Coursera stock tumbles after earnings last bearish signal for online education


Shares of Coursera Inc. fell nearly 30% in after-hours trading on Wednesday after the company, which operates an online course platform, released lower-than-expected revenue forecasts for the year.

The company reported a net loss of $49.3 million, or 34 cents per share, in the second quarter, after posting a net loss of $46.4 million, or 35 cents per share, during of the quarter of the previous year. The FactSet consensus was for a GAAP loss of 29 cents per share.

Coursera COUR,
also recorded a loss of $15.6 million on an adjusted earnings before interest, tax, depreciation and amortization (Ebitda) basis, compared to a loss of $2.9 billion on this measure a year ago, and in line with FactSet consensus.

Revenue fell from $102.1 million to $124.8 million, while analysts were looking for $130.4 million.

The latest figures reflect “strong demand” for Coursera’s entry-level professional certificates as well as continued revenue growth in the enterprise sector, Chief Financial Officer Ken Hahn said in a statement.

Executives acknowledged some pressures in the company’s consumer business, with chief executive Jeff Maggioncalda saying on the earnings call that Coursera had seen lower-than-expected student enrollment in U.S. curriculum and mature Europeans.

“Search volume for online degree courses online, and it’s not just on Coursera but just in general, search volume is down,” he said, according to a FactSet transcript. . “I think there’s kind of a reopening of the economy and people are, you know, doing things outside of their homes.”

For the third quarter, Coursera’s management team expects revenue of $126-130 million and a loss of $10.5-13.5 million based on Adjusted Ebitda. Analysts had expected revenue of $142.3 million and an Adjusted Ebitda loss of $9.8 million.

Looking to the full year, Coursera executives are modeling revenue of $509 million to $515 million, while analysts were looking for $542.3 million. The company’s Adjusted EBITDA forecast called for a loss of $42.5 million to $48.5 million on the metric, while analysts expected $48.4 million.

Coursera’s pessimistic revenue forecast is the latest negative signal for the online education market, as Chegg Inc. CHGG,
leaders reported last term that students took fewer courses and prioritizing ‘winning over learning’.

See more : Chegg’s ‘deja vu’ outlook prompts several former bulls to jump ship

Shares of Chegg have lost 32% so far this year, with Coursera stock falling 33% and the S&P 500 SPX,
fell 16%.

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