What happened
Shares of Coursera (COUR -1.18%) jumped Friday after the online education content platform provider posted solid results in its first-quarter earnings report.
As of 1:19 p.m. ET, the stock was up by 18.5%.
So what
Coursera's revenue grew by 23% in the quarter to $147.6 million, which topped the consensus expectation of $138.5 million.
Growth was driven primarily by the consumer and enterprise segments. Consumer revenue rose 20% to $82 million, and the company added 5.5 million new learners, bringing its total to 124 million.
Enterprise revenue rose 34% to $52.2 million as the number of enterprise customers jumped by 37% to 1,253. In degrees -- its smallest segment -- revenue rose just 1% to $13.4 million.
Coursera continued to be unprofitable on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis. But its EBITDA loss narrowed from $10.5 million in the prior-year period to $7.5 million this time. On the bottom line, its adjusted loss was $0.03 per share; analysts had anticipated a loss of $0.11 per share.
"The transformation of higher education has never been more urgent," said CEO Jeff Maggioncalda in the earnings press release. "We believe emerging AI technologies will usher in a new era of skilling imperatives for individuals, businesses, and governments globally. Coursera is rapidly expanding access to affordable, flexible, and job-relevant credentials that learners and institutions will require to keep pace with our accelerating world."
Now what
In its guidance for the second quarter, management predicted revenue would be in the $143 million to $147 million range, representing growth of 16% at the midpoint and slightly better than the consensus at $143.5 million.
For the full year, it expects $600 million to $610 million in revenue, up 15% from 2022, and an adjusted EBITDA loss of $26 million to $34 million.
While those aren't phenomenal numbers, Coursera stock has declined significantly since its 2021 IPO, and investor expectations have fallen along with the share price. That leaves it with some additional upside potential if the company can deliver solid revenue growth.
