MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Coursera, Inc. (NYSE: COUR) today announced it will release its financial results for the fourth quarter and full year ended December 31, 2023 after the U.S. stock market closes on Thursday, February 1, 2024. The company will issue the results via a press release with accompanying consolidated financial information before holding a conference call broadcast at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Conference Call Details A live, audio-only webcast of the ...

| --- | --- | --- | |----------------------------------|---------------------------------|------------------------| | | Three Months Ended \n2023 | September 30, \n2022 | | Number of Degrees Students | 20,432 | 17,723 | Net Retention Rate for Paid Enterprise Customers Our Net Retention Rate for Paid Enterprise Customers decreased to 99% as of September 30, 2023 from 111% as of September 30, 2022, mainly due to lower renewals and expansion in our Coursera for Business vertical. Our Net Retention Rate for Pai ...

Non-GAAP Financial Measures This presentation contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this presentationthat are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: "accelerate," "anticipate, "believe," "can," "continue," "could," "demand," "design", "estimate," "expand," "expect," "intend," "may," "might," "mission," "need", "ob ...

Financial Data and Key Metrics Changes - For Q3 2023, total revenue was $165.5 million, representing a 21% increase year-over-year, driven by double-digit growth across all segments, particularly in the consumer segment [56][90] - Gross profit was $84.9 million with a gross margin of 51%, down 14 percentage points from the prior year [35] - Free cash flow increased to $15.6 million from $1.3 million a year ago, with unrestricted cash and equivalents totaling approximately $721 million and no debt [36] Business Line Data and Key Metrics Changes - Consumer revenue reached $99 million, up 27% year-over-year, supported by strong demand for entry-level professional certificates [87] - Enterprise revenue was $54.9 million, a 14% increase from the previous year, with a net retention rate of 99% [88] - Degrees segment revenue grew to $11.7 million, up 13% year-over-year, with student enrollments increasing by 15% [89] Market Data and Key Metrics Changes - The global learner base expanded by 6.5 million new registered learners, totaling 136 million by the end of September, with double-digit growth across all regions [24] - The number of Paid Enterprise Customers increased to over 1,300, reflecting a 21% year-over-year growth [46] Company Strategy and Development Direction - The company is focused on digital transformation, skills development, and the transformation of higher education, emphasizing the need for collaboration between academic institutions, employers, and government [7][16][17] - The strategy includes sourcing and launching new degree programs tailored for working adults, enhancing localized learner experiences, and leveraging AI for content translation [30][47][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for education driven by rapid changes in technology and the labor market, particularly due to generative AI [14][15] - The company anticipates mid-single-digit growth in the Degrees segment for Q4 and expects to be EBITDA positive for the full year 2024 [63][66] Other Important Information - The company has made significant progress in its share repurchase program, buying back approximately 300,000 shares at an average price of $12.67 per share [86] - The company is actively pursuing credit recommendations for its professional certificates, enhancing their value and recognition [50][51] Q&A Session Summary Question: Thoughts on Consumer revenue growth resiliency - Management noted strong performance in the Consumer segment, with no anticipated slowdown despite potential job market fluctuations [98][100] Question: Feedback on course translation quality - Management reported positive feedback on translation quality, with ongoing improvements and a human-in-the-loop process for quality assurance [101][128] Question: Infrastructure to support growth - Management highlighted a remote-first culture that allows for a diverse talent pool, ensuring the company can meet growth demands [116][140] Question: Net retention rate in Enterprise segment - Management acknowledged a slight improvement in net retention rates but emphasized the need for further growth [120] Question: Professional certificates partner engagement - Management indicated increasing interest from industry partners in creating branded professional certificates, facilitated by advancements in generative AI [124][125]

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Financial Data and Key Metrics Changes - The company reported total revenue of $153.7 million for Q2 2023, representing a 23% increase year-over-year [26] - Gross profit was $81.9 million, with a gross margin of 53%, down 11 percentage points from the prior year [27] - Operating expenses decreased to 58% of revenue, down 22 points from 80% in the prior year [53] - The net loss was approximately $300,000, or 0.2% of revenue, while adjusted EBITDA was a loss of $2.9 million, or 1.9% of revenue [28] Business Line Data and Key Metrics Changes - Consumer revenue reached $87 million, up 25% from the prior year, driven by strong demand for entry-level Professional Certificates [30] - Enterprise revenue was $54.2 million, up 24% year-over-year, with a gross profit margin of 71% [58] - Degrees revenue was $12.5 million, reflecting a 10% increase from the previous year, with a total of 19,068 degree students, marking a 9% growth [59] Market Data and Key Metrics Changes - The global learner base grew to 129 million by the end of June, with 5.7 million new registered learners added in Q2 [13] - The number of paid enterprise customers increased to 1,291, up 35% from a year ago, with a net retention rate of 97% [32] Company Strategy and Development Direction - The company is focusing on broadening its catalog of entry-level Professional Certificates and launching new degree programs tailored for working adults [49] - There is an emphasis on partnerships with universities and industry to enhance the relevance and accessibility of education [19][45] - The company aims to leverage AI technologies to improve learning experiences and operational efficiency [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macro environment due to the diversified platform [8] - The company raised its full-year revenue outlook to a range of $617 million to $623 million, reflecting an 18% growth at the midpoint [60] - Management anticipates being EBITDA breakeven in Q4 2023 and EBITDA positive for the full year 2024 [62] Other Important Information - The company repurchased 4.5 million shares at an average price of $12.06 per share, totaling $54.5 million [55] - The company is actively exploring M&A opportunities, focusing on assets that enhance its product portfolio rather than simply adding revenue [70] Q&A Session Summary Question: Strength in Consumer Segment - Management noted that growth in the Consumer segment is driven by new Professional Certificates and increased demand for existing content, with effective paid marketing contributing positively [40][41] Question: M&A Philosophy - The company is looking for strategic assets that complement its platform, focusing on talent acquisition rather than just revenue growth [69][70] Question: Enterprise Segment Dynamics - Management highlighted that while there are cyclical pressures in the Enterprise segment, particularly in Coursera for Business, there is potential for growth in campus and government verticals [74][80] Question: Net Retention Rate Factors - The decline in net retention rate is attributed to various factors, including gross logo churn and pricing pressure, with expectations for improvement in the future [118]

Revenue and Growth - Total revenue for the three months ended March 31, 2023, was $147,642,000, representing a 23% increase from $120,433,000 in the same period of 2022[54] - Enterprise segment revenue increased by 34% to $52,173,000 compared to $39,046,000 in the prior year[54] - Total registered learners increased to 123.7 million in 2023, up from 101.7 million in 2022, representing a year-over-year growth of 22%[67] Financial Performance - The net loss for the three months ended March 31, 2023, was $32.4 million, compared to a net loss of $38.3 million in the same period of 2022, showing a reduction in losses[76] - Adjusted EBITDA for the three months ended March 31, 2023, was $(7.5) million, an improvement from $(10.5) million in the same period of 2022[76] - The company experienced a net loss margin of (22)% for the three months ended March 31, 2023, an improvement from (32)% in the same period of 2022[76] Operating Expenses - Total operating expenses for the three months ended March 31, 2023, were $116,545,000, a slight increase of 2% from $114,800,000 in the same period of 2022[56] - The company recognized restructuring charges of $5,659,000 during the three months ended March 31, 2023, primarily related to personnel expenses[56] - The company incurred stock-based compensation expense of $30.3 million for the three months ended March 31, 2023, compared to $22.0 million in the same period of 2022[76] Cash Flow and Investments - Free Cash Flow for the period is calculated as net cash provided by operating activities minus capital expenditures, indicating liquidity for strategic opportunities[45] - For the three months ended March 31, 2023, net cash used in investing activities was $50.5 million, a decrease from $185.1 million in the same period of 2022, indicating improved cash management[65] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $53.5 million for the three months ended March 31, 2023, compared to a decrease of $219.3 million in the same period of 2022[65] Customer Metrics - Net Retention Rate for Paid Enterprise Customers decreased to 104% as of March 31, 2023, down from 109% as of March 31, 2022[40] - Approximately 90% of total Enterprise segment revenue was generated from Paid Enterprise Customers for the three months ended March 31, 2023[39] - The net retention rate for paid enterprise customers was not specified but is monitored as a key metric for financial performance[70] Segment Performance - Consumer segment gross profit was $44,617,000 with a gross margin of 54%, down from 71% in the previous year[42] - Segment gross profit is monitored to evaluate financial performance, with content costs being a significant factor affecting profitability[73] - The company is focused on segment performance, with shifts in mix between Consumer, Enterprise, and Degrees segments expected to drive overall financial performance[73] Shareholder Actions - On April 26, 2023, the Board of Directors approved a share repurchase program with authorization to purchase up to $95 million of common stock[62]

Financial Data and Key Metrics Changes - In Q1 2023, the company reported revenues of $148 million, representing a 23% increase year-over-year [6][62] - Gross profit was $79.6 million, with a gross margin of 54%, down 12 points from the prior year [42] - The net loss for the quarter was $5.2 million, or 3.5% of revenue, with adjusted EBITDA showing a loss of $7.5 million, or 5.1% of revenue [42][122] Business Line Data and Key Metrics Changes - Consumer revenue reached $82 million, up 20% year-over-year, driven by strong performance in entry-level professional certificates [99] - Enterprise revenue was $52.2 million, up 34% from the previous year, with a total of 1,253 paid enterprise customers, a 37% increase [120] - Degrees segment revenue was $13.4 million, reflecting a 1% increase, with total degree students growing 10% to 18,095 [101] Market Data and Key Metrics Changes - The global learner base grew to 124 million, adding 5.5 million new registered learners in Q1 [14] - The company is expanding partnerships with industry leaders in various fields, enhancing its catalog of branded credentials [11] Company Strategy and Development Direction - The company aims to leverage AI and digital transformation to enhance learning experiences and improve access to education [7][21] - There is a focus on expanding the catalog of entry-level professional certificates and degree programs tailored for working adults [59][60] - The company is pursuing partnerships with universities and industry leaders to create job-relevant credentials [25][47] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is challenging, with companies being cautious in their spending [72][80] - There is optimism about the long-term potential of online learning and the necessity for companies to train their workforce [74][92] - The company expects to achieve adjusted EBITDA positivity in 2024, with a focus on strategic investments for growth [103] Other Important Information - The company announced a share repurchase program of up to $95 million, reflecting confidence in the business [67] - The upcoming learner outcome report will provide insights into the impact of online learning on career advancement [125] Q&A Session Summary Question: What is driving the strength in enterprise despite budget cuts? - Management acknowledged that while there is price sensitivity, companies recognize the need for training in a changing job landscape [72][74] Question: How does the enterprise pipeline compare to three months ago? - Management indicated that there has been no deterioration in the pipeline, but they are being conservative due to the uncertain environment [78][80] Question: Are there any impacts from the Department of Education's guidance on degree programs? - Management stated that they have not seen significant impacts on conversations with university partners regarding new degree programs [90][92] Question: What are the growth assumptions for each segment in the full-year guidance? - Management emphasized that the guidance reflects caution in an uncertain macro environment, not a lack of confidence in business performance [115][116]

User Base and Growth - As of December 31, 2022, Coursera had approximately 118 million registered learners on its platform, reflecting a significant user base for its online learning offerings [304]. - As of December 31, 2022, total registered learners reached 118.1 million, representing a year-over-year growth of 22% [441]. - The number of registered learners increased, with 18,103 degrees students in Q4 2022, reflecting a year-over-year growth of 12% [420]. - The number of paid enterprise customers increased to 1,149, reflecting a year-over-year growth of 43% [444]. Financial Performance - For the fiscal year ended December 31, 2022, Coursera reported a net loss of $175.4 million, with a net loss margin of 33% compared to 35% in 2021 [306]. - Revenue for the year ended December 31, 2022, was $523.8 million, an increase of 26.1% from $415.3 million in 2021 [356]. - Gross profit for 2022 was $331.5 million, representing a gross margin of approximately 63.3% [356]. - The net loss for 2022 was $33 million, or 6.3% of revenue, compared to a net loss of $35 million, or 8.4% of revenue in 2021 [358]. - Total revenue for the year ended December 31, 2022, was $523.8 million, a 26% increase compared to $415.3 million in 2021 [448]. - Consumer revenue rose by $49.4 million, or 20%, to $295.6 million, with new learners contributing $96.7 million to this segment [383]. - Total Degrees revenue decreased by $1.8 million, or 4%, to $46.9 million, primarily due to lower revenue per student [384]. Operating Expenses and Cost Management - Operating expenses totaled $508.9 million in 2022, up from $392.5 million in 2021, with significant increases in research and development, sales and marketing, and general and administrative expenses [356]. - Restructuring charges recognized within operating expenses amounted to $10.1 million, primarily related to personnel expenses, with cash payments of $4.8 million made in 2022 [327]. - The company capitalized $1.1 million in content assets during the year ended December 31, 2022, with total intangible assets amounting to $15.4 million [316]. - Coursera's operating lease costs for the year ended December 31, 2022, were $5.9 million, a decrease from $6.7 million in 2021 [320]. Tax and Income - The effective income tax rate for the year ended December 31, 2022, was -2.8%, reflecting various adjustments including changes in valuation allowance [325]. - The company recognized an income tax expense of $4.7 million for the year ended December 31, 2022, compared to $2.1 million in 2021, reflecting a 122% increase [394]. - The company recognized unrecognized tax benefits of $16.4 million as of December 31, 2022, with $1.6 million potentially impacting the effective tax rate if recognized [373]. Future Outlook and Strategy - The company expects future revenue growth to be lower than in prior years due to macroeconomic headwinds and tight labor markets [336]. - The company plans to continue investing in international expansion, targeting regions with large, underserved adult learning populations [332]. - The company aims to convert free learners to paid learners through targeted marketing efforts, which is crucial for revenue growth [315]. - The company plans to defend against a class action complaint filed in January 2023, which seeks injunctive relief and unspecified monetary damages [423]. Cash Flow and Investments - For the year ended December 31, 2022, net cash used in operating activities was $38.1 million, primarily due to a net loss of $175.4 million, adjusted for non-cash charges of $135.6 million [411]. - For the year ended December 31, 2022, net cash used in investing activities was $234.0 million, mainly from purchases of marketable securities and capital expenditures [414]. - For the year ended December 31, 2022, net cash provided by financing activities was $12.2 million, primarily from proceeds of common stock issuance from employee stock option exercises [416]. Stock and Compensation - Stock-based compensation expense totaled $110.8 million for the year ended December 31, 2022, up from $91.2 million in 2021 [437]. - The aggregate intrinsic value of stock options exercised in 2022 was $57,311, with a weighted-average grant date fair value of options granted at $7.26 [433]. - The total unrecognized compensation cost related to unvested RSUs was $286.6 million as of December 31, 2022 [438]. - The aggregate fair value of RSUs that vested in 2022 was $29.966 million, compared to $18.767 million in 2021 [435]. Revenue Segmentation - Total Enterprise revenue increased by $60.9 million, or 51%, with $29.7 million from new customers and $31.2 million from existing customers [360]. - Enterprise segment revenue grew to $181,284 thousand in 2022, up from $120,429 thousand in 2021, marking a 50% increase [474]. - Consumer segment revenue increased to $295,583 thousand in 2022 from $246,187 thousand in 2021, a growth of 20% [474]. - Consumer segment gross margin increased to 73% in 2022, up from 66% in 2021, due to a higher proportion of revenue from subscription sales [450].

| --- | --- | |------------------------------------------------|-------| | | | | | | | Investor Presentation Q4 2022 February 9, 2023 | | This presentation contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this press release that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: "accelerate," "anticipate, "believe," "can," "continue ...