PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Coursera operates a global online learning platform connecting 142 million learners with over 325 partners, offering diverse educational content to individuals and organizations as a Public Benefit Corporation - As of December 31, 2023, Coursera has approximately **142 million registered learners** and partners with over **325 universities and industry experts**[261](index=261&type=chunk)[276](index=276&type=chunk) - The company's offerings are structured into three main segments: **Consumer**, **Enterprise**, and **Degrees**[256](index=256&type=chunk)[262](index=262&type=chunk)[284](index=284&type=chunk) Coursera Catalog Overview (as of Dec 31, 2023) | Offering Type | Quantity | Description/Price Range | | :--- | :--- | :--- | | Guided Projects | 3,500+ | Job-relevant skill in <2 hours for $9.99 | | Courses | 6,900+ | Learn in 4-6 weeks, free or up to $99 | | Specializations | 875+ | Job-relevant skill in 3-6 months for $39-$79/month | | Certificates | 125+ | Includes Professional, University, and MasterTrack Certificates | | Degrees | 50+ | Bachelor's or master's degree for ~$5,000-$45,000 | - Coursera operates as a **Delaware Public Benefit Corporation (PBC)** with a stated purpose to "provide global access to flexible and affordable high-quality education" and is also a certified B Corp[354](index=354&type=chunk)[355](index=355&type=chunk)[382](index=382&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from its limited operating history, dependence on the evolving online learning market, concentration of revenue among a few educator partners, and regulatory challenges - The company's historical growth may not be indicative of future performance, and **revenue growth rates may decline** due to market saturation, competition, and other factors[391](index=391&type=chunk) - A significant business risk is the dependence on educator partners, with approximately **32% of total revenue** for the year ended December 31, 2023, generated from the content of just **five partners**[436](index=436&type=chunk) - The business model for the Degrees segment relies heavily on the U.S. Department of Education's **"bundled services exception"** to the incentive compensation rule, which is based on agency guidance that could be altered or removed[48](index=48&type=chunk)[223](index=223&type=chunk)[349](index=349&type=chunk) - As a **Public Benefit Corporation (PBC)**, directors have a fiduciary duty to balance stockholder interests with the company's public benefit purpose, which could lead to decisions that do not maximize short-term financial results[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Item 1C. Cybersecurity](index=64&type=section&id=Item%201C.%20Cybersecurity) Coursera manages cybersecurity risks through an ISO-certified information security program overseen by the audit committee of the Board of Directors - The Board of Directors oversees strategic risk, while the audit committee is responsible for overseeing cybersecurity policies and practices, receiving quarterly updates from the Senior Vice President of Engineering[18](index=18&type=chunk) - The company's information security management system is certified to the **ISO/IEC 27001:2013 standard** and undergoes annual independent third-party audits, such as **SOC 2 Type 2 reports**[648](index=648&type=chunk) - The information security team is led by the Senior Vice President of Engineering and the Head of Information Security, who together have over **35 years of technology industry experience**[31](index=31&type=chunk) [Item 2. Properties](index=65&type=section&id=Item%202.%20Properties) The company leases all its office properties, including its headquarters in Mountain View, California, and believes current facilities are adequate for operations - Coursera's headquarters is in Mountain View, California, and the company **leases all its office spaces** and does not own any real property[19](index=19&type=chunk) [Item 3. Legal Proceedings](index=65&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 9 of the Notes to Consolidated Financial Statements - Details on legal proceedings are located in **Note 9, "Commitments and Contingencies"** of the financial statements[33](index=33&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=66&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Coursera's common stock trades on the NYSE under "COUR," with no dividends anticipated and a $95 million share repurchase program approved in April 2023 - The company's common stock trades on the NYSE under the symbol **"COUR"** since its IPO on March 31, 2021[21](index=21&type=chunk) - Coursera **does not anticipate paying dividends** on its common stock for the foreseeable future, retaining earnings for business development and expansion[5](index=5&type=chunk)[698](index=698&type=chunk) - On April 26, 2023, a share repurchase program was approved, authorizing the purchase of up to **$95 million of common stock** with no expiration date; no repurchases were made in Q4 2023[23](index=23&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=68&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2023, revenue grew 21% to $635.8 million, while net loss improved to $116.6 million, though gross margin declined due to higher content costs [Results of Operations](index=72&type=section&id=Results%20of%20Operations) Total revenue increased 21% to $635.8 million in 2023, but gross margin fell to 52% from 63% due to higher content costs, while net loss improved to $116.6 million Consolidated Statement of Operations (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$635,764** | **$523,756** | | Gross Profit | $329,771 | $331,479 | | *Gross Margin* | *52%* | *63%* | | Total Operating Expenses | $475,367 | $508,859 | | Loss from Operations | ($145,596) | ($177,380) | | **Net Loss** | **($116,554)** | **($175,357)** | Revenue by Segment (in thousands) | Segment | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Consumer | $365,221 | $295,583 | 24% | | Enterprise | $219,542 | $181,284 | 21% | | Degrees | $51,001 | $46,889 | 9% | | **Total Revenue** | **$635,764** | **$523,756** | **21%** | - Cost of revenue increased by **59% to $306.0 million** in 2023, primarily due to higher content costs from a revised agreement with its largest educator partner, significantly impacting gross margin[64](index=64&type=chunk)[65](index=65&type=chunk)[728](index=728&type=chunk) - Total operating expenses **decreased by 7%** year-over-year, driven by a reversal of restructuring charges and decreases in R&D, Sales & Marketing, and G&A expenses[66](index=66&type=chunk)[69](index=69&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong with $722.1 million in cash and securities, positive operating cash flow of $29.6 million, and $58.5 million used for share repurchases in 2023 - As of December 31, 2023, the company had **$722.1 million in cash, cash equivalents, and marketable securities**, consisting primarily of U.S. Treasury securities[97](index=97&type=chunk) Summary of Cash Flows (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from Operating Activities | $29,639 | ($38,051) | | Net cash from Investing Activities | $384,798 | ($234,024) | | Net cash from Financing Activities | ($79,229) | $12,234 | - During 2023, the company repurchased **4,829,803 shares of common stock for $58.5 million** under its Repurchase Program, with $36.6 million remaining available for repurchase[100](index=100&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=78&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key metrics showed growth in learners and customers, but a decline in enterprise retention, while non-GAAP measures like Adjusted EBITDA and Free Cash Flow improved significantly in 2023 Key Business Metrics (Year-End) | Metric | 2023 | 2022 | YoY Growth (2023) | | :--- | :--- | :--- | :--- | | Total Registered Learners (millions) | 141.9 | 118.1 | 20% | | Number of Degrees Students (Q4) | 22,025 | 18,103 | 22% | | Paid Enterprise Customers | 1,369 | 1,149 | 19% | | Net Retention Rate (Paid Enterprise) | 98% | 108% | (9)% | Non-GAAP Financial Measures (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted EBITDA | ($10,000) | ($36,945) | | *Adjusted EBITDA Margin* | *(2)%* | *(7)%* | | Free Cash Flow | $7,894 | ($53,305) | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Coursera is exposed to market risks from interest rate changes affecting its investment portfolio and foreign currency fluctuations impacting operating expenses - The company's primary market risk is **interest rate risk** on its investment portfolio; a hypothetical 100 basis point change would result in a **$7.2 million** change in annual interest income[152](index=152&type=chunk)[174](index=174&type=chunk) - Coursera is exposed to **foreign currency risk** as operating expenses are often denominated in local currencies; a 10% change in exchange rates would have had a **$3.4 million impact** on 2023 financial statements[153](index=153&type=chunk)[176](index=176&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=85&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements and an unqualified audit opinion from Deloitte & Touche LLP on both the financials and internal controls - The independent registered public accounting firm, Deloitte & Touche LLP, issued an **unqualified opinion** on the company's consolidated financial statements as of December 31, 2023[185](index=185&type=chunk) - The auditor also issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2023, based on the COSO framework[157](index=157&type=chunk)[179](index=179&type=chunk) - A critical audit matter identified was the **revenue recognition for higher value Enterprise contracts**, which required significant auditor judgment[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) [Consolidated Financial Statements](index=89&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $920.5 million, a net loss of $116.6 million, and a significant turnaround in operating cash flow to $29.6 million for 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $656,321 | $320,817 | | Total Current Assets | $832,486 | $875,988 | | **Total Assets** | **$920,533** | **$947,597** | | Total Current Liabilities | $298,260 | $242,441 | | **Total Liabilities** | **$304,339** | **$253,022** | | **Total Stockholders' Equity** | **$616,194** | **$694,575** | Consolidated Statement of Operations (in thousands) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenue | $635,764 | $523,756 | $415,287 | | Gross Profit | $329,771 | $331,479 | $249,469 | | Loss from Operations | ($145,596) | ($177,380) | ($143,063) | | Net Loss | ($116,554) | ($175,357) | ($145,215) | | Net Loss Per Share | ($0.77) | ($1.21) | ($1.28) | [Notes to Consolidated Financial Statements](index=94&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, segment reporting, partner concentration risk, purchase commitments, and a pending privacy class action lawsuit - **Revenue Recognition Policy**: The company is the principal for Consumer and Enterprise revenue but acts as an agent for Degrees revenue, recognizing a service fee based on tuition[748](index=748&type=chunk)[752](index=752&type=chunk)[883](index=883&type=chunk) - **Segment Reporting**: The company operates and reports on three segments—Consumer, Enterprise, and Degrees—with performance evaluated based on segment revenue and gross profit[876](index=876&type=chunk)[898](index=898&type=chunk) - **Commitments and Contingencies**: As of December 31, 2023, the company had **$23.1 million in non-cancelable purchase obligations** and is defending a putative class action lawsuit alleging privacy violations[810](index=810&type=chunk)[860](index=860&type=chunk) - **Restructuring**: A 2022 workforce reduction resulted in a $10.1 million charge, while a January 2024 sales force restructuring is expected to incur **$2-3 million in charges in Q1 2024**[880](index=880&type=chunk)[904](index=904&type=chunk)

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Financial Data and Key Metrics Changes - In Q4, the company generated total revenue of $168.9 million, which is up 19% from a year ago, driven by double-digit increases across all segments [13][14] - The company achieved a net income of $9.5 million, or 5.6% of revenue, and adjusted EBITDA of $5.7 million, or 3.4% of revenue, marking the first positive adjusted EBITDA quarter [14][108] - Total annual revenue reached $636 million, reflecting a 21% growth over the prior year [96] Business Segment Performance - Consumer revenue was $97.2 million, up 22% from the prior year, driven by strong demand for entry-level professional certificates and newly launched generative AI courses [16] - The company added more than 200 paid enterprise customers, ending the year with nearly 1,400 business, government, and campus clients [11] - The consumer segment's gross profit was $51.5 million, or 53% of consumer revenue, compared to 73% a year ago, reflecting increased marketing spend efficiency [16] Market Data and Key Metrics Changes - The global learner base grew by 20% to 142 million, with the company welcoming around 6 million new registered learners each quarter [11] - The company launched nearly 20 new degree programs in the past year, including a master of data science and a master of science in information technology [7][8] - The Generative AI Academy attracted significant interest, with the course "Generative AI for Everyone" enrolling 90,000 learners in its first 30 days [101] Company Strategy and Industry Competition - The company is focusing on digital transformation and skills development, with nearly 90% of executives ranking AI and Generative AI as top tech priorities for 2024 [1][2] - Partnerships with institutions like the New York State Department of Labor and SUNY Empire are crucial for expanding access to education and creating pathways for learners [4][5] - The company aims to enhance its content offerings and leverage its platform to meet the growing demand for job-relevant skills and credentials [5][121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's vision for the future of higher education, emphasizing the need for collaboration between academic institutions, employers, and government [1][114] - The management highlighted the importance of addressing the Generative AI conundrum, where companies must balance the speed of adoption with ethical considerations [2][113] - The company anticipates strong positive free cash flow generation in the coming year, with a focus on maintaining growth while managing expenses [15][109] Other Important Information - The company received an authorized instructional platform designation from the American Council on Education, enhancing its credibility and marketing capabilities [9] - The company is expanding its global reach, with over 58 million registered learners based in countries where the primary language is supported by its translation initiatives [123] - The company is committed to increasing investments in content assets, budgeting approximately $20 million for the current year [82] Q&A Session Summary Question: Insights on marketing spend and efficiency - Management noted a decline in sales and marketing expenses year-over-year, with a shift in spending dynamics due to a large partner's absence [41] Question: Generative AI Academy interest and adoption - Initial interest in the Generative AI Academy has been strong, with expectations for upsell opportunities as companies seek to enhance employee skills [63] Question: Will the recognition of AI strategies translate into action? - Management acknowledged that while many companies are aware of the need for AI strategies, clarity and organization in execution remain challenges [44][76]

For the quarter ended December 2023, Coursera (COUR) reported revenue of $168.88 million, up 18.8% over the same period last year. EPS came in at $0.06, compared to -$0.04 in the year-ago quarter. ...

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Coursera, Inc. (NYSE: COUR) today announced financial results for its fourth quarter and full year ended December 31, 2023. “ We believe generative AI will unleash the next wave of innovation and productivity, but individuals and institutions will require high-quality education and training to adopt the technology quickly and safely,” said Coursera CEO Jeff Maggioncalda. “ Coursera is partnering with the top research universities and companies at the forefront of AI, ...

Wall Street analysts expect Coursera (COUR) to post break-even quarterly earnings per share in its upcoming report, which indicates a year-over-year increase of 100%. Revenues are expected to be $163.64 million, up 15.1% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings release, it is of utmost importa ...

One of the pandemic darlings that has certainly taken a hit in recent years is Coursera (NYSE:COUR). Unfortunately, investors continue to see selling pressure materialize in this company, with shares of COUR stock dropping another 10% in today’s session alone.This move appears to be a direct result of a key downgrade from Goldman Sachs today. Analysts downgraded the stock to a “sell” rating from “neutral,” slashing their price target from $18 to $14 per share. Accordingly, today’s decline has brought Course ...

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 ...