Coursera,(US:COUR)2022-08-03 16:00Financial Performance - For the three months ended June 30, 2022, Coursera reported a net loss of $49.3 million, with a net loss margin of 40%[100]. - For the six months ended June 30, 2022, the net loss was $87.6 million, with a net loss margin of 36%[101]. - Total revenue for the three months ended June 30, 2022, was $124.8 million, a 22% increase from $102.1 million in the same period of 2021, driven by a 23% increase in registered learners[133]. - Total revenue for the six months ended June 30, 2022, was $245.2 million, a 29% increase from $190.5 million in the same period of 2021[139]. - The company reported a net loss of $(49,334,000) for Q2 2022, compared to $(46,363,000) in Q2 2021[198]. - Non-GAAP net loss for Q2 2022 was $(21,561,000), compared to $(6,932,000) in Q2 2021[195]. - Free Cash Flow for the first half of 2022 was $(45,383,000), significantly lower than $(17,137,000) in the first half of 2021[201]. Revenue Sources - Coursera's revenue is derived from three sources: Consumer, Enterprise, and Degrees, with revenue recognized ratably over the contract term[112]. - Total Consumer revenue for the three months ended June 30, 2022, increased by $7.6 million, or 12%, compared to the same period in 2021, with new learners contributing $32.1 million[135]. - Total Enterprise revenue for the three months ended June 30, 2022, increased by $15.5 million, or 55%, with approximately $13.0 million attributed to new customers[136]. - Total Degrees revenue for the three months ended June 30, 2022, decreased by $0.5 million, or 4%, compared to the same period in 2021[138]. - Consumer revenue for the three months ended June 30, 2022, was $69.7 million, a year-over-year growth of 12% from $62.0 million[189]. - Enterprise revenue for the three months ended June 30, 2022, was $43.7 million, reflecting a substantial year-over-year growth of 55% from $28.2 million[189]. Operating Expenses - Total operating expenses for the three months ended June 30, 2022, were $126.2 million, compared to $106.7 million in the same period of 2021, resulting in a loss from operations of $47.8 million[130]. - Total operating expenses for the six months ended June 30, 2022, were $241.0 million, up from $174.6 million in the same period of 2021, reflecting an 18% increase[150]. - The company expects research and development expenses to increase in absolute dollars to support future growth[121]. - Coursera's operating expenses are expected to increase in absolute dollars as the business grows, with a focus on personnel costs[120]. - Sales and marketing expenses for the six months ended June 30, 2022, were $107.3 million, an increase from $76.5 million in the same period of 2021, driven by higher personnel-related and marketing expenses[154]. - General and administrative expenses for the six months ended June 30, 2022, were $50.9 million, compared to $35.0 million for the same period in 2021, primarily due to higher personnel-related expenses[157]. Growth and Learner Metrics - As of June 30, 2022, Coursera has approximately 107 million registered learners on its platform[98]. - The number of registered learners increased to 106.9 million as of June 30, 2022, showing a year-over-year growth of 23% from 86.7 million[179]. - The number of Degrees students rose to 17,460 for the three months ended June 30, 2022, reflecting a year-over-year growth of 19% from 14,630[182]. - Paid Enterprise Customers increased to 958 as of June 30, 2022, marking a significant year-over-year growth of 64% from 584[184]. - The Net Retention Rate for Paid Enterprise Customers decreased to 111% as of June 30, 2022, down from 114% in the previous year[187]. Cash and Investments - As of June 30, 2022, the company had cash, cash equivalents, and marketable securities totaling $783.1 million, primarily consisting of U.S. government Treasury bills[162]. - Net cash used in operating activities for the six months ended June 30, 2022 was $(37.4) million, compared to $(9.8) million for the same period in 2021[165]. - Net cash used in investing activities for the six months ended June 30, 2022, was $174.5 million, primarily due to purchases of marketable securities and capital expenditures[172]. - As of June 30, 2022, the company held $783.1 million in marketable securities, with a potential $1.3 million impact from a 100 basis point interest rate change[209]. Future Outlook - The company plans to continue investing in growth, anticipating an increase in operating expenses as it expands sales, marketing, and technology[111]. - Coursera aims to expand its international footprint, particularly in regions with large, underserved adult learning populations[109]. - The company anticipates future revenue growth to slow due to macroeconomic headwinds, particularly in Europe[134]. - The company experienced a slowdown in new student growth in its Degree business, consistent with national trends in graduate enrollments[134]. - The company will cease to be an emerging growth company on December 31, 2022, due to exceeding a public float of $700 million[206]. Cost Management - Cost of revenue for the six months ended June 30, 2022 was $89.2 million, an increase from $80.0 million for the same period in 2021, driven by increased usage by paid learners[146]. - Content costs for the Consumer and Enterprise segments were $38.8 million and $23.7 million, respectively, for the six months ended June 30, 2022, down from $43.6 million and $17.1 million in the same period of 2021, with content costs as a percentage of revenue decreasing to 28% and 29% from 38% and 32%[148]. - Gross margin improved to 64% for the six months ended June 30, 2022, compared to 58% for the same period in 2021, due to lower content costs as a percentage of revenue[149]. - Stock-based compensation expense for the three months ended June 30, 2022, totaled $27.5 million, down from $39.2 million in the same period of 2021[130]. - Stock-based compensation expense for Q2 2022 was $27,505,000, down from $39,175,000 in Q2 2021[198].