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On Thursday, shares of Coursera Inc (NYSE:COUR) fell approximately 10% during intraday trading after Raymond (NSE:RYMD) James maintained a Market Perform rating on the company. The education technology company’s Degrees segment was noted for its performance, contributing around $2 million to the top-line beat, while Consumer revenue also exceeded expectations by roughly 1%. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.61 and revenue growth of 12.36% over the last twelve months. Analysis suggests the stock is currently undervalued compared to its Fair Value.
The decline in Coursera’s stock price followed the firm’s below-consensus growth outlook for 2025, hinting at a potential transition period for the company. The upcoming appointment of new CEO Greg Hart, expected to take place in the following weeks, is also a key factor in the company’s future direction. Despite current challenges, InvestingPro analysis indicates positive prospects, with net income expected to grow this year and analysts predicting profitability in the coming period.
Brian Peterson, an analyst at Raymond James, highlighted the Degrees segment’s strong quarter but expressed caution about Coursera’s growth prospects. "The Degrees segment stands out as a highlight in the quarter, driving ~$2 million of the top-line beat, along with Consumer revenue topping our model by ~1%," Peterson said.
Despite the positive performance in certain segments, the company’s outlook for 2025 has caused concern among investors. The analyst added, "The below consensus growth outlook for 2025 suggests that 2025 may still be a transition year, especially with new CEO Greg Hart taking the helm in the next few weeks."
Investors and analysts are anticipating further details from the company’s earnings call, scheduled for 5:00 PM ET after the market close. The call is expected to provide more insights into Coursera’s future plans and the impact of the leadership transition on its growth strategy. For deeper insights into Coursera’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Coursera, Inc. reported its fourth quarter earnings and revenue, both surpassing analyst expectations. The online education platform’s adjusted earnings per share for Q4 stood at $0.08, exceeding the analyst consensus of $0.04. Revenue increased by 6% year-over-year to $179.2 million, outperforming the anticipated $176.49 million. Despite these positive results, Coursera’s Q1 2025 revenue forecast of $173-177 million fell short of the Wall Street consensus of $178.4 million.
Coursera’s 2024 full-year revenue was reported at $694.7 million, reflecting a 9% growth from 2023. The company also celebrated its first full year of positive adjusted EBITDA at $41.5 million. Coursera’s user base expanded with the addition of 6 million new registered learners in Q4, bringing the total to 168 million.
In other developments, the company announced a change in leadership, with Greg Hart set to take over as President and CEO effective February 3, 2025, succeeding current CEO Jeff Maggioncalda.
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