Coursera,(US:COUR)2025-10-30 21:33Financial Performance - Total revenue for Q3 2025 was $194.2 million, representing a 10% increase from $176.1 million in the same period last year[109]. - Gross profit was $106.0 million, compared to $96.2 million a year ago, with non-GAAP gross profit at $108.0 million, up from $98.1 million[109]. - Net loss narrowed to $(8.6) million from $(13.7) million a year ago, while non-GAAP net income remained stable at $16.7 million[109]. - Adjusted EBITDA increased to $15.6 million, compared to $13.3 million in the prior year[109]. - Revenue for the three months ended September 30, 2025 was $194.2 million, an increase of $18.1 million, or 10%, compared to $176.1 million for the prior-year quarter[123]. - Consumer revenue for the three months ended September 30, 2025 increased by $14.6 million, or 13%, primarily driven by growth in subscription revenue from Coursera Plus[124]. - Enterprise revenue for the three months ended September 30, 2025 increased by $3.5 million, or 6%, due to an increase in new customers[125]. - Gross profit for the three months ended September 30, 2025 was $106.0 million, representing a gross margin of 54.6%[131]. - Revenue for the nine months ended September 30, 2025 was $560.6 million, an increase of $45.1 million, or 9%, compared to $515.5 million for the same period in 2024[126]. - Gross margin for the nine months ended September 30, 2025 was 54.7%, an increase from 53.5% for the same period in 2024[135]. - Consumer revenue for the three months ended September 30, 2025, was $130.3 million, representing a year-over-year growth of 13% compared to $115.7 million in 2024[171]. - Enterprise revenue for the same period was $63.9 million, with a year-over-year growth of 6% from $60.4 million in 2024[171]. - Total revenue for the three months ended September 30, 2025, reached $194.2 million, reflecting a 10% increase from $176.1 million in 2024[171]. - Non-GAAP net income for the three months ended September 30, 2025, was $16.7 million, compared to $16.6 million in 2024[175]. - Free Cash Flow for the nine months ended September 30, 2025, was $80.5 million, an increase from $51.9 million in 2024[181]. - The net loss for the three months ended September 30, 2025, was $(8.6) million, an improvement from $(13.7) million in 2024[178]. Operational Metrics - The platform had approximately 191 million cumulative registered learners as of September 30, 2025[99]. - Total Registered Learners increased to 191 million as of September 30, 2025, representing an 18% year-over-year growth from 162 million[162]. - Paid Enterprise Customers grew to 1,724 as of September 30, 2025, reflecting a 10% year-over-year increase from 1,564[165]. - Net Retention Rate for Paid Enterprise Customers was 89% for both the three months ended September 30, 2025 and 2024, indicating stable customer retention[168]. - Operating expenses are incurred in local currencies, including British pound sterling, Canadian dollar, and Indian rupee[189]. - The company maintained a net retention rate for paid enterprise customers at 89% for both 2025 and 2024[169]. Expenses and Investments - Total operating expenses for the three months ended September 30, 2025 were $121.6 million, an increase of $3.7 million, or 3%, compared to $117.9 million for the prior-year quarter[136]. - Research and development expenses for the three months ended September 30, 2025 were $30.0 million, a decrease of $1.6 million, or 5%, compared to the prior-year quarter[137]. - Total stock-based compensation expense for the three months ended September 30, 2025 was $23.0 million, compared to $25.2 million for the prior-year quarter[121]. - Research and development expenses for the nine months ended September 30, 2025 were $88.8 million, a decrease of 11.1% from $99.9 million in the prior year[138]. - Sales and marketing expenses for the nine months ended September 30, 2025 increased to $187.8 million, up 7.8% from $174.7 million in the prior year, driven by higher performance marketing and advertising expenses[140]. - General and administrative expenses for the nine months ended September 30, 2025 decreased to $76.0 million, down 7.2% from $81.9 million in the prior year, primarily due to non-recurring expenses in the prior year[142]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $22.4 million, primarily due to capitalized internal-use software costs and purchases of content assets[156]. Strategic Initiatives - The company reduced its global workforce by approximately 9% to create capacity for targeted investments and incremental profitability[108]. - The Enterprise segment is expected to drive growth through direct sales and data-driven insights from the Consumer platform[102]. - The company plans to expand its international operations and has tailored pricing and checkout options for local markets[118]. - New product innovations include AI-powered features such as Coach, Role Play, and Course Builder to enhance learning experiences[100]. - The shift to compensating content creators based on learner engagement rather than enrollment rates aims to incentivize the development of more engaging content[116]. Liquidity and Cash Flow - Cash and cash equivalents totaled $797.7 million as of September 30, 2025, serving as the principal source of liquidity[146]. - Net cash provided by operating activities for the nine months ended September 30, 2025 was $102.9 million, an increase of 35.1% from $76.2 million in the prior year[154]. Foreign Exchange Impact - The company has not entered into foreign currency hedging arrangements, but may consider it in the future[190]. - A hypothetical 10% increase in foreign exchange rates would impact loss before income taxes by $0.2 million, while a 10% decrease would impact it by $0.1 million for the three months ended September 30, 2025 and 2024[190].