Coursera AI Strategy Wins Points With Analyst, But Market Jitters Linger

Core Viewpoint - JPMorgan analyst Bryan M. Smilek maintains a Neutral rating on Coursera, Inc. and raises the price forecast from $7 to $8 following the company's first-quarter results, which showed a 6% year-over-year revenue increase to $179.3 million [1][2]. Group 1: Revenue and Financial Performance - Coursera's first-quarter revenues increased by 6% year over year, reaching $179.3 million [1]. - The analyst raised the revenue estimates for 2025 and 2026 by approximately 3% and adjusted EBITDA estimates by around 1 to 2% [5]. Group 2: Market Conditions and Strategic Initiatives - Consumer demand remains steady, potentially resilient in a downturn, but enterprise spending may face pressure due to reduced learning and development budgets amid macroeconomic uncertainty [2]. - Coursera is implementing strategic initiatives such as the rollout of tools like Coach, Course Builder, AI-powered translations, and expanded go-to-market efforts [2][4]. Group 3: Margin Outlook and Cost Management - Coursera is guiding for 7% adjusted EBITDA margins in 2025, indicating about 100 basis points of year-over-year margin improvement [3]. - The analyst views Coursera's 2025 margin outlook as conservative, with expected cost controls and over $30 million in savings potentially enhancing performance [4].