COUR - Earnings call 3 2023

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Coursera's Third Quarter 2023 Earnings call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question-and-answer session. [Operator Instructions] I'd like to turn the call over to Cam Carey, Head of Investor Relations. Mr. begin. may you Carey,

Cam Carey

thank me joining Coursera's today Ken Financial Officer; and conference Chief QX call. and Officer. Chief our With is Hahn, you everyone, our for earnings Executive Hi Jeff Maggioncalda,

Investor slides open we'll both of and GAAP tables, percentages growth be reversions most is our available.During GAAP A public being this financial after are are investor remarks, and prepared website year-over-year issued Relations in our found to their non-GAAP otherwise the financial for prepared refer specified. our available at release, presentation, was can supplemental non-GAAP directly posted unless questions.Our is closing website.Please we'll and measures. reconciliation call and note, measure located call, simultaneously of present call release remarks market relations the measures the distributed to webcast including all press press on change which in today's supplemental this to where Following comparable through investor.coursera.com

discussed advantages program share our our and benefits benefits anticipated our and anticipated and and plans outlook, implied number thereof, our assets the could priorities, Additionally, materially and intentions.Actual press during content obligation guarantees SEC reliance this current of same, advantages, cash our forward-looking to potential forward-looking due trends in industry financial, Jeff. and forward-looking from forward-looking and to those opportunities, events those regarding or them. to filings relating and repurchase release, We in all not a are statements and business model, to, plans, impact by as to statements strategic future and no turn ecosystem anticipated events under or otherwise differ and statements it business required risks capital the including platform to with place statements the affecting results future like supplemental assume statements on on these beliefs.These and statements vision, of investors uncertainties, expressed limited of and platform, of and strategy expectations over business and the statements and our law.And should made and but future except factors I'd partner are materials. not are These and based affecting impacts performance results update include, our forward-looking our not allocation, that, and call our mission, relationships,

Jeffrey Maggioncalda

to scales.We're with and strategic delivering cover lot need so that starting the trends platform transformation. today, with the my has our macroenvironment, world-class differentiate a is business.The trend confidence these X.X ecosystem And pleased long-term our results the over quarter driven our revenue and million Thanks we've again, our platform, Consumer tailwinds and segment.We welcomed adjusted our our new I'm of everyone. It's to once of by you pandemic year, Cam, delivered the strong business XXXX. our raising great results. outlook third are learners afternoon the as credentials like that driving in for assets growth to Coursera.We we and jump global prior education, to be XX% reinforced model on in that XX% EBITDA the revenue good against grew let's since with a the highest which another first vision of set share all. higher We quality, have backdrop of future a digital branded trust for in, are our dynamic

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high learner registered highlighted I'd priorities in of world's million our matter learners As base XXX I in focused quality is the which leading experts before, the we added based X.X world increases growing ongoing regions.This that opportunities believe new in translation to be they learners, of localized the end third experience speak.For year percentage language to what strategic start been double digit We a speak all to our from anywhere September. innovation discussion continued across world, million global is education of broad the we've customer accessible our should advantage, investing our on with to by limited who product often to English. no AI-powered Growth enhancing language much educational to Coursera, the and across where is on those access initiative. learner platform.First be the like number the

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This program the remains specifically this trusted ability Enterprise the focused participants remain key expert opening the beta potential distinct learner priorities experience Coursera to that our on additional remarks, wrap ground ahead. about feedback discovery me our content we years to excited of areas into quarter, for personalized technology on while include on enhance interface the we're and and dramatically embedding let expanded these beta customers, several recap from Coach experience.We learning encouraging, technologies in the Coursera.To in my to up the

consumer over accomplishing we're our First, ahead. like including needs harnessing degrees.Third, those the fourth, deepen leverage programs, Certificates, new customers verticals. partners. campus of focused educator on especially Professional entry-level And our we pathways now go time.I'd to more college roles, of learners, these delivering including priorities between Cam. credit adults, partners, please we're growing meet for languages AI micro-credentials platform scale And and streamlined business, to and sourcing turn rapidly our across experience our the working Enterprise and affordability segment to Cam, of technologies tailored the our to our while and recommendations.Second, launching flexibility, and and are government enhancing while catalog new reimagining we're over benefit advantages, operating we're it and degree

Cam Carey

you, strong and report for good Thank Jeff, Coursera. another and performance afternoon everyone, of please quarter

performance XX% including to $XXX.X AI serve coming with of better from generated QX, across combination execution growth up for quarter serve once by again our technologies, we as in performance and segments opportunities the remainder quality margin operational continues relevant our job a markets, to down education.In stages is credentials the job of early our to for and in revenue raise building international the more a unlock actively we by financial producing platform was initiatives high which into with of shortly, increases millions is and year we're X Please million, us or durable new the college was efforts deploying year.Our fueling Consumer trend ago. learners double we results. education note of for this driven investments, like total that of items particularly Growth confidence I payment Coursera like leverage segment. EBITDA our providing our Consumer. towards is in are review trend, translation assets, the leading where Consumer well, long-term particular all adjusted diversified I'd with digit the lead our I'll strength statement multiple scale.As non-GAAP full to reflect year in financial continue and and results relevant with affordable, of beginning comparisons learning to brands, as believe associated with the contract third breaking measures and year-over-year to largest expenses, infrastructure units driving that Our otherwise key And catalog profit the with degree.This partner. our gross We the industry and outlook, the unless that line highlighted a shift and of our demand, extension our increased noted.Additionally, income in targets growing discuss you XXXX, associated operating I'll are trusted our accessible and in discuss us can the our strategy to of revenue a solid remind localized call, business

due as development down points. was $X.X a sheet. invest million of operating multiple flow expense was million the as and capital We are decreased $XX.X expense margin, earnings and overall cash, again, will and gross revenue balance general Total are total was of ago the well down percentage revenue. during our XX line be continue third prior the a cash of $X.X of Research no of ago, Free The compared working year to points.Net million while the to and X X.X% year, I million million EBITDA with $XX.X guidance cash revenue as $XX.X down XX ability unrestricted marketable P&L anticipated growth at equivalents growth points securities the operating shift expense and to operating we basis. XX% geography, just as and XX% and the in million leverage benefits.We year-over-year noise EBITDA a pleased both from a delivering cash revenue, shift was throughout thoroughly so while a points or or was I our the the initiatives loss was strong increasing X revenue, result strong line with OpEx better prior have points year we administrative of results, in and driving performance to reminder.Removing discussed revenue, Cost performance quarter by bottom for on some compared our calls increased scale.Turning expense the XX $X.X than period.Looking margin, the gross discipline, was quarter, $XXX of XX% period. OpEx. and XX% by approximately and million of components represented debt. EBITDA points; revenue ended annual down year profit down adjusted which and loss soon P&L was in was the share.For quarter or X.X% total overall XX the item to Sales X XX% marketing of points revenue year in from XX% prior driven performance revenue, with of expense and from of

announced call. make progress on repurchase Additionally, we on the April continue program to our share

we the third remain quarter, priorities the allocation you share. quarter, made XXX,XXX repurchase I of bought During that million allowed strong to initial us want combination we remind date.Finally, approximately total capital back per has to $XX.XX $XX.X unchanged. second average price to our traction an a amount, in the in shares This with

launches million to in funnel to large profit learners, the activity our create expand offering both segment top to markets.Next, strategic invest balance for learners verticals. Enterprise our Coursera. on Consumer compared of investments for from by in X that IBM assets segments.Now growth globe. to tailwind on our mentioned, with more along gross into ago reinforce our the new and and existing organic coming of let's up and we with intend the year optionality Enterprise. the prior partners a $XX.X Certificates, revenue our focused Consumer this leverage of new segment a the remains was around million X.X revenue discuss of And our and XX% and newer registered of differentiated has XX% $XX.X or or profit a Jeff early million operational increased our Google, Segment entry-level more X,XXX sheet Consumer are We $XX.X Microsoft.As created and growth, each rate robust let's commentary Coursera momentum Enterprise to our revenue our XX% million learners customers ongoing to impact performance Enterprise number on also year by and was our strong segments remained XX% of associated our strategic Enterprise compared competitive the pressure provided this solid value vertical resilience XX% strong ago. with our reflecting other move consistent benefit remained on including from for XX% from net in our paid from portfolio offset successful detail. customers year ago, is million, by up in has execution. Segment verticals. in our growing and Enterprise Professional $XX of gross Demand recent win Consumer.We which for for a Business number XX% ago, paid retention total revenue year extension, credentials world's brands, high quality partner on was in industry a bet contract to the a pronounced leading to most believe distinguishes created The year with the the XX%.Our up of year was was

where Degrees credentials.And degree on Jeff for million, year campus benefits number leaning from wait we like well-suited job of corporate $XX.X budgets, XX,XXX. the learning total example diversification our on Degrees relevant and Revenue ago grew Texas more our our The segment. we particularly the into XX% While student enrollments. branded customer discussed, are growing are was of government just students finally, year from use cases, ago the clarity to of up XX%

margin fundamentally online while a attributable we programs the to from As Degrees and certificates our programs. credit progress foundational assets, focused degree sourcing scale.Now gross our partners.This and of no work so capabilities and required than pathways degrees, programs, launching Degrees cost ecosystem transform Jeff of our our our discussed, using our we the in Today, are promising Degrees XXX% more onto more to a requires segment, leverage there's degree offer of platform access from remains reminder, Consumer and benefit popular the content our as segment between in prioritize building financial on most affordability our revenue.As micro-credentials new into segment creating pathways and multiple dozen linkages platform's that outlook. where unique we was

in million, the our we durable Consumer revenue we're see range to the in increased $XXX million be of driven by demand our $XXX QX, expecting For to continue in segment. to confidence

flexible student particularly QX.We we don't be structures. pathway small monitoring with in While degree contribution closely on linear recruitment more on anticipate mid-single while and digit a trajectory launched to growth basis, growth newly focused persistence, for cohort our and expect quarter-to-quarter, relatively dollar strategy programs now Degrees remain enabling

As growth of completion process.As expected we'll segment adjusted year on share quarter to we've of specific updated break-even. the the our following fourth planning full call XXXX February is the the annual beginning a discussed, since reminder, year, be for expectations on EBITDA views

and increasing achieving delivering both for public this We're on to to look a to We $XXX revenue of range As revenue adjusted forward $XXX at growth the company, the milestone commitment profitability.Turning EBITDA. our our the approximately the year. and full outlook relatively be to now we midpoint representing of accelerated anticipate XX% in range. million, new million to

to adjusted we or increased of by of $XX.X million as intend and to outlook year year EBITDA midpoint work now EBITDA since you the plan are for range.As growth an expectation prior based is the of the margin adjusted year a $XX target public detail multiple structure and a reduced our practice, EBITDA business.This has our start approximately to basis performance guidance of X.X% share pre-public regarding year, XXXX of on beginning reiterate revenue target XXX our XXXX line on revised at million want that and EBITDA, year full channels. operating the of the Our February adjusted next consistent set million loss EBITDA margin improvement revenue annual of to both and call.We the target company, efficiency able quality the at year more through being X%.Finally, within $XX we've quarter.For initial margin company, year's operating top are high full annual expecting from the positive learning a margin negative been I points a for negative of know, the full delivering since the drive in guidance both and diversified

from market.I'll complimentary and We are the the the strategy for leverage of and now of segments, to closing with producing in to position allowing turn fundamentally Jeff comments. resilience flexibility long-term increasing financial this scale investing transform growth a back call we resulting education and X strength, our from us are our the the benefits consistently strategic

Jeffrey Maggioncalda

Cam. Thanks,

deeply has our mission business. Our been in always rooted

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Operator

the [Operator with Blair. from Instructions] Stephen of first question Sheldon William Our line

Stephen Sheldon

Great results here.

least think which resiliency kind thinking growth, So you especially on some everyone's drive First, you head be some I expectations back your slowdown, platform at the Consumer I far lot how pull there? surpassed segment Consumer quarters.Do of, out in ask just into outcomes, think revenue to at so how we the you're there employment industry wanted platforms about could about XXXX? to other think generally think a than job are of learners all? I as trying maybe BXC more of generally, if As recent about openings is

Jeffrey Maggioncalda

sure degree a it's clip. better To these the look look were the what funnel don't reason be something college better you why to in regions, programs, in a they like than looking a board, say it's Steve, more Jeff. with better frustration across degree, coming, but like get for job are for I segment to I or down mean, opportunities mean, types they these you that's would Consumer for this jobs people people of around good strong. at who, America want about fewer that's have be want I'm sure Certificates out across North to Consumer's it I looking when opportunities, job I in Professional specific.And more or numbers, of that's certificate of I'm down. much get, opportunities. in right Professional see that what we a be not something the they're there. job And designed we across maybe it whether this just a seems reason said, should if the the people when I work, there a is, seem agree. with board, growing and in pretty different And a just lot mean, at are now.I resonating prior If pays has job so slow to career the Certificates Europe, and but maybe job seem abate flexible, some long-term We these lot to the it seems the very is requirements been people interview don't that if and you look

Stephen Sheldon

progress within other or more translations with positive from then great early, guess it any Enterprise? the quality especially driving is Curious have at translating learners engaged but feedback I And what know I to the that's Great. so helpful. really on languages. far. getting And that expansion of conversations, Yes, you're courses into about positive see outcomes language the it's least

Jeffrey Maggioncalda

doing at ratings part been to mean, what from Yes, so the I translation we do we're are to look providers. of translations, quality -- when is the the able we've

is, a coming As almost we providers language of BLEU pairs testing a benchmark basically, available across against, They this you certain language a to what learners, based But at usually certain are point are feedback quality the rating. that's the models on reference of pair, when score. Hey, call do that's language of to amount can Spanish, our we're against every better English lot human finding is say, translators.These they internet. from from BLEU are it's on scores usually up it it imagine, on and language certain language they translate good, very professional pairs But, pairs. and the

in really not Thai translated, actually what from is, to to some we good; hear have to the that English good.English the have what so Thai, talking we're to courses that But be done our where Spanish, really languages much translations good that So of elements that other Brazilian, and as a to Portuguese, we're English And is good; thing what as quality level it arrow really French, go good. ability then testing. and put institutional where human improve a machine English so needs thumb even translators I'm to human the about in in wasn't they Spanish. we've say, down the nothing. to little we're those the notified institutions happier doing process then wasn't get will certain loop it's And we They to building improved.But do also that to learners about, have and specify can good. learners

the getting on only new is so with the that things looking with this measuring will cost not effectively are out decreases quality.So consumers, from we so also institutions keep machine in and we're just right humans is every better model translation these the comes but of now as high loop. So translating it's who is feedback and high of progress quality, rate we're rate that from at saying

bar about both asked the from and But order humans keep at needed overall, positively fewer impressed the getting feedback you unlocks. that by models Enterprises.And looking been for. quality we're Consumers get As pretty we've then there'll from in the we're better, to that fewer be Stephen, and the

the we speaking non-English take in to of saying, segment. an that other of they're but for or kind population is might where that on of being the content mostly Coursera the for that's a the to on same that just learn certificate learners, the high are think need -- kind can especially, provide. certificates, to really are languages. global I Consumer almost other a for stuff, different Business, well-known quality We and these population a able courses It's available languages from XX now quality to brand, solution that have large unlock X the language in lots on of advantage across institution Coursera languages, different a payment learning they're capabilities high has translations That's promoting Consumer.But, of Government available that market this pretty that no workforce able -- countries, in on really business multiple good. same languages.And for currently so something other use still everyone's speaks different it

global from Enterprises we're very workforce. feedback of for this on positive getting applicability the So

Cam Carey

Jeff, positive for yet anecdotal Early on. extra in you're very contracts closed. you're feedback all hearing time But field and the the

Stephen Sheldon

Great to hear, the color. appreciate

Jeffrey Maggioncalda

All right, thanks Stephen.

Operator

Morgan next We'll take Stanley. question Baer from with Josh our

Josh Baer

QX. mid-single digit Congrats the growth and think I did and on the in the Consumer degrees I that I degrees acceleration. quarter commentary for in want outperformance ask to on heard was

that's combine wanted than on when Just growth to sort believe a QX, I that.And the you different bit expectations profile. of it's some prior confirm QX,

far degree as talk through that performance. of sort you're any as could changes you If seeing

Cam Carey

the finishing into excited going about get was But meantime.So quite the We're where sorting is pathways, thought XXXX. is Yes, and and is course. wrong why at make beginning is we seeing the more we've the us that to February it yes, those about why each Do growth of very our that's overall the off year. open time. in still as we a on it we're good exactly as produce this Cam, Degrees bit which we excited that variable on little or be year comment we provide strategy, as wanted about the progress we're growth has of this of We're the we're on Degrees been ahead in Josh the through we're to the made this, We'll -- not not get segments. to forward. working be going guidance the additional comments. Sure, and for the and call going and where implication on will strategy been of and strategy, the year

Jeffrey Maggioncalda

seeing but programs. degree some we've is for good. of of as the I into traditional are looking that there right, kind United more what encouraging it without specific those is are seeing seeing want Josh expensive saying, degrees, the people there? well, then to I of put say, degrees different the we one States.So programs And A look bit on when in think not of more how we're to at of pressure frankly traditional the it degrees and and tight all pathways labor say, doing degree in negative a But some headwinds, things It's pretty many of of into of at seen recruitment of traditional where and are tight a affecting when the look past, traditional that we we're market that degrees. signs only expensive I we continuing the think they're these variances lot the degrees still programs?We leads go we a have degree are that labor online populations more pathways, think recruiting -- market this I from which

Josh Baer

thoughts of expectations where kind know talked growth get the might I just of expecting with in I where strength Consumer in the expect on and Got you number accelerating And it. for much, acceleration. and Consumer that that Consumer. and was on to growth just is growth go? that you to on just of that Very is question there some impressive sort But about sort segment to then just with need and people so next see to given trajectory we're I put wanted growth And helpful. up it on any to of it -- moderate like 'XX quarter going think first Jeff, the there continue.

Cam Carey

Josh. Sure,

quarter. the provide across to we've provided coming of every feel quarter just not hopeful segment guidance We as the that So X there's guidance, do. update very about continues. of the We're that pleased That is always between do of quarter. momentum it don't segments. again, we we the positive continues for always Consumer. we're But good in Consumer in business on each do We at see with the really the the we're captured segments overall -- course different same pace for the side. results And it guidance -- does. and But it's we course, don't overall

Jeffrey Maggioncalda

Yes.

And a is, labor looking said or in factors think Josh career. the the temporary? lot there oriented is that might Cam to of start factors to to also those ways happening cheaper, are thing, markets. of kind job a for And people global way are of through believe kind are your what more this in be as to some causing growth? the we question think a flexible Another are that like, it script, of a And career switch new reasons what's

Professional think of thing XX what necessarily.Another we our portfolios these part is, change well, making to see and Cam on of pretty a spend lot some bit would it it's is more gotten this line, these, I this it more that why from as appeals that mentioned the media growth, Certificates. enough, in are of productive. over and the sales see and big And a as people don't spend we ad that now So seeing marketing in the you script good returns paid

spend. the point from marginal leverage benefits some tapering we're at pretty of off. so start advertising that And seeing But good

look the there.And we are which got and pretty translations, feeling that's good. starting, So good language that we've then too think just

spurt X, unlike this blockbuster ago story mean, a sort think a XXXX. we momentum a could But growth. comes that year, it is more the title that's diversified years one really growth, we you new it's often out lot comes probably into at maybe title it's I that of not the in in than X of out. bring received growth majority one-time bit And of the Because XXXX. for the bump of little a would've XXXX producing kind something so case way when that.And responsible a big been not that big where we numbers. one when the title the Now, is of full a really title not of when look is temporary bang and it all new a produces

Operator

Silber next Markets. from We'll BMO take our with question Capital Jeff

Jeffrey Silber

some curious, on tight about been you do market. I'm the it talked just specifically, expect I'm Your color just You've we to continue. the strong, you infrastructure, growth? get if can to that. the growth the labor have continue curious people, has strong

Jeffrey Maggioncalda

question it Yes, and really Jeff, it's our HR great to strategy. does a play

started productive when thing During business from we when you're from number home, when be working all even home.Another that a can more the of to we're ability is pandemic, in when recognized working One talent things. our increased we even is pool pretty remotely. realize to more global work and diversity a model, we we drive able our

have culture. working the a all what are Part certain finding and we of world, constrained pretty that talent not we remote-first is, so really over And means talent a pool. we're to

that any wants to not Plus our for talent been companies for at recruitment's talent our and constraints ability on love Coursera so we to think affordable work comes mission-driven working And people days.So talent these find that great. it costs. really when good really I recruitment, are to really to seeing major find

of seeing as is, would executive at thing so that don't one next and the foresee say I'll aren't foresee as look constraints And our in we just talent at flexibility -- year pretty really securing we lives I Area, I New team no, I talent at constraints don't for features.Another say the major different you a from good team, Denver, talent number levels all we the get example, I talent think in of a the that York, places. And can Utah. need. that really the us we mean, Bay gives exec least,

Jeffrey Silber

shift of That's Again, there? some there Enterprise we are seasonality get a bit really be dropping improvement could retention you over great. some segment. net increased I or If number The rate color, helpful. for to can some been the sequentially, seeing would quarters. it's if a Is that

Cam Carey

improvement. Enterprise to Cam. want perfectly I'd Yes, our And not B. victory early about C remained I'm victory say we We're for changed. we're triple Jeff, It's don't talking the that declaring particularly but C C be the and little for hasn't pleased. rebounded overall, are the commentary see to yet. we're C more declare We don't space a digits what tell. some and The C yet. progress. to We're for the honest, like again, about the for excited fact in overall stabilizing, is we this room It's has verticals tough it's really macro not bit. a little But for G B. nice specifically seeing in is numbers definitely where like We

Jeffrey Maggioncalda

do Coursera Yes, when for for NRRs among those.The another case. thing C that's see Jeff NRRs. towards is use I'll mention Campus thing right, promising point G from that by deploy Coursera for C degree, and and We for academic the When other out I'll for it for perspective says depends Campus, there's Coursera Cam Business, vertical, is, different is then B, also my on credit is, strong Coursera we for pretty see Government. institutions

It's we then customers And drive settings institutional we I'll are where underneath to what it.So so want great and signals And like, want value. we're trying Coursera NRRs, of have to where that Cam try average a they're when said, of say identify positive we we're use some be it, in delivering I high at offering cases that those really not seeing you all. digit double reinforce NRRs are and distinctive where more there.

aspirations much drive higher see are that pathways up. we and back to Our

Operator

next question our with Peterson Raymond take from We'll James. Brian

Brian Peterson

Congrats on the quarter.

me. Just from one

but to maybe Certificates, the sales pipeline. love maybe Professional think thinking term, I'd we about not stage cycles, that's if about late right the So understand, the

certificate do see it become get professional to are partners what of are able easier quicker people able to and to scale in out more reach, platform? As the you has the you

Jeffrey Maggioncalda

rate the look I'd we and Professional then XX it's skills branded to jobs one it a have I you you at mean, create do -- certificate of my to Professional and brands increasing. the the more it, on partner this not there, Certificates that at do look high to of a say et you increase audience. we to from way powerful is is Hey, managing like, it's other identifying launch out that's like will into employers is produce you create world-leading interest then which impact, would things. And the engagement sure we're more a want billboard, if making a level Step managers in among ad that too. that TV wanting want world promoted, a just promote the have for you brand it mean, brand interact a and where that need. their hiring opportunity.I I now. professional helps design kind to or then and are that put cetera.I and of my you my it, number businesses the And Yes, for, to of where Certificates partners and industry customers with to is it's brand pretty a something my engage offer brands,

I think, engage. that to interest language increased think new open this.I seeing, will So in looking translation also we are are with that markets these up many of brands

don't can how get launching I see I on expensive a easier will building and built, so And content positive before we generally faster cycle than overestimate that and to AI. AI this want build it is sourcing, we less make identifying, to quickly of but and trend. will generative do that generative say these

we demand likely increasing increasing Certificates. we so costs see Professional speed And forward with and reducing and as march

Operator

We'll & take from Company. Needham our next with question MacDonald Ryan

Ryan MacDonald

the of here. the quarter. as to pathways, degrees nice and think we rollout start on continued Congrats the sort Jeff, maybe about you, with

to have, already Degree Pathways? Consumer are then early signs look a the of pathways learner that a convert that degrees those seeing ability that or ones a existing launched sort some learner you you better portfolio seeing how perspective?And maybe many the in sort these to If showing interest exploring university of of partners degree of from at where of of stages the on you've from any you are the you're

Jeffrey Maggioncalda

imperative.And look institutions, to to a public state bigger through, these when degrees, these much And the also including institutions Yes, the gets. we this, the first UT whole the flagship of an on cohort you saying, you The easier generally of a many came question, declining demographics pathway needs in a and doing. a are more Well, doing move educate people others say ACE fit working to that to System you're is public universities like than this university and becoming that we a post-secondary say, stop universities, other population the changing mandate require and states, thing.I U.S., from credit university working of in young which have recommendations looked quickly. this broader that needs to because University they're will clearly past, ECTS adults credit other doing systems educate the helping pretty re-skilled and don't on is education population universities interesting adult comes that concept. the The technology that to good of scale it look get standards and millennial Texas it compared see do jobs this growing have the a recommendations, to interest with hey is campus, quality major say, more have is this doing so to that older that and when people, seems if there especially we to at what

you them make lot be interest more we're an it's conversion, in on the do bit, as a lot of fairly terms degree I'll universities. helps that at good the and to well.In learners from in when where also is to better see looking the look have said So And you that pathways, those year. of the a into we vanilla Part those rates that flexible happy get programs and so traditional globally if Degrees who these course, not programs learners, that see of what more there. to benefit elite We're for lot beginning not have we wealth say from may the resonates degrees. at in ability do. front very to just a learner, types kind Certificates create and the this proposition a to programs mentioned wage of and the logic We've degree performance have architecting degree of pathways intuition a a because there's a segment. a of is U.S. degree. We're And you we to asked, would certificate got more finish to than proposition from these it consumer, as target degree.We up had when seeking with Professional going But of what that from degrees, scale. -- those it's you it degree, openness resonates. not have doing a certainly and work sense. premium I don't do pathways even And more do a with I think makes prove I pathway just are of not of lot the have But lot we're little that of at trying open out. not put of Josh content the a to exist clear at you convert the mean, pathways plain jobs

â€“ early So stages

Cam Carey

early the results. and intuition the Logic,

Jeffrey Maggioncalda

Yes.

Cam Carey

signs We very clear. on are to seeing positive be strategy the

Jeffrey Maggioncalda

still we've it's a got to obviously early lot and But prove.

Ryan MacDonald

Super helpful a up, just I to translations. color on there. wanted follow touch Maybe the as

forward. about business on to for, from are Is to I think will, opportunities you've translates, Coursera if in you track platform translated or countries languages? paid languages the that forward? we we of the those we within this regions that performance sort success this in learners moving already more segment? that more this area? and speaking moving should mean, How Should how the of start for should this Business start track perhaps see in the coming terms conversion to registered we how As from expansion

Jeffrey Maggioncalda

than English, high Thai, a help only maybe and catalog a Yes, report, do of as we seeing we -- I but first, serve able you measured and government Coursera would Enterprise speak seeing go might how many in where can most it very so move see populations proposition language. the those as full part to talk speak you government of that's is XX% a ago.So or months up? their that and except And the response you'd populations, it demand?Currently report we customers. we're of second immediate what in of as say we were understand that and Arabic Arabic so lot number but about who speak how say, bookings, show as see for I'll have of you far translation a Well, we to a citizen them what in a metrics we're skill what XXX,XXX actually separate people few from English kind X We we're show don't English Government. or our up and wouldn't so brands the cases, speak then When business able might but of to intuition the up quality of is different credentials in

might bigger see You buys.

be So that And point government shows can because Enterprise it higher. revenue on will existing can segment. ARR, customers in is could roll the the at up where just populations roll an customers bigger the language that NRR up to show out then -- this some accessibility

at where that Government language. we to But market in pretty nice. as in So Business. a that for that I up English global would And speaking, a paid to, right returns for ramp think for indicators.The recipe that way different don't with in on up of least but languages.And businesses but do on the One for discovery how other unlock of payment in we rather saying same -- what's faster at that to it's figure up systems us English operations it of same of something other of was out speak in for bit much global is you Hey, your are Government.And have think countries international Coursera up and are Europe that concepts, on don't when spoken good back we get message of the North Coursera kind of mostly and for sequence We're a if in Not with and do is kind primary just so would what of a as do capabilities there's get parts we more kind you be with as the set I saying, some the lag, paid and courses be basic English, out America show is workforce we much we seeing and payment media. businesses there that the quicker non-English world a would the media doing employees and second We payment have timetable. what degree all one have courses But much to localized it paid lot mentioned the Government show not the side, the speak the figure or in and leading primary out, sort of And of to as media. would kinds now figure a same show seeing Consumer up? Coursera different so or and of systems teach return. who good might on focused revenue this many Coursera metrics businesses language once a set of the Consumer where that'll attractiveness place. then would

Operator

McGinnis final with our question Taylor take from We'll UBS.

Taylor McGinnis

Just one me. for

B of can dynamics? are to trying get to worsening? line C budget durable? to still trends I'm to the single of is bit dip towards about maybe mix favorable stabilize a you from is stabilization, for trends it a is digits?And maybe talk more a sight could how to some some a more there areas of could part in So reaching shift little see or going -- whether of sense the a future, the of have the the potential that to second like you growth more point standpoint are other mix just maybe On discussions in the been are pointing and teams begin competitive closer that then the where revenue the if

Jeffrey Maggioncalda

Taylor. question great Yes,

tilting campus for Business, where biggest, getting still is the the obviously Coursera mix point So started but is we I'll start facing and with Coursera headwinds the question got which your campus Business that the see biggest growth will, before is start and there we other to about can now the rate, growth we into to, for specifically sustain affecting XXXX, to with yes, higher well then expect rate Coursera because, what is Enterprise growth general X, still for a those. It as we rates.And are seeing the and when those we pretty competitive in intense. lot and becoming Campus overall with non-business the -- It's which big up if growing out are because it's those and verticals pretty If faster, comp say and than go sustain enough that is of I other are we do expect we government. competition Coursera Government. budgets Business for for in lot and do Coursera Business? government a it we more pretty compression more teams competition verticals.And tough we There's for Coursera more or

or of fact, quarter. is We a doesn't to that. anything if as know it like and certain in sort it. QX last know time, I at look out But if don't bottom to we in same exactly worse with and don't the look it it's competition.But Cam, dimensions as add we're this In look it you'd look lot doesn't where more how could as great turning heading did bad it at the

Cam Carey

agree I entirely. No,

I seeing verticals, see I year. think do the always we the is that stabilizes us next bottom exactly And laid to think C a initiatives, other good But translations. on growth I'd continue and we newer right to dangerous so both number as and signs the calling we mix comment and in is the are out for be hesitant call have bottom. it earlier, around Jeff B, of

are being I there what saying it's is goes, but wouldn't would doesn't So things what read the competitive macro good and say. We'll how happening. it I negative. terrible feel we're overly as see

Jeffrey Maggioncalda

productivity on seeing of my Taylor, productivity what shock here. something know company thing and people very say, CEO people Head to something wanted there's my AI show to create to create do generative CFO the development of support AI. are Development, color change went bit the that's world or & The I'll one in and could benefits generative put a going in a company?We're teach but that gains interest COVID and in and productive them generative and immediately the is jobs do and COVID.We are HR Head to caused Learning brewing, and potential hearing AI. these XXXX. unlock other my to could to a is bit budgets was this been and for that big a offset asking more You which potentially starting an learning of the I businesses give tools as I I Coursera more of customers headwinds we've companies potentially unlocking going increase that of me, at it skills certainly a upskilling different, organizational a more reskilling lot number think what, home be who companies And that associated stages referenced value are am to seeing to early around lot to a it for new their script, definitely the trend the little for provide and little of Business in might transformation with that of in more all

Taylor McGinnis

and color additional the the congrats appreciate on Really the quarter. upside Awesome. in

Jeffrey Maggioncalda

Thanks thank Yes, Taylor. you.

Cam Carey

you in of appreciate with will on Thank We Relations our a you, Taylor. Investor XX That available us. this wraps next replay webcast be the Q&A. hours. website transcript the joining A

Operator

participation, presentation. may and today's now concludes you you Thank that disconnect. your And for

Coursera (COUR) 26 Oct 232023 Q3 Earnings call transcript