PresentationRyan MacDonaldNeedham & Company, LLC, Research Division Good afternoon, everyone. My name is Ryan MacDonald. I lead Needham's EdTech research efforts here at the firm. Thank you all for joining us today for this virtual fireside chat between myself and Coursera's CEO, Greg Hart. We've got about 40 minutes to go through a wide variety of topics around the business and outlook and product strategy and all the good stuff. And so we'll be jumping into that. But if you do have questions for Greg, you ...

Financial Data and Key Metrics Changes - Net revenues increased by 8% year-over-year to $151.7 million, exceeding the outlook of flat to up 2% [22][24] - Adjusted EBITDA margin improved by 900 basis points to 12.4% compared to 3.4% last year [5][29] - Gross margin expanded by 280 basis points to 69.9%, driven by lower discounts and improved return rates [27][29] Business Line Data and Key Metrics Changes - Scrubwear grew by 8%, representing 84% of net revenues, supported by effective merchandising and marketing [24][25] - Non-scrubwear increased by 7%, accounting for 16% of net revenues, with strong growth in underscrubs and shoes [24][25] - Average order value rose by 6% to $114, primarily due to a higher rate of full-price sales [23] Market Data and Key Metrics Changes - U.S. sales increased by 8% to $127.3 million, marking the strongest performance in nine quarters [25] - International net revenues grew by 12%, with notable strength in acquiring new customers [25][26] - Active customer count reached nearly 2.8 million, reflecting a 4% increase year-over-year [23] Company Strategy and Development Direction - The company is focusing on expanding its international presence, planning to increase from 33 to nearly 60 markets by year-end [15][17] - Investments are being made in product innovation, including new fabric solutions like FIBREX, aimed at enhancing product offerings [8][58] - The company is committed to maintaining a strong connection with healthcare professionals, emphasizing community engagement and brand authenticity [21][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing momentum into Q4, expecting it to be the strongest net revenue growth quarter of the year [5][31] - The company anticipates a full-year revenue growth of approximately 7%, up from previous low single-digit expectations [31] - Management acknowledged challenges from tariffs but highlighted successful mitigation strategies and operational efficiencies [36][37] Other Important Information - Inventory increased by 23% year-over-year to $151.2 million, attributed to deeper investments in key styles and earlier timing of in-transit inventory [29][30] - The company has $52 million available for future share repurchases under its current program [30] Q&A Session Summary Question: Can you discuss the gross margin performance this quarter? - Management noted a gross margin of 69.9%, higher than historical rates, driven by improved discount rates and returns processing [39][40] Question: What drove the demand during business-as-usual days without promotions? - Management reported acceleration in business-as-usual days, with broad-based performance across U.S. and international markets [41][42] Question: How do you see AOV contributing to revenue growth in 2026? - AOV increased by 6%, with expectations for continued growth driven by product mix and customer engagement [44][45] Question: What are the growth drivers for community hubs? - The company plans to open three new community hubs in key healthcare locations, leveraging learnings from existing stores [51][52] Question: How is the international market expected to grow? - Management expressed confidence in sustaining double-digit growth in international markets, supported by a two-pronged strategy of broad and deep market penetration [61][62]

Organizational Structure & Leadership - Microsoft's organizational structure includes autonomous entities like LinkedIn, led by Ryan Roslanski, and gaming, led by Phil Spencer [3] - Mustafa Suleyman is responsible for consumer AI assets, positioning him as the CEO of AI within Microsoft [3][4] - The speaker leads Microsoft's commercial business, the largest within the company, focusing on aligning product strategy with customer needs [4][5] Strategic Focus & Responsibilities - The speaker's role involves integrating product ethos with customer feedback, crucial in the rapidly evolving AI landscape [5][7] - Satya Nadella is shifting focus to AI's future, including AI architectures, strategy, and platforms, from silicon to models [6][8] - The speaker is concentrating on product strategy roadmap, engineering deliverables, and ensuring solutions benefit customers [8] Market & Customer Engagement - Microsoft serves hundreds of thousands of large companies, small and medium businesses, and governments globally [5] - Customer obsession is central, aiming to minimize the feedback loop between customer voice and product development, especially in AI [7] - Customers demand rapid integration of AI experiences into their businesses [7]

Core Insights - Hapbee Technologies Inc. is undergoing significant leadership changes to enhance its product strategy and accelerate market expansion [1][3][4] Leadership Changes - Krishna Subramanian has been appointed as Chief Financial Officer, bringing over 30 years of experience in strategic and operational finance [2][4] - Riz Shah, the Chairman of the Board, will take on the role of Interim Chief Executive Officer, ensuring continuity during this transition [3][4] - Yona Shtern will step down as CEO and will not seek re-election as a director at the upcoming Annual General & Special Meeting [3] Product Development Focus - The company has appointed two new senior leaders to strengthen its innovation and product execution capabilities [4][6] - Pat Murray, Head of Devices Product Engineering, has a background in leading marketing teams for major brands, which will aid in product development [6] - TJ Varghese, Head of Devices Product Management, has extensive experience in hardware innovation, particularly from his time at Google [6] Financial Updates - Hapbee is proceeding with a shares-for-debt settlement to address an aggregate debt of $235,954.48, settling $112,500 through the issuance of 1,250,000 shares at a deemed price of $0.09 per share [5][7] - The debt represents unpaid fees for services related to marketing approved products, and the company aims to preserve cash for future operations [6][7]

Group 1 - The webcast features a conversation with Coursera's new leaders, including CEO Greg Hart, highlighting early changes made since his appointment [2] - The event is hosted by Bryan Smilek, an analyst from JPMorgan, focusing on the Internet and Online Education sector [1] Group 2 - Greg Hart discusses his decision to join Coursera and the strategic direction he aims to take the company [2]

Financial Data and Key Metrics Changes - In Q4 2024, the company achieved total sales volume of 226,600 units, a significant 65% year-over-year growth, with total revenue reaching RMB819 million, reflecting a 71% increase compared to the same period last year [7][51] - For the full year 2024, total sales volume was 924,000 units, representing a 30% year-over-year increase, and total revenue reached RMB3.29 billion, up 24% from 2023 [8][53] - The gross margin for Q4 was 12.4%, a decrease of 6.6 percentage points compared to the same period last year, while the full year gross margin was 15.2%, down from 21.5% in the previous year [56][58] Business Line Data and Key Metrics Changes - In Q4 2024, sales volume in China reached 182,000 units, marking an 80% share of total sales, while overseas sales volume was 44,000 units, accounting for 20% [50] - The ASP for China e-scooters reached RMB3,544, a 15% increase quarter-over-quarter and a 10% increase year-over-year [52] - The N series accounted for 39% of total sales volume in China, a substantial increase from just 5% in 2023, demonstrating strong market demand [15] Market Data and Key Metrics Changes - The overseas market saw a substantial 54% growth in sales volume in Q4 and a 52% growth for the full year 2024 [33] - The overseas branded scooter ASP decreased to nearly RMB2,000, down around 10% year-over-year, primarily due to a higher sales contribution from kick-scooters [52] Company Strategy and Development Direction - The company remains focused on expanding its product offerings, strengthening sales channels, and broadening market reach, with a commitment to refine its strategy to achieve ambitious targets [9][23] - In 2024, the company opened approximately 900 new stores, with plans to open another 1,000 to 1,500 stores in 2025 to strengthen market presence [26][27] - The company plans to enhance its core product series while ensuring broader market coverage to meet diverse rider needs [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the China market and overseas market, expecting to reach sales volume of 1.3 million to 1.6 million units in 2025 [39][47] - The company anticipates a recovery in profitability in 2025, with expectations for quarterly profits starting in Q2 2025 [81][85] Other Important Information - The company received a five-star safety certification from China Merchant Vehicle Research Institute, reinforcing its commitment to product safety [12] - The company has made significant strides in expanding its sales channels, ensuring broader consumer base access [26] Q&A Session Summary Question: What is your sales target for kick-scooters in 2025? - The company targets a sales growth of 30% to 50% for kick-scooters in 2025, expecting profitability to return due to adjustments in pricing related to tariffs [67][69] Question: What is your outlook for average selling price and gross profit margin in the domestic market in 2025? - The company expects a slight increase in ASP in the domestic market and improved gross margins due to economies of scale and increased sales volume [72][74] Question: Can you provide guidance on expected net profit margin by 2025? - The company is not sharing specific net profit margin guidance yet but anticipates overall profitability in 2025 [81] Question: Which quarter in 2025 is expected to see the company's net profit turn from loss to profit? - The company expects to achieve quarterly profits starting in Q2 2025, which is typically a peak quarter for revenue [85]

Financial Data and Key Metrics Changes - In Q4 2024, total sales volume reached 226,600 units, a significant 65% year-over-year growth, with total revenue of RMB819 million, reflecting a 71% increase compared to the same period last year [7][8][51]. - For the full year 2024, total sales volume was 924,000 units, representing a 30% year-over-year increase, and total revenue reached RMB3.29 billion, up 24% from 2023 [8][51]. Business Line Data and Key Metrics Changes - In Q4 2024, sales volume in China was 182,000 units, a 65% year-over-year increase, while overseas sales volume reached 44,000 units, marking a 64% growth [7][50]. - The N series accounted for 39% of total sales volume in China, a substantial increase from just 5% in 2023, demonstrating strong market demand [15]. - The ASP for China e-scooters reached RMB3,544, a 15% increase quarter-over-quarter and a 10% increase year-over-year [52]. Market Data and Key Metrics Changes - The overseas market saw a 54% growth in sales volume in Q4 2024 and a 52% growth for the full year [33]. - The overseas branded scooter ASP decreased to nearly RMB2,000, down around 10% year-over-year, primarily due to a higher sales contribution from kick-scooters [52]. Company Strategy and Development Direction - The company remains focused on expanding product offerings, strengthening sales channels, and broadening market reach, with a commitment to refining its strategy to achieve ambitious targets [9][23]. - In 2024, the company opened approximately 900 new stores, with plans to open another 1,000 to 1,500 stores in 2025 to strengthen market presence [26][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the China market and overseas market, highlighting strong foundations established in 2024 and expectations for continued growth in 2025 [39][44]. - The company anticipates a positive effect on ASP and gross margin in the domestic market in 2025, driven by increased sales volume and economies of scale [73]. Other Important Information - The gross margin for Q4 2024 was 12.4%, a decrease of 6.6 percentage points compared to the same period last year, primarily due to shifts in the overseas product mix and US tariffs [56]. - The company ended the year with RMB1.1 billion in cash and short-term investments, with operating cash flow showing an inflow of RMB55 million [62]. Q&A Session Summary Question: What is your sales target for kick-scooters in 2025? - The company expects a sales target of approximately 30% to 50% growth for kick-scooters in 2025, following a previous year of over 160,000 units sold [66][67]. Question: What is your outlook for average selling price and gross profit margin in the domestic market in 2025? - The company anticipates a slight increase in ASP in the domestic market, with expectations for improved gross margin due to economies of scale and increased sales volume [70][73]. Question: Can you provide guidance on expected net profit margin by 2025? - The company is not ready to share specific net profit margin guidance but expects to achieve overall profitability in 2025 [80][81]. Question: Which quarter in 2025 is expected to see the company's net profit turn from loss to profit? - The company expects to see quarterly profits in the second quarter of 2025, which is typically a peak quarter for revenue [84].