Shares of Udemy Inc. (NASDAQ: UDMY) plummeted by 5.20% on Monday, October 30, 2024, as investors reacted negatively to the company's third-quarter earnings report, which highlighted growth concerns overshadowing the overall revenue and earnings beat.

The e-learning platform reported a 6% year-over-year increase in revenue to $195 million, driven by a 16% growth in its Udemy Business segment. However, the company's consumer revenue declined by 8%, contributing to the overall revenue headwinds. This decline was attributed to lower individual course purchases.

While Udemy reported adjusted earnings of $0.07 per share, beating analysts' expectations of $0.01, the market focused on the company's challenges in certain segments and regions. Specifically, the company acknowledged temporary headwinds in the small and medium business (SMB) and consumer segments due to resource reallocation towards larger enterprise customers.

Furthermore, Udemy highlighted muted growth in the EMEA region, which also impacted its overall revenue performance. The company expects high single-digit revenue decline rates in the consumer segment for the next year, further dampening the growth outlook.