Financial Data and Key Metrics Changes - Coursera reported revenue of $194 million for Q3 2025, reflecting a 10% year-over-year increase [5][24] - Free cash flow reached $27 million, up 59% from the previous year [5][26] - The company raised its full-year revenue guidance to a range of $750 to $754 million, representing 8% to 9% growth from the prior year [6][22] Business Line Data and Key Metrics Changes - Consumer segment revenue was $130 million, up 13% year-over-year, driven by 7.7 million new registered learners [27][29] - Enterprise segment revenue was $64 million, up 6% year-over-year, with a 10% increase in the total number of paid enterprise customers [30][31] - Consumer segment gross profit was $80 million, with a gross margin of 61%, while enterprise segment gross profit was $45 million, maintaining a gross margin of 70% [29][31] Market Data and Key Metrics Changes - The total number of registered learners reached 191 million, indicating strong growth in user engagement [27] - The demand for generative AI courses has surged, with 14 enrollments per minute, up from eight enrollments per minute last year [11][12] Company Strategy and Development Direction - The company is focusing on product-led innovation and operational discipline to enhance customer experiences and drive long-term growth [5][6] - Coursera is expanding its catalog, which has grown by 44% to over 12,000 courses, and is enhancing its offerings in AI skills [10][11] - The introduction of SkillsTrax aims to address skill gaps and improve training impact for organizations [17][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer business, citing strong top-of-funnel metrics and the success of Coursera Plus [42][43] - The enterprise environment remains muted, with no significant changes expected in corporate spending trends [54][82] - The company anticipates Q4 revenue in the range of $189 to $193 million, reflecting seasonal trends [21][82] Other Important Information - The appointment of Anthony Salcido as the new General Manager of the enterprise segment is expected to drive future growth initiatives [7][56] - Coursera's partnership with OpenAI to embed its platform in ChatGPT is seen as a significant opportunity for user engagement [36][37] Q&A Session Summary Question: Insights on OpenAI embedded app and its impact - Management is excited about the partnership with OpenAI, viewing it as a top-of-funnel opportunity to attract new learners [34][35] Question: Sales and marketing investment priorities - The company continues to see effective returns on sales and marketing investments, particularly in driving subscriptions [38][39] Question: Q4 revenue outlook and consumer growth durability - Management raised full-year revenue guidance, citing strong consumer growth and visibility from Coursera Plus [41][42] Question: Balancing free cash flow growth with content investments - The company is pleased with content investments, which have expanded the course catalog and improved gross margins [44][45] Question: Factors driving consumer acceleration and international pricing - Improved marketing strategies and localized pricing adjustments have contributed to consumer growth [48][50] Question: Trends in enterprise segment and corporate spending - Mixed trends were observed across different enterprise verticals, with Coursera for Campus performing better than Coursera for Government [53][54] Question: Future of AI certifications and partnerships - Management sees opportunities for AI certifications in collaboration with partners like OpenAI and Anthropic [68][71] Question: Shifts in search behavior and investment in AI search - The integration with OpenAI is expected to enhance user experience and improve course discovery through AI-driven search [72][76]

Financial Data and Key Metrics Changes - Coursera reported revenue of $194 million for Q3 2025, reflecting a 10% year-over-year increase [4][20] - Free cash flow reached $27 million, up 59% from the previous year, contributing to a total of over $80 million year-to-date, representing 55% year-over-year growth [4][22] - The company raised its full-year revenue guidance to a range of $750 to $754 million, indicating an 8% to 9% growth from the prior year [5][18] Business Line Data and Key Metrics Changes - Consumer segment revenue was $130 million, up 13% year-over-year, driven by 7.7 million new registered learners [20][23] - The gross profit for the consumer segment was $80 million, a 16% increase from the previous year, with a gross margin of 61% [24] - Enterprise segment revenue was $64 million, up 6% year-over-year, with a net retention rate of 89% [25][26] Market Data and Key Metrics Changes - The total number of registered learners reached 191 million, with significant growth in the consumer segment [23] - The demand for generative AI courses has surged, with 14 enrollments per minute, up from eight enrollments per minute last year [9][10] Company Strategy and Development Direction - The company is focusing on product-led innovation and operational discipline to enhance customer experiences and drive long-term growth [4][5] - Coursera is expanding its catalog, which has grown by 44% to over 12,000 courses, and is enhancing its offerings with nearly 100 professional certificates [8][9] - The integration with OpenAI's ChatGPT is expected to enhance user engagement and discovery of Coursera's offerings [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer business, citing strong top-of-funnel metrics and the success of Coursera Plus [37][38] - The enterprise environment remains muted, with no significant changes expected in corporate spending trends [70] - The company anticipates Q4 revenue in the range of $189 to $193 million, representing 5% to 8% year-over-year growth [17][18] Other Important Information - The appointment of Anthony Salcido as the new General Manager of the enterprise segment is expected to drive growth initiatives [5][6] - The company is investing in AI-driven innovations and personalized learning experiences to meet evolving learner needs [19] Q&A Session Summary Question: Insights on OpenAI embedded app and its impact - Management is excited about the partnership with OpenAI, noting it as a top-of-funnel opportunity without a direct economic arrangement [29][30] Question: Sales and marketing investment priorities - The company continues to see effective returns on sales and marketing investments, particularly in driving subscriptions [33][34] Question: Q4 revenue outlook and consumer growth durability - Management raised full-year revenue guidance, citing strong consumer growth and visibility from Coursera Plus [36][37] Question: Balancing free cash flow growth with content investments - The company plans to continue investing in content while leveraging AI to reduce production costs [39] Question: International pricing strategy and its impact - Management lowered prices in various international markets to enhance accessibility and drive revenue growth [43][44] Question: Trends in enterprise segment and corporate spending - Mixed trends were observed across different verticals, with Coursera for Campus performing better than Coursera for Government [45][46] Question: Future of AI certifications and partnerships - There is potential for creating AI certifications in collaboration with partners, similar to existing certifications with other companies [58][60] Question: Shifts in search from traditional SEO to AI search - The integration with OpenAI is expected to improve user engagement and traffic quality, enhancing the learner journey [63][64]