Coursera,(US:COUR)2024-11-06 21:58Financial Performance - For the three months ended September 30, 2024, Coursera generated a net loss of $13.7 million, compared to a net loss of $32.1 million for the same period in 2023, resulting in a net loss margin of 8% and 19% respectively [98]. - For the nine months ended September 30, 2024, Coursera's net loss was $57.9 million, down from $96.2 million in the same period of 2023, with a net loss margin of 11% compared to 21% [98]. - Net loss for the three months ended September 30, 2024, was $13,689 thousand, compared to a loss of $32,090 thousand for the same period in 2023 [175]. - Non-GAAP net income for the three months ended September 30, 2024, was $16,609 thousand, while it was a loss of $2,147 thousand in the same period of 2023 [175]. - Adjusted EBITDA for the three months ended September 30, 2024, was $13,338 thousand, compared to a loss of $5,306 thousand in the same period of 2023 [179]. Revenue Growth - Revenue for the three months ended September 30, 2024, was $176.1 million, an increase from $165.5 million in the same period of 2023, representing a growth of approximately 1% [113]. - Revenue for the three months ended September 30, 2024, was $176.1 million, an increase of $10.5 million, or 6%, compared to $165.5 million for the same period in 2023 [117]. - Revenue for the nine months ended September 30, 2024, was $515.5 million, an increase of $48.6 million, or 10%, compared to $466.9 million for the same period in 2023 [121]. - Consumer revenue for the three months ended September 30, 2024, increased by $3.3 million, or 3%, totaling $102.3 million, with new learners contributing $41.2 million [118]. - Enterprise revenue for the three months ended September 30, 2024, increased by $5.5 million, or 10%, totaling $60.4 million, driven by new customer acquisitions [119]. - Degrees revenue for the three months ended September 30, 2024, increased by $1.7 million, or 15%, totaling $13.4 million, primarily due to an increase in the number of Degrees students [120]. Operating Expenses - The total operating expenses for the three months ended September 30, 2024, were $118.0 million, a decrease from $122.9 million in the same period of 2023 [113]. - Research and development expenses for the three months ended September 30, 2024, were $31.6 million, down 16% from $37.6 million in the prior year, primarily due to lower personnel-related expenses [132]. - General and administrative expenses for the three months ended September 30, 2024, were $27.4 million, an increase of 8% from $25.4 million in the prior year, mainly due to legal matters and personnel-related expenses [137]. - Sales and marketing expenses for the nine months ended September 30, 2024, increased to $174.7 million, up 6% from $164.7 million in the same period of 2023, driven by higher marketing and advertising expenses [135]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $76.1 million, significantly up from $18.1 million in the same period of 2023, reflecting improved operating leverage [150]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was $41.7 million, a decrease from $240.7 million in the same period of 2023, primarily due to capitalized software costs and content asset purchases [153]. - As of September 30, 2024, the company had cash and cash equivalents totaling $719.4 million, serving as its principal source of liquidity [143]. - Total cash used in financing activities for the nine months ended September 30, 2024, was $54.3 million, down from $72.7 million in the same period of 2023 [155]. Learner Growth - As of September 30, 2024, Coursera had approximately 162 million registered learners on its platform [98]. - Total registered learners increased to 162.1 million, representing a year-over-year growth of 19% from 135.9 million [159]. - New registered learners for the nine months ended September 30, 2024, reached 20.2 million, up from 17.7 million in the same period of 2023, indicating a growth of 14.1% [159]. - The number of Degrees students rose to 26.4 thousand, reflecting a year-over-year growth of 29% from 20.4 thousand [162]. - Paid Enterprise Customers increased to 1,564, a 19% year-over-year growth from 1,315 [164]. Cost Management and Restructuring - Coursera plans to implement a restructuring initiative expected to generate at least $30 million in annualized structural cost savings, with a global workforce reduction of approximately 10% [101]. - The company recognized incremental operating expenses of $2.1 million related to the restructuring of its Enterprise segment sales force during the first quarter of 2024 [100]. - The company incurred significant and non-recurring legal matters amounting to $3,342 thousand in the three months ended September 30, 2024 [179]. Stock-Based Compensation - The company reported stock-based compensation expenses of $25.3 million for the three months ended September 30, 2024, compared to $27.9 million for the same period in 2023 [98]. - Total stock-based compensation expense for the nine months ended September 30, 2024, was $83.1 million, compared to $81.9 million for the same period in 2023 [114]. - Stock-based compensation expense for the three months ended September 30, 2024, was $25,267 thousand, compared to $27,853 thousand in the same period of 2023 [179]. Interest and Tax Expenses - Interest income for the three months ended September 30, 2024, was $9.4 million, a 6% increase from $8.9 million in the same period of 2023, attributed to higher interest rates [141]. - Income tax expense for the three months ended September 30, 2024, was $1.5 million, a 45% increase from $1.0 million in the same period of 2023, primarily related to foreign sourced income [142]. Market Sensitivity - A hypothetical 100 basis point increase in interest rates would have resulted in a $0.6 million decline in the fair value of the investment portfolio as of September 30, 2024 [189]. - A 10% increase or decrease in current exchange rates would have impacted the loss before income taxes by $0.1 million and $0.8 million for the three months ended September 30, 2024, and 2023, respectively [193].