Coursera,(US:COUR)2021-11-09 16:00Financial Performance - For the three months ended September 30, 2021, Coursera reported a net loss of $32.5 million, with a net loss margin of (30)%[102]. - For the nine months ended September 30, 2021, Coursera's net loss increased to $97.5 million, with a net loss margin of (32)%[103]. - Revenue for the three months ended September 30, 2021, was $109.9 million, an increase of $27.2 million or 33% compared to $82.7 million for the same period in 2020[136]. - Revenue for the nine months ended September 30, 2021, was $300.3 million, an increase of $90.1 million or 43% compared to $210.2 million for the same period in 2020[140]. - Gross profit for the nine months ended September 30, 2021, was $178.2 million, a 60% increase from $111.2 million in the same period of 2020[144]. - Gross margin improved to 59% for the nine months ended September 30, 2021, up from 53% in the same period of 2020[147]. - Total operating expenses for the three months ended September 30, 2021, were $99.15 million, up from $55.59 million in the same period of 2020, reflecting increased investment in R&D and marketing[195]. Revenue Sources and Growth - Coursera's revenue is derived from three sources: Consumer, Enterprise, and Degrees, with revenue recognized ratably over the contract term[117][118]. - The shift in revenue mix towards Degrees and Enterprise is expected to improve overall margins as these segments incur lower content costs[111][123]. - Total Consumer revenue increased by $9.2 million, or 16%, for the three months ended September 30, 2021, compared to the same period in 2020[137]. - Total Enterprise revenue increased by $13.7 million, or 75%, for the three months ended September 30, 2021, compared to the same period in 2020[138]. - Total Degrees revenue increased by $4.3 million, or 59%, for the three months ended September 30, 2021, compared to the same period in 2020[139]. - Total Degrees revenue increased by $14.9 million, or 72%, for the nine months ended September 30, 2021, compared to the same period in 2020[143]. - Consumer segment revenue for the nine months ended September 30, 2021, was $180.4 million, with a year-over-year growth of 29%[188]. - Enterprise segment revenue for the nine months ended September 30, 2021, was $84.5 million, showing a year-over-year growth of 69%[188]. Learner and Customer Growth - As of September 30, 2021, Coursera has approximately 92 million registered learners on its platform[100]. - Total registered learners increased to 92.1 million as of September 30, 2021, representing a year-over-year growth of 29%[179]. - The number of Degrees students grew by 40% year-over-year, reaching 16,068 as of September 30, 2021[182]. - Paid Enterprise Customers increased from 318 as of September 30, 2020, to 711 as of September 30, 2021[184]. - Net Retention Rate for Paid Enterprise Customers improved from 108% as of September 30, 2020, to 113% as of September 30, 2021[186]. Expenses and Investments - Research and development expenses for the nine months ended September 30, 2021, were $97.1 million, an increase of 82% from $53.4 million in the same period of 2020[153]. - Sales and marketing expenses for the nine months ended September 30, 2021, were $121.7 million, up 68% from $72.3 million in the same period of 2020[155]. - General and administrative expenses for the nine months ended September 30, 2021, increased to $54.9 million, a 113% rise from $25.8 million in the same period of 2020[157]. - Research and development expenses are expected to increase in absolute dollars over time, although as a percentage of revenue, they are expected to generally decrease over the long term[125]. - Sales and marketing expenses are also expected to increase in absolute dollars as the business grows, with a long-term expectation of a decrease as a percentage of revenue[126]. - General and administrative expenses are anticipated to increase in absolute dollars as the business expands, with a long-term expectation of a decrease as a percentage of revenue[128]. Cash and Financing - As of September 30, 2021, the company had cash, cash equivalents, and marketable securities totaling $816.1 million[163]. - The company expects its existing cash and cash equivalents will be sufficient to meet its cash needs for at least the next 12 months[164]. - Cash provided by financing activities for the nine months ended September 30, 2021, was $542.0 million, primarily from net proceeds of the IPO[176]. - The company had net cash provided by financing activities of $541.98 million for the nine months ended September 30, 2021, compared to $136.58 million in the same period of 2020, reflecting strong financing support[203]. Market and Economic Factors - The COVID-19 pandemic has accelerated the demand for online learning, significantly increasing Coursera's revenue due to higher enrollments[116]. - The company is focused on expanding its international footprint to tap into underserved adult learning populations[113]. - A hypothetical 100 basis point increase or decrease in interest rates would not have resulted in a material impact on the market value of the company's cash equivalents and marketable securities[211]. - The company's revenue is primarily denominated in U.S. dollars, minimizing significant foreign currency risk[212]. - Operating expenses are subject to fluctuations due to changes in foreign currency exchange rates, particularly with the Pound Sterling, Canadian Dollar, and Indian Rupee[212]. - A 10% increase or decrease in current exchange rates would have resulted in an impact of $1.6 million on the company's quarterly unaudited condensed consolidated financial statements[212].