Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Bank of America upgraded Coursera to Neutral from Underperform after the company posted stronger-than-expected Q2 results and showed early signs of sustained growth in its consumer segment.
Revenue rose 10% year-on-year to $187 million, beating the Street’s $180.5 million estimate, with strength across both consumer and enterprise.
Adjusted EBITDA came in at $18 million versus $12.8 million expected, with margins supported by improved revenue share economics and cost control.
Consumer segment revenue grew 10%, doubling from 5% in Q1, helped by growth in Coursera Plus subscriptions and enhanced marketing efforts.
The enterprise segment expanded 9%, while net revenue retention rose to 93% from 91% the prior quarter.
Management raised its full-year revenue outlook by $17 million to $742 million, attributing most of the lift to stronger momentum in the consumer business.
BofA raised its FY25 and FY26 estimates, now projecting $746 million and $796 million in revenue respectively, along with higher EBITDA margins.
The firm also lifted its price target to $12 from $7, applying higher multiples to both the consumer and enterprise segments, citing improved visibility on growth and margin expansion.
Still, BofA kept its rating at Neutral despite the more upbeat view, noting that after-hours gains of around 20% have already priced in much of the near-term upside.
The firm also flagged signs of a potential Q4 deceleration and the likelihood of higher operating expenses in the back half of FY25.
While Coursera’s valuation has expanded to 1.3x estimated 2026 sales, above its one-year average and ed-tech peers, BofA said the re-rating reflects a clearer growth path and reduced macro risks.