Summary
Coursera Inc (COUR, Financial) announced its financial results for the first quarter ending March 31, 2025, on April 24, 2025. The company reported a record addition of over seven million new learners, reflecting the growing global demand for online education. Coursera's CEO, Greg Hart, emphasized the company's commitment to enhancing learning experiences, while CFO Ken Hahn highlighted the company's improved growth expectations and strong cash flow generation.
Positive Highlights
- Revenue increased by 6% year-over-year to $179.3 million.
- Gross profit rose by 9% to $97.9 million.
- Net loss significantly reduced by 63% to $7.8 million.
- Free Cash Flow exceeded $25 million, demonstrating strong cash generation.
- New registered learners reached a record 7.1 million, up from 6.6 million in the previous year.
Negative Highlights
- Net Retention Rate for Paid Enterprise Customers decreased to 91% from 94%.
- Operating expenses remained high, impacting overall profitability.
Financial Analyst Perspective
From a financial analyst's viewpoint, Coursera's Q1 2025 results indicate a positive trajectory in revenue growth and operational efficiency. The significant reduction in net loss and the increase in free cash flow are promising signs of the company's financial health. However, the decline in the Net Retention Rate for Paid Enterprise Customers suggests potential challenges in customer retention that need to be addressed to sustain long-term growth.
Market Research Analyst Perspective
As a market research analyst, the record growth in new registered learners underscores the increasing demand for online education and Coursera's strong market position. The company's strategic focus on expanding its consumer segment and integrating degrees into its offerings could enhance its competitive edge. However, maintaining customer engagement and retention in the enterprise segment will be crucial for future success.
Frequently Asked Questions (FAQ)
Q: What was Coursera's revenue for Q1 2025?
A: Coursera's revenue for Q1 2025 was $179.3 million, a 6% increase from the previous year.
Q: How many new learners did Coursera add in Q1 2025?
A: Coursera added over seven million new learners in Q1 2025, marking a record for the first quarter.
Q: What is Coursera's financial outlook for 2025?
A: Coursera expects full-year 2025 revenue to range between $720 to $730 million, with an annual Adjusted EBITDA Margin improvement of 100 basis points to 7.0%.
Read the original press release here.
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