Coursera,(US:COUR)2023-02-10 01:17Financial Data and Key Metrics Changes - The adjusted EBITDA loss as a percentage of revenue improved to 7.1%, a 150 basis point improvement over the prior year [31] - Gross profit was $88.9 million, up 24% from a year ago, with a gross margin of 63%, consistent with the prior year [80] - The net loss for the quarter was $6.5 million, or 4.6% of revenue, while adjusted EBITDA was a loss of $5.8 million, or 4.1% of revenue [54] Business Line Data and Key Metrics Changes - Consumer revenue increased to $79.8 million, up 21% from the prior year, with a segment gross profit of $58.2 million, or 73% of consumer revenue, compared to 69% a year ago [84] - Degrees revenue decreased to $11.9 million, down 11% from a year ago due to lower student enrollments, particularly in U.S. master's degree programs [85] - The number of paid enterprise customers grew to over 1,000, indicating strong demand across business, campus, and government sectors [24] Market Data and Key Metrics Changes - Learner growth was broad-based, with double-digit percentage increases in all regions, contributing to a total of 118 million registered learners by the end of December [47] - The company anticipates a return to growth in the Degrees segment of approximately 10% in 2023, with modest declines at the start of the year [99] Company Strategy and Development Direction - The company is focused on expanding its portfolio of degree programs tailored to meet the needs of working adults, emphasizing flexibility, affordability, and stronger pathways from open content and industry microcredentials into degrees [78] - There is a strategic emphasis on leveraging generative AI to enhance the learning experience and improve customer offerings [17][51] - The company aims to grow its Enterprise segment across business, government, and campus customers, addressing their needs in a changing environment [78] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are exercising caution due to macroeconomic uncertainty, with students demanding a more affordable and relevant education system [15] - The company believes that the demand for reskilling will continue to grow, particularly as governments announce initiatives for upskilling [5][64] - Management expressed confidence in the structural trends driving the business, looking forward to providing an updated view of long-term strategy and financial targets [125] Other Important Information - The company ended the year with approximately $780 million in unrestricted cash, cash equivalents, and marketable securities, with no debt [32] - Total operating expenses for Q4 were $99.7 million, or 70% of revenue, down from 83% in the prior year [54] Q&A Session All Questions and Answers Question: What is the outlook for the consumer segment given the current economic conditions? - Management indicated that learner demand for branded industry credentials is expected to continue, with an initial outlook anticipating more than 10% growth [99] Question: How is the company addressing the competitive landscape in the government sector? - Management noted that while competition is increasing, Coursera's distinctive attributes, such as quality and brand recognition, resonate well with governments [65] Question: Can you elaborate on the impact of the new partnership with a key content provider? - Management explained that the partnership will involve an incremental investment that may slow the path to EBITDA breakeven but is expected to drive significant growth over the long term [87][88]