Coursera (COUR) Stock Forecast & Price Target

Coursera Inc reported total revenue of $179.2 million, reflecting a 6% year-over-year increase, with consumer revenue rising 4.6% to $101.7 million and enterprise revenue growing by 6.9% to $62.3 million. The company's gross margin improved, expanding 39 basis points year-over-year to reach 54.4%, while non-GAAP EBITDA margins increased to 5.3%, surpassing expectations by a notable margin. Additionally, Coursera's enterprise customer base grew by 18% year-over-year, totaling 1,612 customers, indicating strong demand and potential for future revenue growth.

Coursera Inc. has revised its sales growth estimates downward for both 1Q25 and the full year 2025, projecting a decline in the Degrees segment's revenue amid stagnant adjusted EBITDA figures. Additionally, the company is experiencing a concerning trend in customer retention, which has fallen by 2 percentage points to 87%, driven by budgetary constraints from existing clients. Furthermore, the average revenue per customer has declined by 10.2% year-over-year, impacted by weaker conversion rates in North America compared to international markets, thereby negatively influencing net revenue retention (NRR).