Form 4: Udemy Director Gregory Scott Brown Reports Stock Transactions

Director Gregory Scott Brown reports acquisition and disposal of Udemy common stock related to performance-based restricted stock units and tax withholding.

Summary

• On February 20, 2025, Gregory Scott Brown, a director of Udemy, acquired 93,213 shares of common stock due to the achievement of a performance-based vesting condition related to a PSU award dated March 15, 2024.
• These PSUs are subject to time-based vesting, with one-fourth vesting on March 15, 2025, and then 1/16th vesting quarterly thereafter, contingent on continuous service.
• On March 15, 2025, 31,874 shares were withheld by Udemy at a price of $8.2 to cover tax obligations arising from the vesting and settlement of restricted stock units and/or performance stock units.
• Following these transactions, Brown beneficially owns 1,203,235 shares of Udemy common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It reflects standard insider transactions related to equity compensation and tax obligations. The vesting of PSUs is a positive sign, but the tax withholding is a neutral event.

Positives

• The vesting of performance-based restricted stock units indicates the achievement of certain performance goals by Udemy.

Negatives

• The withholding of shares to cover tax obligations reduces the number of shares the director ultimately receives.

Risks

• Future vesting of PSUs is contingent on the director's continuous service with Udemy.

Future Outlook

The remaining PSUs will vest quarterly, subject to the director's continuous service.

Industry Context

Form 4 filings are standard disclosures for corporate insiders and provide transparency into their transactions in company stock. This filing indicates activity by a director at Udemy.

Comparison to Industry Standards

• Form 4 filings are a standard practice across publicly traded companies, including competitors like Coursera and Skillsoft.
• The vesting schedules and tax withholding practices are typical for equity compensation plans in the tech industry, similar to those seen at companies like LinkedIn (now part of Microsoft) and General Assembly (acquired by Adecco).

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign, indicating the achievement of performance goals.
• The transactions have a minor impact on the overall share count.

Next Steps

• Continued quarterly vesting of the remaining PSUs, subject to the director's continuous service.

Key Dates