Coursera,(US:COUR)2021-05-08 19:08Financial Data and Key Metrics Changes - Total Q1 revenue reached $88.4 million, reflecting a 64% year-over-year growth driven by strong execution across all business segments [7][17] - Gross profit was $49.6 million, up 71% from the previous year, representing a gross margin of 56.2%, which is approximately 230 basis points higher than the year-ago quarter [18][17] - Net loss for the quarter was $13.4 million, or 15.1% of revenue, with an adjusted EBITDA loss of $10.1 million, or 11.5% of revenue [21][17] Business Segment Data and Key Metrics Changes - Consumer segment revenue was $51.9 million, up 61% year-over-year, with a gross profit of $29.7 million, representing 57% of Consumer revenue [23][17] - Enterprise segment revenue was $24.5 million, up 63%, with a gross profit of $16.6 million, or 68% of Enterprise revenue [24][17] - Degrees segment revenue was $12 million, up 81%, with a gross margin of 100% as there are no content costs associated with this segment [25][17] Market Data and Key Metrics Changes - The total number of registered learners reached 82 million, with an addition of 5 million new learners in the quarter [7][23] - The net retention rate for Paid Enterprise Customers was 113% [24] Company Strategy and Development Direction - The company aims to invest in its growing enterprise channels and expand the number of degree programs offered on its platform [15][16] - There is a focus on increasing the learner base and building the brand, particularly in emerging economies [16][15] - The company is positioned to capitalize on the digital transformation of higher education and adult learning [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has accelerated the shift towards online learning and digital skills, with 84% of employers indicating an increased intent to digitize work processes [10][9] - The company anticipates continued losses in the near term as it focuses on growth, but expects to demonstrate scale and leverage over time [21][28] - For Q2, the company expects revenue in the range of $89 million to $93 million, representing a growth rate of 23% at the midpoint compared to Q2 of 2020 [26][27] Other Important Information - Coursera became a B Corp, emphasizing its commitment to balancing shareholder needs with societal needs [31][32] - The company announced over 18,000 scholarships for underserved learners in collaboration with various partners [32] Q&A Session Summary Question: COVID relief efforts and monetization potential - Management noted an acceleration in the conversion of free workforce recovery relationships with government agencies due to higher unemployment and urgency for digital jobs [34] Question: Operating expenses for Degrees segment - The largest costs in the Degrees segment are associated with university partnership personnel who support the operational aspects of degree programs [36] Question: Trends in Enterprise segment and sales force productivity - The direct sales team is on track with hiring and ramping, contributing to the strong growth in the Enterprise segment [41][42] Question: Marketing spend and brand awareness - The company plans to return to a more standard marketing mix while leveraging its freemium model and SEO strategies [44][45] Question: Specializations and Professional Certificates - Entry-level Professional Certificates are seeing increased uptake, particularly in the current job market environment [49][51] Question: Vitality of the Consumer business post-COVID - The company aims for double-digit growth in the Consumer segment, driven by career-oriented credentials [52][54] Question: Free to paid conversion trends - The Professional Certificates are showing strong monetization trends, with Coursera Plus contributing positively to the business [56][57] Question: Role of Coursera for Business in Enterprise growth - The strong demand for reskilling and upskilling is reflected in the growth of new paid enterprise additions [58][60] Question: International market dynamics - The company is balancing different economics and dynamics between US and international learners, focusing on creating human capital and enhancing employability [62]