Often, the downside of a sharp post-earnings price surge is the temptation for investors to sell out of their positions immediately to book quick profits. It's very likely that this dynamic also contributed to Coursera's Monday swoon. In Coursera's case, there was much to like about its second-quarter results, particularly that explosive earnings beat and its 11% year-over-year increase in sales. Long-term investors should try their best not to be spooked by dramatic share price movements in their favored t ...

Online learning provider Coursera Inc (NYSE:COUR) is 55% higher at $11.48 at last glance, heading for its best day ever after reporting second-quarter revenue that beat expectations. While earnings per share fell below the consensus estimate, the stock is getting a boost from strong demand for artificial intelligence (AI) learning courses, with more than 2 million enrollments in its generative AI catalog of programs. It's also worth noting that short interest added 28.9% over the last two reporting periods, ...

Coursera (COUR 45.88%) stock charged out of the gate Friday morning, surging 51% through 9:40 a.m. ET after announcing beats on both top and bottom lines. Heading into Coursera's second-quarter report last night, analysts forecast the online education company would earn a $0.01 per share adjusted profit on sales of $164.4 million. Coursera beat both predictions, however, reporting adjusted profits of $0.09 per share and sales of $170.3 million. Coursera's big earnings beat Not all the news was good. Althoug ...

Financial Data and Key Metrics - Total revenue for Q2 2024 was $170 3 million, up 11% YoY [38] - Gross profit was $92 3 million with a 54% gross margin, up from 53% in the prior year [39] - Net income was $13 8 million, or 8 1% of revenue, and Adjusted EBITDA was $10 4 million, or 6 1% of revenue [39] - Free cash flow was approximately $17 million, inclusive of $2 million in content asset purchases [16] - The company repurchased 2 7 million shares for approximately $31 million, ending the quarter with $709 million in unrestricted cash and cash equivalents [17] Business Segment Performance Consumer Segment - Consumer revenue was $97 3 million, up 12% YoY, driven by demand for entry-level Professional Certificates and generative AI courses [18] - Segment gross profit was $52 4 million, or 54% of Consumer revenue, up from 52% in the prior year [18] - Approximately 7 million new registered learners were added this quarter, with a higher mix from regions outside North America [18] Enterprise Segment - Enterprise revenue was $58 7 million, up 8% YoY, with growth across business, campus, and government verticals [42] - Segment gross margin was $39 9 million, or 68% of Enterprise revenue, compared to 71% a year ago [42] - The total number of Paid Enterprise Customers increased to 1,511, up 17% YoY, with a Net Retention Rate of 93% [42] Degrees Segment - Degrees revenue was $14 3 million, up 14% YoY, with the total number of Degrees Students growing 19% to 22,600 [19] - Degrees segment gross margin was 100% of revenue, as there are no content costs attributable to this segment [19] Market and Strategic Direction - The company is focusing on broadening its catalog of entry-level Professional Certificates, growing the Enterprise segment, and scaling Degree programs with a focus on flexibility and affordability [13] - Generative AI is a key focus, with new features like Coursera Coach, Course Builder, and GenAI Academy for Teams being introduced [8][12][35] - The company is leveraging generative AI to enhance content production, academic integrity, and personalized learning experiences [1][11][34] Management Commentary on Operating Environment and Future Outlook - The company reaffirmed its full-year 2024 outlook, expecting revenue in the range of $695 million to $705 million and Adjusted EBITDA in the range of $24 million to $28 million [43] - Management highlighted the importance of generative AI in transforming education and skilling, emphasizing the need for equitable access to these technologies globally [21][32] - The company is optimistic about the role of generative AI in creating value and unlocking productivity gains across various job roles [26][52] Other Important Information - The company has introduced a price floor of $10 per share for future employee grants to address dilution concerns [41] - Coursera has partnered with Microsoft and Women in Cloud to launch the Universal Access to Microsoft Skills Scholarship, providing 5,000 recipients access to Microsoft Specializations and Professional Certificates [45] Q&A Session Summary Question: Revenue Deceleration in Q3 and Re-acceleration in Q4 - The deceleration in Q3 is due to a tough comparison with a blockbuster cybersecurity release in Q3 2023, while the re-acceleration in Q4 is expected due to new content launches [64][47] Question: Expense Growth in the Back Half of the Year - Expense growth is driven by investments in content, R&D, and marketing, with a focus on optimizing for growth opportunities [65][49] Question: Budgetary Environment for Enterprise L&D - The corporate learning market is showing signs of stabilization, particularly in Europe and North America, with potential for growth as generative AI adoption increases [51][54] Question: Free-to-Pay Learner Conversion in Consumer Segment - The company is seeing stabilization in conversion rates, with generative AI and job-specific credentials expected to drive further improvement [27][28] Question: New Content Production Arrangements - The company is investing in generative AI tools to produce partner-branded content, leading to more favorable revenue share economics and exclusivity [76][78][80] Question: Degree Segment Growth - The company is focusing on pathway degrees, which offer flexibility and affordability, and expects continued growth in this segment [82][84][93] Question: Large Cash Balance and Capital Allocation - The company is holding cash for strategic opportunities, including potential M&A, and has allocated $20 million for content production investments [91][103] Question: Enterprise NRR and Government Segment Challenges - NRR has been impacted by transitory budgets in the government segment, but the company is working to identify and focus on more stable use cases [108][109]

Core Insights - Coursera reported a revenue of $170.34 million for Q2 2024, marking a year-over-year increase of 10.8% and an EPS of $0.09 compared to $0.00 a year ago [2][6] Financial Performance Metrics - Total registered learners reached 155 million, slightly above the average estimate of 152.85 million [4] - The number of degree students was reported at 22,600, compared to the estimated 22,668 [4] - Paid enterprise customers totaled 1,511, slightly exceeding the average estimate of 1,508 [4] - Consumer revenues were $97.30 million, surpassing the estimated $92.64 million, reflecting an 11.8% year-over-year increase [4] - Degree revenues amounted to $14.30 million, exceeding the estimate of $13.66 million, with a year-over-year change of 14.4% [4] - Enterprise revenues were reported at $58.70 million, slightly above the average estimate of $58.34 million, representing an 8.3% year-over-year change [4] Stock Performance - Coursera's shares have returned +11.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [5] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [5]

Net Income (Loss) Disclaimer In addition to financial information presented in accordance with GAAP, this presentation includes non-GAAP gross profit, non-GAAP net income (loss), non-GAAP net income (loss) per share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, each of which is a non-GAAP financial measure. These are key measures used by our management to help us analyze our financial results, establish budgets and operational goals for managing our business, evaluate our performance, and ma ...

Coursera (COUR) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 800%. 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 $0.07, delivering a surprise of 600%. Over the last four quarters, th ...

coursera • Surpassed more than 2 million enrollments in generative AI catalog created by trusted brands • Launched a record number of entry-level Professional Certificates from leading industry partners "We are excited to surpass more than two million enrollments in our generative AI catalog of courses, credentials, and hands-on projects created by the world's top technology companies and research universities," said Coursera CEO Jeff Maggioncalda. "Individuals and institutions are looking to harness the po ...

Group 1: Taiwan Semiconductor (TSM) - Taiwan Semiconductor is crucial to the global chip market, significantly impacting the tech sector and the world economy, especially highlighted during the pandemic's disruption of the $891 billion semiconductor industry [1] - Despite geopolitical risks, TSM is considered an underrated tech stock, currently off 10% from its high, with a strong second-quarter performance overshadowed by these concerns [2] - The potential for geopolitical tensions, such as a Chinese invasion of Taiwan, remains a low-probability event, yet it causes anxiety among investors in the semiconductor sector [6][7] Group 2: Coursera (COUR) - Coursera, valued at $1.1 billion, is positioned as a strong AI play insulated from geopolitical risks, leveraging generative AI for personalized learning experiences [11][4] - The company is seen as a great value buy, especially as its shares are close to all-time lows, appealing to investors interested in the AI-driven education technology revolution [3] Group 3: Netflix (NFLX) - Netflix maintains a dominant position in the streaming market, showcasing immense pricing power and a strong content strategy that sets it apart from competitors [14] - The company reported a solid second quarter, adding 8 million new subscribers, indicating continued growth despite its size, and is investing in AI for personalization and content creation [18]

Edtech is a highly competitive industry with several players aiming for market share gains. While Coursera's size and early mover advantage should help the company, the competition remains intense. While the company has made good use of AI so far, AI also presents a risk/competitive threat. Some learners have already started using AI platforms like ChatGPT to enhance their knowledge of particular topics and companies like Chegg have seen a significant negative impact. I don't see an immediate risk to Course ...