Coursera Inc (NYSE:COUR) Shares Fall

Coursera Inc (NYSE:COUR) shares tumbled 15% in after-hours trading Wednesday as the online education platform's fourth-quarter revenue guidance fell short of analyst expectations, overshadowing better-than-expected third-quarter results.

Third-Quarter Results

The company reported third-quarter adjusted earnings per share of $0.10, surpassing the analyst estimate of $0.02. Revenue for the quarter came in at $176.1 million, up 6% YoY and above the consensus estimate of $173.98 million.

Fourth-Quarter Revenue Forecast

Coursera's fourth-quarter revenue forecast of $174-178 million fell significantly below the analyst consensus of $186.6 million, sparking concerns about slowing growth.

> “Our strong bottom-line performance continues to demonstrate our commitment to driving sustainable growth while expanding profitability, no matter the environment in which we operate,” said Ken Hahn, Coursera's CFO.

Full-Year Outlook

The company raised its full-year 2024 adjusted EBITDA margin outlook by 170 basis points to 5.4%, highlighting its focus on profitability amid challenging market conditions. However, Coursera sees FY revenue between $690 million to $694 million, down from the prior range of $695 to $705 million, and below the consensus of $700 million.

Segment Performance

Coursera's Consumer segment revenue grew 3% YoY to $102.3 million, while Enterprise revenue increased 10% to $60.4 million. The Degrees segment saw 15% growth, reaching $13.4 million.

CEO Remarks

CEO Jeff Maggioncalda emphasized the company's progress, stating, “We welcomed ten new partners and launched more than a dozen industry micro-credentials, many of which teach emerging skills in generative AI."