Coursera (NYSE:COUR) stock is dropping on Tuesday after the company released its earnings report for the first quarter of 2024.Lackluster guidance in that report is why shares are falling this morning. That includes its revenue guidance of $162 to $166 million for the second quarter of the year. This would miss Wall Street’s estimate of $177.82 million for the quarter.Coursera’s revenue guidance of $695 to $705 million for the full year of 2024 also leaves much to be desired. It wouldn’t come close to reach ...

Coursera, Inc. (NYSE:COUR) Q1 2024 Results Conference Call April 29, 2024 5:00 PM ET Company Participants Cam Carey - Head of Investor Relations Jeff Maggioncalda - Chief Executive Officer Ken Hahn - Chief Financial Officer Conference Call Participants Rishi Jaluria - RBC Ryan MacDonald - Needham Stephen Sheldon - William Blair Josh Baer - Morgan Stanley Brian Peterson - Raymond James Devin Au - KeyBanc Capital Markets Brett Knoblauch - Cantor Fitzgerald Operator Ladies and gentlemen, thank you for standing ...

For the quarter ended March 2024, Coursera (COUR) reported revenue of $169.07 million, up 14.5% over the same period last year. EPS came in at $0.07, compared to -$0.04 in the year-ago quarter.The reported revenue represents a surprise of -0.95% over the Zacks Consensus Estimate of $170.69 million. With the consensus EPS estimate being $0.01, the EPS surprise was +600.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

[Financial & Operating Highlights](index=1&type=section&id=Financial%20%26%20Operating%20Highlights) Coursera reported strong Q1 2024 results with a 15% year-over-year revenue increase to $169.1 million, achieving positive Adjusted EBITDA and Free Cash Flow Q1 2024 Key Financial Metrics (YoY Comparison) | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $169.1M | $147.6M | +15% | | **Gross Profit (GAAP)** | $89.5M | $77.5M | +15.5% | | **Net Loss (GAAP)** | $(21.3)M | $(32.4)M | Improved | | **Net Loss per Share** | $(0.14) | $(0.22) | Improved | | **Adjusted EBITDA** | $8.3M | $(7.5)M | Improved | | **Net Cash from Operations** | $24.5M | $4.7M | +421% | | **Free Cash Flow** | $18.1M | $0.9M | +1911% | Q1 2024 Revenue by Segment (YoY Comparison) | Segment | Q1 2024 Revenue | YoY Growth | Key Drivers | | :--- | :--- | :--- | :--- | | **Consumer** | $96.7M | +18% | Demand for Professional Certificates and AI courses | | **Enterprise** | $57.5M | +10% | Strength in government and campus verticals | | **Degrees** | $14.8M | +10% | Growth in new students and scaling of new programs | - Key operational metrics showed continued growth, reaching **148 million registered learners** (an increase of **7 million** in the quarter), **1,480 Paid Enterprise Customers** (**+18% YoY**), and **22,200 Degrees Students** (**+23% YoY**)[17](index=17&type=chunk) - The Net Retention Rate for Paid Enterprise Customers was **94%**[17](index=17&type=chunk) [Business & Platform Developments](index=2&type=section&id=Business%20%26%20Platform%20Developments) Coursera significantly expanded its AI-related offerings and platform enhancements, launching over 75 new courses and AI-powered tools while broadening strategic partnerships globally - **Content and Credentials:** * Launched over **75 new courses and projects** in generative AI from partners including Google, DeepLearning.AI, Duke University, IBM, and Microsoft[19](index=19&type=chunk)[33](index=33&type=chunk) * Added new entry-level Professional Certificates from Unilever in supply chain analytics and digital marketing[19](index=19&type=chunk)[33](index=33&type=chunk) * Announced a new master's in management pathway degree program with the University of Huddersfield[19](index=19&type=chunk)[33](index=33&type=chunk) - **Enterprise Customers:** * **Coursera for Business:** Signed new and expanded deals with Aboitiz Power Corporation, Buk, Coast Capital, and The Bank of Saint Lucia Limited[20](index=20&type=chunk)[34](index=34&type=chunk) * **Coursera for Government:** Launched a national training initiative with the President of Guyana for all citizens and public sector employees[20](index=20&type=chunk)[34](index=34&type=chunk) * **Coursera for Campus:** Partnered with institutions like Central State University (U.S.), Heriot-Watt University (U.K.), and Yenepoya University (India)[20](index=20&type=chunk)[34](index=34&type=chunk) - **Learning Platform Enhancements:** * Expanded AI-powered course translation from **18 to 21 languages**, adding Hindi, Japanese, and Korean[21](index=21&type=chunk)[35](index=35&type=chunk) * Launched 'Course Builder,' an AI-assisted tool for enterprise customers to create custom private courses[21](index=21&type=chunk)[35](index=35&type=chunk) * Broadened beta access to 'Coursera Coach' for paying Consumer learners and Business/Government customers[21](index=21&type=chunk)[35](index=35&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Coursera provided its financial outlook for Q2 and full year 2024, projecting revenue between $162 million and $166 million for Q2 and $695 million to $705 million for the full year Financial Outlook for 2024 | Period | Revenue | Adjusted EBITDA | | :--- | :--- | :--- | | **Q2 2024** | $162M - $166M | $(2)M - $2M | | **Full Year 2024** | $695M - $705M | $24M - $28M | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, Coursera's revenue grew 15% year-over-year to $169.1 million, with net loss improving to $(21.3) million from $(32.4) million in the prior year Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenue** | $169,068 | $147,642 | | **Gross Profit** | $89,497 | $77,468 | | **Total Operating Expenses** | $119,239 | $116,545 | | **Loss from Operations** | $(29,742) | $(39,077) | | **Net Loss** | $(21,256) | $(32,364) | | **Net Loss Per Share** | $(0.14) | $(0.22) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Coursera reported total assets of $916.3 million, maintaining a strong cash position of $725.4 million with total stockholders' equity at $609.1 million Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $725,363 | $656,321 | | **Total current assets** | $833,247 | $832,486 | | **Total assets** | $916,303 | $920,533 | | **Total current liabilities** | $302,587 | $298,260 | | **Total liabilities** | $307,189 | $304,339 | | **Total stockholders' equity** | $609,114 | $616,194 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, Coursera generated $24.5 million in cash from operating activities, significantly increasing cash and cash equivalents by $69.0 million during the quarter Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $24,450 | $4,692 | | **Net cash provided by (used in) investing activities** | $59,643 | $(50,540) | | **Net cash used in financing activities** | $(15,051) | $(7,682) | | **Net increase (decrease) in cash** | $69,042 | $(53,530) | | **Cash, cash equivalents, and restricted cash—End of period** | $727,128 | $269,348 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, showing Q1 2024 non-GAAP net income of $11.9 million, Adjusted EBITDA of $8.3 million, and Free Cash Flow of $18.1 million, all significantly improved year-over-year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net loss (GAAP)** | $(21,256) | $(32,364) | | Stock-based compensation expense | $27,857 | $30,330 | | Depreciation and amortization | $6,356 | $5,511 | | Interest income, net | $(9,583) | $(8,037) | | Restructuring related charges | $2,101 | $(5,659) | | Other adjustments | $2,838 | $2,687 | | **Adjusted EBITDA (Non-GAAP)** | **$8,313** | **$(7,532)** | Reconciliation of Net Loss to Non-GAAP Net Income (in thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net loss (GAAP)** | $(21,256) | $(32,364) | | Stock-based compensation expense | $27,857 | $30,330 | | Other adjustments | $5,319 | $(4,145) | | **Non-GAAP net income (loss)** | **$11,920** | **$(5,161)** | | **Non-GAAP net income (loss) per share—diluted** | **$0.07** | **$(0.03)** | Reconciliation to Free Cash Flow (in thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $24,450 | $4,692 | | Less: purchases of property, equipment, and software | $(134) | $(298) | | Less: capitalized internal-use software costs | $(4,070) | $(2,862) | | Less: purchases of content assets | $(2,153) | $(624) | | **Free Cash Flow (Non-GAAP)** | **$18,093** | **$908** | [Key Business Metrics & Definitions](index=3&type=section&id=Key%20Business%20Metrics%20%26%20Definitions) Coursera defines key performance indicators including Registered Learners, Paid Enterprise Customers, Net Retention Rate, and Degrees Students to clarify operational scale and customer engagement - **Registered Learners:** Each customer account with a unique email is counted as a registered learner, adjusted for spam, test accounts, and cancellations. The count as of March 31, 2024 was **148 million**[26](index=26&type=chunk)[39](index=39&type=chunk) - **Paid Enterprise Customers:** A customer who purchases Coursera via the direct sales force. This excludes customers from Coursera for Teams or channel partners. The count as of March 31, 2024 was **1,480**[40](index=40&type=chunk)[48](index=48&type=chunk) - **Net Retention Rate (NRR) for Paid Enterprise Customers:** Calculated by dividing the Annual Recurring Revenue (ARR) from a cohort of customers at the end of the current period by the ARR from the same cohort 12 months prior. The NRR for Q1 2024 was **94%**[17](index=17&type=chunk)[28](index=28&type=chunk)[41](index=41&type=chunk) - **Number of Degrees Students:** Includes all students matriculated in a degree program and enrolled in at least one course during the period. The count as of March 31, 2024 was **22,200**[42](index=42&type=chunk)[50](index=50&type=chunk)

With the meteoric rise of the mega-cap tech titans, it’s all too easy to stick with the market’s biggest behemoths. As the stock market becomes more concentrated in the larger-cap names (it’s become incredibly top-heavy over the past year, perhaps too top-heavy), many investors may miss out on the potential of some of the less-crowded, smaller-cap plays. Indeed, many behemoth-sized firms, especially in the tech sector, are making the most of their massive network effects to shift laterally into new markets. ...

The global pandemic caused a significant shift in education, moving online platforms to the forefront while traditional classrooms took a back seat. This change led to a significant increase in demand for e-learning, creating valuable opportunities in online education stocks.Moreover, Statista predicts an increase from $185.20 billion in 2024 to $257.70 billion by 2028 in the online education market. This upswing is driven by growing internet penetration and the acceptance of digital learning. Similarly, as ...

dem10Coursera (NYSE:COUR) is well known as one of the leading providers of online learning. It offers professional certificates, university degrees, and a range of courses from general interest to postgraduate qualifications. It has grown revenue consistently since it began in 2019 and delivered its first positive EBITDA in Q4 2023. In this article, the second I have written on Coursera, I consider the possibility that the emerging general-purpose Generative AI technology will turbocharge revenue growth ...

PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Coursera operates a global online learning platform connecting 142 million learners with over 325 partners, offering diverse educational content to individuals and organizations as a Public Benefit Corporation - As of December 31, 2023, Coursera has approximately **142 million registered learners** and partners with over **325 universities and industry experts**[261](index=261&type=chunk)[276](index=276&type=chunk) - The company's offerings are structured into three main segments: **Consumer**, **Enterprise**, and **Degrees**[256](index=256&type=chunk)[262](index=262&type=chunk)[284](index=284&type=chunk) Coursera Catalog Overview (as of Dec 31, 2023) | Offering Type | Quantity | Description/Price Range | | :--- | :--- | :--- | | Guided Projects | 3,500+ | Job-relevant skill in <2 hours for $9.99 | | Courses | 6,900+ | Learn in 4-6 weeks, free or up to $99 | | Specializations | 875+ | Job-relevant skill in 3-6 months for $39-$79/month | | Certificates | 125+ | Includes Professional, University, and MasterTrack Certificates | | Degrees | 50+ | Bachelor's or master's degree for ~$5,000-$45,000 | - Coursera operates as a **Delaware Public Benefit Corporation (PBC)** with a stated purpose to "provide global access to flexible and affordable high-quality education" and is also a certified B Corp[354](index=354&type=chunk)[355](index=355&type=chunk)[382](index=382&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from its limited operating history, dependence on the evolving online learning market, concentration of revenue among a few educator partners, and regulatory challenges - The company's historical growth may not be indicative of future performance, and **revenue growth rates may decline** due to market saturation, competition, and other factors[391](index=391&type=chunk) - A significant business risk is the dependence on educator partners, with approximately **32% of total revenue** for the year ended December 31, 2023, generated from the content of just **five partners**[436](index=436&type=chunk) - The business model for the Degrees segment relies heavily on the U.S. Department of Education's **"bundled services exception"** to the incentive compensation rule, which is based on agency guidance that could be altered or removed[48](index=48&type=chunk)[223](index=223&type=chunk)[349](index=349&type=chunk) - As a **Public Benefit Corporation (PBC)**, directors have a fiduciary duty to balance stockholder interests with the company's public benefit purpose, which could lead to decisions that do not maximize short-term financial results[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Item 1C. Cybersecurity](index=64&type=section&id=Item%201C.%20Cybersecurity) Coursera manages cybersecurity risks through an ISO-certified information security program overseen by the audit committee of the Board of Directors - The Board of Directors oversees strategic risk, while the audit committee is responsible for overseeing cybersecurity policies and practices, receiving quarterly updates from the Senior Vice President of Engineering[18](index=18&type=chunk) - The company's information security management system is certified to the **ISO/IEC 27001:2013 standard** and undergoes annual independent third-party audits, such as **SOC 2 Type 2 reports**[648](index=648&type=chunk) - The information security team is led by the Senior Vice President of Engineering and the Head of Information Security, who together have over **35 years of technology industry experience**[31](index=31&type=chunk) [Item 2. Properties](index=65&type=section&id=Item%202.%20Properties) The company leases all its office properties, including its headquarters in Mountain View, California, and believes current facilities are adequate for operations - Coursera's headquarters is in Mountain View, California, and the company **leases all its office spaces** and does not own any real property[19](index=19&type=chunk) [Item 3. Legal Proceedings](index=65&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 9 of the Notes to Consolidated Financial Statements - Details on legal proceedings are located in **Note 9, "Commitments and Contingencies"** of the financial statements[33](index=33&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=66&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Coursera's common stock trades on the NYSE under "COUR," with no dividends anticipated and a $95 million share repurchase program approved in April 2023 - The company's common stock trades on the NYSE under the symbol **"COUR"** since its IPO on March 31, 2021[21](index=21&type=chunk) - Coursera **does not anticipate paying dividends** on its common stock for the foreseeable future, retaining earnings for business development and expansion[5](index=5&type=chunk)[698](index=698&type=chunk) - On April 26, 2023, a share repurchase program was approved, authorizing the purchase of up to **$95 million of common stock** with no expiration date; no repurchases were made in Q4 2023[23](index=23&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=68&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2023, revenue grew 21% to $635.8 million, while net loss improved to $116.6 million, though gross margin declined due to higher content costs [Results of Operations](index=72&type=section&id=Results%20of%20Operations) Total revenue increased 21% to $635.8 million in 2023, but gross margin fell to 52% from 63% due to higher content costs, while net loss improved to $116.6 million Consolidated Statement of Operations (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$635,764** | **$523,756** | | Gross Profit | $329,771 | $331,479 | | *Gross Margin* | *52%* | *63%* | | Total Operating Expenses | $475,367 | $508,859 | | Loss from Operations | ($145,596) | ($177,380) | | **Net Loss** | **($116,554)** | **($175,357)** | Revenue by Segment (in thousands) | Segment | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Consumer | $365,221 | $295,583 | 24% | | Enterprise | $219,542 | $181,284 | 21% | | Degrees | $51,001 | $46,889 | 9% | | **Total Revenue** | **$635,764** | **$523,756** | **21%** | - Cost of revenue increased by **59% to $306.0 million** in 2023, primarily due to higher content costs from a revised agreement with its largest educator partner, significantly impacting gross margin[64](index=64&type=chunk)[65](index=65&type=chunk)[728](index=728&type=chunk) - Total operating expenses **decreased by 7%** year-over-year, driven by a reversal of restructuring charges and decreases in R&D, Sales & Marketing, and G&A expenses[66](index=66&type=chunk)[69](index=69&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong with $722.1 million in cash and securities, positive operating cash flow of $29.6 million, and $58.5 million used for share repurchases in 2023 - As of December 31, 2023, the company had **$722.1 million in cash, cash equivalents, and marketable securities**, consisting primarily of U.S. Treasury securities[97](index=97&type=chunk) Summary of Cash Flows (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from Operating Activities | $29,639 | ($38,051) | | Net cash from Investing Activities | $384,798 | ($234,024) | | Net cash from Financing Activities | ($79,229) | $12,234 | - During 2023, the company repurchased **4,829,803 shares of common stock for $58.5 million** under its Repurchase Program, with $36.6 million remaining available for repurchase[100](index=100&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=78&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key metrics showed growth in learners and customers, but a decline in enterprise retention, while non-GAAP measures like Adjusted EBITDA and Free Cash Flow improved significantly in 2023 Key Business Metrics (Year-End) | Metric | 2023 | 2022 | YoY Growth (2023) | | :--- | :--- | :--- | :--- | | Total Registered Learners (millions) | 141.9 | 118.1 | 20% | | Number of Degrees Students (Q4) | 22,025 | 18,103 | 22% | | Paid Enterprise Customers | 1,369 | 1,149 | 19% | | Net Retention Rate (Paid Enterprise) | 98% | 108% | (9)% | Non-GAAP Financial Measures (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted EBITDA | ($10,000) | ($36,945) | | *Adjusted EBITDA Margin* | *(2)%* | *(7)%* | | Free Cash Flow | $7,894 | ($53,305) | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Coursera is exposed to market risks from interest rate changes affecting its investment portfolio and foreign currency fluctuations impacting operating expenses - The company's primary market risk is **interest rate risk** on its investment portfolio; a hypothetical 100 basis point change would result in a **$7.2 million** change in annual interest income[152](index=152&type=chunk)[174](index=174&type=chunk) - Coursera is exposed to **foreign currency risk** as operating expenses are often denominated in local currencies; a 10% change in exchange rates would have had a **$3.4 million impact** on 2023 financial statements[153](index=153&type=chunk)[176](index=176&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=85&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements and an unqualified audit opinion from Deloitte & Touche LLP on both the financials and internal controls - The independent registered public accounting firm, Deloitte & Touche LLP, issued an **unqualified opinion** on the company's consolidated financial statements as of December 31, 2023[185](index=185&type=chunk) - The auditor also issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2023, based on the COSO framework[157](index=157&type=chunk)[179](index=179&type=chunk) - A critical audit matter identified was the **revenue recognition for higher value Enterprise contracts**, which required significant auditor judgment[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) [Consolidated Financial Statements](index=89&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $920.5 million, a net loss of $116.6 million, and a significant turnaround in operating cash flow to $29.6 million for 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $656,321 | $320,817 | | Total Current Assets | $832,486 | $875,988 | | **Total Assets** | **$920,533** | **$947,597** | | Total Current Liabilities | $298,260 | $242,441 | | **Total Liabilities** | **$304,339** | **$253,022** | | **Total Stockholders' Equity** | **$616,194** | **$694,575** | Consolidated Statement of Operations (in thousands) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenue | $635,764 | $523,756 | $415,287 | | Gross Profit | $329,771 | $331,479 | $249,469 | | Loss from Operations | ($145,596) | ($177,380) | ($143,063) | | Net Loss | ($116,554) | ($175,357) | ($145,215) | | Net Loss Per Share | ($0.77) | ($1.21) | ($1.28) | [Notes to Consolidated Financial Statements](index=94&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, segment reporting, partner concentration risk, purchase commitments, and a pending privacy class action lawsuit - **Revenue Recognition Policy**: The company is the principal for Consumer and Enterprise revenue but acts as an agent for Degrees revenue, recognizing a service fee based on tuition[748](index=748&type=chunk)[752](index=752&type=chunk)[883](index=883&type=chunk) - **Segment Reporting**: The company operates and reports on three segments—Consumer, Enterprise, and Degrees—with performance evaluated based on segment revenue and gross profit[876](index=876&type=chunk)[898](index=898&type=chunk) - **Commitments and Contingencies**: As of December 31, 2023, the company had **$23.1 million in non-cancelable purchase obligations** and is defending a putative class action lawsuit alleging privacy violations[810](index=810&type=chunk)[860](index=860&type=chunk) - **Restructuring**: A 2022 workforce reduction resulted in a $10.1 million charge, while a January 2024 sales force restructuring is expected to incur **$2-3 million in charges in Q1 2024**[880](index=880&type=chunk)[904](index=904&type=chunk)

Key PointsThis is how some of the professional traders and investors out there set out to choose the industries and stocks they want to add to their portfolios.Ending up with a list of the best three education stocks in the industry, you, too, can place the odds in your favor.Analysts are bullish on their projections, and markets took them well by bidding the stocks higher.5 stocks we like better than DuolingoMost retail traders and investors, that is, those who trade with their own money, often wonder how ...

Financial Data and Key Metrics Changes - In Q4, the company generated total revenue of $168.9 million, which is up 19% from a year ago, driven by double-digit increases across all segments [13][14] - The company achieved a net income of $9.5 million, or 5.6% of revenue, and adjusted EBITDA of $5.7 million, or 3.4% of revenue, marking the first positive adjusted EBITDA quarter [14][108] - Total annual revenue reached $636 million, reflecting a 21% growth over the prior year [96] Business Segment Performance - Consumer revenue was $97.2 million, up 22% from the prior year, driven by strong demand for entry-level professional certificates and newly launched generative AI courses [16] - The company added more than 200 paid enterprise customers, ending the year with nearly 1,400 business, government, and campus clients [11] - The consumer segment's gross profit was $51.5 million, or 53% of consumer revenue, compared to 73% a year ago, reflecting increased marketing spend efficiency [16] Market Data and Key Metrics Changes - The global learner base grew by 20% to 142 million, with the company welcoming around 6 million new registered learners each quarter [11] - The company launched nearly 20 new degree programs in the past year, including a master of data science and a master of science in information technology [7][8] - The Generative AI Academy attracted significant interest, with the course "Generative AI for Everyone" enrolling 90,000 learners in its first 30 days [101] Company Strategy and Industry Competition - The company is focusing on digital transformation and skills development, with nearly 90% of executives ranking AI and Generative AI as top tech priorities for 2024 [1][2] - Partnerships with institutions like the New York State Department of Labor and SUNY Empire are crucial for expanding access to education and creating pathways for learners [4][5] - The company aims to enhance its content offerings and leverage its platform to meet the growing demand for job-relevant skills and credentials [5][121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's vision for the future of higher education, emphasizing the need for collaboration between academic institutions, employers, and government [1][114] - The management highlighted the importance of addressing the Generative AI conundrum, where companies must balance the speed of adoption with ethical considerations [2][113] - The company anticipates strong positive free cash flow generation in the coming year, with a focus on maintaining growth while managing expenses [15][109] Other Important Information - The company received an authorized instructional platform designation from the American Council on Education, enhancing its credibility and marketing capabilities [9] - The company is expanding its global reach, with over 58 million registered learners based in countries where the primary language is supported by its translation initiatives [123] - The company is committed to increasing investments in content assets, budgeting approximately $20 million for the current year [82] Q&A Session Summary Question: Insights on marketing spend and efficiency - Management noted a decline in sales and marketing expenses year-over-year, with a shift in spending dynamics due to a large partner's absence [41] Question: Generative AI Academy interest and adoption - Initial interest in the Generative AI Academy has been strong, with expectations for upsell opportunities as companies seek to enhance employee skills [63] Question: Will the recognition of AI strategies translate into action? - Management acknowledged that while many companies are aware of the need for AI strategies, clarity and organization in execution remain challenges [44][76]