Company Performance - Coursera reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.09 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $187.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.38%, and up from $170.34 million year-over-year [2] - Over the last four quarters, Coursera has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The stock has gained approximately 5.4% since the beginning of the year, while the S&P 500 has increased by 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $182.09 million, and for the current fiscal year, it is $0.35 on revenues of $726.86 million [7] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for Coursera, indicating expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which Coursera belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Another company in the same industry, Bitfarms Ltd., is expected to report a quarterly loss of $0.01 per share, with a significant year-over-year revenue increase of 97% to $81.84 million [9]

Financial Data and Key Metrics Changes - The company reported revenue of $187 million, representing a 10% year-over-year growth [6][25] - Free cash flow increased by 68% year-over-year to $29 million [6] - Gross profit was $105 million, up 13% year-over-year, with a gross margin of 56%, an increase of 180 basis points from the previous year [25] - Net income was $19 million, or 10.3% of revenue, while adjusted EBITDA was $18 million, or 9.6% of revenue [26] Business Line Data and Key Metrics Changes - Consumer segment revenue reached $123 million, also up 10% year-over-year, driven by increased learner engagement and Coursera Plus subscriptions [30] - Enterprise segment revenue was $64 million, reflecting a 10% year-over-year growth, with a net retention rate of 93% [32][34] - The number of paid enterprise customers increased by 12% year-over-year to 1,686 [34] Market Data and Key Metrics Changes - The total number of registered learners grew by 18% year-over-year to 183 million, with 7.5 million new learners added in the second quarter [7][8] - The generative AI course catalog expanded to over 925 courses, with more than 10 million enrollments [10][11] Company Strategy and Development Direction - The company is focused on product-led growth, enhancing platform capabilities, and accelerating content production to meet the rapid pace of skills development [21][22] - New appointments in leadership positions aim to drive innovation and operational rigor [9] - The company is expanding its catalog of industry micro-credentials and collaborating with universities to broaden access to job-relevant education [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the changing labor market and the growing demand for new technologies and skills [7][11] - The company raised its full-year revenue guidance to a range of $738 million to $746 million, reflecting a midpoint increase of $17 million [7][35] - Management acknowledged macroeconomic uncertainties affecting the enterprise segment but remains optimistic about consumer growth [40][86] Other Important Information - The company has a strong balance sheet with approximately $775 million in unrestricted cash and no debt [28] - The catalog now includes over 10,500 courses, having expanded by more than 36% over the past year [10] Q&A Session Summary Question: What is driving the guidance for Q3 and Q4? - The guidance reflects strong performance in the consumer segment, with macro trends in enterprise remaining uncertain [39][40] Question: How is Coursera positioned in the context of big tech prioritizing AI skills education? - The company is well-positioned with trusted content and an AI-enabled learning platform, recognizing the need for reskilling and upskilling in the workforce [44][46] Question: Can you elaborate on consumer outperformance and future growth? - The consumer segment saw broad-based growth across regions, with ongoing improvements in product development and marketing strategies [55][56] Question: What trends are observed across government, business, and campus in the enterprise segment? - The enterprise segment showed strong performance in business and campus verticals, with ongoing monitoring of budgetary trends [60][64] Question: How sustainable are the improvements in consumer gross margins? - Improvements are driven by better revenue share agreements and investments in content, with expectations for continued positive trends [72][74] Question: What are the key metrics being monitored to assess business performance? - Key metrics include traffic conversion rates, learner engagement, and retention, all of which are essential for revenue growth [102][104]

Financial Performance - Coursera reported quarterly earnings of 12 cents per share, exceeding the analyst consensus estimate of 9 cents [1] - Quarterly revenue reached $187.1 million, surpassing the Street estimate of $180.48 million [1] Market Opportunity - The company continues to expand its market opportunity due to the global demand for new technology and skills, attracting over 7 million new learners this quarter [2] Growth and Outlook - Coursera achieved a revenue growth of 10% year-over-year and is making significant progress in enhancing customer experiences on its platform [3] - The company raised its full year 2025 revenue outlook by $17 million, now projected to be between $738 million and $746 million [3] Stock Performance - Following the earnings report, Coursera's stock price increased by 21.37%, reaching $11.02 in extended trading [3]

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]