Coursera,(US:COUR)2022-04-28 02:17Financial Data and Key Metrics Changes - In Q1 2022, Coursera reported revenue growth of 36% year-over-year, reaching $120 million, marking the 12th consecutive quarter of growth above 30% [11][35] - Gross profit was $78.2 million, resulting in a gross margin of 64.9%, which is an increase of 58% from the previous year [38] - The net loss for the quarter was $15.8 million, representing 13.1% of revenue, while adjusted EBITDA loss was $11 million, or 9.1% of revenue [42] Business Line Data and Key Metrics Changes - Consumer segment revenue grew by 31% year-over-year to $68.1 million, with a gross profit of $48.3 million, achieving a margin of 71% [44] - Enterprise segment revenue increased by 59% year-over-year to $39 million, with a gross profit of $28 million, resulting in a margin of 72% [45] - Degrees segment revenue rose by 11% year-over-year to $13.3 million, with a total of 16,481 students, reflecting a 22% increase from the previous year [46] Market Data and Key Metrics Changes - The total number of registered learners surpassed 100 million, with an addition of 5 million new learners in the last quarter [10][44] - The number of paid enterprise customers increased to 917, up 91% from the previous year, with a net retention rate of 109% [45] Company Strategy and Development Direction - The company aims to invest in its fast-growing Enterprise segment, focusing on new customer acquisitions and expanding existing relationships [29] - Coursera plans to broaden its entry-level Professional Certificate catalog and expand its Degrees segment by increasing program offerings and removing admissions barriers [32][33] - The company emphasizes the importance of its three-sided platform, which connects learners, educators, and institutions, to enhance its competitive advantage [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing digital transformation and the critical need for skill development as key trends driving demand for online learning [12][13] - The company anticipates Q2 2022 revenue in the range of $128 million to $132 million, representing a growth rate of 27% at the midpoint [47] - For the full year 2022, Coursera expects revenue between $538 million and $546 million, reflecting a growth rate of 31% at the midpoint despite challenges from the suspension of business in Russia [49] Other Important Information - Coursera has initiated support for learners in Ukraine amid the humanitarian crisis by offering free access to its platform for Ukrainian institutions and students [54] - The company has partnered with the U.K. government to improve girls' access to education and employment in developing countries, providing scholarships for entry-level Professional Certificates [55] Q&A Session Summary Question: What are the drivers behind the decline in net revenue retention (NRR) within the Enterprise segment? - Management indicated that the decline is partly due to suspended institutional deals in Russia and the varying maturity levels of enterprise deals across businesses, governments, and campuses [58][60] Question: What is the outlook for the Degrees segment, especially in the U.S.? - Management noted that Degrees tend to be countercyclical, with a strong labor market leading to deferred investments in education. However, they are seeing growth in non-U.S. markets [61][62] Question: What is causing the margin expansion in the Enterprise segment? - The margin expansion is attributed to higher consumption of premium content and the popularity of higher-margin specializations [66][67] Question: What is the current status of Coursera Plus? - Coursera Plus continues to grow, now accounting for over 30% of Consumer revenue, driven by learners seeking flexibility in their career paths [78] Question: How is Coursera expanding local language content on the platform? - The company is utilizing machine learning for subtitling and translation, while also creating native language content to complement its global catalog [86][89]