Coursera stock plummets 15% after revenue forecast cut

Coursera Inc (NYSE:COUR ) shares tumbled 15% in after-hours trading Wednesday as the online education platform's fourth-quarter revenue guidance fell short of analyst expectations, overshadowing better-than-expected third-quarter results.

The company reported third-quarter adjusted earnings per share of $0.10, surpassing the analyst estimate of $0.02. Revenue for the quarter came in at $176.1 million, up 6% YoY and above the consensus estimate of $173.98 million.

Coursera's fourth-quarter revenue forecast of $174-178 million fell significantly below the analyst consensus of $186.6 million, sparking concerns about slowing growth.

"Our strong bottom-line performance continues to demonstrate our commitment to driving sustainable growth while expanding profitability, no matter the environment in which we operate," said Ken Hahn, Coursera's CFO.

The company raised its full-year 2024 adjusted EBITDA margin outlook by 170 basis points to 5.4%, highlighting its focus on profitability amid challenging market conditions.

However, Coursera sees FY revenue between $690 million to $694 million, down from the prior range of $695 to $705 million, and below the consensus of $700 million.

Coursera's Consumer segment revenue grew 3% YoY to $102.3 million, while Enterprise revenue increased 10% to $60.4 million. The Degrees segment saw 15% growth, reaching $13.4 million.

CEO Jeff Maggioncalda emphasized the company's progress, stating, "We welcomed ten new partners and launched more than a dozen industry micro-credentials, many of which teach emerging skills in generative AI."

Source: Investing.com