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 ...

Financial Data and Key Metrics Changes - The adjusted EBITDA loss as a percentage of revenue improved to 7.1%, a 150 basis point improvement over the prior year [31] - Gross profit was $88.9 million, up 24% from a year ago, with a gross margin of 63%, consistent with the prior year [80] - The net loss for the quarter was $6.5 million, or 4.6% of revenue, while adjusted EBITDA was a loss of $5.8 million, or 4.1% of revenue [54] Business Line Data and Key Metrics Changes - Consumer revenue increased to $79.8 million, up 21% from the prior year, with a segment gross profit of $58.2 million, or 73% of consumer revenue, compared to 69% a year ago [84] - Degrees revenue decreased to $11.9 million, down 11% from a year ago due to lower student enrollments, particularly in U.S. master's degree programs [85] - The number of paid enterprise customers grew to over 1,000, indicating strong demand across business, campus, and government sectors [24] Market Data and Key Metrics Changes - Learner growth was broad-based, with double-digit percentage increases in all regions, contributing to a total of 118 million registered learners by the end of December [47] - The company anticipates a return to growth in the Degrees segment of approximately 10% in 2023, with modest declines at the start of the year [99] Company Strategy and Development Direction - The company is focused on expanding its portfolio of degree programs tailored to meet the needs of working adults, emphasizing flexibility, affordability, and stronger pathways from open content and industry microcredentials into degrees [78] - There is a strategic emphasis on leveraging generative AI to enhance the learning experience and improve customer offerings [17][51] - The company aims to grow its Enterprise segment across business, government, and campus customers, addressing their needs in a changing environment [78] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are exercising caution due to macroeconomic uncertainty, with students demanding a more affordable and relevant education system [15] - The company believes that the demand for reskilling will continue to grow, particularly as governments announce initiatives for upskilling [5][64] - Management expressed confidence in the structural trends driving the business, looking forward to providing an updated view of long-term strategy and financial targets [125] Other Important Information - The company ended the year with approximately $780 million in unrestricted cash, cash equivalents, and marketable securities, with no debt [32] - Total operating expenses for Q4 were $99.7 million, or 70% of revenue, down from 83% in the prior year [54] Q&A Session All Questions and Answers Question: What is the outlook for the consumer segment given the current economic conditions? - Management indicated that learner demand for branded industry credentials is expected to continue, with an initial outlook anticipating more than 10% growth [99] Question: How is the company addressing the competitive landscape in the government sector? - Management noted that while competition is increasing, Coursera's distinctive attributes, such as quality and brand recognition, resonate well with governments [65] Question: Can you elaborate on the impact of the new partnership with a key content provider? - Management explained that the partnership will involve an incremental investment that may slow the path to EBITDA breakeven but is expected to drive significant growth over the long term [87][88]

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.00001 par value COUR The New York Stock Exchange Emerging growth company ☒ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Coursera, Inc. (NYSE:COUR) Q3 2022 Results Conference Call October 26, 2022 5:00 PM ET Company Participants Cam Carey - Head, IR Jeff Maggioncalda - CEO and President Ken Hahn - SVP and CFO Conference Call Participants Brian Peterson - Raymond James Stephen Sheldon - William Blair Tom Singlehurst - Citi Ryan MacDonald - Needham Matt Saltzman - Morgan Stanley Brett Knoblauch - Cantor Operator Ladies and gentlemen, thank you for standing by, and welcome to Coursera's Third Quarter 2022 Earnings Call. At this ...

Financial Performance - For the three months ended June 30, 2022, Coursera reported a net loss of $49.3 million, with a net loss margin of 40%[100]. - For the six months ended June 30, 2022, the net loss was $87.6 million, with a net loss margin of 36%[101]. - Total revenue for the three months ended June 30, 2022, was $124.8 million, a 22% increase from $102.1 million in the same period of 2021, driven by a 23% increase in registered learners[133]. - Total revenue for the six months ended June 30, 2022, was $245.2 million, a 29% increase from $190.5 million in the same period of 2021[139]. - The company reported a net loss of $(49,334,000) for Q2 2022, compared to $(46,363,000) in Q2 2021[198]. - Non-GAAP net loss for Q2 2022 was $(21,561,000), compared to $(6,932,000) in Q2 2021[195]. - Free Cash Flow for the first half of 2022 was $(45,383,000), significantly lower than $(17,137,000) in the first half of 2021[201]. Revenue Sources - Coursera's revenue is derived from three sources: Consumer, Enterprise, and Degrees, with revenue recognized ratably over the contract term[112]. - Total Consumer revenue for the three months ended June 30, 2022, increased by $7.6 million, or 12%, compared to the same period in 2021, with new learners contributing $32.1 million[135]. - Total Enterprise revenue for the three months ended June 30, 2022, increased by $15.5 million, or 55%, with approximately $13.0 million attributed to new customers[136]. - Total Degrees revenue for the three months ended June 30, 2022, decreased by $0.5 million, or 4%, compared to the same period in 2021[138]. - Consumer revenue for the three months ended June 30, 2022, was $69.7 million, a year-over-year growth of 12% from $62.0 million[189]. - Enterprise revenue for the three months ended June 30, 2022, was $43.7 million, reflecting a substantial year-over-year growth of 55% from $28.2 million[189]. Operating Expenses - Total operating expenses for the three months ended June 30, 2022, were $126.2 million, compared to $106.7 million in the same period of 2021, resulting in a loss from operations of $47.8 million[130]. - Total operating expenses for the six months ended June 30, 2022, were $241.0 million, up from $174.6 million in the same period of 2021, reflecting an 18% increase[150]. - The company expects research and development expenses to increase in absolute dollars to support future growth[121]. - Coursera's operating expenses are expected to increase in absolute dollars as the business grows, with a focus on personnel costs[120]. - Sales and marketing expenses for the six months ended June 30, 2022, were $107.3 million, an increase from $76.5 million in the same period of 2021, driven by higher personnel-related and marketing expenses[154]. - General and administrative expenses for the six months ended June 30, 2022, were $50.9 million, compared to $35.0 million for the same period in 2021, primarily due to higher personnel-related expenses[157]. Growth and Learner Metrics - As of June 30, 2022, Coursera has approximately 107 million registered learners on its platform[98]. - The number of registered learners increased to 106.9 million as of June 30, 2022, showing a year-over-year growth of 23% from 86.7 million[179]. - The number of Degrees students rose to 17,460 for the three months ended June 30, 2022, reflecting a year-over-year growth of 19% from 14,630[182]. - Paid Enterprise Customers increased to 958 as of June 30, 2022, marking a significant year-over-year growth of 64% from 584[184]. - The Net Retention Rate for Paid Enterprise Customers decreased to 111% as of June 30, 2022, down from 114% in the previous year[187]. Cash and Investments - As of June 30, 2022, the company had cash, cash equivalents, and marketable securities totaling $783.1 million, primarily consisting of U.S. government Treasury bills[162]. - Net cash used in operating activities for the six months ended June 30, 2022 was $(37.4) million, compared to $(9.8) million for the same period in 2021[165]. - Net cash used in investing activities for the six months ended June 30, 2022, was $174.5 million, primarily due to purchases of marketable securities and capital expenditures[172]. - As of June 30, 2022, the company held $783.1 million in marketable securities, with a potential $1.3 million impact from a 100 basis point interest rate change[209]. Future Outlook - The company plans to continue investing in growth, anticipating an increase in operating expenses as it expands sales, marketing, and technology[111]. - Coursera aims to expand its international footprint, particularly in regions with large, underserved adult learning populations[109]. - The company anticipates future revenue growth to slow due to macroeconomic headwinds, particularly in Europe[134]. - The company experienced a slowdown in new student growth in its Degree business, consistent with national trends in graduate enrollments[134]. - The company will cease to be an emerging growth company on December 31, 2022, due to exceeding a public float of $700 million[206]. Cost Management - Cost of revenue for the six months ended June 30, 2022 was $89.2 million, an increase from $80.0 million for the same period in 2021, driven by increased usage by paid learners[146]. - Content costs for the Consumer and Enterprise segments were $38.8 million and $23.7 million, respectively, for the six months ended June 30, 2022, down from $43.6 million and $17.1 million in the same period of 2021, with content costs as a percentage of revenue decreasing to 28% and 29% from 38% and 32%[148]. - Gross margin improved to 64% for the six months ended June 30, 2022, compared to 58% for the same period in 2021, due to lower content costs as a percentage of revenue[149]. - Stock-based compensation expense for the three months ended June 30, 2022, totaled $27.5 million, down from $39.2 million in the same period of 2021[130]. - Stock-based compensation expense for Q2 2022 was $27,505,000, down from $39,175,000 in Q2 2021[198].

Coursera, Inc. (NYSE:COUR) Q2 2022 Earnings Conference Call July 27, 2022 5:00 PM ET Company Participants Cam Carey - Head, IR Jeffrey Maggioncalda - CEO and President Kenneth Hahn - SVP and CFO Conference Call Participants Stephen Sheldon - William Blair Taylor McGinnis - UBS Brian Peterson - Raymond James Josh Baer - Morgan Stanley Ryan McDonald - Needham Jason Celino - KeyBanc Capital Markets Terry Tillman - Truist Securities Brett Knoblauch - Cantor Fitzgerald Operator Ladies and gentlemen, thank you fo ...

| --- | --- | --- | |-------------------------------------|-------|-------| | | | | | Q2 2022 | | | | Investor Presentation July 27, 2022 | | | Q2 2022 Investor Presentation 2 Disclaimer Information contained in this presentation is current as of the Q2 2022 earnings date Non-GAAP Financial Measures In addition to financial information presented in accordance with GAAP, this presentation includes non-GAAP gross profit, non-GAAP net loss, adjusted EBITDA, adjusted EBITDA margin and Free Cash Flow, each of wh ...