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Publicly traded companies often disclose pertinent information to investors through their SEC filings and earnings calls, which may not be available through their blogs or social media channels.
For instance, a recent report from Class Central highlighted that the SEC filings provided insights into the retirement of Coursera’s CEO, indicating it may not have been entirely voluntary. This development aligns with the observable trends in Coursera’s stock performance, which notably declined following several revenue adjustments in 2024.
Furthermore, the earnings call transcript revealed Coursera’s strategy for growth in 2025, with a clear emphasis on the Coursera for Campus (C4C) initiative and a reduction in investment for its Degrees offerings.
Coursera for Campus: The New Growth Engine
In the earnings call, former CEO Jeff Maggioncalda and incoming CEO Greg Hart underscored the significance of Coursera for Campus as a focal point for growth in 2025. Hart noted that among Coursera’s enterprise segments, C4C is projected to generate the most significant growth, followed by Coursera for Business, with Coursera for Government lagging behind.
Maggioncalda provided a candid evaluation of C4C, emphasizing the importance of integrating Coursera’s educational content into credit-bearing curricula at universities. When institutions utilize Coursera content without proper integration, student engagement diminishes, and these offerings tend to be viewed as a financial burden rather than a revenue source.
However, when universities award academic credit for Coursera courses, completion rates soar. Maggioncalda pointed out that these credit-bearing offerings yield greater motivation for students, allowing schools to provide credit hours at a reduced expense while still benefiting from tuition revenue.
Degrees Take a Hit
In a shift in focus, Coursera intends to scale back investment in its Degrees segment in 2025, despite it being the fastest-growing area in terms of enrollments in recent quarters. The company now anticipates a decline in Degrees revenue in the upcoming year.
Although enrollments in Degrees have been on the rise, revenue growth has not kept pace. In 2024, enrollments surged by 20%, yet the revenue increase was capped at 13%, suggesting a decline in revenue per enrollment.
Coursera now advocates for a more scalable method of tapping into the $2 trillion higher education market by incorporating course materials into established university programs through the C4C initiative.
The Geographic Divide
The earnings call also highlighted notable regional disparities in the adoption of C4C:
- India is at the forefront, with institutions actively integrating online learning into degree programs.
- European universities have been somewhat slow to adapt to this model.
- North America shows a mixed landscape, although businesses in the region exhibit a strong interest in AI-related training initiatives.
Waiting for Growth Projections
In contrast to previous years, Coursera refrained from providing specific revenue guidance for 2025. CFO Ken Hahn indicated that the company will await new CEO Greg Hart’s evaluation of prospective growth avenues before presenting detailed forecasts in the future.
Currently, Coursera has indicated expectations for:
- Ongoing positive growth in revenue
- Advancements in both Consumer and Enterprise segments
- A downturn in Degrees segment revenue
- Continued expansion of EBITDA margins, albeit at a measured pace compared to 2024
Source
www.classcentral.com