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Coursera (COUR)
NYSE:COUR
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Coursera
(NYSE:COUR)68Neutral
Positive Factors
Cash Position Utilization
Any signs of accelerating growth and/or the decision to leverage its large cash balance for share repurchases could serve as positive catalysts for the stock.
Financial Performance
Coursera delivered fourth-quarter results that came in slightly above expectations on both the top and bottom lines.
Profitability Improvement
Coursera's profit is ramping up nicely, improving for the last seven quarters and expected to continue rising.
Negative Factors
Enterprise Segment Performance
Trends in Enterprise underperformed with growth of 7% versus the estimate for 10%.
Revenue Guidance
Management reduced full-year top-line guidance, indicating concerns about revenue growth.
Coursera (COUR) vs. S&P 500 (SPY)
Market Cap
$1.19B
Dividend YieldN/A
Average Volume (3M)2.06M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth9.27%
EPS Growth34.66%
CountryUS
Employees1,295
SectorTechnology
Sector Strength48
IndustryEducation
Share Statistics
EPS (TTM)-0.51
Shares Outstanding160,205,630
10 Day Avg. Volume1,715,124
30 Day Avg. Volume2,064,773
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.71
Price to Cash Flow (P/CF)15.50
P/FCF Ratio15.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.36Price Target Upside45.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Coursera Business Overview & Revenue Model
Company DescriptionCoursera, Inc. is a leading online learning platform that provides individuals with access to a wide range of courses, specializations, and degrees across numerous fields such as technology, business, and health. Founded in 2012 and headquartered in Mountain View, California, Coursera collaborates with over 200 top universities and industry educators worldwide to deliver high-quality educational content. The platform caters to students, professionals seeking career advancement, and organizations looking to upskill their workforce.
How the Company Makes MoneyCoursera generates revenue primarily through its freemium business model, where users can access certain courses for free while paying for additional features and certifications. The company offers various products, including individual course certificates, professional certificates, and degree programs, which are priced at different levels. Coursera also partners with businesses and governments to provide enterprise and government solutions, allowing these entities to offer Coursera's educational content to their employees or constituents. This B2B segment is a significant revenue stream, with organizations paying subscription fees for access to the platform's content library. Additionally, Coursera earns revenue through its Coursera for Campus product, which enables educational institutions to integrate Coursera courses into their curricula. Key partnerships with leading universities and industry leaders are crucial for content development and expansion, thereby enhancing Coursera's ability to monetize its offerings.
Coursera Financial Statement Overview
Summary
Coursera exhibits robust revenue growth and liquidity, supported by a strong balance sheet. However, the company remains unprofitable with negative profit margins and variability in cash flow. These factors highlight the need for improved profitability and consistent cash management.Income Statement
Coursera's income statement shows a consistent revenue growth, reaching $694.7M in 2024 from $635.8M in 2023, marking a growth rate of 9.26%. The gross profit margin is strong at 53.46%, however, the company remains unprofitable with a net loss of $79.53M, resulting in a negative net profit margin of -11.45%. EBIT and EBITDA margins are also negative due to high operational costs. Despite strong revenue growth, achieving profitability remains a challenge.72
Positive
Balance Sheet
Coursera's balance sheet reflects strong liquidity with cash equivalents of $726.1M, well above its total debt of $3.06M, resulting in a minimal debt-to-equity ratio of 0.005. The equity ratio is robust at 64.21%, indicating a strong capital structure. However, the company records negative net income impacting the return on equity, which stands at -13.32%. Overall, the balance sheet is solid with low leverage and high liquidity.80
Positive
Cash Flow
The cash flow statement shows positive developments with a 216.30% increase in operating cash flow to $95.36M, and a significant rise in free cash flow to $93.78M. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net losses. However, the free cash flow growth is negative at -29.17%, suggesting variability in cash management. Despite fluctuations, the cash flow situation is relatively stable with a positive outlook on cash from operations.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 694.67M | 635.76M | 523.76M | 415.29M | 293.51M | Gross Profit |
| 371.41M | 329.77M | 331.48M | 249.47M | 154.66M | EBIT |
| -113.22M | -145.60M | -167.23M | -143.06M | -66.58M | EBITDA |
| -79.19M | -129.13M | -152.13M | -128.33M | -55.70M | Net Income Common Stockholders |
| -79.53M | -116.55M | -175.36M | -145.22M | -66.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 726.13M | 722.07M | 780.47M | 821.77M | 285.28M | Total Assets |
| 930.27M | 920.53M | 947.60M | 958.91M | 417.62M | Total Debt |
| 3.06M | 6.60M | 14.45M | 19.89M | 26.23M | Net Debt |
| -723.06M | -649.73M | -306.37M | -560.76M | -53.65M | Total Liabilities |
| 332.85M | 304.34M | 253.02M | 217.40M | 177.16M | Stockholders Equity |
| 597.42M | 616.19M | 694.58M | 741.51M | 240.47M |
| Cash Flow | Free Cash Flow | |||
| 93.78M | 13.24M | -51.93M | -11.90M | -26.91M | Operating Cash Flow |
| 95.36M | 29.64M | -38.05M | 1.75M | -14.99M | Investing Cash Flow |
| 29.90M | 384.80M | -234.02M | -51.61M | -101.44M | Financing Cash Flow |
| -54.94M | -79.23M | 12.23M | 550.16M | 139.01M |
Coursera Technical Analysis
Negative
7.14
Price Trends
8.28
Negative
7.97
Negative
7.83
Negative
Market Momentum
-0.22
Positive
31.83
Neutral
14.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COUR, the sentiment is Negative. The current price of 7.14 is below the 20-day moving average (MA) of 7.98, below the 50-day MA of 8.28, and below the 200-day MA of 7.83, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 31.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COUR.
Coursera Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.50B | 13.67 | 15.53% | ― | 14.22% | 61.78% | |
75 Outperform | $5.80B | 20.60 | 22.95% | ― | 13.13% | 56.75% | |
72 Outperform | $12.34B | 160.02 | 11.97% | ― | 40.84% | 437.52% | |
68 Neutral | $1.19B | ― | -13.11% | ― | 9.27% | 34.66% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $9.49B | ― | -20.84% | ― | -17.10% | 21.82% | |
47 Neutral | $90.15M | ― | -147.16% | ― | -13.78% | -5297.96% |
* Technology Sector Average
Performance Comparison
COUR
Coursera
7.14
-7.79
-52.18%
LRN
Stride
123.22
61.97
101.18%
CHGG
Chegg
0.87
-7.33
-89.39%
AFYA
Afya
17.13
-3.30
-16.15%
U
Unity Software
24.19
-2.91
-10.74%
DUOL
Duolingo
295.56
72.92
32.75%
Coursera Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -25.47% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Coursera's strong financial performance and growth in new partnerships and AI-driven innovations. However, challenges in the Degrees segment and certain aspects of the Enterprise and Consumer segments were noted, tempering overall growth expectations. The company remains optimistic about its strategic shifts and future growth potential, especially in AI-related learning and enterprise opportunities.Highlights
Record Revenue Growth
Coursera achieved a revenue growth from less than $100 million in 2017 to nearly $700 million by the end of 2024. The total revenue for the full year 2024 was $695 million, up 9% from the previous year.
Strong Financial Performance
Coursera expanded its annual adjusted EBITDA margin by more than 750 basis points and generated over $59 million of free cash flow in 2024.
Expansion of Educator Partnerships
In 2024, Coursera added more than 25 new educator partners, ending the year with over 350, including significant names like Adobe, Johns Hopkins Medicine, and Oxford University.
Increase in Learner Enrollment
Coursera saw significant growth in enrollments in generative AI courses, with Google’s AI Essentials being the most popular course of the year with over 900,000 enrollments.
Innovation in AI and Course Offerings
Coursera launched new tools like Coursera Coach and AI translation, significantly expanding capabilities in career guidance and translation into 24 languages.
Enterprise Growth in North America
Coursera for Business in North America showed strong growth, driven by AI upskilling efforts.
Lowlights
Decline in Degrees Segment
Coursera anticipates a revenue decline in the Degrees segment for Q1 and full year 2025, shifting focus to more productive near-term opportunities.
Challenges in Enterprise Segment
Weakness was noted in Coursera for Government due to transitory budgets, impacting the net retention rate for paid enterprise customers, which was 87%.
Slow Growth in Consumer Segment
Consumer revenue was up only 5% year-over-year with a noted softness in North America, though Coursera Plus subscriptions showed signs of stabilization.
Lower Growth in Coursera for Campus
Coursera for Campus showed slower growth when not integrated for credit within university curriculums, impacting engagement and revenue.
Company Guidance
During Coursera's Fourth Quarter and Full Year 2024 Earnings Call, guidance for 2025 highlighted expectations for continued top-line growth, with revenue projected to increase in both the Consumer and Enterprise segments, while the Degrees segment is expected to experience a revenue decline. The company anticipates adjusted EBITDA margin expansion, albeit at a more moderate pace compared to previous years. For Q1 2025, Coursera provided revenue guidance in the range of $173 million to $177 million, reflecting growth of 2% to 5% year-over-year, and adjusted EBITDA is expected to be between $8 million to $12 million. The company emphasized strategic investments in growth initiatives, particularly in Coursera for Campus and Consumer segments, to reignite higher growth rates.Coursera Corporate Events
Executive/Board Changes
Coursera Announces CEO Transition and Retention Plans
Neutral
Feb 3, 2025
On January 29, 2025, Coursera, Inc. entered into a separation agreement with its former CEO, Jeffrey Maggioncalda, who retired effective February 3, 2025. The agreement includes a severance package and advisory services from Mr. Maggioncalda to ensure a smooth leadership transition. Concurrently, Coursera established a retention agreement with CFO Kenneth Hahn to maintain leadership stability during the CEO transition, offering enhanced severance benefits and potential advisory roles in case of certain employment terminations.
Executive/Board ChangesBusiness Operations and Strategy
Coursera Appoints Gregory Hart as New CEO
Positive
Jan 29, 2025
On January 24, 2025, Coursera announced the appointment of Gregory Hart as the new President and CEO, effective February 3, 2025, succeeding Jeffrey Maggioncalda who is retiring. Greg Hart, with extensive leadership experience at Amazon and Compass, is expected to drive Coursera’s growth and innovation, leveraging his expertise to enhance the company’s mission of transforming lives through learning. This leadership transition is seen as a strategic move by Coursera to capitalize on Hart’s track record in technology-driven businesses and operational performance, positioning the company for continued success in a rapidly evolving educational landscape.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.