Financial Performance - Coursera reported first quarter 2025 revenue of $179.3 million, a 6% increase from $169.1 million in Q1 2024[4] - The company achieved a net loss of $7.8 million, significantly improved from a net loss of $21.3 million in the same quarter last year, representing a 63% reduction[4] - Free Cash Flow for the quarter was $25.3 million, up 40% from $18.1 million in Q1 2024[4] - Adjusted EBITDA for the quarter was $18.7 million, a 125% increase from $8.3 million in Q1 2024[4] - Revenue for Q1 2025 was $179.3 million, a 6.5% increase from $169.1 million in Q1 2024[27] - Gross profit for Q1 2025 was $97.9 million, compared to $89.5 million in Q1 2024, reflecting an increase of 9.4%[27] - Non-GAAP net income for Q1 2025 was $19.7 million, up from $11.9 million in Q1 2024[32] - Adjusted EBITDA for Q1 2025 was $18.7 million, compared to $8.3 million in Q1 2024, indicating a strong improvement[32] - The company reported a net loss margin of (4.4)% for Q1 2025, improved from (12.6)% in Q1 2024[32] Learner Growth - Coursera welcomed a record 7.1 million new registered learners in Q1 2025, an increase from 6.6 million in Q1 2024[8] - The total number of registered learners reached 175.3 million, an 18% increase year-over-year[8] Future Outlook - The company updated its full year 2025 revenue expectations to a midpoint of $725 million following a solid first quarter performance[5] - The company plans to achieve an annual Adjusted EBITDA margin improvement of 100 basis points to 7.0% for the full year 2025[15] Customer Metrics - The net retention rate for paid enterprise customers decreased to 91% from 94% year-over-year[8] Asset Growth - Total current assets as of March 31, 2025, were $854.0 million, up from $830.7 million at the end of 2024[29] - Total assets increased to $951.2 million as of March 31, 2025, compared to $930.3 million at the end of 2024[29] - Total stockholders' equity rose to $610.5 million as of March 31, 2025, from $597.4 million at the end of 2024[29]

Core Viewpoint - Coursera (COUR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Business Improvement Indicators - The upgrade for Coursera signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2025, Coursera is projected to earn $0.36 per share, representing a 5.9% increase from the previous year, with a 13% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last 5 years by engaging in international markets [1][2] - Coursera (NYSE: COUR) is highlighted as an interesting investment opportunity, particularly due to its IPO during the COVID-19 pandemic when e-learning gained significant traction [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to generate non-correlated and outsized returns in the current economic environment [3] Group 2 - The Value Lab offers members real-time portfolio updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Learner and Customer Growth - As of December 31, 2024, Coursera had approximately 168 million registered learners on its platform[324]. - The number of total registered learners increased to 168.2 million in 2024, reflecting a year-over-year growth of 19% from 141.9 million in 2023[395]. - The number of Paid Enterprise Customers rose to 1,612 in 2024, marking an 18% increase from 1,369 in 2023[400]. Revenue Performance - Total revenue for the year ended December 31, 2024 was $694.7 million, an increase of $58.9 million, or 9%, from $635.8 million in 2023[360]. - Consumer revenue increased by $32.9 million, or 9%, to $398.1 million, with new learners contributing $107.5 million[361]. - Enterprise revenue also rose by $19.3 million, or 9%, to $238.9 million, driven by new customer acquisitions[362]. - Degrees revenue increased by $6.7 million, or 13%, to $57.7 million, primarily due to an increase in the number of Degrees students[363]. - Total revenue for the year ended December 31, 2024, was $694.674 million, representing an increase of 9.3% from $635.764 million in 2023[454]. Cost and Expenses - Cost of revenue for 2024 was $323.3 million, a 6% increase from $306.0 million in 2023, with a gross profit of $371.4 million and a gross margin of 53%[364]. - Total operating expenses for 2024 were $484.6 million, a slight increase of 2% from $475.4 million in 2023[368]. - Research and development expenses decreased by 18% to $132.0 million, primarily due to lower personnel-related costs[369]. - Operating expenses increased slightly to $484.632 million in 2024 from $475.367 million in 2023, with research and development expenses at $132.048 million[454]. Profitability and Loss - The company reported a net loss of $79,530,000 for 2024, an improvement from a net loss of $116,554,000 in 2023[410]. - Adjusted EBITDA for 2024 was $41,507,000, compared to a loss of $10,000,000 in 2023, indicating a positive shift in profitability[413]. - Net loss for the year ended December 31, 2024, was $79,530,000, a decrease from the net loss of $116,554,000 in 2023 and $175,357,000 in 2022[464]. Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was $95.4 million, a significant increase of $65.7 million compared to $29.6 million in 2023[387]. - Cash and cash equivalents as of December 31, 2024, were $726.125 million, up from $656.321 million in 2023[452]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $728,404,000, up from $658,086,000 in 2023[464]. Strategic Decisions and Future Outlook - The company anticipates a revenue decline in its Degrees segment for 2025 due to a strategic decision to be more selective in pursuing Degrees partnerships[330]. - Starting in 2025, Coursera will compensate educator partners based on learner engagement rather than completion rates, aiming to improve learner outcomes[337]. - Capital expenditures are expected to increase in 2025 relative to 2024, focusing on investments in content assets[384]. - The company plans to continue investing in marketing efforts to support international expansion and grow its customer and learner base[339]. Stock and Equity - The company completed a share repurchase program, purchasing 3,099,800 shares for $36.7 million during the year ended December 31, 2024[383]. - The balance of stockholders' equity as of December 31, 2024, was $597,420,000, a decrease from $616,194,000 in 2023[460]. - The company repurchased common stock worth $36,705,000 in 2024, compared to $58,453,000 in 2023[464]. Tax and Compliance - Income tax expense for 2024 was $1.0 million, a significant decrease of 81% from $5.4 million in 2023, due to the release of a reserve for an uncertain tax position[375]. - The company is subject to income taxes in the United States and various foreign jurisdictions, requiring significant judgment in determining income tax expense[513]. Financial Reporting and Controls - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[434]. - The allowance for credit losses was not material for the years ended December 31, 2024, 2023, and 2022[476].

Group 1 - Gary Alexander has extensive experience in covering technology companies on Wall Street and working in Silicon Valley, which provides insights into current industry trends [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications, indicating his influence in the investment community [1] - His articles are syndicated to popular trading apps like Robinhood, suggesting a broad reach to retail investors [1]

Financial Highlights - Full year 2024 revenue reached $695 million, driven by complementary segments and shared advantages[6] - Adjusted EBITDA Margin expanded to 60% for the full year 2024[6] - The company generated $59 million of Free Cash Flow in the full year 2024[6] - Total revenue for Q4 2024 was $1792 million, a 6% year-over-year increase[8] - The company anticipates Q1 2025 revenue between $173 million and $177 million[61] Segment Performance (Q4 2024) - Consumer segment revenue was $1017 million, with a 54% segment margin[8] - Enterprise segment revenue was $623 million, with a 68% segment margin[8] - Degrees segment revenue was $152 million, with a 100% segment margin[8] User Base and Partnerships - The global learning platform serves 168 million registered learners[6] - The platform has partnerships with over 350 universities and industry partners[7] - Paid Enterprise Customers increased by 18% year-over-year in Q4 2024, reaching 1,612[24] Strategic Outlook - The company is reinventing the $2+ trillion higher education market amidst increasing demand for online learning[6] - The company anticipates positive overall top-line revenue growth for the full year 2025, driven by Consumer and Enterprise segments, but offset by a decline in Degrees[61] - The company is committed to annual Adjusted EBITDA Margin expansion, though at a more moderate pace than full year 2024[61]

Core Viewpoint - Coursera reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, marking a 100% earnings surprise [1] - The company also posted revenues of $179.18 million for the quarter, surpassing the Zacks Consensus Estimate by 1.46% [2] Financial Performance - Earnings per share (EPS) increased from $0.06 a year ago to $0.08 this quarter [1] - Revenues rose from $168.88 million in the same quarter last year to $179.18 million [2] - Coursera has surpassed consensus EPS estimates in all four of the last quarters [2] Market Performance - Coursera shares have increased approximately 12.7% since the beginning of the year, compared to a 2.7% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07, with expected revenues of $177.7 million [7] - For the current fiscal year, the consensus EPS estimate is $0.34 on revenues of $734.92 million [7] - The Technology Services industry, to which Coursera belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook [8]

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]