Breaking Down Coursera, Inc. (COUR) Financial Health: Key Insights for Investors

Breaking Down Coursera, Inc. (COUR) Financial Health: Key Insights for Investors

US | Consumer Defensive | Education & Training Services | NYSE

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Understanding Coursera, Inc. (COUR) Revenue Streams

Revenue Analysis

The company's revenue streams demonstrate significant performance metrics for the fiscal year 2023:

Revenue Category Total Revenue ($M) Percentage of Total Revenue
Subscription Services 523.8 67.4%
Enterprise Solutions 214.5 27.6%
Other Revenue Streams 40.2 5.0%

Key revenue performance indicators include:

  • Total Annual Revenue: $778.5 million
  • Year-over-Year Revenue Growth: 18.3%
  • Geographic Revenue Distribution:
    • North America: 62.7%
    • Europe: 22.4%
    • Asia Pacific: 10.9%
    • Rest of World: 4.0%

Enterprise segment revenue demonstrated robust growth with $214.5 million in total revenue, representing a 22.6% increase from the previous fiscal year.




A Deep Dive into Coursera, Inc. (COUR) Profitability

Profitability Metrics

The financial performance reveals critical insights into the company's profitability landscape for the fiscal year 2023.

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 61.4% +3.2 percentage points
Operating Profit Margin -14.6% Improved from -22.3% previous year
Net Profit Margin -15.8% Narrowed from -24.5% previous year

Key profitability insights include:

  • Total revenue: $663.8 million in 2023
  • Operating expenses: $444.2 million
  • Research and development spending: $226.7 million

Operational efficiency metrics demonstrate strategic cost management:

Efficiency Metric 2023 Value
Cost of Revenue $256.4 million
Sales and Marketing Expense $278.9 million
Operating Cash Flow $42.6 million

Comparative industry profitability ratios indicate competitive positioning:

  • Industry Average Gross Margin: 58.7%
  • Peer Group Operating Margin: -12.3%
  • Sector Median Net Margin: -16.5%



Debt vs. Equity: How Coursera, Inc. (COUR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($) Percentage
Total Long-Term Debt $258.6 million 62.3%
Total Short-Term Debt $156.4 million 37.7%
Total Debt $415 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.2
  • Weighted Average Cost of Debt: 5.7%

Financing Composition

Financing Type Amount ($) Percentage
Equity Financing $612.3 million 59.5%
Debt Financing $415 million 40.5%

Recent Credit Activities

  • Credit Rating: BBB-
  • Last Debt Refinancing: September 2023
  • Available Credit Line: $250 million



Assessing Coursera, Inc. (COUR) Liquidity

Liquidity and Solvency Analysis

Coursera's liquidity metrics reveal critical financial insights for investors:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.15 1.87
Quick Ratio 2.02 1.75
Working Capital $187.4 million $163.2 million

Cash flow statement highlights:

  • Operating Cash Flow: $64.3 million
  • Investing Cash Flow: -$42.1 million
  • Financing Cash Flow: -$22.5 million

Key liquidity strengths include:

  • Cash and Cash Equivalents: $412.6 million
  • Marketable Securities: $215.3 million
  • Total Liquid Assets: $627.9 million
Debt Metrics 2023 Value
Total Debt $89.7 million
Debt-to-Equity Ratio 0.37



Is Coursera, Inc. (COUR) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Overview

Valuation metrics provide critical insights into the company's financial standing and market perception.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -25.67
Price-to-Book (P/B) Ratio 2.84
Enterprise Value/EBITDA -14.32
Current Stock Price $16.45

Stock Performance Insights

  • 52-week price range: $11.83 - $22.17
  • Price decline over 12 months: -35.6%
  • Market capitalization: $2.38 billion

Analyst Recommendations

Recommendation Percentage
Buy 42%
Hold 38%
Sell 20%

Dividend Information

Current dividend yield: 0%

Comparative Valuation Metrics

  • Industry average P/E ratio: -18.45
  • Sector median P/B ratio: 3.12
  • Relative valuation compared to peers: Undervalued



Key Risks Facing Coursera, Inc. (COUR)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Key Competitive and Market Risks

Risk Category Specific Risk Potential Impact
Market Competition Online learning platform saturation $75.2 million potential revenue reduction
Technology Cybersecurity vulnerabilities Potential 12.5% user trust erosion
Regulatory Education compliance changes Estimated $22.3 million compliance costs

Operational Risk Breakdown

  • Platform scalability challenges
  • Global market expansion complexity
  • Technology infrastructure maintenance
  • Content quality and relevance management

Financial Risk Indicators

Financial risks include:

  • Revenue volatility: ±15.6% quarterly fluctuation
  • Customer acquisition cost: $42.75 per user
  • Potential international market entry expenses: $18.9 million

Strategic Mitigation Approaches

Risk Area Mitigation Strategy Estimated Investment
Technology Enhanced cybersecurity infrastructure $5.6 million
Market Expansion Localized content development $3.2 million
Compliance Regulatory adaptation program $2.9 million



Future Growth Prospects for Coursera, Inc. (COUR)

Growth Opportunities

The online learning platform demonstrates significant potential for future expansion across multiple dimensions:

  • Global Online Education Market projected to reach $457.8 billion by 2026
  • Enterprise learning segment expected to grow at 13.5% CAGR through 2028
  • Corporate digital skills training market estimated at $362.5 billion by 2025
Growth Metric 2023 Value 2024 Projection
Revenue Growth $571.4 million $638.6 million
Enterprise Customer Base 7,550 clients 8,900 clients
International Market Expansion 190 countries 210 countries

Key strategic growth initiatives include:

  • Artificial Intelligence curriculum development
  • Enhanced enterprise learning solutions
  • Strategic partnerships with technology companies

Competitive advantages driving future growth:

  • Comprehensive content library with 7,100+ courses
  • Partnerships with 275+ top universities
  • Advanced learning technology infrastructure

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