Coursera Shares Fall After Q3 Results, Lower FY24 Revenue Guidance

Coursera, Inc. COUR shares are trading lower after the company reported its third-quarter results after Thursday's closing bell. Here's a look at the details from the report.  

The Details: Coursera reported quarterly earnings of 10 cents per share, which beat the analyst consensus estimate of two cents. Quarterly revenue came in at $176.089 million, which beat the analyst consensus estimate of $173.979 million and is an increase over sales of $165.54 million from the same period last year.

• Consumer revenue was $102.3 million, up 3% from a year ago on growth in Coursera Plus, including recent certificate launches from industry partners. Segment gross margin was $55.3 million, or 54% of consumer revenue, compared to 52% a year ago. The company added more than 7 million new registered learners during the quarter for a total of 162 million.
• Enterprise revenue was $60.4 million, up 10% from a year ago driven by growth in its business, campus and government verticals. The total number of Paid Enterprise Customers increased to 1,564, up 19% from a year ago. Segment gross margin was $42.3 million, or 70% of Enterprise revenue, compared to 68% a year ago. The company’s Net Retention Rate for Paid Enterprise Customers was 89%.
• Degrees revenue was $13.4 million, up 15% from a year ago on scaling of recent program launches. Segment gross margin was 100% of Degrees revenue as there is no content cost attributable to the Degrees segment. The total number of Degrees students reached 26,400, up 29% from a year ago.

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“In the third quarter, we demonstrated strong progress across Coursera’s learning ecosystem. We welcomed 10 new partners and launched more than a dozen industry micro-credentials, many of which teach emerging skills in generative AI,” said Coursera CEO Jeff Maggioncalda.

Outlook: Coursera sees fourth-quarter revenue between $174 million and 178 million, below the $186.62 million estimate. The company lowered its fiscal 2024 revenue outlook from between $695 million and $705 million to a new range of $690 million to $694 million.

COUR Price Action: According to Benzinga Pro, Coursera shares are down 14.96% after-hours at $6.48 at the time of publication Thursday.

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