Coursera's third quarter results show a mix of solid financial performance and strategic growth initiatives, such as expanding content offerings and leveraging generative AI, but also highlight challenges in consumer retention and enterprise customer retention. The company's proactive cost management and focus on long-term growth position it well for future opportunities, despite current market pressures.

Company Guidance

During Coursera's Q3 2024 earnings call, the company provided several key metrics and forward guidance. Total revenue for the quarter was reported at $176.1 million, reflecting a year-over-year growth of 6%. The company experienced a gross margin of 56%, up from 51% in the previous year. Coursera's consumer segment generated $102.3 million in revenue, while the enterprise and degree segments contributed $60.4 million and $13.4 million, respectively. The enterprise segment saw a 10% revenue increase year-over-year, with the number of paid enterprise customers growing by 19% to over 1,560 institutions. The degree segment saw a 15% increase in revenue, with total degree students reaching 26,455, up 29% from the prior year. Coursera raised its full-year adjusted EBITDA margin target by 170 basis points to 5.4%, anticipating annual revenue to be between $690 million and $694 million. The company also announced a reduction in its global workforce by about 10%, aiming to achieve at least $30 million in annualized structural cost savings.

Solid Third Quarter Performance

Coursera delivered total revenue of $176.1 million for Q3, up 6% year-over-year, with a strong adjusted EBITDA margin of 7.6%.

Expansion of Content and Partnerships

Coursera added 10 new educator partners and launched over 25 new entry-level professional certificates in 2024, including notable partnerships with Adobe, Amazon, and IBM.

Generative AI Content Growth

The company now offers over 500 generative AI courses and projects, with over 3 million cumulative enrollments, seeing enrollments accelerate to 6 every minute in 2024.

Cost Management and Profitability

Coursera plans to implement a broader expense reduction initiative, including a 10% workforce reduction, expected to generate at least $30 million in annualized cost savings.

Strong Cash Flow

Coursera generated over $50 million in free cash flow year-to-date, bolstering a strong balance sheet with approximately $719 million of unrestricted cash and cash equivalents.

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Coursera (COUR) Earnings, Revenues Date & History

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COUR Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 06, 2025	2024 (Q4)	0.04 / -	0.06	―	―	―
Oct 24, 2024	2024 (Q3)	0.02 / 0.10	-0.012	933.33% (+0.11)
Jul 25, 2024	2024 (Q2)	0.01 / 0.09	-0.001	9100.00% (+0.09)
Apr 29, 2024	2024 (Q1)	<0.01 / 0.07	-0.035	300.00% (+0.11)
Feb 01, 2024	2023 (Q4)	0.00 / 0.06	-0.043	239.53% (+0.10)
Oct 26, 2023	2023 (Q3)	-0.07 / -0.01	-0.068	82.35% (+0.06)
Jul 27, 2023	2023 (Q2)	-0.10 / >-0.01	-0.148	99.32% (+0.15)
Apr 27, 2023	2023 (Q1)	-0.11 / -0.04	-0.113	69.03% (+0.08)
Feb 09, 2023	2022 (Q4)	-0.12 / -0.04	-0.17	74.71% (+0.13)
Oct 26, 2022	2022 (Q3)	-0.11 / -0.07	-0.06	-13.33% (>-0.01)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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COUR Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 24, 2024	$7.62	$6.88	-9.71%
Jul 25, 2024	$7.41	$10.72	+44.67%
Apr 29, 2024	$11.89	$10.22	-14.05%
Feb 01, 2024	$19.14	$18.21	-4.86%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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