Coursera,(US:COUR)2023-02-22 16:00User Base and Growth - As of December 31, 2022, Coursera had approximately 118 million registered learners on its platform, reflecting a significant user base for its online learning offerings [304]. - As of December 31, 2022, total registered learners reached 118.1 million, representing a year-over-year growth of 22% [441]. - The number of registered learners increased, with 18,103 degrees students in Q4 2022, reflecting a year-over-year growth of 12% [420]. - The number of paid enterprise customers increased to 1,149, reflecting a year-over-year growth of 43% [444]. Financial Performance - For the fiscal year ended December 31, 2022, Coursera reported a net loss of $175.4 million, with a net loss margin of 33% compared to 35% in 2021 [306]. - Revenue for the year ended December 31, 2022, was $523.8 million, an increase of 26.1% from $415.3 million in 2021 [356]. - Gross profit for 2022 was $331.5 million, representing a gross margin of approximately 63.3% [356]. - The net loss for 2022 was $33 million, or 6.3% of revenue, compared to a net loss of $35 million, or 8.4% of revenue in 2021 [358]. - Total revenue for the year ended December 31, 2022, was $523.8 million, a 26% increase compared to $415.3 million in 2021 [448]. - Consumer revenue rose by $49.4 million, or 20%, to $295.6 million, with new learners contributing $96.7 million to this segment [383]. - Total Degrees revenue decreased by $1.8 million, or 4%, to $46.9 million, primarily due to lower revenue per student [384]. Operating Expenses and Cost Management - Operating expenses totaled $508.9 million in 2022, up from $392.5 million in 2021, with significant increases in research and development, sales and marketing, and general and administrative expenses [356]. - Restructuring charges recognized within operating expenses amounted to $10.1 million, primarily related to personnel expenses, with cash payments of $4.8 million made in 2022 [327]. - The company capitalized $1.1 million in content assets during the year ended December 31, 2022, with total intangible assets amounting to $15.4 million [316]. - Coursera's operating lease costs for the year ended December 31, 2022, were $5.9 million, a decrease from $6.7 million in 2021 [320]. Tax and Income - The effective income tax rate for the year ended December 31, 2022, was -2.8%, reflecting various adjustments including changes in valuation allowance [325]. - The company recognized an income tax expense of $4.7 million for the year ended December 31, 2022, compared to $2.1 million in 2021, reflecting a 122% increase [394]. - The company recognized unrecognized tax benefits of $16.4 million as of December 31, 2022, with $1.6 million potentially impacting the effective tax rate if recognized [373]. Future Outlook and Strategy - The company expects future revenue growth to be lower than in prior years due to macroeconomic headwinds and tight labor markets [336]. - The company plans to continue investing in international expansion, targeting regions with large, underserved adult learning populations [332]. - The company aims to convert free learners to paid learners through targeted marketing efforts, which is crucial for revenue growth [315]. - The company plans to defend against a class action complaint filed in January 2023, which seeks injunctive relief and unspecified monetary damages [423]. Cash Flow and Investments - For the year ended December 31, 2022, net cash used in operating activities was $38.1 million, primarily due to a net loss of $175.4 million, adjusted for non-cash charges of $135.6 million [411]. - For the year ended December 31, 2022, net cash used in investing activities was $234.0 million, mainly from purchases of marketable securities and capital expenditures [414]. - For the year ended December 31, 2022, net cash provided by financing activities was $12.2 million, primarily from proceeds of common stock issuance from employee stock option exercises [416]. Stock and Compensation - Stock-based compensation expense totaled $110.8 million for the year ended December 31, 2022, up from $91.2 million in 2021 [437]. - The aggregate intrinsic value of stock options exercised in 2022 was $57,311, with a weighted-average grant date fair value of options granted at $7.26 [433]. - The total unrecognized compensation cost related to unvested RSUs was $286.6 million as of December 31, 2022 [438]. - The aggregate fair value of RSUs that vested in 2022 was $29.966 million, compared to $18.767 million in 2021 [435]. Revenue Segmentation - Total Enterprise revenue increased by $60.9 million, or 51%, with $29.7 million from new customers and $31.2 million from existing customers [360]. - Enterprise segment revenue grew to $181,284 thousand in 2022, up from $120,429 thousand in 2021, marking a 50% increase [474]. - Consumer segment revenue increased to $295,583 thousand in 2022 from $246,187 thousand in 2021, a growth of 20% [474]. - Consumer segment gross margin increased to 73% in 2022, up from 66% in 2021, due to a higher proportion of revenue from subscription sales [450].