Coursera (COUR) Stock Forecast & Price Target

Coursera Inc reported total revenue of $179.2 million for the quarter, reflecting a 6% year-over-year increase, with consumer revenue contributing $101.7 million, marking a 5% rise, and enterprise revenue growing by 6.9% to $62.3 million. The company's gross margin improved to 54.4%, showing an expansion of 39 basis points year-over-year, while non-GAAP EBITDA margins increased significantly to 5.3%, surpassing expectations and demonstrating a year-over-year improvement of approximately 190 basis points. Additionally, Coursera's enterprise customer base reached a total of 1,612, representing an 18% growth year-over-year, which underscores the company's expanding market presence and demand for its educational offerings.

Coursera Inc. has revised its sales growth expectations downward for both the first quarter and the full year of 2025, reflecting a decrease from previous forecasts, with estimated sales of $175.5 million for 1Q25 and $722 million for FY25. Additionally, the company is projecting a revenue decline in its Degrees segment as it reallocates investments toward other initiatives, which, combined with decreased net customer additions and a drop in average revenue per customer by 10.2% year-over-year, signals potential challenges ahead. Compounding these issues, a decline in net revenue retention rate from 89% to 87% further indicates difficulties in customer growth and retention, particularly in a competitive market with varying regional performance.