-77%

est. 2Y upside i

EdTechSeries D+

Rank

#4287

Sector

EdTech

Est. Liquidity

~2Y

Data Quality

Data: Medium

Codecademy, while a strong brand in EdTech, was acquired by Skillsoft for $525M in 2021.

Last updated: March 10, 2026

Bull (10%)+100%

Codecademy successfully expands its enterprise offerings and leverages AI integration to significantly differentiate its platform, capturing substantial market share from competitors like Coursera and Udemy. This drives revenue to over $150M within two years and justifies a $1.05B valuation, reflecting strong execution and a clear path to profitability.

Base (25%)-20%

Codecademy maintains its user base and achieves moderate revenue growth to around $60M, but struggles to significantly improve profitability or gain substantial ground against dominant EdTech incumbents. The valuation stabilizes at approximately $420M, reflecting ongoing competitive pressures and a challenging path to a higher multiple.

Bear (65%)-60%

Intense competition from well-funded incumbents and big tech, coupled with persistent unprofitability and a high burn rate, leads to market skepticism. Codecademy fails to secure further funding at its prior valuation, resulting in a down round or a distressed acquisition at around $210M, significantly eroding common stock value due to liquidation preferences.

Est. time to liquidity~2.0 years

Preference Stack Risk

severe

Funding Intensity

37%

Investors hold $193M in liquidation preferences. In a hypothetical exit at the $525M valuation, common stock would be behind $193M, leaving $332M for common shareholders (assuming no other preferences).

Dilution Risk

high

As a private, unprofitable company with high funding intensity, future funding rounds would likely lead to significant dilution for common shareholders.

Secondary Liquidity

none

Codecademy was acquired by Skillsoft, so there is no active secondary market for its private shares.

View all 3 open roles at Codecademy →

Last updated: March 10, 2026

Questions to Ask at the Interview

Strategic questions based on Codecademy's data — designed to show you've done your homework.

  • 1

    “Given Codecademy's acquisition by Skillsoft, how does the company's strategic direction and growth plan fit within Skillsoft's broader portfolio, and how might this impact Codecademy's ability to compete with standalone EdTech platforms like Coursera or Udemy?”

  • 2

    “Codecademy's valuation at acquisition was a high multiple of its revenue, and it was not yet profitable. What are the key initiatives and metrics the team is focused on to drive profitability and justify a higher valuation within the Skillsoft ecosystem?”

  • 3

    “Considering the acquisition, what is the nature of the equity being offered (e.g., Skillsoft RSUs, Codecademy subsidiary options), and what are the expected liquidity events or mechanisms for employees to realize value from their equity package over the next two years?”

Community

Valuation Sentiment

Our model estimates -77% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.