In the first quarter of the fiscal year, Coursera (COUR, Financial) reported a revenue of $179 million, surpassing analysts' expectations of $175.39 million. This financial milestone reflects the company's robust performance as it continues to lead in the online education sector.
Under the leadership of new CEO Greg Hart, the platform attracted over seven million new learners, setting a company record for the first quarter. This growth highlights the increasing global demand for Coursera's job-oriented educational offerings and reliable learning programs.
CEO Greg Hart has focused on building upon Coursera’s established strengths and exploring new opportunities to enhance the platform's value for learners, customers, and partners. His efforts are aimed at enriching the educational experiences Coursera provides, ensuring it remains a preferred choice for those seeking accessible and meaningful learning opportunities worldwide.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Coursera Inc (COUR, Financial) is $9.54 with a high estimate of $12.00 and a low estimate of $7.00. The average target implies an upside of 23.92% from the current price of $7.70. More detailed estimate data can be found on the Coursera Inc (COUR) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Coursera Inc's (COUR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coursera Inc (COUR, Financial) in one year is $16.14, suggesting a upside of 109.61% from the current price of $7.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coursera Inc (COUR) Summary page.
COUR Key Business Developments
Release Date: January 30, 2025
- Total Revenue (Q4 2024): $179 million, up 6% year-over-year.
- Gross Profit (Q4 2024): $97.5 million, with a 54% gross margin.
- Net Income (Q4 2024): $13.3 million, representing 7.4% of revenue.
- Adjusted EBITDA (Q4 2024): $9.5 million, or 5% of revenue.
- Total Revenue (Full Year 2024): $695 million, up 9% year-over-year.
- Gross Profit (Full Year 2024): $379.6 million, with a 55% gross margin.
- Net Income (Full Year 2024): $55.6 million, representing 8% of revenue.
- Adjusted EBITDA (Full Year 2024): $41.5 million, or 6% of revenue.
- Free Cash Flow (Full Year 2024): Over $59 million.
- Consumer Revenue (Q4 2024): $101.7 million, up 5% year-over-year.
- Enterprise Revenue (Q4 2024): $62.3 million, up 7% year-over-year.
- Degree Revenue (Q4 2024): $15.2 million, up 14% year-over-year.
- Number of Paid Enterprise Customers (End of 2024): 1,612, up 18% year-over-year.
- Net Retention Rate for Paid Enterprise Customers: 87%.
- Total Number of Degree Students (End of 2024): 26,700, up 22% year-over-year.
- Cash and Marketable Securities (End of 2024): Approximately $726 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coursera Inc (COUR, Financial) achieved significant revenue growth from less than $100 million in 2017 to nearly $700 million by the end of 2024.
- The company has expanded its platform by partnering with over 350 world-class universities and industry leaders.
- Coursera Inc (COUR) launched nearly 40 new entry-level professional certificates in 2024, many of which have received credit recommendations.
- The company has seen a substantial increase in generative AI course enrollments, with over 450 new courses added in 2024.
- Coursera Inc (COUR) demonstrated strong financial performance with over $59 million in free cash flow and a healthy balance sheet with $726 million in cash and no debt.
Negative Points
- Growth fell short of Coursera Inc (COUR)'s goals for 2024, with a slower pace of revenue increase compared to previous years.
- The company is experiencing weakness in the government workforce development programs and non-credit Coursera for Campus offerings.
- Coursera Inc (COUR) anticipates a revenue decline in its degree segment for Q1 and full year 2025.
- The company is facing challenges in the North American market, with softer growth impacting consumer segment performance.
- There is a strategic shift away from degrees as a core growth engine, with a focus on other initiatives for faster returns.
