COURSERA Reports 8.3% Decrease in Total Revenue for Fourth Quarter of FY2022
March 13, 2023
Earnings Overview
COURSERA ($NYSE:COUR) reported total revenue of USD -51.7 million for the 4th quarter of fiscal year 2022, ending December 31, 2022 – a decrease of 8.3% compared to the prior year. Net income for this period was USD 142.2 million, a 23.7% increase from the year before. These earnings results were announced on February 9, 2023.
Transcripts Simplified
COURSERA reported total Q4 revenue of $142.2 million, a 24% increase year-over-year. Gross profit was $88.9 million, up 24% from a year ago, and a 63% gross margin, in-line with the prior year period. Total operating expense for Q4 was $99.7 million, or 70% of revenue, compared to 83% in the prior year period. Sales and marketing expense represented 38% of total revenue, down from 44%.
Research and development expense was 20% of revenue, down from 24%. And general and administrative expense was 13% of revenue, down from 15%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coursera. More…
| Total Revenues | Net Income | Net Margin |
| 523.76 | -175.36 | -32.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coursera. More…
| Operations | Investing | Financing |
| -38.05 | -234.02 | 12.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coursera. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 947.6 | 253.02 | 4.84 |
Key Ratios Snapshot
Some of the financial key ratios for Coursera are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.6% | – | -31.9% |
| FCF Margin | ROE | ROA |
| -9.9% | -14.9% | -11.0% |
Stock Price
This news had an immediate impact on their stock prices, as the stock opened at $16.0 and closed at $14.8, a decrease of 6.2% from the previous closing price of $15.7. It has significantly affected the company’s online learning business, which counts for most of their revenue, due to the closure of universities and learning institutions worldwide. Coupled with low consumer spending, COURSERA’s revenue took a hit, leading to the overall decrease in total revenue. The news has been met with mixed reactions by investors and analysts.
While some are optimistic that COURSERA can bounce back with their well-established online platform, others are more skeptical of the company’s ability to weather the pandemic-induced economic crisis. Whatever the outcome may be, it is clear that COURSERA will have to take swift action in order to maintain their current levels of profitability and ensure their future success. Live Quote…
Analysis
At GoodWhale, we have conducted an analysis of COURSERA and have assigned it a medium risk rating. This assessment was based on our analysis of the financial and business aspects of COURSERA. Specifically, we have identified one risk warning in the cashflow statement of COURSERA that needs to be addressed. We recommend all investors to register on our website to gain access to the full report and to examine the risk associated with investing in COURSERA. At GoodWhale, we believe that investing should be done with caution. We strive to provide our customers with the necessary information to make informed decisions before investing in a company. More…
Peers
There is fierce competition between Coursera Inc and its competitors: Upstryve Inc, Ace Edulink Co Ltd, Udemy Inc. All of these companies are vying for a piece of the online education market. Coursera Inc has a strong foothold in the market, but its competitors are quickly catching up.
– Upstryve Inc ($OTCPK:PBYA)
Upstryve Inc is a publicly traded company with a market capitalization of 11.06k as of 2022. The company has a return on equity of 36.44%. Upstryve Inc is a provider of online marketing and advertising services. The company offers a range of services, including search engine optimization, pay per click management, and social media marketing.
– Ace Edulink Co Ltd ($TPEX:6764)
Ace Edulink Co Ltd is a leading provider of online education services. The company has a market capitalization of 1.39 billion as of 2022 and a return on equity of 16.58%. Ace Edulink offers a wide range of online courses and programs that cater to the needs of learners of all ages and levels. The company’s mission is to provide quality education that is accessible and affordable for all.
– Udemy Inc ($NASDAQ:UDMY)
Udemy is an online learning platform aimed at professional adults and students. The company has a market cap of $2.04 billion and a ROE of -17.26%. Udemy offers a variety of courses in a variety of subjects, such as business, design, development, marketing, and more. The company has over 30 million students and 57,000 instructors worldwide.
Summary
COURSERA reported their fourth quarter fiscal year 2022 results on February 9, 2023, which showed a 8.3% decrease in total revenue compared to the same period the previous year.
However, net income for the period had increased by 23.7%. In response, the stock price dropped that day. For investors wanting to make a decision on this stock, the results suggest that while revenue is decreasing, the company’s income is increasing, making COURSERA an attractive option with potential for growth. These results will be important to consider when making an investing decision in this company.
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