MOUNTAIN VIEW, Calif. – Coursera Inc. (NYSE: NYSE:) shares surged 17% as the online education provider reported second-quarter earnings that exceeded Wall Street expectations and issued a robust financial outlook, signaling confidence in its growth trajectory.
For the quarter ended June 30, 2024, Coursera announced a significant beat on earnings per share (EPS) at $0.09, outpacing analyst estimates of $0.01. Total revenue for the quarter reached $170.3 million, also surpassing the consensus estimate of $164.42 million and marking an 11% increase from $153.7 million in the same period last year.
The company’s CEO, Jeff Maggioncalda, attributed the strong performance to the rising demand for generative AI courses and credentials, stating, “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.”
Coursera’s CFO, Ken Hahn, expressed satisfaction with the results, highlighting the company’s operational efficiency and cash flow: “I am pleased with our second quarter results, delivering growth across our segments with strong operating leverage and cash flow performance.”
Looking ahead, Coursera provided guidance for the third quarter of 2024 with revenue expected to be between $171 and $175 million, which is below the analyst consensus of $178.8 million. However, the midpoint of this guidance range, $173 million, is still a reflection of the company’s positive outlook.
The company also reaffirmed its full-year 2024 revenue guidance in the range of $695 to $705 million, with adjusted EBITDA projected between $24 to $28 million, aligning with its annual EBITDA margin commitment of approximately 4%.
Coursera’s robust performance is further evidenced by its operational highlights, including a 12% increase in Consumer revenue driven by demand for Professional Certificates and generative AI credentials. The Enterprise segment saw an 8% increase in revenue, while Degrees revenue climbed 14% from the previous year.
In addition to financial achievements, Coursera has also made significant strides in content and platform development.
Notably, the company launched a record number of entry-level Professional Certificates and enhanced existing credentials with generative AI content.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
