Why Coursera Stock Crashed Today

Core Viewpoint - Coursera's stock experienced a significant drop despite strong Q3 financial results, primarily due to lowered full-year revenue guidance and concerns over customer retention trends [1][2]. Financial Performance - In Q3 2024, Coursera generated revenue of $176 million, exceeding management's guidance of $175 million [2]. - The company's adjusted EBITDA for Q3 was $13.3 million, surpassing the guidance of up to $4 million [2]. - Full-year revenue guidance was reduced from $695 million to $705 million to a new range of $690 million to $694 million [2]. Customer Trends - Management indicated weak consumer demand is negatively affecting customer retention trends [2]. - The decline in customer retention is a key factor contributing to the lowered revenue guidance [2]. Market Reaction - The initial market reaction saw Coursera's stock drop nearly 18% before recovering to an 8% decline [1][3]. - Despite the sell-off, there are positive aspects such as a 10% year-over-year increase in Q3 enterprise revenue and improved profitability, leading to raised full-year EBITDA expectations [3].