On July 25, 2024, Coursera Inc (COUR, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Coursera Inc is an online learning platform that connects learners, educators, and institutions with the goal of providing educational content that is affordable, accessible, and relevant. It combines content, data, and technology into a single, unified platform that is customizable and extensible to both individual learners and institutions. The company operates through three reporting segments: Consumer, Enterprise, and Degrees. The majority of revenue is generated from the Consumer segment.
Performance Overview
Coursera Inc (COUR, Financial) reported total revenue of $170.3 million for Q2 2024, surpassing the analyst estimate of $164.41 million. This represents an 11% increase from $153.7 million in the same quarter last year. The company also reported a net loss of $(23.0) million, or $(0.15) per share, compared to a net loss of $(31.7) million, or $(0.21) per share, a year ago. Notably, the non-GAAP net income was $13.8 million, or $0.09 per share, compared to a non-GAAP net loss of $(0.3) million, or $(0.00) per share, a year ago.
Key Financial Achievements
Coursera's gross profit for the quarter was $90.2 million, or 53% of revenue, compared to $79.7 million, or 52% of revenue, a year ago. The non-GAAP gross profit was $92.3 million, or 54% of revenue, compared to $81.9 million, or 53% of revenue, a year ago. Adjusted EBITDA was $10.4 million, or 6.1% of revenue, compared to $(2.9) million, or (1.9)% of revenue, a year ago. Additionally, net cash provided by operating activities was $23.9 million, compared to a use of $(6.4) million a year ago, and free cash flow was $17.0 million, compared to $(12.2) million a year ago.
Segment Performance
The Consumer segment, which is the largest revenue generator, reported $97.3 million in revenue, up 12% from a year ago. The Enterprise segment saw an 8% increase in revenue to $58.7 million, while the Degrees segment reported a 14% increase in revenue to $14.3 million. The gross margins for these segments were 54%, 68%, and 100%, respectively.
Operational Highlights
Coursera surpassed more than 2 million enrollments in its generative AI catalog and launched a record number of entry-level Professional Certificates from leading industry partners. The company also enhanced existing certificates with job-relevant generative AI content and announced a new master's in computer science degree program from Clemson University.
Commentary
“We are excited to surpass more than two million enrollments in our generative AI catalog of courses, credentials, and hands-on projects created by the world’s top technology companies and research universities,” said Coursera CEO Jeff Maggioncalda.
“I am pleased with our second quarter results, delivering growth across our segments with strong operating leverage and cash flow performance,” said Ken Hahn, Coursera’s CFO.
Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $170.3 million | $153.7 million |
| Gross Profit | $90.2 million | $79.7 million |
| Net Loss | $(23.0) million | $(31.7) million |
| Non-GAAP Net Income | $13.8 million | $(0.3) million |
| Adjusted EBITDA | $10.4 million | $(2.9) million |
| Free Cash Flow | $17.0 million | $(12.2) million |
Analysis
Coursera Inc (COUR, Financial) has demonstrated robust growth in its key segments, particularly in the Consumer and Degrees segments. The company's focus on generative AI and professional certificates has resonated well with learners, driving significant enrollment numbers. The improvement in gross profit margins and the transition to a non-GAAP net income position highlight the company's operational efficiency and strategic focus.
However, the net loss remains a concern, although it has narrowed compared to the previous year. The company's ability to maintain and expand its partnerships with leading industry players and educational institutions will be crucial for sustaining growth and achieving profitability in the long term.
Explore the complete 8-K earnings release (here) from Coursera Inc for further details.
