Coursera,(US:COUR)2021-05-10 16:00User Growth - As of March 31, 2021, Coursera has approximately 82 million registered learners on its platform, reflecting a significant user base growth[92] - Total registered learners grew from 52.4 million in Q1 2020 to 81.5 million in Q1 2021, reflecting a year-over-year growth of 56%[151] - The number of Degrees students increased from 7,184 in Q1 2020 to 13,493 in Q1 2021, showing an 88% year-over-year growth[154] - Paid Enterprise Customers rose from 260 in Q1 2020 to 479 in Q1 2021, marking an 84% increase[156] Financial Performance - For the three months ended March 31, 2021, Coursera reported a net loss of $18.7 million, with a net loss margin of (21)%, compared to a net loss of $14.3 million and a margin of (27)% for the same period in 2020[94] - Total revenue for the three months ended March 31, 2021, was $88.4 million, an increase of $34.5 million or 64% compared to $53.8 million for the same period in 2020[125] - GAAP revenue for the three months ended March 31, 2021, was $88,362,000, compared to $53,847,000 for the same period in 2020, representing a 64.2% increase[169] - Non-GAAP net loss for the three months ended March 31, 2021, was $(13,352,000), compared to $(11,300,000) for the same period in 2020, indicating a 18.2% increase in losses[171] - Adjusted EBITDA for the three months ended March 31, 2021, was $(10,126,000), with an Adjusted EBITDA Margin of (11)%[171] - Free Cash Flow for the three months ended March 31, 2021, was $(8,639,000), compared to $(9,892,000) for the same period in 2020, showing an improvement of 12.7%[174] Revenue Breakdown - Coursera's revenue is derived from three main sources: Consumer, Enterprise, and Degrees, with a focus on increasing the share of Enterprise and Degrees revenue to improve overall margins[108] - Consumer revenue increased by $19.7 million, or 61%, to $51.9 million, while Enterprise revenue rose by $9.5 million, or 63%, to $24.5 million[126][127] - Degrees revenue saw an increase of $5.4 million, or 81%, reaching $11.9 million, driven by a rise in the number of Degrees students[128] - The shift in revenue mix towards Degrees and Enterprise is expected to benefit overall margins, as Degrees offerings incur no content costs[102] Operating Expenses - Operating expenses are expected to increase as Coursera invests in sales, marketing, and technology development to support future growth[106] - Total operating expenses for the three months ended March 31, 2021, were $67.9 million, an increase of $24.3 million or 56% from $43.6 million in the same period of 2020[131] - Research and development expenses rose by $6.4 million, or 40%, to $22.1 million, primarily due to higher personnel-related costs[131] - Sales and marketing expenses increased by $11.9 million, or 58%, to $32.6 million, driven by additional headcount and increased commissions[132] - General and administrative expenses grew by $6.1 million, or 85%, to $13.1 million, mainly due to increased personnel-related costs and consulting services[133] Cash and Liquidity - As of March 31, 2021, the company had liquidity sources totaling $280.8 million, including cash, cash equivalents, and marketable securities[136] - The company reported a net cash used in operating activities of $(4,347,000) for the three months ended March 31, 2021[174] - Net cash used in operating activities decreased from $7.5 million in Q1 2020 to $4.3 million in Q1 2021, a reduction of $3.2 million[143] - The company had $280.8 million in cash, cash equivalents, and marketable securities as of March 31, 2021[182] Market Trends - The impact of COVID-19 has accelerated the demand for online learning, significantly increasing enrollments and revenue during the pandemic[107] - Coursera's strategy includes expanding its international footprint to tap into underserved adult learning populations, which is seen as a significant growth opportunity[104] Management and Controls - Management believes that disclosure controls and internal control over financial reporting are effective at a reasonable assurance level[187] - There are inherent limitations in control systems that may prevent detection of all errors and fraud[187] - Control systems are based on assumptions about future events, which may not always hold true[187] - Over time, controls may become inadequate due to changes in conditions or compliance levels[187] - Misstatements due to error or fraud may occur and not be detected due to the limitations of a cost-effective control system[187]