Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40275 | |
Entity Registrant Name | COURSERA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3560292 | |
Entity Address, Address Line One | 381 E. Evelyn Ave. | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 | |
City Area Code | 650 | |
Local Phone Number | 963-9884 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | COUR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 149,691,192 | |
Entity Central Index Key | 0001651562 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 361,201 | $ 320,817 |
Marketable securities | 355,710 | 459,654 |
Accounts receivable, net of allowance for credit losses of $267 and $495 as of June 30, 2023 and December 31, 2022 | 73,209 | 53,734 |
Deferred costs, net | 24,734 | 24,147 |
Prepaid expenses and other current assets | 22,154 | 17,636 |
Total current assets | 837,008 | 875,988 |
Property, equipment, and software, net | 28,840 | 27,096 |
Operating lease right-of-use assets | 7,199 | 9,605 |
Intangible assets, net | 9,179 | 8,553 |
Other assets | 36,484 | 26,355 |
Total assets | 918,710 | 947,597 |
Current liabilities: | ||
Educator partners payable | 88,719 | 66,375 |
Other accounts payable and accrued expenses | 17,582 | 23,342 |
Accrued compensation and benefits | 23,020 | 21,163 |
Operating lease liabilities, current | 7,660 | 8,658 |
Deferred revenue, current | 138,601 | 115,701 |
Other current liabilities | 9,093 | 7,202 |
Total current liabilities | 284,675 | 242,441 |
Operating lease liabilities, non-current | 2,650 | 5,791 |
Deferred revenue, non-current | 3,212 | 3,076 |
Other liabilities | 1,692 | 1,714 |
Total liabilities | 292,229 | 253,022 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value—10,000,000 shares authorized and no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.00001 par value—300,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 156,904,092 shares issued and 149,635,861 shares outstanding as of June 30, 2023, and 150,683,607 shares issued and 147,935,669 shares outstanding as of December 31, 2022 | 2 | 1 |
Additional paid-in capital | 1,414,559 | 1,364,116 |
Treasury stock—at cost, 7,268,231 and 2,747,938 shares as of June 30, 2023 and December 31, 2022 | (59,230) | (4,701) |
Accumulated other comprehensive loss | (620) | (718) |
Accumulated deficit | (728,230) | (664,123) |
Total stockholders’ equity | 626,481 | 694,575 |
Total liabilities and stockholders’ equity | $ 918,710 | $ 947,597 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 267 | $ 495 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 156,904,092 | 150,683,607 |
Common stock, shares outstanding (in shares) | 149,635,861 | 147,935,669 |
Treasury stock, shares (in shares) | 7,268,231 | 2,747,938 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 153,702 | $ 124,754 | $ 301,344 | $ 245,187 |
Cost of revenue | 74,001 | 46,348 | 144,175 | 89,151 |
Gross profit | 79,701 | 78,406 | 157,169 | 156,036 |
Operating expenses: | ||||
Research and development | 41,286 | 44,929 | 85,095 | 82,884 |
Sales and marketing | 52,001 | 55,586 | 104,873 | 107,253 |
General and administrative | 24,937 | 25,726 | 50,460 | 50,904 |
Restructuring related charges | (147) | 0 | (5,806) | 0 |
Total operating expenses | 118,077 | 126,241 | 234,622 | 241,041 |
Loss from operations | (38,376) | (47,835) | (77,453) | (85,005) |
Interest income | 8,240 | 837 | 16,277 | 1,172 |
Other (expense) income, net | (8) | (1,173) | 94 | (1,598) |
Loss before income taxes | (30,144) | (48,171) | (61,082) | (85,431) |
Income tax expense | 1,599 | 1,163 | 3,025 | 2,171 |
Net loss | $ (31,743) | $ (49,334) | $ (64,107) | $ (87,602) |
Net loss per shares-basic (in dollars per share) | $ (0.21) | $ (0.34) | $ (0.43) | $ (0.61) |
Net loss per share-diluted (in dollars per share) | $ (0.21) | $ (0.34) | $ (0.43) | $ (0.61) |
Weighted average shares used in computing net loss per share- basic (in shares) | 150,262,064 | 144,782,220 | 149,621,816 | 143,909,469 |
Weighted average shares used in computing net loss per share— diluted (in shares) | 150,262,064 | 144,782,220 | 149,621,816 | 143,909,469 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (31,743) | $ (49,334) | $ (64,107) | $ (87,602) |
Change in unrealized (loss) gain on marketable securities, net of tax | (335) | (454) | 98 | (2,066) |
Comprehensive loss | $ (32,078) | $ (49,788) | $ (64,009) | $ (89,668) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 144,653,979 | |||||
Beginning balance at Dec. 31, 2021 | $ 741,513,000 | $ 1,000 | $ 1,235,231,000 | $ (4,701,000) | $ (252,000) | $ (488,766,000) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (2,747,938) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 2,873,688 | |||||
Issuance of common stock upon exercise of options | 11,485,000 | 11,485,000 | ||||
Vesting of restricted stock units (in shares) | 722,365 | |||||
Tax withholding on vesting of restricted stock units (in shares) | (271,089) | |||||
Tax withholding on vesting of restricted stock units | (4,852,000) | (4,852,000) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 353,828 | |||||
Issuance of common stock related to employee stock purchase plan | 4,596,000 | 4,596,000 | ||||
Stock-based compensation expense | 52,713,000 | 52,713,000 | ||||
Change in unrealized gain on marketable securities | (2,066,000) | (2,066,000) | ||||
Net loss | (87,602,000) | (87,602,000) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 148,332,771 | |||||
Ending balance at Jun. 30, 2022 | 715,787,000 | $ 1,000 | 1,299,173,000 | $ (4,701,000) | (2,318,000) | (576,368,000) |
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | (2,747,938) | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 146,578,434 | |||||
Beginning balance at Mar. 31, 2022 | 728,685,000 | $ 1,000 | 1,262,283,000 | $ (4,701,000) | (1,864,000) | (527,034,000) |
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | 2,747,938 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 1,145,682 | |||||
Issuance of common stock upon exercise of options | 5,035,000 | 5,035,000 | ||||
Vesting of restricted stock units (in shares) | 400,030 | |||||
Tax withholding on vesting of restricted stock units (in shares) | (145,203) | |||||
Tax withholding on vesting of restricted stock units | (2,227,000) | (2,227,000) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 353,828 | |||||
Issuance of common stock related to employee stock purchase plan | 4,596,000 | 4,596,000 | ||||
Stock-based compensation expense | 29,486,000 | 29,486,000 | ||||
Change in unrealized gain on marketable securities | (454,000) | (454,000) | ||||
Net loss | (49,334,000) | (49,334,000) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 148,332,771 | |||||
Ending balance at Jun. 30, 2022 | $ 715,787,000 | $ 1,000 | 1,299,173,000 | $ (4,701,000) | (2,318,000) | (576,368,000) |
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | (2,747,938) | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 147,935,669 | 150,683,607 | ||||
Beginning balance at Dec. 31, 2022 | $ 694,575,000 | $ 1,000 | 1,364,116,000 | $ (4,701,000) | (718,000) | (664,123,000) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | (2,747,938) | (2,747,938) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 3,259,812 | |||||
Issuance of common stock upon exercise of options | $ 14,114,000 | $ 1,000 | 14,113,000 | |||
Vesting of restricted stock units (in shares) | 4,414,108 | |||||
Tax withholding on vesting of restricted stock units (in shares) | (1,812,179) | |||||
Tax withholding on vesting of restricted stock units | (24,855,000) | (24,855,000) | ||||
Repurchases of common stock (in shares) | (4,520,293) | |||||
Repurchases of common stock | (54,529,000) | $ (54,529,000) | ||||
Issuance of restricted stock awards (in shares) | 6,805 | |||||
Issuance of common stock related to employee stock purchase plan (in shares) | 351,939 | |||||
Issuance of common stock related to employee stock purchase plan | 3,530,000 | 3,530,000 | ||||
Stock-based compensation expense | 57,655,000 | 57,655,000 | ||||
Change in unrealized gain on marketable securities | 98,000 | 98,000 | ||||
Net loss | $ (64,107,000) | (64,107,000) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 149,635,861 | 156,904,092 | ||||
Ending balance at Jun. 30, 2023 | $ 626,481,000 | $ 2,000 | 1,414,559,000 | $ (59,230,000) | (620,000) | (728,230,000) |
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | (7,268,231) | (7,268,231) | ||||
Beginning balance (in shares) at Mar. 31, 2023 | 152,932,136 | |||||
Beginning balance at Mar. 31, 2023 | $ 681,015,000 | $ 1,000 | 1,382,487,000 | $ (4,701,000) | (285,000) | (696,487,000) |
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | (2,747,938) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 2,161,345 | |||||
Issuance of common stock upon exercise of options | 8,760,000 | $ 1,000 | 8,759,000 | |||
Vesting of restricted stock units (in shares) | 2,437,874 | |||||
Tax withholding on vesting of restricted stock units (in shares) | 979,202 | |||||
Tax withholding on vesting of restricted stock units | (11,819,000) | (11,819,000) | ||||
Repurchases of common stock (in shares) | (4,520,293) | |||||
Repurchases of common stock | (54,529,000) | $ (54,529,000) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 351,939 | |||||
Issuance of common stock related to employee stock purchase plan | 3,530,000 | 3,530,000 | ||||
Stock-based compensation expense | 31,602,000 | 31,602,000 | ||||
Change in unrealized gain on marketable securities | (335,000) | (335,000) | ||||
Net loss | $ (31,743,000) | (31,743,000) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 149,635,861 | 156,904,092 | ||||
Ending balance at Jun. 30, 2023 | $ 626,481,000 | $ 2,000 | $ 1,414,559,000 | $ (59,230,000) | $ (620,000) | $ (728,230,000) |
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | (7,268,231) | (7,268,231) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (64,107) | $ (87,602) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 10,842 | 8,621 |
Stock-based compensation expense | 54,050 | 49,483 |
(Amortization) accretion of marketable securities | (9,413) | 1,020 |
Impairment of long-lived assets | 1,275 | 5,095 |
Other | 202 | 493 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (19,686) | (23,428) |
Prepaid expenses and other assets | (14,269) | (13,522) |
Operating lease right-of-use assets | 2,407 | 2,507 |
Accounts payable and accrued expenses | 15,863 | 4,462 |
Accrued compensation and other liabilities | 2,259 | (1,151) |
Operating lease liabilities | (4,139) | (3,136) |
Deferred revenue | 23,037 | 19,758 |
Net cash used in operating activities | (1,679) | (37,400) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (121,756) | (180,552) |
Proceeds from maturities of marketable securities | 235,000 | 15,000 |
Purchases of property, equipment, and software | (721) | (717) |
Capitalized internal-use software costs | (7,604) | (7,266) |
Purchases of content assets | (1,300) | (954) |
Net cash provided by (used in) investing activities | 103,619 | (174,489) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 14,114 | 11,787 |
Proceeds from employee stock purchase plan | 3,530 | 4,596 |
Payments for repurchases of common stock | (53,066) | 0 |
Payment of deferred offering costs | 0 | (295) |
Payments for tax withholding on vesting of restricted stock units | (24,855) | (4,852) |
Net cash (used in) provided by financing activities | (60,277) | 11,236 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 41,663 | (200,653) |
Cash, cash equivalents, and restricted cash—Beginning of period | 322,878 | 582,719 |
Cash, cash equivalents, and restricted cash—End of period | 364,541 | 382,066 |
Reconciliation of cash, cash equivalents, and restricted cash: | ||
Cash and cash equivalents | 361,201 | 380,005 |
Restricted cash, current | 1,574 | 0 |
Restricted cash, non-current | 1,766 | 2,061 |
Total cash, cash equivalents, and restricted cash | 364,541 | 382,066 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds | 2,284 | 1,475 |
Supplemental disclosure of noncash investing and financing activities: | ||
Stock-based compensation capitalized as internal-use software costs | 3,605 | 3,230 |
Unsettled repurchases of common stock | 1,463 | 0 |
Unpaid purchases of content assets | $ 1,193 | $ 0 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of Business | BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) of Coursera, Inc., a Delaware public benefit corporation, and its subsidiaries (“Coursera,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These Condensed Consolidated Financial Statements (Unaudited) have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of our financial information. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or for any other future year. The balance sheet as of December 31, 2022 has been derived from the Consolidated Financial Statements at that date but does not include all information required by GAAP for annual consolidated financial statements. These Condensed Consolidated Financial Statements (Unaudited) should be read in conjunction with the Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 23, 2023 (“Form 10-K”). Description of Business |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Condensed Consolidated Financial Statements (Unaudited) include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reporting Segments We conduct our operations through three reporting segments: Consumer, Enterprise, and Degrees. Refer to Note 13 for additional information. Use of Estimates The preparation of the Condensed Consolidated Financial Statements (Unaudited) in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the Condensed Consolidated Financial Statements (Unaudited), as well as the reported amounts of revenue and expenses during the reporting period. We base our estimates on historical experience, current conditions, and various other factors that we believe to be reasonable under the circumstances. Significant items subject to such estimates, judgements, and assumptions include, but are not limited to, those related to the determination of principal versus agent and variable consideration in our revenue contracts; stock-based compensation expense; period of benefit for capitalized commissions; internal-use software costs; useful lives of long-lived assets; the carrying value of operating lease right-of-use assets; the valuation of intangible assets and income tax expense, including the valuation of deferred tax assets and liabilities, among others. Actual results could differ from those estimates, and any such differences could be material to our Condensed Consolidated Financial Statements (Unaudited). Summary of Significant Accounting Policies There have been no significant changes to our significant accounting policies, other than the update described below, as of and for the three and six months ended June 30, 2023 as compared to the significant accounting policies described in our Form 10-K. Contract Acquisition and Fulfillment Costs Deferred Commissions Customer acquisition costs are primarily related to sales commissions and related payroll taxes earned by our Enterprise sales force, which are incremental costs we incur to obtain a contract. Sales commissions and related payroll costs earned by our Enterprise sales force, which are incremental costs we incur to obtain a contract, are deferred and then amortized on a straight-line basis over the expected period of benefit. On an annual basis, we assess the expected period of benefit by taking into consideration the length of terms in Enterprise customer contracts, the life of the technology, and other factors. Based on our most recent assessment, we determined that the expected period of benefit for incremental costs of our Enterprise customer contracts should be increased from three years to four years. This change in accounting estimate was eff ective January 1, 2023 and is accounted for prospectively in our Condensed Consolidated Financial Statements (Unaudited). For the three and six months ended June 30, 2023, the change in the expected period of benefit resulted in a benefit to sales and marketing expenses of $1,006 and $2,154. Sal es commissions and related payroll taxes paid for Enterprise contract renewals continue to be amortized over the renewal term, which is generally two years. Deferred commissions and related payroll taxes are recorded within deferred costs or other assets in the consolidated balance sheets, depending on the timing of the related amortization. They are amortized to sales and marketing in the consolidated statements of operations. Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash, cash equivalents, and marketable securities. We only invest in high-credit-quality instruments and maintain our cash equivalents and marketable securities in fixed-income securities. We place our cash primarily with domestic financial institutions that are federally insured within statutory limits. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Contract Balances Contract assets and liabilities were as follows: June 30, 2023 December 31, 2022 January 1, 2022 Contract assets: Billed accounts receivable, net of allowance for credit losses $ 67,503 $ 45,337 $ 22,286 Unbilled accounts receivable 5,706 8,397 12,110 Total contract assets $ 73,209 $ 53,734 $ 34,396 Contract liabilities: Deferred revenue $ 141,813 $ 118,777 $ 98,488 Total contract liabilities $ 141,813 $ 118,777 $ 98,488 Revenue recognized during the six months ended June 30, 2023 and 2022 that was included in the corresponding deferred revenue balance at the beginning of each year was $89,329 and $70,323. Remaining Performance Obligations Remaining performance obligations represent future revenue that is under non-cancelable contracts but has not yet been recognized. As of June 30, 2023, we had remaining performance obligations of $320,406 and expect to recognize approximately 65% of this balance as revenue over the next 12 months and the remainder thereafter. Costs to Obtain and Fulfill Contracts During the three months ended June 30, 2023 and 2022, we capitalized $4,726 and $4,606 of commissions and related payroll tax expenditures, and we amortized $2,933 and $3,003 to sales and marketing expense in the Condensed Consolidated Statements of Operations (Unaudited). During the six months ended June 30, 2023 and 2022, we capitalized commissions and related payroll tax expenditures of $7,698 and $7,099, and we amortized $5,614 and $5,747 to sales and marketing expense. As of June 30, 2023 and December 31, 2022, deferred commissions and related payroll tax expenditures included in deferred costs were $11,473 and $13,300 and in other assets were $14,337 and $10,426. During the three and six months ended June 30, 2022, we recognized an impairment loss of $0 and $1,886 on deferred partner fees that we do not expect to recover associated with content from Russian educator partners whose content we removed from our platform. The impairment loss was recorded within general and administrative expenses in the Condensed Consolidated Statements of Operations (Unaudited). No impairment loss related to deferred partner fees was recognized during the three and six months ended June 30, 2023. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table summarizes our investments measured at fair value on a recurring basis by balance sheet classification and investment type: June 30, 2023 December 31, 2022 Amortized Gross Gross Fair Amortized Gross Gross Fair Cash equivalents—money market funds $ 187,025 $ — $ — $ 187,025 $ 304,750 $ — $ — $ 304,750 Cash equivalents—U.S. Treasury securities 136,567 36 — 136,603 — — — — Total cash equivalents 323,592 36 — 323,628 304,750 — — 304,750 Marketable securities—U.S. Treasury securities 356,366 4 (660) 355,710 460,372 26 (744) 459,654 Total $ 679,958 $ 40 $ (660) $ 679,338 $ 765,122 $ 26 $ (744) $ 764,404 Gross realized gains and losses related to our marketable securities were not material for the three and six months ended June 30, 2023 and 2022. The following table presents the cost basis and fair value of our available-for-sale (“AFS”) marketable securities by contractual maturity date: June 30, 2023 December 31, 2022 Amortized Fair Amortized Fair Due in one year or less $ 356,366 $ 355,710 $ 460,372 $ 459,654 Investments in an unrealized loss position consisted of the following: June 30, 2023 December 31, 2022 Fair Gross Fair Gross U.S. Treasury securities $ 325,741 $ (660) $ 356,767 $ (744) As of June 30, 2023 and December 31, 2022, our AFS marketable securities were comprised of U.S. Treasury securities, which are backed by the full faith and credit of the U.S. government. As a result, there were no credit or non-credit impairment charges recorded during the three and six months ended June 30, 2023 and 2022. We remeasure our equity-method investment in a private company at fair value on a nonrecurring basis when an identifiable event or change in circumstance may have a significant adverse impact on its fair value. No such events or changes occurred during the three and six months ended June 30, 2023 and 2022. |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Balance Sheet Components | CONSOLIDATED BALANCE SHEET COMPONENTS Restricted Cash Restricted cash, current is included in prepaid expenses and other current assets, and restricted cash, non-current is included in other assets, both in the Condensed Consolidated Balance Sheets (Unaudited). Property, Equipment, and Software, Net Property, equipment, and software, net consisted of the following: June 30, 2023 December 31, 2022 Internal-use software and website development $ 63,265 $ 53,215 Computer equipment and purchased software 5,020 4,662 Leasehold improvements 6,910 6,567 Furniture and fixtures 2,759 2,714 Total property, equipment, and software 77,954 67,158 Less accumulated depreciation and amortization (49,114) (40,062) Property, equipment, and software, net $ 28,840 $ 27,096 Depreciation and amortization expense related to property, equipment, and software for the three and six months ended June 30, 2023 was $4,650 and $9,472 and $3,779 and $7,318 for the three and six months ended June 30, 2022. These amounts include amortization expense for internal-use software and website development of $4,043 and $8,264 for the three and six months ended June 30, 2023 and $3,059, and $5,870 for the three and six months ended June 30, 2022, that is recorded within cost of revenue in the Condensed Consolidated Statements of Operations (Unaudited). Intangible Assets, Net Intangible assets, net consisted of the following: June 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Content assets $ 8,817 $ (2,643) $ 6,174 $ 6,821 $ (1,971) $ 4,850 Developed technology 8,446 (5,441) 3,005 8,446 (4,743) 3,703 Assembled workforce 181 (181) — 181 (181) — Intangible assets $ 17,444 $ (8,265) $ 9,179 $ 15,448 $ (6,895) $ 8,553 During the three and six months ended June 30, 2023, we capitalized content assets of $1,390 and $1,996 and $122 and $377 during the three and six months ended June 30, 2022. Intangible assets amortization expense was $681 and $660 for the three months ended June 30, 2023 and 2022 and $1,370 and $1,303 for the six months ended June 30, 2023 and 2022. As of June 30, 2023, future expected amortization expense for intangible assets was as follows: Remainder of 2023 $ 1,418 2024 3,175 2025 2,649 2026 983 2027 552 Thereafter 402 Total $ 9,179 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES We have entered into various non-cancelable office space operating leases with lease periods expiring through April 2025. These leases do not contain residual value guarantees, covenants, or other restrictions. In May 2022, we entered into a sublease agreement pursuant to which we subleased a part of our existing office space in Mountain View, California. We classified the sublease as an operating lease. The term of the sublease commenced on June 1, 2022 and terminates on October 31, 2024. Sublease income from this agreement was $680 and $1,360 for the three and six months ended June 30, 2023 and was not material for the three and six months ended June 30, 2022. During the three and six months ended June 30, 2022, we recognized an impairment loss of $2,304 related to our operating lease right-of-use asset and $904 related to property and equipment, which were allocated within operating expenses in the Condensed Consolidated Statements of Operations (Unaudited), consistent with the allocation approach used for operating lease costs. No such impairment loss was recognized during the three and six months ended June 30, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, we update the estimate of the annual effective tax rate, and if the estimated tax rate changes, we record a cumulative adjustment. Our effective tax rate for the three months ended June 30, 2023 and 2022 was (5.3)% and (2.4)% and (5.0)% and (2.5)% for the six months ended June 30, 2023 and 2022. The difference between the effective tax rate and the U.S. federal statutory rate is primarily due to a valuation allowance for our federal and state net deferred tax assets, income taxes on foreign operations, U.S. state income taxes, and stock-based compensation expense. As of June 30, 2023, we continued to have a full valuation allowance against our U.S. federal and state deferred tax assets. Management regularly evaluates the realizability of our deferred tax assets. Adjustments are recorded to income during the period in which management makes the determination a deferred tax asset is more likely than not to be realized. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NET LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (31,743) $ (49,334) $ (64,107) $ (87,602) Denominator: Weighted-average shares used in computing net loss per share—basic and diluted 150,262,064 144,782,220 149,621,816 143,909,469 Net loss per share—basic and diluted $ (0.21) $ (0.34) $ (0.43) $ (0.61) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Three and Six Months Ended June 30, 2023 2022 Common stock options 14,874,208 19,489,493 RSUs 22,358,430 12,485,154 ESPP stock purchase rights (“ESPP Rights”) 122,467 117,711 Total 37,355,105 32,092,358 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Obligations Purchase obligations relate mainly to a third-party cloud infrastructure agreement, subscription arrangements, and service agreements used to facilitate our operations. As of June 30, 2023, we had approximately $29,340 of future minimum payments under our non-cancelable purchase obligations with a remaining term in excess of one year, which are expected to be paid through 2026. Litigation We evaluate uncertainties associated with litigation and record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and (ii) the loss or range of loss can be reasonably estimated. If we determine that a loss is possible and a range of the loss can be reasonably estimated, we disclose the range of the possible loss in the notes to the Condensed Consolidated Financial Statements (Unaudited). We evaluate, on a quarterly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, if any, and the matters and related ranges of possible losses in order to make adjustments and changes to our disclosures as appropriate. Significant judgment is required to determine both likelihood of there being, and the estimated amount of, possible losses related to such matters. Until the final resolution of such matters, there may be an exposure to loss, and such amounts could be material. As previously disclosed, in January 2023, a putative class action complaint, Feng et al v. Coursera, Inc., was filed against us in the United States District Court for the Northern District of California. The complaint asserted alleged failures to make certain disclosures and obtain certain authorizations under California's Automatic Renewal Law and the Electronic Funds Transfer Act. The complaint sought injunctive relief and an unspecified amount of monetary damages. In March 2023, the plaintiff elected to voluntarily dismiss the entire complaint without prejudice. Accordingly, we did not make any settlement payments or record any loss contingency in connection with this matter. Indemnifications |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Share Repurchase Program On April 26, 2023, our board of directors approved a share repurchase program with authorization to purchase up to $95 million of our common stock, excluding commissions and fees (the “Repurchase Program”). We may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The number of shares to be repurchased and the timing of the repurchases will depend on several factors, including, without limitation, business, economic, and market conditions, corporate, legal, and regulatory requirements, prevailing stock prices, trading volume, and other considerations. The Repurchase Program may be suspended or discontinued at any time and does not obligate us to acquire any amount of common stock. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Stock Incentive Plans Our 2021 Stock Incentive Plan (the “2021 Plan”) provides for the granting of incentive and non-statutory stock options, restricted stock units (“RSUs”), and other equity-based awards. Pursuant to our 2021 Employee Stock Purchase Plan (the “ESPP”), eligible employees may purchase shares of our common stock through payroll deductions at 85% percent of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. As of June 30, 2023, 10,629,723 shares of our common stock were reserved for future issuance under the 2021 Plan. As of June 30, 2023, 4,571,095 shares of our common stock were reserved for issuance under the ESPP. Stock Options We may grant stock options at prices not less than the grant date fair value. These stock options generally expire 10 years from the grant date. Incentive stock options and non-statutory stock options generally vest ratably over a four-year service period. Stock option activity for the six months ended June 30, 2023 was as follows: Number of Weighted- Weighted- Aggregate Balance—December 31, 2022 18,153,195 $ 6.07 5.41 $ 120,289 Granted 454,626 14.72 Exercised (3,259,812) 4.33 Canceled (473,801) 10.23 Balance—June 30, 2023 14,874,208 $ 6.58 5.34 $ 108,844 Options vested 11,720,796 $ 4.83 4.79 $ 100,517 The aggregate intrinsic value of options exercised was $26,152 for the six months ended June 30, 2023. RSUs RSUs granted have a service-based vesting condition, which are satisfied generally either (i) over four years with a 25% cliff vesting period after one year and 6.25% vesting each quarter thereafter for new hires, or (ii) over four years with 6.25% vesting each quarter for new grants to existing employees. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period. RSU activity for the six months ended June 30, 2023 was as follows: Number of Weighted-Average Aggregate Unvested balance—December 31, 2022 22,773,053 $ 17.75 $ 269,779 Granted 5,840,206 11.14 Vested (4,414,108) 19.00 Forfeited (1,840,721) 21.60 Unvested balance—June 30, 2023 22,358,430 $ 15.46 $ 291,107 Stock-Based Compensation Expense Stock-based compensation expense is classified in the Condensed Consolidated Statements of Operations (Unaudited) as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenue $ 914 $ 812 $ 1,791 $ 1,389 Research and development 13,303 12,619 26,768 22,362 Sales and marketing 7,499 8,048 15,856 14,322 General and administrative 7,609 6,026 15,240 11,410 Restructuring related charges (17) — $ (5,605) — Total $ 29,308 $ 27,505 $ 54,050 $ 49,483 We capitalized $2,294 and $1,981 of stock-based compensation related to the development of our internal-use software during the three months ended June 30, 2023 and 2022 and $3,605 and $3,230 during the six months ended June 30, 2023 and 2022. As of June 30, 2023, there was a total of $22,334 unrecognized employee compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of approximately 2.0 years. In addition, as of June 30, 2023, total unrecognized compensation cost related to unvested RSUs was $275,014, which is expected to be recognized over a weighted-average period of approximately 2.9 years. Total unrecognized compensation cost related to ESPP Rights as of June 30, 2023 was $9,840, which is expected to be recognized over a weighted-average period of approximately 1.2 years. Common Stock Reserved for Issuance The following table presents total shares of our common stock reserved for future issuance: June 30, 2023 December 31, 2022 Stock options outstanding 14,874,208 18,153,195 RSUs outstanding 22,358,430 22,773,053 Shares available for future grants 15,200,818 8,819,998 Total shares of common stock reserved 52,433,456 49,746,246 401(k) Plan We have a 401(k) savings plan that provides for a discretionary employer-matching contribution. We made matching contributions of $604 and $687 to the plan for the three months ended June 30, 2023 and 2022 and $1,460 and $1,354 for the six months ended June 30, 2023 and 2022. |
Related Party Transaction
Related Party Transaction | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transaction | RELATED-PARTY TRANSACTION During the year ended December 31, 2017, we entered into a content sourcing agreement with a related party in the normal course of business and under standard terms. Content fees earned by the related party during the three months ended June 30, 2023 and 2022 were $1,812 and $1,546. Content fees earned by the related party during the six months ended June 30, 2023 and 2022 were $3,505 and $3,176. Content fees earned by the related party were recorded within cost of revenue in the Condensed Consolidated Statements of Operations (Unaudited). As of June 30, 2023 and December 31, 2022, outstanding educator partner payables related to this content sourcing agreement were $1,812 and $1,223. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Our chief operating decision maker (“CODM”) is our Chief Executive Officer. For the purposes of allocating resources and assessing performance, the CODM examines three segments, which relate to our three revenue sources: Consumer, Enterprise, and Degrees. This is also consistent with how we disaggregate revenue. The tables below summarize the financial information for each reportable segment: Three Months Ended June 30, Six Months Ended June 30, Revenue 2023 2022 2023 2022 Consumer $ 86,999 $ 69,688 $ 169,028 $ 137,784 Enterprise 54,180 43,704 106,353 82,750 Degrees 12,523 11,362 25,963 24,653 Total revenue $ 153,702 $ 124,754 $ 301,344 $ 245,187 Segment gross profit Consumer $ 45,117 $ 50,716 $ 89,734 $ 99,012 Enterprise 38,676 31,114 73,646 59,066 Degrees 12,523 11,362 25,963 24,653 Total segment gross profit $ 96,316 $ 93,192 $ 189,343 $ 182,731 Reconciliation of segment gross profit to gross profit Platform and support costs $ 10,977 $ 10,270 $ 20,749 $ 18,163 Stock-based compensation expense 914 812 1,791 1,389 Amortization of internal-use software 4,043 3,059 8,264 5,870 Amortization of intangible assets 681 645 1,370 1,273 Total reconciling items 16,615 14,786 32,174 26,695 Gross profit $ 79,701 $ 78,406 $ 157,169 $ 156,036 Geographic Information Revenue The following table summarizes the revenue by region based on the billing address of our customers: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 81,713 $ 66,009 $ 160,222 $ 128,784 Europe, Middle East, and Africa 37,658 30,973 74,665 61,589 Asia Pacific 19,741 16,284 38,339 32,301 Other 14,590 11,488 28,118 22,513 Total $ 153,702 $ 124,754 $ 301,344 $ 245,187 No single country other than the United States represented 10% or more of our total revenue during the three and six months ended June 30, 2023 and 2022. Long-lived assets The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease right-of-use assets, by geographic region: June 30, 2023 December 31, 2022 United States $ 34,715 $ 35,457 Rest of World 1,324 1,244 Total $ 36,039 $ 36,701 |
Restructuring Related Charges
Restructuring Related Charges | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related Charges | RESTRUCTURING RELATED CHARGESWe have been reducing our expenses, focusing our efforts, and prioritizing investments in key initiatives that are expected to drive long-term, sustainable growth. In connection with this effort, on November 9, 2022, we enacted a plan to reduce our global workforce to better align our cost structure and personnel needs with our business objectives, growth opportunities, and operational priorities. As a result of this reduction, we recognized restructuring related charges, within operating expenses, mainly related to personnel expenses, such as employee severance and benefits costs, during the year ended December 31, 2022. Related cash payments made in the three and six months ended June 30, 2023 were immaterial and $5.1 million and reflected as cash used in operating activities within our Condensed Consolidated Statements of Cash Flows (Unaudited). We recorded a reversal of stock-based compensation expense of approximately $5.6 million during the six months ended June 30, 2023, when the forfeiture of RSUs and stock options occurred . We also recorded an immaterial reversal of unclaimed employee benefits costs in the same period. Restructuring relate |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (31,743) | $ (49,334) | $ (64,107) | $ (87,602) |
Insider Trading Arrangements
Insider Trading Arrangements - Amanda Clark [Member] | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Amanda Clark, Director, entered into a prearranged stock trading plan on June 13, 2023. This plan provides for the potential exercise of vested stock options and the associated sale of up to 15,903 shares of our common stock between September 12, 2023 and August 20, 2024. This trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended, and our policies regarding transactions in our securities. |
Name | Amanda Clark |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 13, 2023 |
Arrangement Duration | 343 days |
Aggregate Available | 15,903 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) of Coursera, Inc., a Delaware public benefit corporation, and its subsidiaries (“Coursera,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These Condensed Consolidated Financial Statements (Unaudited) have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of our financial information. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or for any other future year. The balance sheet as of December 31, 2022 has been derived from the Consolidated Financial Statements at that date but does not include all information required by GAAP for annual consolidated financial statements. These Condensed Consolidated Financial Statements (Unaudited) should be read in conjunction with the Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 23, 2023 (“Form 10-K”). |
Principles of Consolidation | Principles of ConsolidationThe Condensed Consolidated Financial Statements (Unaudited) include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reporting Segments | Reporting Segments We conduct our operations through three reporting segments: Consumer, Enterprise, and Degrees. Refer to Note 13 for additional information. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements (Unaudited) in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the Condensed Consolidated Financial Statements (Unaudited), as well as the reported amounts of revenue and expenses during the reporting period. We base our estimates on historical experience, current conditions, and various other factors that we believe to be reasonable under the circumstances. Significant items subject to such estimates, judgements, and assumptions include, but are not limited to, those related to the determination of principal versus agent and variable consideration in our revenue contracts; stock-based compensation expense; period of benefit for capitalized commissions; internal-use software costs; useful lives of long-lived assets; the carrying value of operating lease right-of-use assets; the valuation of intangible assets and income tax expense, including the valuation of deferred tax assets and liabilities, among others. Actual results could differ from those estimates, and any such differences could be material to our Condensed Consolidated Financial Statements (Unaudited). |
Contract Acquisition and Fulfillment Costs | Contract Acquisition and Fulfillment Costs Deferred Commissions Customer acquisition costs are primarily related to sales commissions and related payroll taxes earned by our Enterprise sales force, which are incremental costs we incur to obtain a contract. Sales commissions and related payroll costs earned by our Enterprise sales force, which are incremental costs we incur to obtain a contract, are deferred and then amortized on a straight-line basis over the expected period of benefit. On an annual basis, we assess the expected period of benefit by taking into consideration the length of terms in Enterprise customer contracts, the life of the technology, and other factors. Based on our most recent assessment, we determined that the expected period of benefit for incremental costs of our Enterprise customer contracts should be increased from three years to four years. This change in accounting estimate was eff ective January 1, 2023 and is accounted for prospectively in our Condensed Consolidated Financial Statements (Unaudited). For the three and six months ended June 30, 2023, the change in the expected period of benefit resulted in a benefit to sales and marketing expenses of $1,006 and $2,154. Sal es commissions and related payroll taxes paid for Enterprise contract renewals continue to be amortized over the renewal term, which is generally two years. Deferred commissions and related payroll taxes are recorded within deferred costs or other assets in the consolidated balance sheets, depending on the timing of the related amortization. They are amortized to sales and marketing in the consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash, cash equivalents, and marketable securities. We only invest in high-credit-quality instruments and maintain our cash equivalents and marketable securities in fixed-income securities. We place our cash primarily with domestic financial institutions that are federally insured within statutory limits. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Summary of Contract Assets and Liabilities | Contract assets and liabilities were as follows: June 30, 2023 December 31, 2022 January 1, 2022 Contract assets: Billed accounts receivable, net of allowance for credit losses $ 67,503 $ 45,337 $ 22,286 Unbilled accounts receivable 5,706 8,397 12,110 Total contract assets $ 73,209 $ 53,734 $ 34,396 Contract liabilities: Deferred revenue $ 141,813 $ 118,777 $ 98,488 Total contract liabilities $ 141,813 $ 118,777 $ 98,488 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following table summarizes our investments measured at fair value on a recurring basis by balance sheet classification and investment type: June 30, 2023 December 31, 2022 Amortized Gross Gross Fair Amortized Gross Gross Fair Cash equivalents—money market funds $ 187,025 $ — $ — $ 187,025 $ 304,750 $ — $ — $ 304,750 Cash equivalents—U.S. Treasury securities 136,567 36 — 136,603 — — — — Total cash equivalents 323,592 36 — 323,628 304,750 — — 304,750 Marketable securities—U.S. Treasury securities 356,366 4 (660) 355,710 460,372 26 (744) 459,654 Total $ 679,958 $ 40 $ (660) $ 679,338 $ 765,122 $ 26 $ (744) $ 764,404 |
Schedule of the Cost Basis and Fair Value of Available-for-sale Securities by Contractual Maturity Date | The following table presents the cost basis and fair value of our available-for-sale (“AFS”) marketable securities by contractual maturity date: June 30, 2023 December 31, 2022 Amortized Fair Amortized Fair Due in one year or less $ 356,366 $ 355,710 $ 460,372 $ 459,654 |
Schedule of Investments in an Unrealized Loss Position | Investments in an unrealized loss position consisted of the following: June 30, 2023 December 31, 2022 Fair Gross Fair Gross U.S. Treasury securities $ 325,741 $ (660) $ 356,767 $ (744) |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property, Equipment and Software | Property, equipment, and software, net consisted of the following: June 30, 2023 December 31, 2022 Internal-use software and website development $ 63,265 $ 53,215 Computer equipment and purchased software 5,020 4,662 Leasehold improvements 6,910 6,567 Furniture and fixtures 2,759 2,714 Total property, equipment, and software 77,954 67,158 Less accumulated depreciation and amortization (49,114) (40,062) Property, equipment, and software, net $ 28,840 $ 27,096 |
Schedule of Intangible Assets | Intangible assets, net consisted of the following: June 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Content assets $ 8,817 $ (2,643) $ 6,174 $ 6,821 $ (1,971) $ 4,850 Developed technology 8,446 (5,441) 3,005 8,446 (4,743) 3,703 Assembled workforce 181 (181) — 181 (181) — Intangible assets $ 17,444 $ (8,265) $ 9,179 $ 15,448 $ (6,895) $ 8,553 |
Schedule of Future Expected Amortization Expense for Intangible Assets | As of June 30, 2023, future expected amortization expense for intangible assets was as follows: Remainder of 2023 $ 1,418 2024 3,175 2025 2,649 2026 983 2027 552 Thereafter 402 Total $ 9,179 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (31,743) $ (49,334) $ (64,107) $ (87,602) Denominator: Weighted-average shares used in computing net loss per share—basic and diluted 150,262,064 144,782,220 149,621,816 143,909,469 Net loss per share—basic and diluted $ (0.21) $ (0.34) $ (0.43) $ (0.61) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Three and Six Months Ended June 30, 2023 2022 Common stock options 14,874,208 19,489,493 RSUs 22,358,430 12,485,154 ESPP stock purchase rights (“ESPP Rights”) 122,467 117,711 Total 37,355,105 32,092,358 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Stock Option Activity under the Plans | Stock option activity for the six months ended June 30, 2023 was as follows: Number of Weighted- Weighted- Aggregate Balance—December 31, 2022 18,153,195 $ 6.07 5.41 $ 120,289 Granted 454,626 14.72 Exercised (3,259,812) 4.33 Canceled (473,801) 10.23 Balance—June 30, 2023 14,874,208 $ 6.58 5.34 $ 108,844 Options vested 11,720,796 $ 4.83 4.79 $ 100,517 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity for the six months ended June 30, 2023 was as follows: Number of Weighted-Average Aggregate Unvested balance—December 31, 2022 22,773,053 $ 17.75 $ 269,779 Granted 5,840,206 11.14 Vested (4,414,108) 19.00 Forfeited (1,840,721) 21.60 Unvested balance—June 30, 2023 22,358,430 $ 15.46 $ 291,107 |
Summary of Stock-Based Compensation Expense in the Consolidated Statements of Operations | Stock-based compensation expense is classified in the Condensed Consolidated Statements of Operations (Unaudited) as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenue $ 914 $ 812 $ 1,791 $ 1,389 Research and development 13,303 12,619 26,768 22,362 Sales and marketing 7,499 8,048 15,856 14,322 General and administrative 7,609 6,026 15,240 11,410 Restructuring related charges (17) — $ (5,605) — Total $ 29,308 $ 27,505 $ 54,050 $ 49,483 |
Summary of Shares of Common Stock Reserved for Future Issuance | The following table presents total shares of our common stock reserved for future issuance: June 30, 2023 December 31, 2022 Stock options outstanding 14,874,208 18,153,195 RSUs outstanding 22,358,430 22,773,053 Shares available for future grants 15,200,818 8,819,998 Total shares of common stock reserved 52,433,456 49,746,246 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for Each Reportable Segment | The tables below summarize the financial information for each reportable segment: Three Months Ended June 30, Six Months Ended June 30, Revenue 2023 2022 2023 2022 Consumer $ 86,999 $ 69,688 $ 169,028 $ 137,784 Enterprise 54,180 43,704 106,353 82,750 Degrees 12,523 11,362 25,963 24,653 Total revenue $ 153,702 $ 124,754 $ 301,344 $ 245,187 Segment gross profit Consumer $ 45,117 $ 50,716 $ 89,734 $ 99,012 Enterprise 38,676 31,114 73,646 59,066 Degrees 12,523 11,362 25,963 24,653 Total segment gross profit $ 96,316 $ 93,192 $ 189,343 $ 182,731 Reconciliation of segment gross profit to gross profit Platform and support costs $ 10,977 $ 10,270 $ 20,749 $ 18,163 Stock-based compensation expense 914 812 1,791 1,389 Amortization of internal-use software 4,043 3,059 8,264 5,870 Amortization of intangible assets 681 645 1,370 1,273 Total reconciling items 16,615 14,786 32,174 26,695 Gross profit $ 79,701 $ 78,406 $ 157,169 $ 156,036 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table summarizes the revenue by region based on the billing address of our customers: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 81,713 $ 66,009 $ 160,222 $ 128,784 Europe, Middle East, and Africa 37,658 30,973 74,665 61,589 Asia Pacific 19,741 16,284 38,339 32,301 Other 14,590 11,488 28,118 22,513 Total $ 153,702 $ 124,754 $ 301,344 $ 245,187 |
Schedule of Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease right-of-use assets, by geographic region: June 30, 2023 December 31, 2022 United States $ 34,715 $ 35,457 Rest of World 1,324 1,244 Total $ 36,039 $ 36,701 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Change in Accounting Estimate [Line Items] | ||||||
Number of operating segments | segment | 3 | |||||
Contract with customer expected incremental cost period | 4 years | 3 years | ||||
Sales and marketing | $ 52,001 | $ 55,586 | $ 104,873 | $ 107,253 | ||
Contract with customer amortization on renewal period | 2 years | |||||
Accounts Receivable | Customer Concentration Risk | Customer One | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Concentrations of credit risk, percentage | 12% | |||||
Change in Accounting Method Accounted for as Change in Estimate | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Sales and marketing | $ 1,006 | $ 2,154 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Contract assets: | |||
Billed accounts receivable, net of allowance for credit losses | $ 67,503 | $ 45,337 | $ 22,286 |
Unbilled accounts receivable | 5,706 | 8,397 | 12,110 |
Total contract assets | 73,209 | 53,734 | 34,396 |
Contract liabilities: | |||
Deferred revenue | 141,813 | 118,777 | 98,488 |
Total contract liabilities | $ 141,813 | $ 118,777 | $ 98,488 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue Recognized | $ 89,329 | $ 70,323 | |||
Commissions and related payroll tax expenditures | $ 4,726 | $ 4,606 | 7,698 | 7,099 | |
Amortization, sales and marketing expenses | 2,933 | 3,003 | 5,614 | 5,747 | |
Deferred costs | 11,473 | 11,473 | $ 13,300 | ||
Other assets | 14,337 | 14,337 | $ 10,426 | ||
Russian Educator Partners | |||||
Disaggregation of Revenue [Line Items] | |||||
Impairment losses on deferred partner fees. | 0 | $ 0 | 0 | $ 1,886 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Remaining performance obligation | $ 320,406 | $ 320,406 | |||
Percent of remaining performance obligations to be recognized | 65% | 65% | |||
Period for satisfaction of remaining performance obligation | 12 months | 12 months |
Investments - Summary of Availa
Investments - Summary of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 679,958 | $ 765,122 |
Gross Unrealized Gains | 40 | 26 |
Gross Unrealized Losses | (660) | (744) |
Fair Value - Level 1 | 679,338 | 764,404 |
Marketable securities—U.S. Treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 356,366 | 460,372 |
Gross Unrealized Gains | 4 | 26 |
Gross Unrealized Losses | (660) | (744) |
Fair Value - Level 1 | 355,710 | 459,654 |
Cash and Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 323,592 | 304,750 |
Gross Unrealized Gains | 36 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value - Level 1 | 323,628 | 304,750 |
Cash and Cash Equivalents | Cash equivalents—money market funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 187,025 | 304,750 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value - Level 1 | 187,025 | 304,750 |
Cash and Cash Equivalents | Marketable securities—U.S. Treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 136,567 | 0 |
Gross Unrealized Gains | 36 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value - Level 1 | $ 136,603 | $ 0 |
Investments - Schedule of the C
Investments - Schedule of the Cost Basis and Fair Value of Available-for-sale Securities by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost | $ 356,366 | $ 460,372 |
Fair Value | $ 355,710 | $ 459,654 |
Investments - Schedule of Inves
Investments - Schedule of Investments in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Unrealized Losses | $ (660) | $ (744) |
Marketable securities—U.S. Treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 325,741 | 356,767 |
Gross Unrealized Losses | $ (660) | $ (744) |
Consolidated Balance Sheet Co_3
Consolidated Balance Sheet Components - Schedule of Property, Equipment and Software (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property, equipment, and software | $ 77,954 | $ 67,158 |
Less accumulated depreciation and amortization | (49,114) | (40,062) |
Property, equipment, and software, net | 28,840 | 27,096 |
Internal-use software and website development | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment, and software | 63,265 | 53,215 |
Computer equipment and purchased software | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment, and software | 5,020 | 4,662 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment, and software | 6,910 | 6,567 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment, and software | $ 2,759 | $ 2,714 |
Consolidated Balance Sheet Co_4
Consolidated Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 10,842 | $ 8,621 | |||
Amortization expenses of intangible assets | $ 681 | $ 660 | 1,370 | 1,303 | |
Intangible assets, net | 9,179 | 9,179 | $ 8,553 | ||
Content assets | |||||
Property Plant And Equipment [Line Items] | |||||
Capitalized Computer Software, Amortization | 1,390 | 122 | 1,996 | 377 | |
Property, Equipment and Software | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | 4,650 | 3,779 | 9,472 | 7,318 | |
Software and Website Development | |||||
Property Plant And Equipment [Line Items] | |||||
Amortization expenses of intangible assets | $ 4,043 | $ 3,059 | $ 8,264 | $ 5,870 |
Consolidated Balance Sheet Co_5
Consolidated Balance Sheet Components - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 17,444 | $ 15,448 |
Accumulated Amortization | (8,265) | (6,895) |
Net Carrying Value | 9,179 | 8,553 |
Content assets | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,817 | 6,821 |
Accumulated Amortization | (2,643) | (1,971) |
Net Carrying Value | 6,174 | 4,850 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,446 | 8,446 |
Accumulated Amortization | (5,441) | (4,743) |
Net Carrying Value | 3,005 | 3,703 |
Assembled workforce | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 181 | 181 |
Accumulated Amortization | (181) | (181) |
Net Carrying Value | $ 0 | $ 0 |
Consolidated Balance Sheet Co_6
Consolidated Balance Sheet Components - Schedule of Future Expected Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Remainder of 2023 | $ 1,418 | |
2024 | 3,175 | |
2025 | 2,649 | |
2026 | 983 | |
2027 | 552 | |
Thereafter | 402 | |
Net Carrying Value | $ 9,179 | $ 8,553 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Sublease income | $ 680 | $ 0 | $ 1,360 | $ 0 | |
Operating lease right-of-use assets | $ 7,199 | $ 7,199 | $ 9,605 | ||
Property and equipment | 904 | ||||
Impairment Loss | $ 2,304 | $ 2,304 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 5.30% | 2.40% | 5% | 2.50% |
Net Loss Per Share - Calculatio
Net Loss Per Share - Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net loss | $ (31,743) | $ (49,334) | $ (64,107) | $ (87,602) |
Denominator: | ||||
Weighted average shares used in computing net loss per share- basic (in shares) | 150,262,064 | 144,782,220 | 149,621,816 | 143,909,469 |
Weighted average shares used in computing net loss per share— diluted (in shares) | 150,262,064 | 144,782,220 | 149,621,816 | 143,909,469 |
Net loss per shares-basic (in dollars per share) | $ (0.21) | $ (0.34) | $ (0.43) | $ (0.61) |
Net loss per share-diluted (in dollars per share) | $ (0.21) | $ (0.34) | $ (0.43) | $ (0.61) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Securities with a Potentially Dilutive Impact (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive earnings per share (in shares) | 37,355,105 | 32,092,358 | 37,355,105 | 32,092,358 |
Common stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive earnings per share (in shares) | 14,874,208 | 19,489,493 | 14,874,208 | 19,489,493 |
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive earnings per share (in shares) | 22,358,430 | 12,485,154 | 22,358,430 | 12,485,154 |
ESPP stock purchase rights (“ESPP Rights”) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive earnings per share (in shares) | 122,467 | 117,711 | 122,467 | 117,711 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Non-cancelable purchase obligations | $ 29,340 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Apr. 26, 2023 | |
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 95 | ||
Number of shares repurchased during period (in shares) | 4,520,293 | 4,520,293 | |
Stock repurchased during period, value | $ 54.5 | ||
Payments for commissions | 0.1 | ||
Unsettled repurchases of common stock | $ 1.5 | 1.5 | |
Stock repurchase program, remaining authorized repurchase amount | $ 40.6 | $ 40.6 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total shares of common stock reserved (in shares) | 52,433,456 | 52,433,456 | 49,746,246 | ||
Aggregate intrinsic value of employee options exercised | $ 26,152 | ||||
Compensation cost related to the nonvested awards not yet recognized | $ 22,334 | $ 22,334 | |||
Weighted average period for recognition of compensation cost | 2 years | ||||
Employer discretionary contribution amount | 604 | $ 687 | $ 1,460 | $ 1,354 | |
Internal-use software and website development | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
cumulative stock-based compensation expense | $ 2,294 | $ 1,981 | $ 3,605 | $ 3,230 | |
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percent of the lower of the market price for Purchase shares of common stock | 85% | ||||
Employee stock incentive plan purchase period | 6 months | ||||
Total shares of common stock reserved (in shares) | 4,571,095 | 4,571,095 | |||
Compensation cost related to the nonvested awards not yet recognized | $ 9,840 | $ 9,840 | |||
Weighted average period for recognition of compensation cost | 1 year 2 months 12 days | ||||
2021 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total shares of common stock reserved (in shares) | 10,629,723 | 10,629,723 | |||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation, expiration period | 10 years | ||||
Vesting period | 4 years | ||||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Compensation cost related to the nonvested awards not yet recognized | $ 275,014 | $ 275,014 | |||
Weighted average period for recognition of compensation cost | 2 years 10 months 24 days | ||||
Restricted Stock Units | Share-Based Payment Arrangement, Tranche One | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting rights percentage | 25% | ||||
Cliff vesting period | 1 year | ||||
Restricted Stock Units | Share-Based Payment Arrangement, Tranche Two | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting rights percentage | 6.25% | ||||
Restricted Stock Units | Share-Based Payment Arrangement, Tranche Three | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting rights percentage | 6.25% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Stock Option Activity under the Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Number of Shares | |||
Number of Shares, Beginning balance (in shares) | 18,153,195 | 18,153,195 | |
Number of Shares, Ending balance (in shares) | 14,874,208 | ||
Stock Options | |||
Number of Shares | |||
Number of Shares, Beginning balance (in shares) | 18,153,195 | 18,153,195 | |
Number of shares , granted (in shares) | 454,626 | ||
Number of Shares, Options exercised (in shares) | (3,259,812) | ||
Number of Shares, Options canceled (in shares) | (473,801) | ||
Number of Shares, Ending balance (in shares) | 14,874,208 | ||
Number of Shares, Options vested (in shares) | 11,720,796 | ||
Weighted- Average Exercise Price | |||
Weighted Average Exercise Price, Beginning balance (in dollar per shares) | $ 6.07 | $ 6.07 | |
Weighted- Average Exercise Price ,Granted (in dollar per shares) | 14.72 | ||
Weighted Average Exercise Price, Options exercised (in dollar per shares) | 4.33 | ||
Weighted Average Exercise Price, Canceled (in dollar per shares) | 10.23 | ||
Weighted Average Exercise Price, Ending balance (in dollar per shares) | 6.58 | ||
Weighted Average Exercise Price, Options vested (in dollar per shares) | $ 4.83 | ||
Weighted Average Remaining Contractual Term | 5 years 4 months 28 days | 5 years 4 months 2 days | |
Weighted Average Remaining Contractual Term, Options vested | 4 years 9 months 14 days | ||
Aggregate Intrinsic Value | $ 108,844 | $ 120,289 | |
Aggregate Intrinsic Value, Options vested | $ 100,517 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Number of Shares, Unvested beginning balance (in shares) | 22,773,053 | |
Number of Shares, Granted (in shares) | 5,840,206 | |
Number of Shares, Vested (in shares) | (4,414,108) | |
Number of Shares, Forfeited (in shares) | (1,840,721) | |
Number of Shares, Unvested ending balance (in shares) | 22,358,430 | |
Weighted-Average Grant Date Fair Value | ||
Weighted- Average Grant Fair Value, Unvested beginning balance (in dollar per shares) | $ 17.75 | |
Weighted- Average Grant Fair Value, Granted (in dollar per shares) | 11.14 | |
Weighted- Average Grant Fair Value, Vested (in dollar per shares) | 19 | |
Weighted- Average Grant Fair Value, Forfeited (in dollar per shares) | 21.60 | |
Weighted- Average Grant Fair Value, Unvested ending balance (in dollar per shares) | $ 15.46 | |
Aggregate Intrinsic Value, Unvested balance | $ 291,107 | $ 269,779 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock-Based Compensation Expense in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ 29,308 | $ 27,505 | $ 54,050 | $ 49,483 |
Cost of revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 914 | 812 | 1,791 | 1,389 |
Research and development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 13,303 | 12,619 | 26,768 | 22,362 |
Sales and marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 7,499 | 8,048 | 15,856 | 14,322 |
General and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 7,609 | 6,026 | 15,240 | 11,410 |
Restructuring related charges | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ (17) | $ 0 | $ (5,605) | $ 0 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Shares of Common Stock Reserved for Future Issuance (Details) (Details) - shares | Jun. 30, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Stock options outstanding (in shares) | 14,874,208 | 18,153,195 |
RSUs outstanding (in shares) | 22,358,430 | 22,773,053 |
Shares available for future grants (in shares) | 15,200,818 | 8,819,998 |
Total shares of common stock reserved (in shares) | 52,433,456 | 49,746,246 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Educator partners payable | $ 88,719 | $ 88,719 | $ 66,375 | ||
Content Sourcing Agreement | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Related party content fees | 1,812 | $ 1,546 | 3,505 | $ 3,176 | |
Educator partners payable | $ 1,812 | $ 1,812 | $ 1,223 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Revenue | $ 153,702 | $ 124,754 | $ 301,344 | $ 245,187 |
Segment gross profit | ||||
Gross profit | 79,701 | 78,406 | 157,169 | 156,036 |
Segment amortization | 681 | 660 | 1,370 | 1,303 |
Cost of revenue | 74,001 | 46,348 | 144,175 | 89,151 |
Operating Segments | ||||
Segment gross profit | ||||
Gross profit | 96,316 | 93,192 | 189,343 | 182,731 |
Segment Reconciling Items | ||||
Segment gross profit | ||||
Platform and support costs | 10,977 | 10,270 | 20,749 | 18,163 |
Stock-based compensation expense | 914 | 812 | 1,791 | 1,389 |
Cost of revenue | 16,615 | 14,786 | 32,174 | 26,695 |
Internal Use Software | Segment Reconciling Items | ||||
Segment gross profit | ||||
Segment amortization | 4,043 | 3,059 | 8,264 | 5,870 |
Acquired Intangibles | Segment Reconciling Items | ||||
Segment gross profit | ||||
Segment amortization | 681 | 645 | 1,370 | 1,273 |
Consumer | ||||
Revenue | ||||
Revenue | 86,999 | 69,688 | 169,028 | 137,784 |
Consumer | Operating Segments | ||||
Segment gross profit | ||||
Gross profit | 45,117 | 50,716 | 89,734 | 99,012 |
Enterprise | ||||
Revenue | ||||
Revenue | 54,180 | 43,704 | 106,353 | 82,750 |
Enterprise | Operating Segments | ||||
Segment gross profit | ||||
Gross profit | 38,676 | 31,114 | 73,646 | 59,066 |
Degrees | ||||
Revenue | ||||
Revenue | 12,523 | 11,362 | 25,963 | 24,653 |
Degrees | Operating Segments | ||||
Segment gross profit | ||||
Gross profit | $ 12,523 | $ 11,362 | $ 25,963 | $ 24,653 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Revenue By Region Based On Billing Address (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 153,702 | $ 124,754 | $ 301,344 | $ 245,187 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 81,713 | 66,009 | 160,222 | 128,784 |
Europe, Middle East, and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 37,658 | 30,973 | 74,665 | 61,589 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 19,741 | 16,284 | 38,339 | 32,301 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 14,590 | $ 11,488 | $ 28,118 | $ 22,513 |
Segment and Geographic Inform_6
Segment and Geographic Information - Summary of Long Lived Assets By Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Noncurrent Assets | $ 36,039 | $ 36,701 |
United States | ||
Segment Reporting Information [Line Items] | ||
Noncurrent Assets | 34,715 | 35,457 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Noncurrent Assets | $ 1,324 | $ 1,244 |
Restructuring Related Charges (
Restructuring Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 5,100 | |||
Reversal of stock-based compensation expense | $ 29,308 | $ 27,505 | 54,050 | $ 49,483 |
Restricted Stock Units and Options | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reversal of stock-based compensation expense | $ 5,600 |