Revenue and Growth - Full year revenue reached $695 million, with a 9% increase from $635.8 million in the prior year[5] - Fourth quarter total revenue was $179.2 million, up 6% from $168.9 million a year ago[6] - Paid Enterprise Customers increased to 1,612, an 18% rise from the previous year, with enterprise revenue up 7% to $62.3 million[13] - First quarter 2025 revenue is projected to be in the range of $173 to $177 million, with Adjusted EBITDA expected between $8 to $12 million[23] - Q4 2024 revenue reached $179.18 million, a 6.7% increase from $168.88 million in Q4 2023[36] - Full year 2024 revenue totaled $694.67 million, up 9.3% from $635.76 million in 2023[36] Profitability - Gross profit for the full year was $371.4 million, representing 53% of revenue, compared to 52% in the prior year[6] - Gross profit for Q4 2024 was $95.51 million, compared to $89.33 million in Q4 2023, reflecting a gross margin improvement[36] - Non-GAAP net income for the full year was $55.6 million, or 8.0% of revenue, a significant increase from $1.8 million or 0.3% in the prior year[6] - Non-GAAP net income for Q4 2024 was $13.3 million, compared to $9.5 million in Q4 2023, reflecting a year-over-year increase of 40.5%[42] - Adjusted EBITDA for the full year was $41.5 million, or 6.0% of revenue, compared to a loss of $(10.0) million in the prior year[6] - Adjusted EBITDA for Q4 2024 was $9.5 million, up from $5.7 million in Q4 2023, indicating a margin increase from 3% to 5%[43] Cash Flow and Financial Position - Free Cash Flow for the full year was $59 million, a significant increase from $7.9 million in the prior year[5] - Cash and cash equivalents increased to $726.13 million as of December 31, 2024, up from $656.32 million a year earlier[38] - Free cash flow for 2024 was $95.36 million, a significant increase from $29.64 million in 2023[40] - Net cash provided by operating activities for the year ended December 31, 2024, was $95.4 million, a substantial increase from $29.6 million in 2023[43] Losses and Expenses - Net loss for Q4 2024 was $21.61 million, slightly higher than the $20.36 million loss in Q4 2023[36] - Adjusted EBITDA for the year was not explicitly stated, but the company reported a loss from operations of $113.22 million for 2024[36] - The company reported a net loss margin of 12% for Q4 2024, consistent with the margin reported in Q4 2023[43] - Stock-based compensation expense for the year ended December 31, 2024, totaled $108.1 million, down from $115.2 million in 2023[43] - The company incurred $6.8 million in restructuring-related charges during Q4 2024, with no such charges reported in Q4 2023[43] Future Outlook - The company plans to provide more detailed full year 2025 outlook in the coming months following the leadership transition[15] - The company anticipates continued investment in product development and market expansion to drive future growth[34] Learner Metrics - The number of registered learners reached 168 million, with an addition of six million new learners in the fourth quarter[13]

Analyst Background - The analyst has a background as a former poker player and mathematics teacher, with a focus on researching and valuing companies since 2016 [1] - The analyst has initiated coverage on Coursera (NYSE: COUR) over the last 4 months and shares a Free Cash Flow valuation perspective [1] Disclosure - The analyst holds a beneficial long position in Coursera through stock ownership, options, or other derivatives [1] - The article expresses the analyst's own opinions and is not influenced by compensation or business relationships with mentioned companies [1]

Coursera's Position in Online Education - Coursera has been recognized as a top provider of online courses with certificates, setting a new standard in the online education space through its collaboration with leading universities and global companies [1] - The platform offers flexible learning options for students at all stages of their education, from beginners to professionals, and provides interactive hands-on projects and comprehensive career resources [8][9] Data Science Courses - The DeepLearning AI Data Engineering Professional Certificate offers a comprehensive pathway into data engineering, covering the entire data engineering lifecycle in four courses, with a focus on hands-on learning through AWS labs and essential skills like data management and pipeline creation [2] - The Google Cloud Data Analytics Professional Certificate prepares learners for cloud data analytics careers with five beginner-friendly courses, focusing on data management, transformation, and visualization using Google Cloud tools [3] Business Courses - The Adobe Content Creator Professional Certificate equips learners with skills in digital content creation, including design fundamentals, social media strategy, multimedia creation, and generative AI, along with hands-on projects and a complimentary three-month trial of Adobe Express [4] - The Microsoft Program Management Professional Certificate spans seven courses, covering program management frameworks, strategic leadership, stakeholder and risk management, and effective communication, preparing learners for certifications like PgMP and MSP [5] Computer Science Courses - The Microsoft Front-End Developer Professional Certificate is a six-course program covering HTML, CSS, JavaScript, C, UI/UX design, Blazor, and web security, with hands-on projects and coding assistance from Microsoft Copilot [6] - The Microsoft Back-End Developer Professional Certificate offers an eight-course curriculum covering C, the NET framework, database management, ASPNET security, and Azure Cloud deployment, with hands-on projects and integration of Microsoft Copilot [7] Coursera's Global Impact - Coursera, founded in 2012, has a global reach, serving over 148 million learners and collaborating with more than 7,000 campuses, businesses, and governments worldwide, offering a diverse range of courses, certifications, and degree programs [10][11] - The platform has played a pivotal role in providing education to underprivileged communities, including refugees, and achieved B Corp certification in February 2021, reflecting its commitment to creating a positive societal impact [11][12]

Investment Thesis - Coursera (NYSE: COUR) is expected to accelerate its growth to mid-teens in the next two years, driven by a more robust demand environment [1] - The company is considered undervalued with long-term growth potential, aligning with a value investing approach focused on quality companies trading below intrinsic value [1] Analyst's Perspective - The analyst has a buy rating on Coursera, emphasizing its potential for growth and value creation [1] - The investment strategy involves holding quality companies for the long term to benefit from compounding earnings and shareholder returns [1]

Investment Strategy - The investment style is titled "Fundamental Options," combining fundamental analysis with options strategies [2] - Fundamental analysis is used to assess individual stocks and ETFs quantitatively and qualitatively [2] - Investment strategies include income-oriented (BDCs, Utilities), Growth At A Reasonable Price (Tech), Deep Value (Discounted Cash Flow), and Dividend Aristocrats [2] - Long-term stock investments are complemented by 20-25 options strategies for hedging, bullish substitutes, neutral trades, volatility trading, and earnings-related trades [2] Industry Focus - The online learning (eLearning) industry is favored due to secular tailwinds such as flexible schedules, reduced costs, and easier career development [1] Personal Engagement - The analyst has a beneficial long position in COUR through stock ownership, options, or other derivatives [3]

Financial Performance - For the three months ended September 30, 2024, Coursera generated a net loss of $13.7 million, compared to a net loss of $32.1 million for the same period in 2023, resulting in a net loss margin of 8% and 19% respectively [98]. - For the nine months ended September 30, 2024, Coursera's net loss was $57.9 million, down from $96.2 million in the same period of 2023, with a net loss margin of 11% compared to 21% [98]. - Net loss for the three months ended September 30, 2024, was $13,689 thousand, compared to a loss of $32,090 thousand for the same period in 2023 [175]. - Non-GAAP net income for the three months ended September 30, 2024, was $16,609 thousand, while it was a loss of $2,147 thousand in the same period of 2023 [175]. - Adjusted EBITDA for the three months ended September 30, 2024, was $13,338 thousand, compared to a loss of $5,306 thousand in the same period of 2023 [179]. Revenue Growth - Revenue for the three months ended September 30, 2024, was $176.1 million, an increase from $165.5 million in the same period of 2023, representing a growth of approximately 1% [113]. - Revenue for the three months ended September 30, 2024, was $176.1 million, an increase of $10.5 million, or 6%, compared to $165.5 million for the same period in 2023 [117]. - Revenue for the nine months ended September 30, 2024, was $515.5 million, an increase of $48.6 million, or 10%, compared to $466.9 million for the same period in 2023 [121]. - Consumer revenue for the three months ended September 30, 2024, increased by $3.3 million, or 3%, totaling $102.3 million, with new learners contributing $41.2 million [118]. - Enterprise revenue for the three months ended September 30, 2024, increased by $5.5 million, or 10%, totaling $60.4 million, driven by new customer acquisitions [119]. - Degrees revenue for the three months ended September 30, 2024, increased by $1.7 million, or 15%, totaling $13.4 million, primarily due to an increase in the number of Degrees students [120]. Operating Expenses - The total operating expenses for the three months ended September 30, 2024, were $118.0 million, a decrease from $122.9 million in the same period of 2023 [113]. - Research and development expenses for the three months ended September 30, 2024, were $31.6 million, down 16% from $37.6 million in the prior year, primarily due to lower personnel-related expenses [132]. - General and administrative expenses for the three months ended September 30, 2024, were $27.4 million, an increase of 8% from $25.4 million in the prior year, mainly due to legal matters and personnel-related expenses [137]. - Sales and marketing expenses for the nine months ended September 30, 2024, increased to $174.7 million, up 6% from $164.7 million in the same period of 2023, driven by higher marketing and advertising expenses [135]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $76.1 million, significantly up from $18.1 million in the same period of 2023, reflecting improved operating leverage [150]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was $41.7 million, a decrease from $240.7 million in the same period of 2023, primarily due to capitalized software costs and content asset purchases [153]. - As of September 30, 2024, the company had cash and cash equivalents totaling $719.4 million, serving as its principal source of liquidity [143]. - Total cash used in financing activities for the nine months ended September 30, 2024, was $54.3 million, down from $72.7 million in the same period of 2023 [155]. Learner Growth - As of September 30, 2024, Coursera had approximately 162 million registered learners on its platform [98]. - Total registered learners increased to 162.1 million, representing a year-over-year growth of 19% from 135.9 million [159]. - New registered learners for the nine months ended September 30, 2024, reached 20.2 million, up from 17.7 million in the same period of 2023, indicating a growth of 14.1% [159]. - The number of Degrees students rose to 26.4 thousand, reflecting a year-over-year growth of 29% from 20.4 thousand [162]. - Paid Enterprise Customers increased to 1,564, a 19% year-over-year growth from 1,315 [164]. Cost Management and Restructuring - Coursera plans to implement a restructuring initiative expected to generate at least $30 million in annualized structural cost savings, with a global workforce reduction of approximately 10% [101]. - The company recognized incremental operating expenses of $2.1 million related to the restructuring of its Enterprise segment sales force during the first quarter of 2024 [100]. - The company incurred significant and non-recurring legal matters amounting to $3,342 thousand in the three months ended September 30, 2024 [179]. Stock-Based Compensation - The company reported stock-based compensation expenses of $25.3 million for the three months ended September 30, 2024, compared to $27.9 million for the same period in 2023 [98]. - Total stock-based compensation expense for the nine months ended September 30, 2024, was $83.1 million, compared to $81.9 million for the same period in 2023 [114]. - Stock-based compensation expense for the three months ended September 30, 2024, was $25,267 thousand, compared to $27,853 thousand in the same period of 2023 [179]. Interest and Tax Expenses - Interest income for the three months ended September 30, 2024, was $9.4 million, a 6% increase from $8.9 million in the same period of 2023, attributed to higher interest rates [141]. - Income tax expense for the three months ended September 30, 2024, was $1.5 million, a 45% increase from $1.0 million in the same period of 2023, primarily related to foreign sourced income [142]. Market Sensitivity - A hypothetical 100 basis point increase in interest rates would have resulted in a $0.6 million decline in the fair value of the investment portfolio as of September 30, 2024 [189]. - A 10% increase or decrease in current exchange rates would have impacted the loss before income taxes by $0.1 million and $0.8 million for the three months ended September 30, 2024, and 2023, respectively [193].

分组1 - Coursera reported third-quarter earnings, achieving $176 million in revenues, which represents a 6.3% increase compared to the same quarter last year [1] - Despite beating both top and bottom line expectations, investor sentiment was not positive regarding the results [1]

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]