Coursera's stock has been devastated since its 2021 IPO, despite now being cash generative and posting some growth. Degrees has been the bright spot, and also a source of positive mix effects, but the guidance is declines in Q1 and the FY 2025. We don't fully understand why there would be declines, and would like an emerging growth engine before picking up this beleaguered stock.
Coursera is proving its growth and profitability potential despite a challenging year, making it a strong candidate for a rebound and a buy rating. The company's diversified revenue streams, including individual consumers, enterprises, and universities, are all growing, with the degree segment showing the strongest growth at 14% y/y. Coursera's strategic shift towards credit courses and away from full degree programs is expected to enhance its profitability and appeal to higher education institutions.
Shares of Coursera Inc COUR were under pressure on Friday, after the company reported fourth-quarter results.
Coursera, Inc. (NYSE:COUR ) Q4 2024 Earnings Conference Call January 30, 2025 5:00 PM ET Company Participants Cam Carey - Head of Investor Relations Andrew Ng - Chairman and Co-Founder Greg Hart - Incoming Chief Executive Officer Jeff Maggioncalda - Current Chief Executive Officer Ken Hahn - Chief Financial Officer Conference Call Participants Patrick McIlwee - William Blair Rishi Jaluria - RBC Capital Markets Josh Baer - Morgan Stanley Ryan MacDonald - Needham Operator Ladies and gentlemen, thank you for standing by, and welcome to Coursera's Fourth Quarter and Full Year 2024 Earnings Call. At this time, all participants are in a listen-only mode and please be advised that this call is being recorded.
While the top- and bottom-line numbers for Coursera (COUR) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Coursera (COUR) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.06 per share a year ago.
With $720 million in cash, Coursera is well-positioned for potential acquisitions or other strategic uses to spur growth or safeguard against losses. Coursera's growth has slowed, but I believe focusing on improving margins and maintaining steady growth is a prudent strategy. AI can significantly reduce course creation costs and drive demand for AI-related courses, positively impacting Coursera's margins and revenue.
Coursera stock price has crashed to a near-record low as the company's business growth decelerates amid an uptick in AI use. COUR was trading at $8.31, a few points above the record low of $6.26.
NEW YORK, NY / ACCESSWIRE / December 6, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Coursera, Inc. ("Coursera, Inc.") (NYSE:COUR) concerning possible violations of federal securities laws. On April 29, 2024, Coursera reported 1Q 2024 financial results that missed revenue estimates and then lowered its full-year guidance.
NEW YORK, NY / ACCESSWIRE / December 5, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Coursera, Inc. ("Coursera, Inc.") (NYSE:COUR) concerning possible violations of federal securities laws. On April 29, 2024, Coursera reported 1Q 2024 financial results that missed revenue estimates and then lowered its full-year guidance.
NEW YORK, NY / ACCESSWIRE / December 4, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Coursera, Inc. ("Coursera, Inc.") (NYSE:COUR) concerning possible violations of federal securities laws. On April 29, 2024, Coursera reported 1Q 2024 financial results that missed revenue estimates and then lowered its full-year guidance.
I remain bullish on Coursera stock, expecting growth to accelerate to mid-teens by FY26, driven by improving macro conditions and robust demand. The macro environment in the US and Europe is stabilizing, with inflation and consumer confidence showing positive trends, suggesting a better demand environment in 2025. COUR's large TAM and potential for online education growth, coupled with an improving macro backdrop, support a positive long-term growth outlook and valuation upside.