Financial Performance - Coursera reported Q2 2025 revenue of $187.1 million, a 10% increase year-over-year from $170.3 million[4] - Gross profit for Q2 2025 was $102.7 million, reflecting a 14% increase from $90.2 million in Q2 2024[4] - The net loss for Q2 2025 was $7.8 million, a significant improvement of 66% compared to a net loss of $22.9 million in Q2 2024[4] - Adjusted EBITDA for Q2 2025 was $18.0 million, a 73% increase from $10.4 million in Q2 2024[4] - Revenue for Q2 2025 was $187.1 million, a 9.9% increase from $170.3 million in Q2 2024[28] - Gross profit for Q2 2025 was $102.7 million, compared to $90.2 million in Q2 2024, reflecting a gross margin improvement[28] - Net loss for Q2 2025 was $7.8 million, significantly reduced from a net loss of $22.9 million in Q2 2024[28] - Adjusted EBITDA for Q2 2025 was $18.0 million, compared to $10.4 million in Q2 2024, reflecting a 73.1% increase[35] - Non-GAAP net income for Q2 2025 was $19.3 million, compared to $13.8 million in Q2 2024, representing a 39.9% increase[33] - The net loss margin improved to (4.2)% in Q2 2025 from (13.4)% in Q2 2024[35] - Non-GAAP net income per share—diluted increased to $0.12 in Q2 2025 from $0.09 in Q2 2024, a 33.3% increase[33] Cash Flow and Expenses - Free Cash Flow for the quarter was $28.6 million, up 68% from $17.0 million in the same quarter last year[5] - Operating expenses totaled $117.8 million in Q2 2025, down from $121.4 million in Q2 2024, indicating cost management efforts[28] - Cash and cash equivalents increased to $775.1 million as of June 30, 2025, up from $726.1 million at the end of 2024[30] - Net cash provided by operating activities was $69.0 million for the first half of 2025, compared to $48.3 million for the same period in 2024[31] - Free Cash Flow for the six months ended June 30, 2025, was $53.9 million, up from $35.1 million in the same period of 2024, indicating a 53.1% increase[35] - Net cash provided by operating activities for Q2 2025 was $35.5 million, compared to $23.9 million in Q2 2024, marking a 48.5% increase[35] - Stock-based compensation expense for Q2 2025 was $23.8 million, down from $30.0 million in Q2 2024, a reduction of 20.7%[35] - The company reported stock-based compensation expense of $48.0 million for the first half of 2025, down from $57.9 million in the same period of 2024[31] Growth Metrics - New registered learners increased to 7.5 million in Q2 2025, up from 6.6 million in Q2 2024[7] - Total registered learners reached 183 million as of June 30, 2025, an 18% increase from 155 million a year earlier[7] - Paid enterprise customers grew to 1,686, a 12% increase from 1,511 in the previous year[7] - Deferred revenue increased to $186.0 million as of June 30, 2025, up from $159.7 million at the end of 2024, indicating strong future revenue potential[30] Future Outlook - The company raised its full year 2025 revenue outlook by $17 million to a range of $738 to $746 million[5] - The company expects Q3 2025 revenue in the range of $188 to $192 million and an Adjusted EBITDA of $10 to $14 million[12] - The company continues to focus on expanding its market opportunity and enhancing its operational capabilities to drive long-term growth[27]

Core Insights - Coursera's stock was initially covered in December 2022 at a price of $13.92 with a Hold rating, and it remained in the range of $10-$13 for the following six months [1] Group 1 - The stock price of Coursera has shown limited movement, indicating a period of stagnation in its trading range [1]

Core Insights - Hart, the new CEO of Coursera, aims to transform the online education sector using experiences learned from Jeff Bezos at Amazon [3][4][5] - Coursera is recognized as a leader in the edtech field but has not yet achieved the groundbreaking success witnessed at Amazon [5][10] - The company faces competition, notably from 2U, which recently filed for bankruptcy, indicating a challenging market landscape [10] Group 1: Leadership and Experience - Hart's journey from a part-time job at Nordstrom to becoming a key executive at Amazon illustrates a rapid career progression [1][2] - A significant lesson learned from Bezos is the importance of delegating decision-making to those closest to the customer, which Hart plans to implement at Coursera [9] - Hart emphasizes the need for quick action in the rapidly evolving edtech landscape, particularly with the integration of AI and skill development [9] Group 2: Market Opportunities - Bloomberg predicts that in the next five years, 1 billion new users will access the internet, presenting a substantial opportunity for Coursera to provide world-class education [11] - Coursera offers thousands of online courses in partnership with major companies like Google, Microsoft, and IBM, which could attract a large user base [11] Group 3: Career Advice and Philosophy - Hart advises the younger generation to focus on learning and personal growth rather than solely pursuing titles or high salaries [12][13] - The perspective that career development should be viewed as a marathon rather than a sprint is echoed by other business leaders, emphasizing the importance of exploring interests [14][15]

I have helped educate students for over a decade, first for five years at a prep-for-prep program in New York City and now as a private tutor with my own business. While the scope of subjects I tutor has broadened"In investing, what is comfortable is rarely profitable." - Robert Arnott I am a "Value" and "Growth" retail investor, looking for opportunities in emerging and undervalued stocks, often counter to conventional thought. I use fundamentals to back up my argument, and also like to highlight stocks wh ...

Financial Performance - Total revenue for Q1 2025 was $179.3 million, representing a 6% increase from $169.1 million in Q1 2024[96] - Gross profit for Q1 2025 was $97.9 million, compared to $89.5 million a year ago, with non-GAAP gross profit at $100.1 million, up from $91.7 million[96] - Net loss for Q1 2025 was $(7.8) million, significantly improved from $(21.3) million in Q1 2024, with non-GAAP net income of $19.7 million compared to $11.9 million[96] - Adjusted EBITDA for Q1 2025 was $18.7 million, an increase from $8.3 million in the prior year[105] - Consumer revenue increased by $6.0 million, or 5%, primarily driven by an increase in subscriptions to Coursera Plus[117] - Enterprise revenue increased by $4.2 million, or 7%, attributed to new customer acquisitions, despite a $4.9 million decrease from existing customer spend contraction[118] - Gross profit for the three months ended March 31, 2025, was $97.9 million, a 9% increase from $89.5 million in the prior year quarter, with a gross margin of 54.6%[119][121] - Total operating expenses decreased to $112.3 million from $119.3 million, a reduction of 6% year-over-year[122] - Research and development expenses decreased by 15% to $29.5 million, primarily due to lower personnel-related expenses[123] - Non-GAAP net income for the three months ended March 31, 2025, was $19.7 million, compared to $11.9 million in 2024[160] - Free Cash Flow for the three months ended March 31, 2025, was $25.3 million, up from $18.1 million in 2024[166] - Adjusted EBITDA for the three months ended March 31, 2025, was $18.7 million, compared to $8.3 million in 2024, with an Adjusted EBITDA Margin of 10.4%[163] Cash Flow and Liquidity - Net cash provided by operating activities was $33.5 million, up from $24.5 million a year ago, with free cash flow at $25.3 million compared to $18.1 million[105] - As of March 31, 2025, the company had cash and cash equivalents totaling $748.0 million, providing sufficient liquidity for at least the next 12 months[129][131] - Net cash provided by operating activities was $33.5 million for the three months ended March 31, 2025, compared to $24.5 million in the prior year[135] - For the three months ended March 31, 2025, net cash provided by operating activities was $33.5 million, an increase of $9.0 million compared to $24.5 million for the same period in 2024[137][138][139] Learner and Customer Metrics - As of March 31, 2025, Coursera had approximately 175 million registered learners on its platform[91] - Total Registered Learners reached 175.3 million as of March 31, 2025, representing an 18% year-over-year growth from 148.5 million in 2024[146][147] - Paid Enterprise Customers increased to 1,651 as of March 31, 2025, reflecting a 12% year-over-year growth from 1,480 in 2024[149] - Net Retention Rate for Paid Enterprise Customers decreased to 91% as of March 31, 2025, down from 94% in 2024, primarily due to customer attrition in North America[152][153] Strategic Initiatives - The company reduced its global workforce by approximately 9% to create capacity for targeted investments and incremental profitability[102] - Coursera's go-to-market strategy focuses on attracting learners through high-quality content and efficient marketing channels[93] - The company aims to expand its international footprint by investing in marketing and localized discovery efforts[111] - A shift in compensation for educator partners based on learner engagement rather than enrollment rates is expected to improve learner outcomes[109] Investment and Risk Management - Interest income, net, decreased by 19% to $7.8 million, attributed to lower interest rates and returns on investments[127] - The company invests in highly-rated securities, such as U.S. Treasury securities and U.S. government-backed money market funds, with maturities of one year or less[171] - The investment policy focuses on preserving capital and supporting liquidity requirements[171] - The company maintains foreign-currency denominated cash and cash equivalents in foreign entities to support ongoing operations, which may lead to transaction gains and losses[174] - The majority of the company's sales are denominated in U.S. dollars, minimizing exposure to foreign currency risk[173] - The company has not entered into any hedging arrangements regarding foreign currency risk but may consider doing so in the future[174] Accounting and Estimates - The company has not experienced any material changes to its critical accounting estimates compared to the previous fiscal year[168] - The company evaluates its estimates and assumptions on an ongoing basis, acknowledging that actual results may differ from these estimates[169] - A hypothetical 100 basis point increase or decrease in interest rates would have resulted in a $0.7 million and $0.5 million incremental decline or improvement in the fair value of the investment portfolio as of March 31, 2025 and 2024, respectively[172] - The annualized interest income could increase or decrease by $7.5 million and $7.3 million based on the balance of cash and cash equivalents for the periods presented[172] - A 10% increase or decrease in average foreign exchange rates relative to the U.S. dollar would have impacted the loss before income taxes by $1.1 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively[175]

Core Insights - The CE 100 Index experienced a 5.9% increase over the week, influenced by the ongoing earnings season [1][2] Performance Overview - The CE 100 Index outperformed other indices in the 5-day period, with a 5.9% increase compared to Nasdaq's 6.42%, S&P 500's 4.60%, and Dow's 2.49% [2] - Year-to-date, the CE 100 Index is down 4.22%, while the Nasdaq is down 7.56%, S&P 500 down 6.05%, and Dow down 5.74% [2] - Over the past year, the CE 100 Index has risen 17.18%, outperforming Nasdaq's 11.33%, S&P 500's 9.38%, and Dow's 5.30% [2] Sector Performance - All pillars in the CE 100 Index saw gains, with the work segment leading at 8.6%, driven by Coursera's 19.8% increase in share price [4] - Coursera reported a 6% year-over-year revenue increase, reaching $179 million, with customer revenues up 5% to $102.1 million and enterprise revenues up 7% to $61.7 million [4] Company Highlights - Tesla reported a 71% drop in net income year-over-year, with total revenue falling 9% to $19.34 billion, and automotive revenues down 20% to $13.97 billion [5] - Despite disappointing financial results, Tesla's stock rose 18% due to market relief over Elon Musk's reduced involvement in DOGE-related activities [6] - Amazon shares increased by 9.5% after announcing a Rs 350 crore (approximately $41 million) investment in Amazon Pay India, aiming to increase market share in the UPI space [7] - Alphabet's shares rose 6.8% following better-than-expected earnings, with a nearly 10% increase in its core search business and a 28% gain in Google Cloud sales [8][9] - Google Search revenue increased by 10% to $50.7 billion, with YouTube advertising revenues also growing 10% to $8.9 billion [10] Financial Services Developments - The CE 100's Pay and Be Paid segment rose 6.6%, with PayPal announcing a new rewards program for its stablecoin, PYUSD, expected to offer a 3.7% annual rewards rate [11][12][13] - Mastercard's CEO noted that consumer spending remains strong despite economic concerns, leading to a 3.1% increase in Mastercard's stock [14] - Affirm's shares surged 16% after announcing it will report all pay-over-time loans to TransUnion, which may impact future credit scoring models [14][15]

Group 1 - The current economic environment is characterized by high volatility and low expectations as the Q1 earnings season approaches, particularly affecting small-cap companies [1] - There is a belief that overlooked small-cap companies may have the potential to perform well in this challenging economic landscape [1] - The analyst has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, which informs their perspective on industry trends [1]

Core Viewpoint - JPMorgan analyst Bryan M. Smilek maintains a Neutral rating on Coursera, Inc. and raises the price forecast from $7 to $8 following the company's first-quarter results, which showed a 6% year-over-year revenue increase to $179.3 million [1][2]. Group 1: Revenue and Financial Performance - Coursera's first-quarter revenues increased by 6% year over year, reaching $179.3 million [1]. - The analyst raised the revenue estimates for 2025 and 2026 by approximately 3% and adjusted EBITDA estimates by around 1 to 2% [5]. Group 2: Market Conditions and Strategic Initiatives - Consumer demand remains steady, potentially resilient in a downturn, but enterprise spending may face pressure due to reduced learning and development budgets amid macroeconomic uncertainty [2]. - Coursera is implementing strategic initiatives such as the rollout of tools like Coach, Course Builder, AI-powered translations, and expanded go-to-market efforts [2][4]. Group 3: Margin Outlook and Cost Management - Coursera is guiding for 7% adjusted EBITDA margins in 2025, indicating about 100 basis points of year-over-year margin improvement [3]. - The analyst views Coursera's 2025 margin outlook as conservative, with expected cost controls and over $30 million in savings potentially enhancing performance [4].

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $179 million, a 6% increase year-over-year [9][51] - Free cash flow exceeded $25 million, representing a 40% year-over-year increase [9][54] - The full-year revenue expectation has improved to a range of $720 to $730 million, indicating a growth of approximately 4% to 5% year-over-year [70][71] Business Line Data and Key Metrics Changes - The combined consumer segment revenue was $118 million, up 5% from the previous year, with historical consumer product revenue at $102 million and degrees product revenue at $16 million, both growing 5% year-over-year [61][62] - The enterprise segment revenue was $62 million, a 7% increase from the prior year, driven by growth in business and campus verticals [66][67] Market Data and Key Metrics Changes - The company welcomed over 7 million new learners in Q1, bringing the total to 175 million registered learners [65] - The number of paid enterprise customers increased to 1,651, up 12% from a year ago [68][29] Company Strategy and Development Direction - The company is focused on product innovation, expanding its content engine, and enhancing go-to-market capabilities to drive growth [47][48] - A new integrated business model has been implemented, combining consumer and degree segments to simplify operations and enhance learner experience [17][57] Management's Comments on Operating Environment and Future Outlook - Management highlighted the accelerating pace of change in the market, with a significant need for upskilling and reskilling by 2030 [13][14] - The company is positioned to meet the growing demand for job-relevant skills and is committed to driving innovation and engagement across its platform [15][34] Other Important Information - The catalog now includes nearly 10,000 courses, growing by 37% over the past year, with a significant focus on generative AI content [20][21] - The company has launched nearly 700 AI courses, with enrollments in AI content increasing to 12 per minute, up from one per minute in 2023 [22][96] Q&A Session Summary Question: Where is the CEO spending the most time to drive improved growth? - The CEO is focused on unlocking innovation-led growth, emphasizing product innovation, content expansion, and enhancing go-to-market capabilities [80][81] Question: What drove the record number of registered learners in Q1? - The increase was attributed to successful marketing efforts and improvements in the platform, including enhanced learner experience features [86][87] Question: What are the opportunities for expanding content on the platform? - The company aims to expand its content portfolio across various subjects, including healthcare, and increase investment in Coursera-produced content for better control and engagement [92][100] Question: How does the company view the recategorization of consumer and degrees into one segment? - Management views degrees as another consumer product and believes the change aligns with internal management practices while ensuring transparency about performance expectations [113][115] Question: What are the assumptions behind the improved guidance for the year? - The guidance reflects observed improvements in consumer metrics and a cautious outlook on enterprise spending due to macroeconomic uncertainties [120][126]

Core Insights - Coursera reported revenue of $179.3 million for the quarter ended March 2025, reflecting a 6.1% increase year-over-year and a surprise of +2.58% over the Zacks Consensus Estimate of $174.79 million [1] - The company's EPS was $0.12, up from $0.07 in the same quarter last year, resulting in a surprise of +50.00% compared to the consensus estimate of $0.08 [1] Financial Performance Metrics - Paid Enterprise Customers totaled 1,651, slightly below the average estimate of 1,665 [4] - Total registered learners reached 175.3 million, exceeding the average estimate of 174.2 million [4] - Consumer revenues were reported at $117.60 million, significantly higher than the estimated $99.19 million, marking a year-over-year increase of +21.6% [4] - Degree revenues amounted to $15.50 million, surpassing the estimated $14.19 million, with a year-over-year change of +4.7% [4] - Enterprise revenues were $61.70 million, slightly above the average estimate of $61.30 million, reflecting a year-over-year increase of +7.3% [4] - Gross Profit for Consumer was $72.40 million, exceeding the estimated $53.48 million [4] - Gross Profit for Degrees was $15.50 million, compared to the average estimate of $14.18 million [4] - Gross Profit for Enterprise was $43.20 million, above the average estimate of $42.20 million [4] Stock Performance - Coursera's shares returned +4.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]