Curious about Coursera net worth and what makes it financially tick? Today, we’ll dive into Coursera’s diverse revenue streams and how they’ve managed to grow consistently.
By looking at Coursera’s revenue sources, including consumer subscriptions and enterprise partnerships, we’ll understand its financial health. Let’s explore how this industry leader is evolving in 2024. Written by Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Coursera, Inc. |
| Full Name | Coursera, Inc. |
| Industry | Online Education |
| Traded as | NYSE: COUR |
| ISIN | N/A |
| Founded | 2012 |
| Founders | Andrew Ng, Daphne Koller |
| Country/Territory | United States |
| Headquarters | Mountain View, California |
| Chief Executive Officer | Jeff Maggioncalda |
| Number of Employees | 1,401 |
| Market Cap | A$1.80 Billion ($1.13 Billion) |
| Total Assets | $904.4 million |
| Total Equity | $585.2 million |
| Revenue | $170.3 million (Q2 2024) |
| Net Income | $(23.0) million (Q2 2024) |
What is the Net Worth/Market Cap Of Coursera in 2024?
Coursera has a market cap estimated at A$1.80 billion (or $1.13 billion), positioning it as a prominent figure in the online education sector.
While its current valuation is not at the level of some of the wealthiest companies in the world, Coursera has been continuously growing, driven by strong partnerships and increasing consumer demand.
For a reference, Coursera stands in a comparable sphere alongside several key players.
Related Companies:
- Google Cloud
- IBM
- Microsoft
- Meta
- Amazon
- Udemy
- edX
- Khan Academy
- Salesforce
To see a list of the top wealthiest firms in the sector, check out our article here.
Coursera Financial Performance Overview
Key Revenue Streams and Their Growth in Recent Years
Coursera‘s financial growth in recent years can be largely attributed to its three main revenue streams: consumer subscriptions, enterprise partnerships, and degree programs. These areas have all shown signs of healthy growth.
Consumer Revenue
This revenue segment reached $97.3 million in Q2 2024, reflecting a 12% increase year-over-year.
The growth is driven mainly by the success of subscription services like Coursera Plus and the rising demand for entry-level Professional Certificates.
Coursera added around 7 million new registered learners this quarter, pushing their total to 155 million.
Enterprise Revenue
The enterprise partnerships segment brought in $58.7 million, representing 8% growth compared to the previous year.
With 1,511 paid enterprise customers, up by 17%, Coursera has expanded its reach across various government and educational organizations.
These partnerships, like those with Dow and the Education Above All Foundation, significantly contribute to financial resilience.
Degrees Revenue
The degrees program generated $14.3 million, growing 14% from a year ago. The increased revenue comes from new partnerships, such as the collaboration with Clemson University for a master’s in computer science, focusing on AI-driven curricula.
Coursera’s enrollment in degree programs reached 22,600 students, a 19% increase year-on-year.
Factors Driving Consumer Revenue Growth
The consumer segment has seen significant growth driven by several factors. First, expansion into generative AI and Professional Certificates has been instrumental.
Courses from industry giants like Google, IBM, and Meta help learners stay competitive in the technology field. Additionally, Coursera Plus, the company’s subscription-based model, has played a crucial role in encouraging learner engagement and retaining users.
Contribution of Enterprise and Government Verticals
The enterprise segment reflects a strategic move to expand Coursera’s offerings beyond individuals.
The number of paid enterprise customers grew by 17%, reaching 1,511 clients in Q2 2024. This growth includes verticals like government programs, exemplified by collaborations with Education Above All Foundation, which helps support education for girls and women in Afghanistan.
These initiatives have allowed Coursera to diversify its revenue streams effectively.
Degree Programs as a Revenue Contributor
The degree programs have been a significant part of Coursera’s overall financial health.
The 14% revenue increase in this segment highlights its importance. Partnerships with prestigious universities, such as Clemson University, to offer AI-driven degrees, are helping Coursera strengthen its brand in online education.
The total number of degree students stands at 22,600, a solid base contributing to stable revenue growth.
Non-GAAP Financial Metrics
Coursera uses several non-GAAP financial metrics to offer a clearer picture of its operational performance.
For instance, Adjusted EBITDA for Q2 2024 was $10.4 million, a considerable increase compared to previous quarters.
Similarly, Free Cash Flow hit $17.0 million, indicating better operational efficiency and cash utilization.
These metrics, while non-GAAP, help to illustrate how well the company is managing to meet its growth targets.
Operational Cost Management and Its Effect on Profitability
Managing operational costs is vital for improving profitability.
The main contributors to Coursera’s operational costs are Sales and Marketing, which accounted for $58.1 million in Q2 2024, and Research and Development, which totaled $33.7 million.
General and Administrative expenses reached $29.6 million, which is up from previous quarters.
A key part of their strategy involves maintaining these investments while expanding revenue streams, ensuring that Coursera remains financially sustainable.
Share Repurchase Program and Its Impact on Financial Stability
Coursera’s share repurchase program is also an important aspect of their financial plan.
During Q2 2024, they repurchased 2.7 million shares at an average price of $11.47, totaling $30.6 million.
This strategic move reflects the company’s effort to boost shareholder value, ultimately enhancing Coursera’s stockholders’ equity, which now stands at $585.2 million.
Future Revenue Outlook and Strategic Growth Plans
Looking forward, Coursera’s financial outlook for Q3 2024 is promising, with expected revenue between $171 and $175 million.
Strategic initiatives, such as expanding their catalog of AI-focused courses and professional partnerships, play a crucial role in targeting further revenue increases.
These growth plans ensure that Coursera is well-positioned to achieve its long-term financial goals.
FAQs About Coursera
What are Coursera’s Primary Revenue Streams?
Coursera generates revenue primarily from consumer subscriptions, enterprise partnerships, and degree programs. Each stream has experienced notable growth in recent years, contributing to the company’s overall financial performance.
How Does Coursera Grow Its Enterprise Revenue?
It expands its enterprise revenue by partnering with government bodies, educational institutions, and corporate clients. These partnerships are tailored to meet the needs of each sector, thus driving growth.
How Many Paid Enterprise Customers Does Coursera Have?
As of Q2 2024, the company has 1,511 paid enterprise customers, reflecting a 17% growth compared to last year. This includes businesses, campuses, and government collaborations.
What Was Coursera’s Adjusted EBITDA in Q2 2024?
In Q2 2024, it reported an Adjusted EBITDA of $10.4 million, a significant improvement over previous negative values, indicating positive financial health.
What Growth Did Coursera See in Degree Programs?
The degree programs brought in $14.3 million in Q2 2024, with 22,600 students enrolled. The company is expanding partnerships with universities to increase enrollment and revenue.
Conclusion
I hope this deep dive into Coursera’s financial situation has been insightful. Feel free to share your thoughts, comment, or explore more content about financial analyses on our website Ando Money.
