tiprankstipranks
Trending News
More News >
Coursera (COUR)
NYSE:COUR

Coursera (COUR) AI Stock Analysis

Compare
710 Followers

Top Page

CO

Coursera

(NYSE:COUR)

Rating:73Outperform
Price Target:
Coursera's strengths lie in its strong cash flow and revenue growth, alongside positive technical indicators suggesting short-term upward momentum. However, the company faces profitability challenges and valuation issues due to its negative P/E ratio. The earnings call provided optimism with revenue growth and strategic initiatives, yet also highlighted potential risks in the degree segment and enterprise spending.
Positive Factors
Business Strategy
The segment change folding Degrees into the Consumer segment creates a positive side effect by increasing Consumer gross profit substantially and gross margin percentage.
Financial Performance
Coursera delivered a broad beat in Q1 results with better than expected guidance and signs of improvement across Consumer top-of-funnel and Enterprise NRR.
Growth Potential
COUR's flywheel model, which attracts learners through free content and converts them into paid learners, is poised for robust revenue growth.
Negative Factors
Economic Environment
Recessionary concerns could limit consumer discretionary spending.
Market Conditions
Coursera's revenue growth continues to face macro headwinds, especially in the Enterprise segment.

Coursera (COUR) vs. SPDR S&P 500 ETF (SPY)

Coursera Business Overview & Revenue Model

Company DescriptionCoursera, Inc. operates an online educational content platform that connects learners, educators, organizations, and institutions. It offers online courses that include data science, business, computer science, information technology, health, social sciences, logic, project management, and digital marketing services; campus student plans; degree courses; and certification education. Coursera, Inc. was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. The company was incorporated in 2011 and is headquartered in Mountain View, California.
How the Company Makes MoneyCoursera primarily generates revenue through a freemium model where learners can access course materials for free but pay for additional features, such as graded assignments and course completion certificates. The company's key revenue streams include individual learner subscriptions through its Coursera Plus offering, enterprise solutions where organizations pay for employee access to curated learning content, and partnerships with universities to offer fully accredited online degree programs, for which Coursera earns a share of the tuition fees. Additionally, the company collaborates with industry leaders to create professional certificates that provide learners with job-relevant skills, further driving revenue. Significant partnerships with academic institutions and corporations enhance its course offerings and expand its market reach, contributing to its earnings.

Coursera Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: 15.06%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Coursera's strong financial performance, significant growth in learners and content, and promising innovations. However, there are challenges in the degree segment and uncertainties in enterprise spending due to macroeconomic conditions.
Q1-2025 Updates
Positive Updates
Solid Revenue Growth
Coursera delivered Q1 2025 revenue of $179 million, up 6% year-over-year, with improved growth expectations for the full year.
Record Free Cash Flow
Generated over $25 million of free cash flow in Q1, marking a 40% increase year-over-year.
Learner Expansion
Welcomed more than 7 million new learners in Q1, marking a Q1 record and highlighting global demand for job-relevant skills.
Enterprise Segment Growth
Enterprise revenue increased by 7% from a year ago, driven by growth in business and campus verticals.
Content Expansion
Coursera's catalog grew by 37% over the past year, now including nearly 10,000 courses and 90 professional certificates.
AI Course Demand Surge
Launched nearly 700 AI courses, with enrollments increasing to 12 per minute in 2025 from eight per minute in 2024.
Negative Updates
Degree Segment Challenges
Degrees product revenue, now part of the consumer segment, is expected to decline as focus shifts to other growth areas.
Enterprise Budgetary Concerns
Concerns about corporate spend and budgetary trends amidst an uncertain macroeconomic environment.
Company Guidance
During Coursera's Q1 2025 earnings call, the company reported a 6% year-over-year increase in revenue, reaching $179 million, and a 40% rise in free cash flow, totaling over $25 million. Coursera also revised its full-year revenue forecast to $725 million. The platform attracted more than 7 million new learners in the quarter, setting a Q1 record. Greg Hart, the CEO, emphasized innovation and product development, highlighting nearly 10,000 courses, including 700 AI courses, and 90 entry-level certificates. The company continues to expand its enterprise segment, serving 1,651 paid customers with a net retention rate of 91%. Coursera's consumer segment revenue reached $118 million, driven by a strong Coursera Plus subscription performance. Despite macroeconomic uncertainties, the company anticipates single-digit growth in both consumer and enterprise segments, with a focus on expanding content and enhancing platform capabilities.

Coursera Financial Statement Overview

Summary
Coursera is experiencing revenue growth and strong cash flow generation, which are positive signs. However, the company is still facing profitability challenges with consistent net losses and negative profit margins. The balance sheet remains healthy with low leverage, providing financial stability.
Income Statement
65
Positive
Coursera shows a steady revenue growth with a TTM increase in total revenue by 1.47% from the previous annual period. However, it continues to operate at a loss, with a negative net profit margin of -9.37% and negative EBIT and EBITDA margins, indicating ongoing operational challenges.
Balance Sheet
72
Positive
The company maintains a strong equity base with an equity ratio of 64.17% in TTM, demonstrating good financial stability. The debt-to-equity ratio is low at 0.51%, indicating low leverage risk. However, the negative net income affects the return on equity, which remains negative.
Cash Flow
78
Positive
Coursera has shown improvement in its cash flow, with a positive operating cash flow of $104.41M and a positive free cash flow of $87.28M for the TTM. The free cash flow to net income ratio is robust despite negative net income, indicating strong cash generation capabilities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
704.91M694.67M635.76M523.76M415.29M293.51M
Gross Profit
379.82M371.41M329.77M331.48M249.47M154.66M
EBIT
-97.83M-113.22M-145.60M-167.23M-143.06M-66.58M
EBITDA
-66.11M-79.19M-129.13M-152.13M-128.33M-55.70M
Net Income Common Stockholders
-66.07M-79.53M-116.55M-175.36M-145.22M-66.81M
Balance SheetCash, Cash Equivalents and Short-Term Investments
748.00M726.13M722.07M780.47M821.77M285.28M
Total Assets
951.20M930.27M920.53M947.60M958.91M417.62M
Total Debt
3.10M3.06M6.60M14.45M19.89M26.23M
Net Debt
-744.90M-723.06M-649.73M-306.37M-560.76M-53.65M
Total Liabilities
340.70M332.85M304.34M253.02M217.40M177.16M
Stockholders Equity
610.50M597.42M616.19M694.58M741.51M240.47M
Cash FlowFree Cash Flow
87.28M93.78M13.24M-51.93M-11.90M-26.91M
Operating Cash Flow
104.41M95.36M29.64M-38.05M1.75M-14.99M
Investing Cash Flow
-29.74M29.90M384.80M-234.02M-51.61M-101.44M
Financing Cash Flow
-44.89M-54.94M-79.23M12.23M550.16M139.01M

Coursera Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.86
Price Trends
50DMA
7.98
Positive
100DMA
7.96
Positive
200DMA
7.90
Positive
Market Momentum
MACD
0.25
Positive
RSI
54.37
Neutral
STOCH
70.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COUR, the sentiment is Positive. The current price of 8.86 is below the 20-day moving average (MA) of 8.88, above the 50-day MA of 7.98, and above the 200-day MA of 7.90, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 70.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COUR.

Coursera Risk Analysis

Coursera disclosed 1 risk factors in its most recent earnings report. Coursera reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Coursera Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
UTUTI
78
Outperform
$1.93B34.3621.81%14.69%188.00%
73
Outperform
$1.47B-10.84%7.26%39.62%
72
Outperform
$1.14B-27.17%5.43%14.22%
62
Neutral
$11.75B10.58-7.10%2.91%7.47%-7.95%
61
Neutral
$928.10M-36.29%58.34%-602.43%
DADAO
60
Neutral
$1.07B52.2225.15%-2.04%
KLKLC
55
Neutral
$1.41B35.79-13.54%4.87%-198.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
COUR
Coursera
8.86
1.72
24.09%
UTI
Universal Technical Institute
35.02
20.61
143.03%
GOTU
Gaotu Techedu
4.01
-1.21
-23.18%
DAO
Youdao
9.08
5.37
144.74%
UDMY
Udemy Inc
7.55
-0.95
-11.18%
KLC
KinderCare Learning Companies Inc
10.78
-17.26
-61.55%

Coursera Corporate Events

Executive/Board ChangesShareholder Meetings
Coursera Stockholders Approve Key Governance Proposals
Neutral
May 22, 2025

On May 20, 2025, Coursera held its Annual Meeting of Stockholders where three proposals were voted on. The election of Class I directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm were all passed, impacting Coursera’s governance and operational oversight.

The most recent analyst rating on (COUR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Coursera stock, see the COUR Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.