Total Revenue: $169.1 million, up 15% year-over-year.
Gross Profit: $91.7 million, with a gross margin of 54%, consistent with the prior year.
Net Income: $11.9 million, making up 7% of revenue.
Adjusted EBITDA: $8.3 million, at a margin of 4.9%.
Consumer Segment Revenue: $96.7 million, an 18% increase from the previous year.
Enterprise Segment Revenue: $57.5 million, a 10% growth year-over-year.
Free Cash Flow: Approximately $18 million, including over $2 million in content asset purchases.
New Registered Learners: Approximately 7 million added in the quarter, growing the total learner base to 148 million.
Segment Gross Profits: Consumer at 54% of its revenue; Enterprise at 68% of its revenue.
Future Guidance
No detailed future guidance on revenue, profits, margins, or % growth provided in the text.
Expected Completion of Share Repurchase Program: Within the current quarter, depending on the stock price, with nearly $15 million remaining from a total $95 million authorization.
Adjusted EBITDA Margin Target: Remains unchanged at approximately 4% for 2024 despite top-line guidance adjustments.
Capital Expenditures and Expenses: Included a note on treating purchases of content assets similar to other capital expenditures, affecting free cash flow calculations but no future predictions were provided.
Trends, Market Conditions, Sentiment
Digital Transformation Acceleration: Continued transformation across all sectors, with generative AI causing both concern and opportunity.
Skill Development and Learning: A significant gap between leaders’ and employees’ readiness to adopt new technology like generative AI, highlighting the need for reskilling at scale.
Transformation of Higher Education: Moves towards more flexible, accessible learning pathways combining professional certificates and degree programs, exemplified by partnerships like those with the University of Texas System.
Content and Platform Expansion: Coursera is expanding its catalog with new professional certificates, degrees, and generative AI content to meet diverse global educational needs.
Global Reach and Learner Growth: Expansion in the Asia Pacific region noted as the fastest, with a total global learner base growth to 148 million.
Generative AI Integration: Development and integration of generative AI innovations such as Coursera Course Builder, expanding AI translation into more languages, and launching Coursera Coach to enhance learning experiences.
Organizational Changes: Restructuring of the leadership team to flatten the structure for more direct oversight and to aid in scaling growth and innovation initiatives.
Notable Quotes
Jeffrey Maggioncalda: “Our focus on branded, job rolling credentials continues to resonate with the individuals and institutions that we serve.”
Jeffrey Maggioncalda: “We believe the key to navigating this conundrum lies in high-quality education and training, talent agility, and effective change management.”
Kenneth Hahn: “We are not satisfied with our revenue growth… we are experiencing a lower volume and conversion of paid learners compounded by the delay of the key content launch.”
Kenneth Hahn: “We believe that our strong financial position is an asset that provides resilience and strategic optionality.”
