Form 4: Udemy CTO Eren Bali Sells Shares Under 10b5-1 Plan, Receives Restricted Stock Units

Eren Bali, Chief Technology Officer of Udemy, Inc., sold 10,000 shares of common stock at an average price of $8.0228 and received 38,182 restricted stock units.

Summary

• On March 14, 2025, Eren Bali, the Chief Technology Officer of Udemy, Inc., sold 10,000 shares of common stock at a weighted average price of $8.0228.
• The sale was executed automatically under a pre-arranged Rule 10b5-1 trading plan adopted on December 13, 2024.
• On March 15, 2025, Bali also acquired 38,182 restricted stock units (RSUs) under the company's 2021 Equity Incentive Plan.
• These RSUs will vest in equal quarterly installments starting June 15, 2025, contingent upon continuous service with Udemy.
• Following these transactions, Bali directly owns 2,184,232 shares of Udemy common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The stock sale is pre-planned, and the RSU grant is a positive sign of continued investment in the executive team. There is nothing in the document to suggest a significant positive or negative outlook.

Positives

• The grant of 38,182 RSUs to the CTO aligns his interests with the long-term performance of the company.
• The vesting schedule of the RSUs encourages continued service with Udemy.

Negatives

• The sale of 10,000 shares by the CTO, even under a pre-arranged plan, could be perceived negatively by some investors.

Risks

• Continued sales of shares by insiders could put downward pressure on the stock price.
• The vesting of RSUs is contingent upon continued service, creating a potential risk if the executive leaves the company.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedule of the RSUs implies an expectation of continued service by the CTO.

Industry Context

Insider transactions are common in publicly traded companies and are closely monitored by investors for signals about management's confidence in the company's future prospects. Rule 10b5-1 plans are often used to allow insiders to sell shares without being accused of trading on non-public information.

Comparison to Industry Standards

• Stock sales by executives are a normal part of compensation and portfolio management in publicly traded companies like Udemy.
• The use of Rule 10b5-1 trading plans is a standard practice among executives at companies such as Coursera and Skillsoft to avoid insider trading concerns.
• The size of the RSU grant is within the typical range for executive compensation at similar-sized tech companies.

Stakeholder Impact

• Shareholders may react to the stock sale, although it is under a pre-arranged plan.
• Employees may view the RSU grant as a positive sign of the company's commitment to its leadership.

Key Dates