Why Coursera Stock Plummeted Today

Core Insights - Coursera significantly outperformed Wall Street's Q3 targets, posting adjusted earnings per share of $0.10 on sales of $194.2 million, exceeding analyst estimates of $0.08 and $190.3 million respectively [4] - Despite the positive sales performance and an increase in full-year sales guidance to between $750 million and $754 million, the stock price fell by 12.9% due to disappointing guidance on profitability metrics [2][4] Financial Performance - Coursera's revenue increased approximately 10% year over year in Q3, prompting the company to raise its full-year sales target [4] - For Q4, Coursera is targeting revenue between $189 million and $193 million, which is above Wall Street's expectation of $187.5 million [6] - The company's guidance for adjusted EBITDA in Q4 is between $7 million and $10 million, which is below Wall Street's target of approximately $10.2 million, raising concerns about weaker margins despite revenue growth [7] Market Reaction - The stock experienced a significant sell-off, dropping 12.9% in a day when the broader market indices, such as the S&P 500 and Nasdaq Composite, were up by 0.8% and 1.1% respectively [1][5] - The current market capitalization of Coursera is approximately $2 billion, with a current stock price of $9.18 [6]