Coursera, Inc. Q1 FY2025 earnings call

• Greg started at Coursera in February and shared Coursera is off to a solid start in 2025 with $179 million revenue, up 6% y-o-y, over $25 million free cash flow, up 40% y-o-y. Welcomed over 7 million learners in Q1.
• Focus on content: Catalog includes nearly 10,000 courses, growing 37% y-o-y; generative AI content has 700 courses with 12 enrollments per minute in AI content this year; expanded 90 entry-level professional certificates.
• Innovation efforts: AI-powered text and audio translations, Coursera Coach with expanded features, improved career-based discovery experience.

In Q1, combined consumer segment revenue was $118 million, up 5% from a year ago, composed of historical consumer product revenue $102 million and degrees product revenue of $16 million, both growing 5% year-over-year. Enterprise segment revenue was $62 million, up 7% from a year ago. Combined consumer segment gross profit was $72 million, up 9% from the prior year period, with a 62% gross profit margin. Enterprise segment gross profit was $43 million, up 10% from the prior year period, with a 70% gross profit margin.

• Full-year 2025 revenue expected $720-730 million, up ~4-5% y-o-y.
• Q2 revenue expected $179-183 million, adjusted EBITDA $11-15 million.
• Target 100 basis points adjusted EBITDA margin improvement to 7% in 2025.

Q: Greg, where are you spending the most time and where do you see the most opportunity to drive improved growth?

A: Top priority is unlocking innovation-led growth. Focus areas include product innovation, expanding content engine, and enhancing go-to-market.

Q: Stephen Sheldon asked about content expansion opportunities.

A: Content is the engine; focus on expanding breadth, depth, and nimbleness in catalog, including more health care, corporate, and university partners.

Q: Rishi Jaluria asked about recategorization of consumer and degrees.

A: Degrees is a consumer offering; collapse reporting to align with internal management, expect degrees to decline.

Q: Josh Baer asked about timing of skilling and reskilling inflection.

A: Long-term trend but near-term macro uncertainty; companies forward-leaning on reskilling will have advantage.

Q: Ryan MacDonald asked about measuring success of initiatives and impact of Department of Education.

A: Expect improvements in registered to paid learners; no specific conversion breakout, and Coursera helps higher ed institutions offset funding challenges through revenue sharing.