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Coursera Shares Slide After Q2 Earnings Miss, Inferior Outlook

Benzinga · 07/27/2022 17:36
  • Coursera Inc (NYSE:COUR) reported second-quarter revenue growth of 22% year-over-year to $124.8 million, missing the consensus of $130.45 million.
  • Enterprise revenue was $43.7 million (+55% Y/Y), the total number of Paid Enterprise Customers increased to 958, up 64% Y/Y, and Net Retention Rate (NRR) for Paid Enterprise Customers was 111%.
  • Degrees revenue was $11.4 million (-4% Y/Y). The total number of Degrees Students reached 17,460, up 19% Y/Y.
  • EPS was $(0.34), missing the consensus of $(0.13).
  • The gross profit contracted by 317 bps to 62.9%, and the adjusted gross margin expanded by 292 bps to 63.5%.
  • The company recorded a loss from operation of $(47.84) million, up from $(45.78) million in 2Q21.
  • Adjusted EBITDA loss was $(15.62) million, compared to $(2.91) million in 2Q21.
  • Coursera's net cash used in operating activities year-to-date was $(37.4) million, compared to $(9.8) million a year ago. It had cash and cash equivalent of $382.07 million as of June 30, 2022.
  • "With our three-sided platform, diversified offerings, and global learner base, we have multiple levers of growth to navigate the long-term trends shaping higher education," commented Coursera CEO Jeff Maggioncalda.
  • 3Q22 Outlook: Coursera expects revenue of $126 million to $130 million vs. a consensus of $142.31 million and Adjusted EBITDA of $(10.5) million to $(13.5) million.
  • FY22 Outlook: The company expects revenue of $509 million to $515 million vs. a consensus of $542.13 million and Adjusted EBITDA of $(42.5) million to $(48.5) million.
  • Price Action: COUR shares are trading lower by 26.20% at $12 during the post-market session on Wednesday.
  • Photo via Wikimedia Commons