NEW YORK - Shares of Coursera Inc. (NYSE: NYSE:COUR) fell sharply by 13% following the company's release of its first-quarter financial results, which revealed a significant miss in its outlook compared to analyst expectations.
Despite reporting a solid start to the year with a 15% increase in revenue to $169.1 million, up from $147.6 million in the same period last year, the company's guidance for the second quarter and full year fell short of consensus estimates.
For the first quarter ended March 31, 2024, Coursera announced an adjusted EPS of $0.07, surpassing the analyst estimate of $0.01. The reported revenue, however, was slightly below the $170.43 million consensus estimate.
The company's net loss improved to -$21.3 million, or -12.6% of revenue, from -$32.4 million, or -21.9% of revenue YoY. Coursera's CEO Jeff Maggioncalda attributed the quarter's performance to the expansion of their AI course catalog and innovations like Coursera Coach and Course Builder.
Looking ahead, Coursera's guidance indicated a cautious outlook, with second-quarter revenue projected to be between $162 million and $166 million, well below the analyst consensus of $177.8 million. The company also set its full-year 2024 revenue guidance at $695 million to $705 million, compared to a consensus of $736.5 million.
Coursera's CFO Ken Hahn expressed satisfaction with the company's ability to demonstrate operating leverage while investing in long-term growth initiatives. The company's consumer segment saw an 18% increase in revenue driven by demand for Professional Certificates and AI courses. The enterprise segment grew by 10%, and the degrees segment also saw a 10% increase in revenue.
In addition to financial results, Coursera highlighted its continued expansion in content and credentials, including a new master's pathway degree program and partnerships with companies like Google (NASDAQ:GOOGL) and Unilever (LON:ULVR) to offer professional certificates. The company also expanded its translation initiative and launched a new authoring tool for customers to create custom courses.
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