COUR - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Coursera's Fourth Quarter and Full Year 2024 Earnings Call. At this time, all participants are in a listen-only mode and please be advised that this call is being recorded. [Operator Instructions].

I'd like to turn the call over to Cam Carey, Head of Investor Relations. Mr. begin. may you Carey,

Cam Carey

and thank Executive Year joining Today, XXXX joined Chief Hart, Coursera's to and Chief Officer. our QX Officer; Financial and Executive I'm for Kenn and be Greg Chairman Ng, Andrew Full Earnings incoming by Jeff you everyone, Maggioncalda, us current Chief for our Coursera's pleased Co-Founder; Officer; Hi, Conference our Call. Hahn,

call prepared for open questions. remarks, their Following the we will

open and issued where Our market supplemental earnings simultaneously posted. prior financial Relations of Investor and was release, this versions have prepared our being investor.coursera.com, available press to is website including tables is webcast at our where been slides remarks on the located call

measures be will GAAP both change measures. call, Please to unless otherwise our in and found refer we most this growth During website. Relations year-over-year directly on earnings note, supplemental measure presentation present all and comparable percentages press of Investor release can GAAP non-GAAP the today's non-GAAP A specified. reconciliation to

all beliefs. forward-looking statements statements number expectations implied those these during current or future to to due and uncertainties, events on based are our relating filings. and and SEC expressed call events press of in release, results differ results risks earnings materially forward-looking and in could those from Additionally, a and including statements Actual this made discussed supplemental presentation

to over Andrew. to it like turn I'd that, with And

Andrew Ng

everyone. us Hi, joining We appreciate you today.

to would a on I we to like initiative take discuss results, our Before announcement. yesterday's moment touch

Under we important profitability, IPO, revenue million rapidly Coursera achieving Jeff to platform, while learners than his including the from new behalf bring in by universities our goal significant number of best more of and while of with to thank in leadership, of partnering growth helped growing $XXX firsts contributions on our and by to steward And achieved Coursera's he us years. a the X less million. learners XXXX, educators offerings Board, to million transform over the our for increasing learning. importantly, and nearly expanding our leaders, $XXX all faithful I products industry end collaboration #X to want XXXX milestones past to has First, with lives remaining this over serve the XXX than XXX to accomplish his

heart learning. about right the platform in Jeff, to excited future the our Board Coursera's and person dedication the leader. in play role believe reach been discover, deliberate As selecting comprehensive important for leadership of I'm and build adaptive enterprises And validate for their that. Coursera's an invest solutions the not industry events but modernize is achieving to of Coursera education of skills need disclosed learners inflection There for global to the people. institutions are and past reach are look Gen and all most we to transforming the are most important the and are strong asset, ecosystem, their and point the in to most power Together the and in and develop phase. shaping -- new we and in as either the an and optimistic thoughtful, upstream if will career. to chapter Learners has hope next that our Great for to exceptional foundation after change. initiatives all, curricular have industry our proven growth. teach industry will -- agile assets that building future. Advances and AI to of unmatched, valuable all more with need in capital After is

of product deep as wealth The product, for excellence, and Board with multiple as operational AI highlighted businesses Amazon innovation. we to to technology shifts It's combination CEO transformational the early for lead excited by skilling confident view a Coursera operational our subleasing his We've track and based upcoming and as and technology drilling a and of take an regal is businesses offered passion leading mission of via as XX journey including grateful and a the home Alexa. technology-driven and in rare innovation customer-focused of ability international product X years development, execution of on experience including in and growth accelerate years. understanding we're is from influence, leading decades domestically that as look to our of and record

I'll to so words. a few share now to Greg hand over

Unknown Executive

Jeff build Thank of between I'm the and a universities with of AI. of you, company's take partnerships serving at long The rapid learners institutions accomplished. with powered platform thousands world-class the everyone. the on adoption operating, role to powerful ability industry and access a everything is a with collective and moment accelerated bridge millions and that and XXX team gap honored to and have company mission, by critical Andrew, leaders. admired upon to is good education the model by economic Coursera CEO excited the afternoon, industry of a over formative

career, As regional to throughout nearly have sectors I AI will that limitless. And I create economies. with believe a my transformative dramatically across technologies reach and poised other all industries future learning be is navigated for this that demand can and tasks

learning the opportunity. capacity and in new and learning access, capture positioned education be will to labor they transform market. and global that and competitive of enable an Individuals advances have is more pace this to to a I institutions believe remain Coursera ensure require talent at with a accelerated in this to and market has skills that capacity the deliver work. technology will and future Meeting relevant need to agile, demand uniquely the leader

financial many Jeff footing work, looking the the solid committed driving ahead. with new leadership. with a operating assets. of my a the and and growth nursing of of the deeper myself innovation gaining of to is to In in Coursera's to such a team's position strength our know business. on from phase how distinct forward alongside to shape of work engaging understanding chapter management the to days Thanks and team I'm against set weeks, opportunities progress a and Coursera next to and time a getting our spending team, company partners to and I'm excited talented accelerate the customers the and

Thank pass it Jeff. you. to I'll now

Jeffrey Maggioncalda

thrilled you I'd telling to no both lead to or in that more that XXXX there could When the opportunity and gave was world. be a my the been than this years take providing thrill. Serving Board more I I past has more Greg. to role. wife and Coursera the on for education see a Thanks, me CEO and as X.X time felt dedicate you the Andrew and privilege my fundamental important and

workers. technology most time, industry. at and that of And typically by industry we're automation During after changing lower globalization skilled the held risk job were

one AI phrase FOBO, Technology a AI Fast-forward keep in whether scientist is others becoming a to due dramatically the not shaping Uber data or how only to have was and in jobs CEO, threatens lower requires obsolete well. we workers, driver learn an live, of today, world. changing of learn AI. to day order us, but was skilled knowledge this the and workers adapt and generative up fear the you're every work and talk of The to as or

skills companies I labor creative to things Coursera our the list World on these required the barriers change XXXX. can ahead or global the business thinking, the in Economic over resilience change workforce. found Unsurprisingly, are the of that of encourage The XX% to are reinforce become skills industry. rise month, distinct adapt on that human outdated the the and of in transformation. it. Big expect are nearly and report topped average gaps to be markets the all be like all X and XX% for skill sets response, In opportunity that fastest-growing will And workers of years. AI Data by expected transformed to its The the for you employers upskilling plan read of of importance biggest this both Forum these expected next skill to complementing and future prioritize the job considered to agility, over based XXXX. their responses Earlier findings magnitude published X,XXX from

new scaling substantial trends. X for over I'd and course our lifelong higher large, of a Coursera's highlight of deepening institutions at calls to XXXX, is drive education like moment positioned learning. the team of moment And This educators the the and in these of model future a growth. and ecosystem the platform. advantages to progress progress to made that distinguish take our made we've that intersection

partners new educator as Oxford the ] Adobe, as industry respected most Samsung, and Business universities leading First, more more world's and credentials. the a the educator in year ending leaders, who prominent Johns included XXX. content with Xbox partners of Hopkins University our well of Hyderabad. This like IT In XX trusted [ Saint Medicine, School over catalog we of XXXX, and many than created welcomed broad including

partners. extended our existing that also jointly customers pleased We a with deepened partner, serve come. foundation the largest industry I'm to to sending in to relationship and share our multiyear learners years with our relationship we've

to applying from both well-paying of ECTS that catalog pathways and certificates partners. new tools our In XX tension, received arrangements can We degrees. new content technology Many to credit so as recommendations production our also NSQF been jobs well nearly addition our accelerate educator industry have our -- ACE, partnerships, in able to growing entry-level micro-credentials with certificates. we've this create and college as launched professional

AI our and courses expanded generative We also rapidly credentials. catalog of

AI per AI leading added this XXXX. in In interval many gen growing over for partners, companies Our from world's skills. they minute per these XXX in we year the demand Gen to as X courses which of look saw meet X the up AI minute content, are XXXX,

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million more nearly customers Our added XXXX, third our more new to the we year. product Coursera's the institutions. campuses and customers, XXX $XXX invest our most since second innovation. platform. governments value than learner growing end In base in continue year new XXXX, businesses, paid reach our using across deliver with these X,XXX of individual we We from is to ending to and welcomed To platform's global advantage learners learners million advantage the for the world, by XX enterprise

efforts been redefine and innovation in uniquely areas Our leverage focused AI for to can we have customers. experience learners, our where educators the

career providing In in to launched with their messages personalized QX, extension of future courses. learning across is over but exchanged to with and assistance than expanding structural capabilities example rapidly as become X.X design started Coach, more in a This which learning the Google, million dialogues dialogues, This learning. partners the Vanderbilt Coursera Microsoft acts year, of first have interactive Stanford, already guidance support is in presence XX Coach. million platform Coach Coach has Amazon, The a where Johns interactive Hopkins, learning we and an Coach and discovery, core our instructor. as added learners grown and

with Second translation support in AI content experimenting language. with is in started better date, and and volume from outside courses. have in learners year [ and recently world, we ending translated more XX added see driven audio of Pastio learners that the AI the and up us languages for the to U.S. ], speaking In initiative, growing the top million in nearly will coming X,XXX the learners we our the Bulgari hear than dubbing allowing instructors own available Hungarian [ QX, to video ], To serve enrollments their our X.X

specific learning to Finally, authoring these In teaching courses technology total, our and enterprise custom to Greg's content using as started transform provide our our AI-powered further and Coursera progress their learning believe XXXX, accelerate our in they tailor particularly team's glimpse will needs. we customers, filter, create Gen In a that campuses will to And private -- how make to initiatives. the deep and continue I Coursera businesses organizational course experience. expertise still and advancements of our capabilities innovation 'XX tool.

mission want universal thank their to provide exceptionally I talented to so that learning transform access through learning. Board our At is Coursera, anyone anywhere world-class has and the closing, life Andrew, In our power team. the to to

looking most I'm come years powering we've deeply and in Greg a we're know possible potential. serving For the we're journey in individuals what change, effective to to years, to to me, part the forces helm. only it's Coursera rise forward proud one world institutions and great this watching to building also full been that grateful an be their day grow past of what accomplished a with at is to every end from not inspiration X the company, redefine of the the at of the and incredible of

to like I'd Ken Now over the it Ken, please to financial to us walk hand go results. through ahead.

Kenneth Hahn

Jeff, and you, afternoon, Thank good everyone.

leverage for continue more nonetheless generate financial review basis Please and goals, of over adjusted and than of EBITDA outlook, our of Over and short I'll the in unless note we of strong course fell the delivered operating while financial we our otherwise model. XXXX, flow. to measures free of business annual cash particular, discuss margin noted. we points that remainder $XX XXX performance growth demonstrate the our million our as call, expansion non-GAAP In

X period. expense [ $XX.X million year percentage or and of revenue, Total revenue, In of or segments. period. was was $XXX line up point the million, X.X% million XX% X% of gross Gross revenue million, gross fourth XX% $XX.X operating quarter, which income of our $X.X prior with Net of we ] on a a from was adjusted margin generated year X% in operating prior the total from all growth was in across ago profit or the margin revenue. an year million improvement $XX.X EBITDA was

delivered total was prior year a ] up all improving operating $XXX.X of percentage in of up of functions. of $XXX record year, million, $XXX.X ago. our [ up scale from in margin, from For million was $XX.X year. revenue, was adjusted EBITDA points prior Gross the extended as XX% and profit expense X% discipline million, across operating of and we X.X% negative from continued the X% or was the income an X% X track was each delivering million on or Net million which improvement year. long leverage of revenue consistently XXXX revenue year $XX.X Total full XX% from revenue, we or XX% gross a

over performance beginning in to we purchases million. full the before, QX, which, the million generated more included Moving XXXX, content $X.X flow sheet. In as in the of of engine And coming capital we've of delivered $XX long-term as time. free us which we multiple I $XX cash balance pipeline of expenditures, flow highlighted approximately categories more cash assets, visibility, revenue lowering began than earmarked year. million including benefits, and for treating year, million over share driving content economics like initiative, free of the to importantly our continue provides computation. $XX cash other effectively In this exclusivity platform with This attractive

our the cash approximately approximately was the target flow $XXX of beginning marketable healthy as strong cash, operating of with We XXXX offset balance of free already Our cash repurchase the program no performance This and was the sheet. year million as our completion securities equivalents ended dilution balance debt. cash generation. by bolstered to with unrestricted same share designed

is we've our get in the our As leadership desire and as as pace the framework to past, allocation change position, well discussed our current emphasizes we the financial position. strong capital strategic valuable to optionality enhance believe grow our by industry's which particularly of provided

segments, like the Coursera our I'd up prior subscription the revenue of offering. to discuss starting million, for Now Consumer. from solid with our quarter year X% fourth performance was demand and $XXX.X Consumer Plus

softer regional several growth proportion of translates added than Consistent historically coming the from terms initiatives and significant revenue, we profit despite new million planned more America marketing regions, in to seasonality. retention million of price prior consumer of lifetime XX% on into up past with subscriptions a coming in with period. XX% in point. our progress the as growth. with Plus in the have given we in month-to-month content, year seek registered October quarters, we average, $XX.X Following quarter across a year lower discussed return some gross discussion the X of our the values our we traffic more or international softness QX Segment learners trends, trends stabilizing Coursera from the higher And was which, North being made lightest consumer learner top-of-funnel product

enterprise rate revenue. we customers customers for Enterprise a X,XXX X% Enterprise the The quarters. $XX.X our from at was remained year retention XX% enterprise to total and up and of revenue in in paid our momentum reflecting million ago million, ago. transitory was our dynamics business to paid year increased discussed net XX% enterprise $XX.X margin by gross the And XX%, segment. campus budget prior number was of a driven Segment up and Moving verticals. from

degree number $XX.X recently students students added cohorts sizable up of recent programs primarily some from XX% grew ago from revenue growth our Degree programs. a scaling and of new due on XX,XXX new year degree finally, a segment. XX% in total year ago from was And million, in India. to student The

As a no so there's of to was reminder, content segment degrees, costs attributable XXX% margin revenue.

and opportunities As to serve we evolve, October, we the in discussed broader continue will focus to term. and clear want degrees be about to the in near expect our market universities we

our expense of platform segment degree and In in pursuit coupled our our recent leads XXXX, a with anticipate strengths. year in that approach, we investments prioritized with partnerships This XXXX. align revenue and and resources to full programs us are selective for initiatives, QX decline our

market believe return to an will pace for near-term this company uniquely us our We that to such we for growth serve to shift attractive continue can Coursera a can that is long-term opportunities, more position trajectory. revenue but immediate campus as more of productive investment

to our turning Finally, financial outlook.

you incremental the markets diverse the to been serves. entering broad color the on provide business. ecosystem pace our practice As new and know, has our year given platform composition of global our some particularly and historical

year Coursera's the to the value. Once and team provide the management long-term is growth. and several will full months. our to closely in areas creation of work so, detailed strategy the rest more opportunities do to XXXX months, Over the in expectation he's assess the of next opportunity with for support Greg had of shareholder intent coming

of we'll and months. on the of as XXXX, magnitude overall coming revenue to Consumer segments generate growth both previously to in the growth. positive line overall the in anticipate mentioned, our that top and in we segments to year. provide continue full degree we the expect guidance top We And growth For line our Enterprise and the decline the expect refined segment year

of committed For improvement. we margin extending adjusted to delivering EBITDA, annual full our track record EBITDA year remain strong

year done public the immediate years so a our IPO. preceding even each have as in We company and

less our provide again Our are a growth depend and invest of heavily in succeeding flexibility the prospects initiatives. and initial attractive day, end in At the to the large to capacity at most growing value pace order and expectations to will margin, with EBITDA expand though annual once us our aggressive market. the on company long-term in and

until the higher enjoyed reignite we a just we'll in to financial As continue operate growth disciplined fashion. rates we work to recently,

X operate we position. over demonstrated a points more This designed margin basis particularly its EBITDA consistent the moderation past improvement basis the our X,XXX scaling delivered XXXX. as team Coursera's ability and differentiate points provide pace the in and further capabilities. years, XXX leadership to aggressive progress made discipline and financial model Over of improvements on is generate including this to business cash, ability to than expansion, strong enhanced deliver the in of to scaling us with productivity core our of year room We've

quarterly the year-over-year growth million to million, $XXX in to for range and of X% be of our X% representing QX, to driven Enterprise regards to guidance by the we revenue With segment. expect $XXX Consumer

effectively For financial million. with of long-term $X and return our flexibility the adjusted position entered higher stability EBITDA, to to execute operational of and strategy strength and $XX XXXX to in we're We a growth. range expecting on bolster our needed million a

and joined A innovation, millions trends, technology global industry Greg Coursera's and mix product and now shareholders international and while we deliver next transforming of to by of process, scaling serve. alongside markets. learners, We successfully for be higher value customers market are the and experience decades create to in educators work the education for of the time the him growth phase and his steering is leadership of for navigating right new confident development

questions. the With call that, I'll open for

Operator

Jeff you will and answer be questions. today's Thank session, for Q&A Instructions]. Ken available to [Operator Andrew,

line We Sheldon will the now William take our first of Blair. with question from Stephen

Unknown Analyst

question, trends where BXB and enterprise seeing more This just and campus My in is specifically talk weakness notable Pat seeing across the you're Molly government? first or strength more on for about you're Stephen. can you

Jeffrey Maggioncalda

Yes. Pat, this Jeff. is

be say And only trend obviously previous of upscale of the across we're kind bookings have we've and support following a quarters. you to NRRs in been of expansion when in some programs. that the government government where the seeing bookings, went the the out weakness look those of but campus. programs types money weighing to been development where new weakness. of and X has That's we're I'd transitory. at So large for in, into on also COVID, NRRs citizens. we lot QX Many in seeing. degree, generally Coursera not that a enterprise, I individual years about talked seeing turned in we been workforce look that's business, mean, the And to budgets and verticals

notably The not of used we're that weakness when credit. for other seeing part is Campus Coursera for it's

center the curriculum institution they vocational avoid avoid colleges, with but a the are credit pace. and universities of changed, make relevant because colleges curriculum because more do that the is less they we So really courses a workforce. it the clearly, what Coursera, for the for and the struggling is take offered. faculty it. they're courses it's to programs, kind not and to being use approval center for of training getting that to the students process, profit the keep cost up the the that also the fastest into process And find and When light of to tuition educational integrating other they're not universities, come receiving institutions educational And students for they're are all harder

for Coursera the Coursera our cost rates. lower. relative tuition, those platform. the but it credit is When true. of credit, are taking receiving the courses you rates The credit take are is institution highest across Suddenly, opposite delivering for offer Campus completion And because students higher partner credit, among for students for hours entire it's is the at who

it been beginning. great faster. seeing little integrating certain in it Europe, online where seems clearly but and the learning seen in bit progress programs has this is India embrace this We're of we've days. early In a slower, regions that and it's it degree into So college

beginning educational without cannot of content. to the We institutions someone the with up this around of world, they realizing provide partnering keep like a are Coursera kind seeing

Kenneth Hahn

growth, we B C, as the and by we for expect most before, question which then C C briefly, of in you asked since discussing deliver with year, expect and the XXXX, enterprise the... for to we for In look C overall rank for forward ordering G, followed growth 'XX course, next to the

Jeffrey Maggioncalda

Yes. One thing. is asked And weak that upskilling we strong. be efforts. North teaching saw one other America spot and versus businesses I their has the is built about fastest. and they're are in in embracing I places. And Business the embracing discriminating pretty need content mean upscale learning AI sort the They're who to the like and building, Coursera spots. of AI between other generative certainly QX the the caring, AI also on frankly, seeing ones it Coursera for seem bright to platform. you saw the experiences it been we but by employees America generative mostly looking in mean differentiating into seems driven North

in differentiated And the demand we so those seeing is that this of well businesses that and AI that AI the of world this a are growing buyers solution. So from competition Coursera generative content leading we're kind looking platform think pretty the is of adoption North sector. the for on in business America kinds against the for the and generative

Unknown Analyst

degrees expected in a Okay. growth revenue this and the we're XXXX. at question, looking more additional declining now engine if I had One to your core may. you be Day, business And XXXX for color. At Investor

that understand can there's through in So you priorities us prior versus a expectations? in bit But just talk shift business changed some what has strategic there. your

Jeffrey Maggioncalda

really ago, online more degrees of when bundled together, is bit. can degree novel. new years managers, Day what closed, the of we degree during largely quite from some partners an a in online couples the as can and COVID, became you outlined pretty program our on Clearly, degrees of the a saw online online degree. type the of years Sure, sure. kind outsourced programs open sort a traditional were is it that lot learning of sort X market, credit was I'd say what ago, do And online towards the that we have college on struggled a necessity X OPM campus courses Investor a form. count And that

with model and admission that credit those we a degree attractive on can that what can we you open an are credit open program. being this credit bit count of being and used So start emphasize degree are that as as in where content pathway to is a on the see can call sort learning based a you Coursera, content have for guaranteed

college degree degrees, customers. bridge courses happening what's there between that the Coursera is universities What what degree they thinking look, love on students taking that open before our would lot campus would and we only been the gap my available Now creditory fully getting we elite had into and on of to broadly programs, be content and they programs. seeing Coursera be they're be Coursera. they're are integrate it Once and students they into attracting degrees Suddenly, in the like, already their Coursera curriculum. would a would make -- we're put and it

see degree more tighter and putting we're recruitment, between focus. Campus for where and that's our a we Coursera So synergy of

Operator

from of Jaluria next The Rishi RBC comes Markets. Capital question

Rishi Jaluria

wanted Jeff, you it's and been start working next to a looking since the I Greg forward Jeff. the to you, Maybe you. chapter, for with pleasure Wish with working best IPO. all in you

we've have company you initial of virtual at monetization late learning transformational and expected and through rewound XXXX, as time or ways maybe or at the from we as tenure things -- the past transformational came back while if years some quite maybe in adopted terms been more when traditional Maybe COVID or over sales, XXXX. ChatGPT onset learning still right, going like As it and out. CEO. the not with tape to and would have encouraging think seems been major the hasn't us as that your course disruption AI the walk perspective, front, And expected profound the your line AI. has the learning kind widely we of the you've we of through given rise about waves we to some from reflect as late of would back kind stats X you've outside reflections first users courses. kind very CEO, And over you the -- on than of snapped virtual that to took quite how or as the as major, AI forward? of X-year of adoption of the through just been really now the least necessitates over and can early least, But and

Jeffrey Maggioncalda

what Hey, got literally make arc any XXXX, to what prove and to short, Andrew Rishi, a at in how want really them, into learn that course skills driven of you of my literally might you. There Andrew growth, not the from you jump machine it were kind you narrative early come this heavily machine thank play in of being that to I was and out, knew as first I'll question had if scientists and institution. know and the When like AI is that that done. taught Coursera's started And Learning Daphne It with kind perspective. by Coursera, of generative wanting credentials. learning driving Stanford with but you did. and no educational and I'll was in incumbent lot data back was days learning the here the Machine least

I the launched the XXXX, call a take of, a sequel heat launched when audience. But learning seekers, Google people was of that IT IT sort It deep learner to build them November wanted those the These learners that and of Google of of machine for before. different same in when attracted the whereas the scientists, class. the certificates like totally It a to XX% models. to certificate. people. when rapidly first lot a ones expanded already the taken Coursera XX% AI learning had Suddenly, been deep data support, who in of never -- came launched the came support That had like kinds attracted Andrew

to experts time from professional and a career at of get appeal get trained switching to And of because college a the a either student early in really of degree that and next certificates AI and what level people that those professional or the content without platform. of growth broadening in could brand part do career looking a certificate of entry-level where certificates in driving was the from recognized So period the of our a the fueled new some graduating during advancement. broadening career stages by a a new for largely broader was credential the growth scales

immediate. what campus fairly like COVID had a in of valuable office of in things super clear, was saw the days, big is AI, to to like, I gen AI, something through other it that XX that. COVID, no course about that recognition the happening urgency do XX immediately. choice, really of the I gen relates it slower, it, say every just I generative mean with I subsequent as was the action and Now the within and this every growth strategy regulatory clarity different. things the is campuses, or this was question was slowed better. act do companies because sort unbeat, of is we of urgency also almost -- a and Understanding mean, this -- would AI clarity With closed to what because world or the uncertainty there's the With But clearly, stuff? do roof went And down. action for gimmick people it action it's some the and certainly less little happened a been of to

to done be faster realize to people. you're higher and and types do functions action tasks, jobs and see Now it lever be much will a of is there. -- of value general lot types generative gains, interest, we're of certain more could that, understanding AI, nature need more certain keep action getting gains. the to the because and and models quality types to starting we're much the cost productivity clarity of the evidence the lower that for companies not what of much what there's in now, seeing going largely that urgency in and better me, they will of that seeing certain To when much train productivity we're but with and certain

before. unlock is will a on you to little from seeing. ability unlock thoughts been this, think will and can mean, urgency and I you're value provide of point, it that much there what clarity clarity of of improves see I'd love bit too. we and that to how saw has get And slower your Andrew, something tailwinds through rescaling. similar a productivity get vantage I your some urgency But and that the be kind to what kind to

Unknown Executive

the leading one learner our of on As platform. providers

Andrew Ng

Thanks, Jeff, and you, for question. Rishi, thank the

is, it to [ forum amazing AI a few is I value, then Rishi, businesses, education, hype. mapped saying work and of deliver finally, a actually to change in multiple than that some for built. actually the to just of know profound are time just as the predictably, hype I maybe be will will they economic ] think hype season yet applications I had takes a comment as concrete last people made valuable lot And And development not to technology, ago, lot start it it which be smarter double years a actually being across your AI be. that not want out applications the disruption to it So shows from everything. but

Coursera lot sometimes there information. asking think a A for controls -- language whatever to they I top in to to that models has it of or other to comes. transformation ask or going base partner or think large of terms So capture learners ChatGPT whatever, I a are be very Coursera, learning. strong to which on innovate do of of already invest or is

I think is maybe transformation there a is coming. that

builder, which Jeff year getting of think, Coursera dialogue, as we're announced much and Coursera was course recently, we over more earlier, signs announced, reaction does Coursera our innovate. to working you, but some adoption. there, team to time CTO gain for is very And our I take hard every these fairly regularly, product things tell And which a I of made earlier ago, traction meeting, Coach seeing, it frankly, hopeful

some things on working list the of heard find long additional You of very The team exciting. already that announced. hard things I is about the

think of some very think we're I a know as learners on many position a starting terms what in content. us strong from on, based you're high-quality building I quality And because shop, Coursera's

our We learner culture company have first. a X day always very large from base. put has And user

So the think, figure our team very learning team of serve culture, and options, down position plus on or deep us excellent up gives to use organization which that also today. together the a spot morning some and quickly the where it I an and assets ones how empathy our combination balance more collectively sheet, think scale with And out and work people and the really invent they of I next healthy comes then learners. platform

that knows and inventions just heard hopefully, there's well. things be some work done not team out about, busy new you've of our are but So the rolling already come us to as to talk

Operator

from comes question next Stanley. Morgan The Baer with Josh

Josh Baer

faster business. growth going Congrats, fastest-growing drive X on wanted degrees there. some the Jeff. degrees kind strategy the trajectory return more investments to of focus I that like been on Greg. a to are The has dig Congrats, part last on other strategy this quarters, to in and is And of initiatives ahead. attractive to

growing So it what's little through a that away Like from kind fast. taking talk seems like been focus of bit? actually could you

for If rate looking then marketing the how you you Are does just degrees? not of Are Campus ahead? pulling in like turn talk you about dollars? any could negative And wanted Like that growth growth away Coursera XXXX? that launching to I what more understand for degrees? rate actually means

Kenneth Hahn

Josh, Sure, is Ken. this

important on a the one degrees, model. is to of revenue consider items So

over So to up for for than years time. course we of cohort -- of degree really we years the it's the a has different past, couple productivity fulfill a up full don't as live signed it builds

a a are naturally, growth, tails it little off have when slowing, it takes larger while. things when you And so

rec part is the under. rev that So of

with to there especially the investments, revenue we believe do term, investment to in the near to opportunity As provide. focused investments, more serve and ways uniquely we're degrees continue where C customers, we the that them. believe regard as excellent not return mentioned, term focus as to near But those the opportunity C in the Jim We'll there an near-term and we But we more model, consumer, degrees, current our one other there's enable is given on will is be enterprise that. are universities on of for potentially growth. and to

as different hasn't we're top There's pretty C XXXX, So have some you a add growth on not I we part the as that. in growth we of come serve year We experimentation for in ways may before, look that excited next we as as need. And to much same expect taken, and that C enterprise, to know, may it. it's largest mentioned like. enrollment services. to reasonable that's and the or of we'd

the you we've than back If our thoughts in now expected degree overall, to That had is. go the to that consumers. we growth be enterprise IPO said, business, on and it larger outsized

that that customer We of believe understand we again. so we So and in have to us how people always growth and a predict serve But ahead need as It's that time. matter again. stock. of driving a they restore still once too the morphs that you growth growth practicalities do as model how far of cannot near-term company

Jeffrey Maggioncalda

differentiated just $X a and Josh, look is of that say, higher also of one market in to not ways credit do change other you're currently if things model. scalable recruit in find for more it's have same electives. by degree is say, you who of students cannot to that stone tell going And aren't for So already is credit this? the And university in obviously courses after Campus a conceptually real for it's we're trying you to going one when that say, modernize at big do to and, education is true some a at trillion it's the the end way throw putting terms is fundamental partners' program to your Coursera to offering a to and curriculum. But want content great standardized quickly some do you market. way. those a Certainly, It the pretty to the our higher in as I'd

just more over X going time. going degree and We the with put and of that if to university a we're on for. people want in I past, recruiting it's into electives much campus online, credit you now it these Coursera. to sort put better It's complementary you're was think for scale think elite have -- Corsair it

Josh Baer

with conversation decision about commitment margins business degrees you to the comment like now was part way I degrees hoping is expanding recently a is savings could Like of around of and the the like is like line, part talked margins lot is the One EBITDA of cost bottom that I back? the basically around pull you've XXX%. part follow-up, this to it, is is on profitable? and like continue priorities the know that -- segment the different But this, and frame growth. and focus you of

Kenneth Hahn

future don't near not investment Yes, it's term. matter distant Josh. it. by different for we way the more And It's But the we segments. the much that the growth think of is versus resources more about a -- so it's measure we always profitability in allocating outlook

the continuing traditional of spend when investment exactly back growth But is right. that's there. to So We've invest We're pulled less is business. some slower, there.

term. we And opportunity those more to and resources the where see in so deploying doing near we're that's what

Jeffrey Maggioncalda

you an the the kind more for focusing integrated kind we could those base. learner. and can exhibit are online that elite to online, right standardized, really portfolio, with over certain and more think And a no, scaled an degrees end kind have programs It's some standardized more value start a are be a even model not the on degree. larger characteristics degrees are content credit the degree the just for and open like open that offer that of there it's kinds the the an that of we're uniformly within that scalable get like is credit proposition content within degree open -- unique model programs of of And

Kenneth Hahn

finding model can and that scale. it's So rhythm that that

we be. versus it where achieved We hence wanted the haven't to underperformance quite the on growth

Operator

final the our from take question with MacDonald will line of We Needham. Ryan

Ryan MacDonald

Best I was about working luck to segment. future Maybe the just know it the consumer pleasure in you. a endeavors. with talk

a XXXX and driver we the that content of sort timing obviously, is segment launches of that in things, year. and is the obviously certification cadence One of the rollouts of learned for performance

you generative can number 'XX what as timing the we level demand one, XXXX, of those think so certifications expected launch, the high of of and of, a rollouts you're to with are. sort being to about launches general there? of in of of visibility And new AI mix in talk go priority as about the what's certifications for we into you have And certification expected Gen new the expecting terms just AI-related

Jeffrey Maggioncalda

we of When was -- there some QX, did relative more growth a XXXX think factors entry-level from a and matters, really clearly, much are compared XXXX more XXXX. in in macro the Ryan, what a and region at and start a larger much were in overall like well QX, even set few we titles Ken. region more where much there on titles XXXX see to XXXX, coming a I professional based did hand of in is concentrated in perform North for off, set about on. What in I the that which certificates we broader strong or there's especially our base. year QX, a stronger demand it from And in about about, talked that question we growth then And it was think, and exhibited as content not a is diverse think I'll over Maybe, and really, narrow though the of going America. Yes. I'll expecting XXXX the beginning finishing consumer to and of growth relatively quarter the as

was indexed content more also So into be branded. will of performed And Gen think that That AI-powered this that accelerate a by we that, of reliable engine, steady, portfolio heavily partner the it go we content Coursera well. source and produced predictable, will segment of markets. XXXX, content towards broader, provide engine quite Much more growth consumer we as did created more international diversified content more

of geography-specific up to that? in open North the the promotion, accelerate you'd translations, to to help will geography-specific with we us video text Ken, audio and is only geography-specific anything add where pricing, America, beyond dubbing some markets payments we're going really think translations. want currency along seeing The this, And and consumer growth headwinds.

Kenneth Hahn

I some in to is of I as more which a Plus with because the us time of month-to-month. were ever Coursera wouldn't we to the growth largest well the near stability a innovation of subscriptions agreement guess that seeing so had hesitate C longest, in, bit I over And as has to started a which it's about for talking a things I generally. and mix renewal big more on there. it in the Plus see of We've term, guess our of opportunity business, driver important so. highlighting partner little we tip there. lot progress the been was the we're near industry the term, highlight guess I

Jeffrey Maggioncalda

And mean, time maybe jobs growth COVID. ever I due jobs transition various a want of away, consumer of in lot labor of When to into market. retool was to huge dislocation stay the wave a a wrap the driver do to We different in there's that horizons, we've this, greatest in people going seen there whether helping people just is or growth. dislocations, go jobs are consumer job of requiring a to of created and anticipate jobs lot being various reasons relevant new segment for

be the going the And of ourselves clearly a in of Ryan, AI for that your we're question, solid to And XXXX. trying are to position so to a producing gen heels pretty on XXXX we titles. lot titles

AI who's to and that hire we're a capable teach credential going return earn generative employer is proactive going AI to says that relevant tools see coming, like, you play We good on job a XXXX. employers world using an job-specific new you be going to to how who's Our some title person and investment that do for be a you. in more to to it are to

Ryan MacDonald

helpful. quick just to Super follow-up a Maybe that.

'XX? could Given obviously, week, related an unexpected for of DeepSeek of have seen impact the in or the sort for tailwind the terms be has that specifically interest demand in and impact markets had website you the the this DeepSeek platform that -- coming of content? And sort to

Jeffrey Maggioncalda

Yes.

we DeepSeek. I become signals a and more lot models people of as have cheaper, they become per But said, that any So have more far, se say ubiquitous. wouldn't like capable on

when do how they they'll As productive them have expected become them. them, learn more they'll like use to and be more ubiquitous, use use they to be to people

innovation of spread models be and to the And me it is. to and so will be gains and widely used, more says be all It the will underlying productivity broad more will it enhancements more what impactful higher.

up need to on so people skill themselves And it.

to I'd necessitate like So a is say that you'd anything the on add Andrew, get for that? on greater want skilled to AI kind me of that. that people to a anything urgency clarity advances return of to and generative model investment using looking

Andrew Ng

millions the excitement hundreds includes Andrew. AI is I of by in hype feel models a of of billions we in like buzz been training DeepSeek lot this or model which there's as or the maybe the all them. a the So lot model generated layer, the sometimes saw. of AI world, mall And in the trainers, foundation big dollars about

be and so Coursera the so think -- to I else the products that by lot and in and that -- Coursera of a models application will monitoring access these or spent someone wonderful looking captured future, of take much like on. Coach advantage has really value Builder the type Coursera the then at inexpensively companies recent build or layer, of created

This applications at relatively the DeepSeek Coursera's build valuable I license. I team increases products. So the in frankly, a there fact of that our the very and release think, leading team models other open MIT savvy of and think, all way, and the engineering out teams technically can frequently models very to on is, actually working looks under ability

So is becoming that model hypercompetitive. think foundation I the layer fact long-term

companies like that? I it's actually think good for

Jeffrey Maggioncalda

Business array use Tutor, for for a coaches cost hear -- -- coach our get And for Coursera for each purpose. our customers, the of Coursera every better course builder, customers features to we of fit-for-purpose improves. best business X course builder even they cheaper, the a fact the wide builder for of model for different for a settles, and dialogues, have our often we Andrew, different use different we course ability we And effectively, time model that within models using are and different model

well I layer. and exploit So set Andrew to guide a we're up that has clearly at strategy. pretty think set the foundation and pretty happening we're that the helpful very in competition innovation kind up been of really But architecting think well that's I

Andrew Ng

build So ] bring, to and unique really companies and that those from excited to the innovations. about top initiatives DeepSeek the others we'll like think education-focused on coming AI [ technologies continue RF benefit of may I

Cam Carey

replay Great. this of Thanks, be Ryan. on our A you Take wraps care. joining will Investor shortly appreciate That Relations today's us session. available website. webcast Q&A We today.

Operator

concludes This call. conference today's

now disconnect. You may

Coursera (COUR) 30 Jan 252024 Q4 Earnings call transcript