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According to a recent research, the global e-learning market is expected to grow 13% annually to $645 billion by 2030 from $215 billion in 2021. The North American market is the largest market that is expected to grow 11% annually to $76 billion by 2030. Recently, Coursera (COUR) announced its quarterly results that reported strong growth. But the results fell short of expectations and its weaker than anticipated outlook have sent the stock falling.

Coursera’s Financials

For the second quarter, Coursera’s revenues grew 22% to $124.8 million, but fell short of the market’s forecast by 4.4%. Adjusted net loss was $21.6 million or $0.15 per share, compared to an adjusted net loss of $6.9 million a year ago. The market was looking for a loss of $0.14 per share.

By segment, Consumer revenues grew 12% to $69.7 million driven by increased demand for its portfolio of entry-level Professional Certificates. The company added 5 million new registered learners during the quarter, ending with a total of 107 million subscribers. Enterprise revenues grew 55% to $43.7 million due to sustained momentum across business, government, and campus customers. The total number of Paid Enterprise Customers increased to 958, up 64% from a year ago. Its Net Retention Rate (NRR) for paid Enterprise customers was 111%. Degrees revenue fell 4% to $11.4 million due to lower-than-anticipated student enrollments. The total number of Degrees students grew 19% to 17,460.

Coursera forecast revenues of $126-$130 million for the third quarter and $509-$515 million for the fiscal year. The forecast was significantly short of the Street’s expectations of revenues of $142.43 million for the quarter and $542.68 million for the year.  

Coursera’s Expanding Offerings

Coursera continues to take significant measures to drive business. Within the consumer segment, it recently expanded its Meta partnership with 5 new entry-level Professional Certificates for in-demand careers in the field of software engineering, including front-end developer, back-end developer, Android developer, iOS developer, and database engineer. It released three new degree programs, including a partnership with Northeastern University and Mayo Clinic to offer the first university and industry collaborative degree on Coursera with the Master in Management: Digital Transformation in Healthcare.

It also added 15 new educator partners to the platform, including four top-ranked Indian universities and industry leaders like Accenture, ADP, and Coinbase. It is also expanding its presence in the government sector in international locations. It deepened initiatives with the Prime Minister of Guyana and the Department of Public Affairs (Guyana), the Queensland AI Hub (Australia), and the National Transformation Initiative (Barbados).

Coursera is also working on improving its learning platform. Recently, it launched a career academy for institutions. It is a training academy that leverages its entry-level professional certificates and guided projects to enable businesses, government, or academic institutions to deliver the skills and industry credentials needed for learners to enter into high-demand, entry-level digital jobs. It is targeting video content through the release of Clips for Coursera for Business customers that are easily accessible 5-10-minute videos and lessons embedded within the context of longer courses for a clear path to deeper skills development.

Its stock is currently trading at $11.90, with a market capitalization of $1.73 billion. It hit a 52-week high of $37.75 in November last year and a 52-week low of $9.81 last month.

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