Coursera (COUR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $176.1 million, up 6% year-over-year, with strong progress in content, product, and marketing, and significant growth across Consumer, Enterprise, and Degrees segments.

• Net loss narrowed to $13.7 million from $32.1 million a year ago; non-GAAP net income was $16.6 million, and adjusted EBITDA turned positive at $13.3 million.

• Added over 7 million new registered learners, totaling 162 million, and expanded partnerships, especially in India and with the University of Texas System.

• Significant product innovation with generative AI, including enhancements to Coursera Coach and Course Builder, and over 20 new or upgraded AI certificates and specializations.

• Announced a 10% global workforce reduction and cost-saving initiative targeting at least $30 million in annualized savings.

Financial highlights

• Q3 2024 revenue: $176.1 million (up 6% year-over-year); Consumer $102.3 million (up 3%), Enterprise $60.4 million (up 10%), Degrees $13.4 million (up 15%).

• Gross profit was $98.1 million (56% margin), up from 51% last year; non-GAAP gross profit was $98.1 million (56%).

• Adjusted EBITDA for Q3 was $13.3 million (8% margin), compared to $(5.3) million (-3% margin) in Q3 2023.

• Free cash flow for Q3 was $16.7 million; year-to-date free cash flow exceeded $50 million.

• Ended Q3 with $719.4 million in cash and cash equivalents and no debt.

Outlook and guidance

• Q4 2024 revenue expected between $174 million and $178 million; adjusted EBITDA between $4.5 million and $6.5 million.

• Full-year 2024 revenue guidance is $690 million to $694 million; adjusted EBITDA raised to $36.5 million–$38.5 million, with margin outlook increased by 170 basis points to 5.4%.

• At least $30 million in annualized structural cost savings expected from expense reduction initiatives, with most actions completed by March 31, 2025.

• Anticipates $7–$9 million in restructuring expenses in Q4 2024, offset by $2–$3 million reversal of stock-based compensation.

• Management expects existing cash and cash equivalents to be sufficient for at least the next 12 months.