Coursera,(US:COUR)2025-05-01 20:12Financial 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]