Coursera (COUR) Stock Forecast & Price Target

Coursera Inc. demonstrated a robust performance in its Consumer segment, which constitutes 67.1% of total revenue and grew by 12.6% year-over-year to $130.3 million, surpassing estimates by approximately 4.2%. The company reported a total of 7.7 million new global learners added in the third quarter, reflecting an 18% increase from the previous year and showcasing the successful implementation of initiatives aimed at optimizing geographic pricing and enhancing accessibility. Additionally, management raised their full-year revenue guidance to a range of $750 million to $754 million, indicating confidence in continued growth and stability, alongside maintaining an adjusted EBITDA margin of 8.0%.

Coursera Inc. reported a decline in gross margin, which contracted 50 basis points year-over-year to 55.6%, raising concerns about ongoing profitability. The company also experienced a downward trend in average revenue per customer, decreasing by 5.2% year-over-year, alongside a significant drop in net retention rate (NRR) from 93% to 89% in the enterprise segment, indicating challenges in retaining enterprise clients. Additionally, the fourth-quarter outlook suggests a seasonal revenue drop-off of approximately 1.4%, coupled with maintained guidance for adjusted EBITDA margins at a low 8%, further supporting a cautious assessment of Coursera's future financial performance.