Coursera (COUR) Q4 2024 earnings summary

Executive summary

• Leadership transition announced: Greg Hart to become CEO effective February 3, 2025, succeeding Jeff Maggioncalda, with a focus on accelerating growth and AI-driven innovation.

• Full year 2024 revenue reached $695 million, up 9% year-over-year, supported by growth across Consumer, Enterprise, and Degrees segments.

• Achieved first full year of positive Adjusted EBITDA ($41.5 million, 6% margin) and generated $59.3 million in Free Cash Flow.

• Registered learners reached 168 million, with over 6 million new learners added in Q4 2024.

• Strategic shift to prioritize enterprise and consumer segments for near-term growth, with moderated investment in the degrees segment.

Financial highlights

• Q4 2024 revenue was $179 million, up 6% year-over-year; full year revenue was $695 million, up 9% year-over-year.

• Q4 gross profit was $97.5 million (54% margin); full year gross profit was $379.6 million (55% margin).

• Q4 Adjusted EBITDA was $9.5 million (5.3% margin); full year Adjusted EBITDA was $41.5 million (6.0% margin), up from negative $10 million in 2023.

• Q4 non-GAAP net income was $13.3 million (7.4% margin); full year non-GAAP net income was $55.6 million (8% margin).

• Free Cash Flow for 2024 was $59.3 million, with $726 million in cash and equivalents and no debt at year-end.

Outlook and guidance

• Q1 2025 revenue guidance: $173–$177 million (2–5% year-over-year growth); Adjusted EBITDA expected between $8–$12 million.

• Full year 2025 expected to show positive top-line growth, led by consumer and enterprise segments, while degrees segment revenue is anticipated to decline.

• Commitment to continued annual Adjusted EBITDA margin expansion, though at a slower pace to allow for growth investments.

• More detailed 2025 outlook to be provided following leadership transition.