Coursera's Growth Outlook Weakens As Analysts Flag AI, CEO Shift

Shares of Coursera Inc COUR were under pressure on Friday, after the company reported fourth-quarter results.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

Telsey Advisory Group On Coursera

Analyst Sarang Vora reiterated an Outperform rating, while reducing the price target from $15 to $12.

Coursera reported fourth-quarter adjusted EBITDA of $9.5 million, beating consensus of $5.8 million, with revenue growth of 6.1% to $179.2 million, surpassing consensus of $176.5 million, Vora said in a note. However, the outlook for the first quarter was mixed, he added.

While adjusted EBITDA guidance of $8 million to $12 million came in-line with expectations, management guided to softer sales growth of 2.3%-4.7% to $173 million to $177 million, the analyst stated. "Furthermore, Coursera provided limited 2025 guidance, which should allow the new CEO some financial flexibility to make necessary changes," he further wrote.

Check out other analyst stock ratings.

RBC Capital Markets On Coursera

Analyst Rishi Jaluria maintained an Outperform rating and price target of $10.

Although Coursera reported marginally higher-than-expected quarterly results, "underlying trends were concerning," Jaluria said. The company's performance was "not enough to quell investor fears of GenAI encroachment," he added.

The company's near-term growth trajectory "comes under increased pressure," the analyst wrote. With the CEO transition, the initial 2025 guidance was disappointing and the first-quarter guidance came in well below expectations, he further stated.

Scotiabank On Coursera

Analyst Nat Schindler reaffirmed a Sector Perform rating and price target of $9.

Coursera's net revenue retention (NRR) declined to 87% in the fourth quarter, from 89% in the previous quarter, "suggesting that enterprise budget constraints remain a headwind," Schindler said. Although management termed this NRR erosion as "transitory," there have been several quarters of "similar commentary," which brings into questions "whether this weakness is becoming structural and not temporary," he added.

If NRR continues to decline, "it could challenge the company's ability to scale revenue in 2025," the analyst stated. There are also concerns around whether Coursera can "monetize its AI investments while driving sustainable growth in Enterprise and Consumer," he further wrote.

COUR Price Action: Shares of Coursera were down 4.8% to $8.05 at the time of publication on Friday.

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