Coursera,(COUR) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q1 2023, the company reported revenues of $148 million, representing a 23% increase year-over-year [6][62] - Gross profit was$ 79.6 million, with a gross margin of 54%, down 12 points from the prior year [42] - The net loss for the quarter was $5.2 million, or 3.5% of revenue, with adjusted EBITDA showing a loss of$ 7.5 million, or 5.1% of revenue [42][122] Business Line Data and Key Metrics Changes - Consumer revenue reached $82 million, up 20% year-over-year, driven by strong performance in entry-level professional certificates [99] - Enterprise revenue was$ 52.2 million, up 34% from the previous year, with a total of 1,253 paid enterprise customers, a 37% increase [120] - Degrees segment revenue was $13.4 million, reflecting a 1% increase, with total degree students growing 10% to 18,095 [101] Market Data and Key Metrics Changes - The global learner base grew to 124 million, adding 5.5 million new registered learners in Q1 [14] - The company is expanding partnerships with industry leaders in various fields, enhancing its catalog of branded credentials [11] Company Strategy and Development Direction - The company aims to leverage AI and digital transformation to enhance learning experiences and improve access to education [7][21] - There is a focus on expanding the catalog of entry-level professional certificates and degree programs tailored for working adults [59][60] - The company is pursuing partnerships with universities and industry leaders to create job-relevant credentials [25][47] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is challenging, with companies being cautious in their spending [72][80] - There is optimism about the long-term potential of online learning and the necessity for companies to train their workforce [74][92] - The company expects to achieve adjusted EBITDA positivity in 2024, with a focus on strategic investments for growth [103] Other Important Information - The company announced a share repurchase program of up to$ 95 million, reflecting confidence in the business [67] - The upcoming learner outcome report will provide insights into the impact of online learning on career advancement [125] Q&A Session Summary Question: What is driving the strength in enterprise despite budget cuts? - Management acknowledged that while there is price sensitivity, companies recognize the need for training in a changing job landscape [72][74] Question: How does the enterprise pipeline compare to three months ago? - Management indicated that there has been no deterioration in the pipeline, but they are being conservative due to the uncertain environment [78][80] Question: Are there any impacts from the Department of Education's guidance on degree programs? - Management stated that they have not seen significant impacts on conversations with university partners regarding new degree programs [90][92] Question: What are the growth assumptions for each segment in the full-year guidance? - Management emphasized that the guidance reflects caution in an uncertain macro environment, not a lack of confidence in business performance [115][116]