I want to thank everyone. I appreciate all your questions. To summarize, our strong Q1 results illustrate 3 themes driving Udemy's strong performance: first, strong demand, solid execution and continued top line growth; second, unprecedented tailwinds accelerating the workplace shift to digital upskilling and learning that drive our TAM; and third, the continued health of Udemy's consumer marketplace, which fuels the growth of Udemy Business. Simply stated, Udemy has the broadest and most relevant skill-building content in what is a very large and underpenetrated market. We're just getting started, and I'm excited for the opportunity ahead. I appreciate your time.

This concludes today's conference call. Thank you for participating. You may now disconnect.