Group 1 - Coursera's stock (NYSE: COUR) experienced a significant drop of up to 20% in after-market trading following its 3Q24 earnings report on October 24 due to a downward revision in revenue guidance [1] - The company has lowered its FY24 revenue estimate, indicating potential challenges in meeting previous financial expectations [1] Group 2 - The analysis emphasizes the importance of identifying contrarian, under-appreciated, and misunderstood stocks that exhibit characteristics of value or growth at a reasonable price [1] - The investment strategies discussed include individual stocks, stock options, and bond and equity ETFs, focusing on medium-term horizons of 2 to 5 years [1]

The company is seeing weakness in customer retention trends despite strong numbers in its latest quarter. Shares of online learning platform Coursera (COUR -7.94%) crashed on Friday after the company reported financial results for the third quarter of 2024 and reduced its full-year financial guidance. As of 10:30 a.m. ET, Coursera stock was down about 8% but it had been down nearly 18% earlier in the day. The quarter was good but the outlook is confusing The drop for Coursera stock has a complex explanation ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $176.1 million, representing a 6% increase year-over-year [27] - Gross profit was $98.1 million, with a gross margin of 56%, up from 51% in the prior year [29] - Net income was $16.6 million, or 9.4% of revenue, while adjusted EBITDA was $13.3 million, or 7.6% of revenue [29] - The adjusted EBITDA margin target for the full year was raised by 170 basis points to 5.4% [27][34] Business Line Data and Key Metrics Changes - Consumer revenue was $102.3 million, up 3% year-over-year, driven by growth in Coursera Plus [31] - Enterprise revenue increased by 10% to $60.4 million, with a gross margin of 70% [32] - Degree segment revenue grew by 15% to $13.4 million, with a total of 26,455 students enrolled, a 29% increase [33] Market Data and Key Metrics Changes - The number of registered learners grew by over 7 million, reaching a total of 162 million [18] - The number of paid enterprise customers increased by 19% to over 1,560 institutions [18] Company Strategy and Development Direction - The company is focusing on expanding access to affordable, flexible, and job-relevant credentials [24] - There is a commitment to support Coursera for business customers in navigating new skilling imperatives [24] - The strategy includes a broader expense reduction initiative, including a 10% reduction in the global workforce to prioritize core capabilities [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted softer signals in global consumer trends, particularly in month-to-month retention, which tempered fourth-quarter revenue expectations [31] - The company is optimistic about the potential for growth driven by emerging technologies and the need for upskilling in the workforce [41][58] - There is recognition that institutional readiness is lagging behind the demand for skills and credentials, which may affect growth rates [58][60] Other Important Information - The company has achieved alignment with India's National Skills Qualification Framework for 10 professional certificates [9] - The Coursera Coach feature has supported over one million learners, leading to improved learning outcomes [20] Q&A Session Summary Question: How much monetization in the consumer segment is coming from AI-related courses? - Management indicated that AI monetization is not a major part of the overall revenue base at this point, but interest in generative AI content is growing [38][39] Question: What are the reasons for cutting costs now? - The rationale for cost-cutting is to focus on higher growth areas and improve financial leverage, with a focus on delivering differentiated value [42][44] Question: What is the visibility on the renewal business in the enterprise segment? - Management noted that while renewals were slightly weaker than the previous quarter, the primary weakness was in the consumer segment [71]

Coursera (COUR) reported $176.09 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.4%. EPS of $0.10 for the same period compares to -$0.02 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $173.94 million, representing a surprise of +1.24%. The company delivered an EPS surprise of +400.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Coursera (COUR) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 400%. A quarter ago, it was expected that this online learning platform would post earnings of $0.01 per share when it actually produced earnings of $0.09, delivering a surprise of 800%.Over the last four quarters, the compan ...

Earnings Release Q3 2024 Exhibit 99.1 coursera Coursera Reports Third Quarter 2024 Financial Results • Delivered third quarter revenue of $176 million • Reported net cash provided by operating activities of $27.8 million; Free Cash Flow of $16.7 million MOUNTAIN VIEW, Calif. (BUSINESS WIRE) – Coursera, Inc. (NYSE: COUR) today announced financial results for its third quarter ended September 30, 2024. "In the third quarter, we demonstrated strong progress across Coursera's learning ecosystem. We welcomed ten ...

Coursera (COUR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are better than ...

Group 1 - The core viewpoint is that Coursera (COUR) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a strong historical performance in earnings surprises [1][2]. - Coursera reported earnings of $0.09 per share for the last quarter, significantly exceeding the Zacks Consensus Estimate of $0.01 per share, resulting in a surprise of 800% [2]. - The company has an average surprise of 700% over the past two quarters, indicating a consistent ability to outperform earnings expectations [1][2]. Group 2 - Recent estimates for Coursera have been increasing, with a positive Earnings ESP of +36.36%, suggesting analysts are optimistic about its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [4][6]. - The next earnings report for Coursera is anticipated to be released on October 24, 2024 [6].

Coursera NYSE: COUR is an education technology stock that is finally seeing some positive momentum. Since going public in March 2021, shares have lost 82% of their value from their initial price of $39. However, over the last three months, they have been recovering modestly, up 22%. Coursera Today COUR Coursera $7.80 -0.08 (-1.02%) 52-Week Range $6.35 ▼ $21.26 Price Target $14.73 Add to Watchlist Bank of America has noticed its valuation feels depressed, prompting it to initiate the firm with a buy rating. ...

Group 1 - AI is significantly transforming daily life and is considered by industry leaders, such as Jensen Huang of Nvidia, as the next industrial revolution [1] - The focus of investment strategies includes high-yield income ETFs and growth stocks, particularly in the sports, real estate, and technology sectors [1]