- Delivers revenue growth of 15% year-over-year
- Reports net cash provided by operating activities of $24.5
million; Free Cash Flow of $18.1 million
Coursera, Inc. (NYSE: COUR) today announced financial results
for its first quarter ended March 31, 2024.
“We are in the very early stages of helping our learners,
educators, and customers understand how emerging AI technologies
will transform the way we teach, learn, and work,” said Coursera
CEO Jeff Maggioncalda. “In addition to expanding our catalog of
generative AI courses and credentials, we are rapidly delivering
new innovations like Coursera Coach, Course Builder, and our global
translation initiative to better serve the individuals and
institutions learning on Coursera to keep pace with our changing
world.”
Financial Highlights for First Quarter 2024
- Total revenue was $169.1 million, up 15% from $147.6 million a
year ago.
- Gross profit was $89.5 million or 53% of revenue, compared to
$77.5 million or 52% of revenue a year ago. Non-GAAP gross profit
was $91.7 million or 54% of revenue, compared to $79.6 million or
54% of revenue a year ago.
- Net loss was $(21.3) million or (12.6)% of revenue, compared to
$(32.4) million or (21.9)% of revenue a year ago. Non-GAAP net
income was $11.9 million or 7.1% of revenue, compared to non-GAAP
net loss of $(5.2) million or (3.5)% of revenue a year ago.
- Net loss per share was $(0.14), compared to $(0.22) a year ago.
Non-GAAP net income per share was $0.07, compared to non-GAAP net
loss per share of $(0.03) a year ago.
- Adjusted EBITDA was $8.3 million or 4.9% of revenue, compared
to $(7.5) million or (5.1)% of revenue a year ago.
- Net cash provided by operating activities was $24.5 million,
compared to $4.7 million a year ago. Free Cash Flow was $18.1
million, compared to $0.9 million a year ago.
“We had a solid start to the year, with nearly seven million
learners coming to Coursera for high-quality, branded content and
credentials that can advance their careers,” said Ken Hahn,
Coursera’s CFO. “I remain pleased by our ability to demonstrate the
operating leverage inherent in our model while continuing to invest
in our long-term growth initiatives.”
For more information regarding the non-GAAP financial measures
discussed in this press release, please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP to Non-GAAP Financial
Measures” below.
Operating Segment Highlights for First Quarter 2024
- Consumer revenue was $96.7 million, up 18% from a year
ago on learner demand for entry-level Professional Certificates and
generative AI courses. Segment gross margin was $51.8 million, or
54% of Consumer revenue, compared to 54% a year ago. We added 7
million new registered learners during the quarter for a total of
148 million.
- Enterprise revenue was $57.5 million, up 10% from a year
ago on strength in our government and campus verticals. The total
number of Paid Enterprise Customers increased to 1,480, up 18% from
a year ago. Segment gross margin was $39.1 million, or 68% of
Enterprise revenue, compared to 67% a year ago. Our Net Retention
Rate for Paid Enterprise Customers was 94%.
- Degrees revenue was $14.8 million, up 10% from a year
ago on growth in new students and scaling of recent program
launches. Segment gross margin was 100% of Degrees revenue as there
is no content cost attributable to the Degrees segment. The total
number of Degrees Students reached 22,200, up 23% from a year
ago.
All key business metrics are as of March 31, 2024. For more
information regarding the metrics discussed in this press release,
please see “Key Business Metrics Definitions” below.
Content, Customer, and Platform Highlights
Content and Credentials:
- Announced a master's in management pathway degree program
from new partner, the University of Huddersfield, with a
performance-based admission pathway to promote flexibility and
accessibility.
- Launched AI Essentials course from Google, which shows
how learners can use AI as a collaboration tool in their day-to-day
work, along with more than 75 new courses and projects in
generative AI from top research universities and companies at
the forefront of AI, including DeepLearning.AI, Duke University,
IBM, Microsoft, Vanderbilt University, and more.
- Added two entry-level Professional Certificates from
Unilever, designed to serve learners of all backgrounds with no
college degree or prior industry experience prepare for a career in
supply chain analytics or digital marketing.
Enterprise Customers:
- Coursera for Business signed new and expanded
relationships with companies around the world, including Aboitiz
Power Corporation (Philippines), Buk (Chile), Coast Capital
(Canada), and The Bank of Saint Lucia Limited (Saint Lucia).
- Coursera for Government announced a national training
initiative with the President of Guyana, providing every citizen
and public sector employee access to Coursera in order to grow,
diversify, and transform the country’s economy through scaled
online education.
- Coursera for Campus partnered with local higher
education institutions around the world to equip students with
in-demand skills and certificates, including Central State
University (U.S.), Heriot-Watt University (U.K.), Lifelong Learning
University (Colombia), Virginia State University (U.S.), and
Yenepoya University (India).
Learning Platform:
- Expanded our AI-powered translation initiative from 18
to 21 languages, enhancing the experience for learners speaking
Hindi, Japanese, and Korean with access to thousands of courses,
Specializations, and Professional Certificates in their local
language.
- Launched Course Builder, our AI-assisted authoring tool
that enables any business, government, or campus customer to easily
and quickly produce custom private courses at scale.
- Broadened access to the Coursera Coach beta program for
paying Consumer learners, as well as our Coursera for Business and
Coursera for Government customers.
Highlights reflect developments since December 31, 2023 through
today’s announcement. For additional information on these
developments, see the Coursera Blog at blog.coursera.org.
Financial Outlook
- Second quarter 2024:
- Revenue in the range of $162 to $166 million
- Adjusted EBITDA in the range of $(2) to $2 million
- Full year 2024:
- Revenue in the range of $695 to $705 million
- Adjusted EBITDA in the range of $24 to $28 million, reaffirming
our Adjusted EBITDA margin outlook of approximately 4%
Actual results may differ materially from Coursera’s Financial
Outlook as a result of, among other things, the factors described
under “Special Note on Forward-Looking Statements” below.
A reconciliation of our non-GAAP guidance measure (Adjusted
EBITDA) to the corresponding GAAP guidance measure is not available
on a forward-looking basis without unreasonable effort due to the
uncertainty regarding, and the potential variability of, expenses
that may be incurred in the future. Stock-based compensation
expense-related charges, including employer payroll tax-related
items on employee stock transactions, are impacted by the timing of
employee stock transactions, the future fair market value of our
common stock, and our future hiring and retention needs, all of
which are difficult to predict and subject to constant change. We
have provided a reconciliation of GAAP to non-GAAP financial
measures in the financial statement tables for our historical
non-GAAP financial results included in this press release.
Conference Call Details
As previously announced, Coursera will hold a conference call to
discuss its first quarter 2024 performance today, April 29, 2024,
at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
A live, audio-only webcast of the conference call and earnings
release materials will be available to the public on our Investor
Relations page at investor.coursera.com. For those unable to listen
to the broadcast live, an archived replay will be accessible in the
same location for one year.
Disclosure Information
In compliance with disclosure obligations under Regulation FD,
Coursera announces material information to the public through a
variety of means, including filings with the Securities and
Exchange Commission (“SEC”), press releases, company blog posts,
public conference calls, and webcasts, as well as via Coursera’s
investor relations website.
About Coursera
Coursera was launched in 2012 by two Stanford Computer Science
professors, Andrew Ng and Daphne Koller, with a mission to provide
universal access to world-class learning. It is now one of the
largest online learning platforms in the world, with 148 million
registered learners as of March 31, 2024. Coursera partners with
over 325 leading university and industry partners to offer a broad
catalog of content and credentials, including courses,
Specializations, Professional Certificates, Guided Projects, and
bachelor’s and master’s degrees. Institutions around the world use
Coursera to upskill and reskill their employees, citizens, and
students in fields such as data science, technology, and business.
Coursera became a Delaware public benefit corporation and a B Corp
in February 2021.
Key Business Metrics Definitions
Registered Learners
We count the total number of registered learners at the end of
each period. For purposes of determining our registered learner
count, we treat each customer account that registers with a unique
email as a registered learner and adjust for any spam, test
accounts, and cancellations. Our registered learner count is not
intended as a measure of active engagement. New registered learners
are individuals that register in a particular period.
Paid Enterprise Customers
We count the total number of Paid Enterprise Customers at the
end of each period. For purposes of determining our customer count,
we treat each customer account that has a corresponding contract as
a unique customer, and a single organization with multiple
divisions, segments, or subsidiaries may be counted as multiple
customers. We define a “Paid Enterprise Customer” as a customer who
purchases Coursera via our direct sales force. For purposes of
determining our Paid Enterprise Customer count, we exclude our
Enterprise customers who do not purchase Coursera via our direct
sales force, which include organizations engaging on our platform
through our Coursera for Teams offering or through our channel
partners.
Net Retention Rate (“NRR”) for Paid Enterprise
Customers
We calculate annual recurring revenue (“ARR”) by annualizing
each customer’s monthly recurring revenue (“MRR”) for the most
recent month at period end. We calculate “Net Retention Rate” for a
period by starting with the ARR from all Paid Enterprise Customers
as of the 12 months prior to such period end, or Prior Period ARR.
We then calculate the ARR from these same Paid Enterprise Customers
as of the current period end (“Current Period ARR”). Current Period
ARR includes expansion within Paid Enterprise Customers and is net
of contraction or attrition over the trailing 12 months, but
excludes revenue from new Paid Customers in the current period. We
then divide the total Current Period ARR by the total Prior Period
ARR to arrive at our Net Retention Rate.
Number of Degrees Students
We count the total number of Degrees students for each period.
For purposes of determining our Degrees student count, we include
all the students that are matriculated in a degree program and who
are enrolled in one or more courses in such degree program during
the period, including students enrolled within any wind-down or
teach-out periods of any existing programs. If a degree term spans
across multiple quarters, said student is counted as active in all
quarters of the degree term. For purposes of determining our
Degrees student count, we do not include students who are
matriculated in the degree but are not enrolled in a course in that
period.
Non-GAAP Financial Measures
In addition to financial information presented in accordance
with GAAP, this press release includes non-GAAP gross profit,
non-GAAP net income (loss), non-GAAP net income (loss) per share,
Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, each
of which is a non-GAAP financial measure. These are key measures
used by our management to help us analyze our financial results,
establish budgets and operational goals for managing our business,
evaluate our performance, and make strategic decisions.
Accordingly, we believe that these non-GAAP financial measures
provide useful information to investors and others in understanding
and evaluating our operating results in the same manner as our
management and board of directors. In addition, we believe these
measures are useful for period-to-period comparisons of our
business. We also believe that the presentation of these non-GAAP
financial measures provides an additional tool for investors to use
in comparing our core business and results of operations over
multiple periods with other companies in our industry, many of
which present similar non-GAAP financial measures to investors, and
to analyze our cash performance. However, the non-GAAP financial
measures presented may not be comparable to similarly titled
measures reported by other companies due to differences in the way
that these measures are calculated. These non-GAAP financial
measures are presented for supplemental informational purposes only
and should not be considered as a substitute for or in isolation
from financial information presented in accordance with GAAP. These
non-GAAP financial measures have limitations as analytical
tools.
Non-GAAP Gross Profit, Non-GAAP Net Income (Loss), and
Non-GAAP Net Income (Loss) Per Share
We define non-GAAP gross profit and non-GAAP net income (loss)
as GAAP gross profit and GAAP net loss excluding the impact of
stock-based compensation expense, amortization of stock-based
compensation expense capitalized as internal-use software costs,
payroll tax expense related to stock-based compensation, and
restructuring related charges. Non-GAAP net income (loss) per share
is calculated by dividing non-GAAP net income (loss) by the diluted
weighted average shares of common stock outstanding. We believe the
presentation of these adjusted operating results provides useful
supplemental information to investors and facilitates the analysis
and comparison of our operating results across reporting
periods.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as our GAAP net loss excluding: (1)
depreciation and amortization; (2) interest income, net; (3) income
tax expense; (4) other expense (income), net; (5) stock-based
compensation expense; (6) payroll tax expense related to
stock-based compensation; and (7) restructuring related charges. We
define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenue.
Free Cash Flow
Free Cash Flow is a non-GAAP financial measure that we calculate
as net cash provided by operating activities, less cash used for
purchases of property, equipment, and software, capitalized
internal-use software costs, and purchases of content assets as we
consider these capital expenditures necessary to support our
ongoing operations. Current and prior period Free Cash Flow amounts
reported herein reflect the previously disclosed change to our
definition of Free Cash Flow to include purchases of content
assets.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
Appendix.
Special Note on Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. Any statements
contained in this press release that are not statements of
historical facts may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as: “accelerate,” “anticipate, “believe,” “can,” “continue,”
“could,” “demand,” “design”, “estimate,” “expand,” “expect,”
“intend,” “may,” “might,” “mission,” “need”, “objective,”
“ongoing,” “outlook”, “plan,” “potential,” “predict,” “project,”
“should,” “target,” “will,” “would,” or the negative of these
terms, or other comparable terminology intended to identify
statements about the future. These forward-looking statements
include, but are not limited to, statements regarding our ability
to enable a new era of education to better meet the needs of a
changing global workforce; our belief regarding the accessibility
of high quality education to learners anywhere in the world,
including through the acceleration of our machine-learning
translation initiative to meet the needs of learners coming to
Coursera; the expected benefits of our differentiated catalog of
high-quality, branded industry micro-credentials and its
anticipated impact on our financial performance; our ability to
invest in its platform’s multiple growth opportunities while
demonstrating leverage and scale in our operating model; the
anticipated features and benefits of our AI initiatives, expanded
talent and skills development partnerships, new certificate and
degree programs and partnerships, and our learning platform and
offerings (including our machine-learning translation initiative,
credit recommendations, new degree pathways, Coursera Coach, and
Course Builder); the potential of our stock repurchase program to
reduce the impact of stock dilution; our mission to provide
universal access to world-class learning; the demand for online
learning; anticipated features and benefits of our customer and
partner relationships and our content and platform offerings; the
anticipated utility of non-GAAP financial measures; anticipated
growth rates; and our financial outlook, future financial and
operational performance, and expectations, among others. These
forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause our actual results,
levels of activity, performance, or achievements to be materially
different from the information expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, the following: our ability to manage our
growth; our limited operating history; the relative nascency of
online learning solutions and generative AI; risks related to
market acceptance and demand for our offerings; our ability to
maintain and expand our partnerships with our university and
industry partners and to create opportunities with new partners;
our dependence on our partners for content available on our
platform; our ability to attract and retain learners; our ability
to increase sales of our Enterprise offering; risks related to our
AI innovations and AI generally; our ability to compete
effectively; regulatory matters impacting us or our partners; risks
related to intellectual property; cybersecurity and privacy risks
and regulations; potential disruptions to our platform; risks
related to international operations, regulatory, economic, and
geopolitical conditions, pandemics or similar widespread health
crises, and our status as a certified B Corp, as well as the risks
and uncertainties discussed in our most recently filed periodic
reports on Form 10-K and Form 10-Q and subsequent filings and as
detailed from time to time in our SEC filings. You should not rely
upon forward-looking statements as predictions of future events.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee that
the future results, levels of activity, performance, or events and
circumstances reflected in the forward-looking statements will be
achieved or occur. Moreover, neither we nor any other person
assumes responsibility for the accuracy and completeness of the
forward-looking statements. Such forward-looking statements relate
only to events as of the date of this press release. We undertake
no obligation to update any forward-looking statements except to
the extent required by law.
Coursera Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except shares and
per share data)
Three Months Ended March
31,
2024
2023
Revenue
$
169,068
$
147,642
Cost of revenue(1)
79,571
70,174
Gross profit
89,497
77,468
Operating expenses:
Research and development(1)
34,610
43,809
Sales and marketing(1)
57,585
52,872
General and administrative(1)
24,943
25,523
Restructuring related charges(1)
2,101
(5,659
)
Total operating expenses
119,239
116,545
Loss from operations
(29,742
)
(39,077
)
Other income, net:
Interest income, net
9,583
8,037
Other (expense) income, net
(285
)
102
Loss before income taxes
(20,444
)
(30,938
)
Income tax expense
812
1,426
Net loss
$
(21,256
)
$
(32,364
)
Net loss per share—basic and diluted
$
(0.14
)
$
(0.22
)
Weighted average shares used in computing
net loss per share—basic and diluted
156,379,409
148,974,454
(1)
Includes stock-based compensation expense
as follows:
Three Months Ended March
31,
2024
2023
Cost of revenue
$
659
$
877
Research and development
11,001
13,465
Sales and marketing
7,922
8,357
General and administrative
8,275
7,631
Restructuring related charges
—
(5,588
)
Total stock-based compensation expense
$
27,857
$
24,742
Coursera Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
725,363
$
656,321
Marketable securities
—
65,746
Accounts receivable, net
58,254
67,418
Deferred costs, net
25,201
26,387
Prepaid expenses and other current
assets
24,429
16,614
Total current assets
833,247
832,486
Property, equipment, and software, net
31,109
30,408
Operating lease right-of-use assets
3,206
4,739
Intangible assets, net
12,610
11,720
Other assets
36,131
41,180
Total assets
$
916,303
$
920,533
Liabilities and Stockholders’
Equity
Current liabilities:
Educator partners payable
$
103,258
$
101,041
Other accounts payable and accrued
expenses
20,401
23,456
Accrued compensation and benefits
18,320
22,281
Operating lease liabilities, current
4,365
6,557
Deferred revenue, current
148,382
137,229
Other current liabilities
7,861
7,696
Total current liabilities
302,587
298,260
Operating lease liabilities,
non-current
—
39
Deferred revenue, non-current
2,177
2,861
Other liabilities
2,425
3,179
Total liabilities
307,189
304,339
Stockholders’ equity:
Common stock
2
2
Additional paid-in capital
1,480,238
1,459,964
Treasury stock, at cost
(69,193
)
(63,154
)
Accumulated other comprehensive income
—
59
Accumulated deficit
(801,933
)
(780,677
)
Total stockholders’ equity
609,114
616,194
Total liabilities and stockholders’
equity
$
916,303
$
920,533
Coursera Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(21,256
)
$
(32,364
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
6,356
5,511
Stock-based compensation expense
27,857
24,742
Accretion of marketable securities
(235
)
(5,016
)
Impairment of long-lived assets
—
535
Other
635
96
Changes in operating assets and
liabilities:
Accounts receivable, net
8,456
(14,585
)
Prepaid expenses and other assets
(1,586
)
(5,396
)
Operating lease right-of-use assets
1,533
1,197
Accounts payable and accrued expenses
(594
)
19,440
Accrued compensation and other
liabilities
(4,954
)
(2,476
)
Operating lease liabilities
(2,231
)
(2,376
)
Deferred revenue
10,469
15,384
Net cash provided by operating
activities
24,450
4,692
Cash flows from investing
activities:
Purchases of marketable securities
—
(121,756
)
Proceeds from maturities of marketable
securities
66,000
75,000
Purchases of property, equipment, and
software
(134
)
(298
)
Capitalized internal-use software
costs
(4,070
)
(2,862
)
Purchases of content assets
(2,153
)
(624
)
Net cash provided by (used in) investing
activities
59,643
(50,540
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
4,097
5,354
Payments for repurchases of common
stock
(5,634
)
—
Payments for tax withholding on vesting of
restricted stock units
(13,514
)
(13,036
)
Net cash used in financing activities
(15,051
)
(7,682
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
69,042
(53,530
)
Cash, cash equivalents, and restricted
cash—Beginning of period
658,086
322,878
Cash, cash equivalents, and restricted
cash—End of period
$
727,128
$
269,348
Coursera Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands)
Three Months Ended March
31,
2024
2023
Gross profit
$
89,497
$
77,468
Stock-based compensation expense
659
877
Amortization of stock-based compensation
capitalized as internal-use software costs
1,477
1,169
Payroll tax expense related to stock-based
compensation
46
50
Non-GAAP gross profit
$
91,679
$
79,564
Three Months Ended March
31,
2024
2023
Net loss
$
(21,256
)
$
(32,364
)
Stock-based compensation expense
27,857
30,330
Amortization of stock-based compensation
capitalized as internal-use software costs
1,477
1,169
Payroll tax expense related to stock-based
compensation
1,741
1,363
Restructuring related charges
2,101
(5,659
)
Non-GAAP net income (loss)
$
11,920
$
(5,161
)
Weighted-average shares used in computing
net loss per share—basic
156,379,409
148,974,454
Effect of dilutive securities(2)
11,925,056
—
Weighted-average shares used in computing
non-GAAP net income (loss) per share—diluted
168,304,465
148,974,454
Net loss per share—basic and diluted
$
(0.14
)
$
(0.22
)
Non-GAAP net income (loss) per
share—diluted
$
0.07
$
(0.03
)
(2)
For periods presented with a non-GAAP net
loss, we have excluded the effect of potentially dilutive
securities as their inclusion would be anti-dilutive.
Three Months Ended March
31,
2024
2023
Net loss
$
(21,256
)
$
(32,364
)
Depreciation and amortization
6,356
5,511
Interest income, net
(9,583
)
(8,037
)
Income tax expense
812
1,426
Other expense (income), net
285
(102
)
Stock-based compensation expense
27,857
30,330
Payroll tax expense related to stock-based
compensation
1,741
1,363
Restructuring related charges
2,101
(5,659
)
Adjusted EBITDA
$
8,313
$
(7,532
)
Net loss margin
(13
)%
(22
)%
Adjusted EBITDA Margin
5
%
(5
)%
Three Months Ended March
31,
2024
2023
Net cash provided by operating
activities(3)
$
24,450
$
4,692
Less: purchases of property, equipment,
and software
(134
)
(298
)
Less: capitalized internal-use software
costs
(4,070
)
(2,862
)
Previously reported Free Cash Flow
1,532
Less: purchases of content assets
(2,153
)
(624
)
Free Cash Flow
$
18,093
$
908
(3)
Includes cash payments for restructuring
related charges made during the three months ended March 31, 2024
and 2023 of $1.8 million and $4.8 million.
Source Code: COUR-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429715957/en/
For investors: Cam Carey, ir@coursera.org
For media: Arunav Sinha, press@coursera.org
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