Coursera (COUR) 8 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Coursera First Quarter Fiscal Year 2021 Earnings Call [Operator Instructions]. And please be advised that today's call is being recorded [Operator Instructions]. I would now like to turn the call over to Cam Carey, Head of Investor Relations. Mr. Carey, you may begin.

you our thank call. earnings and everyone, for QX joining conference Hi, me Coursera's Chief Hahn, Maggioncalda, is Financial Executive With Jeff Ken Chief today Officer; and Officer. our

questions. open their call Following we will remarks, for opening your the

close Our press release, being where posted financial tables, simultaneously website webcast. our Relations call and after Investor was on this is issued including market is

Additionally, available. made have also downloadable versions been of our prepared remarks and supplemental slides

percentages most non-GAAP presentation, directly release to and change call, specified. GAAP non-GAAP both financial Investor measures located investor.coursera.com. we to refer to reconciliation A and distributed Relations this be the During can at our year-over-year available GAAP Please of comparable press measure public otherwise growth found which will unless measures. today's that through note the website and present in are supplemental all

of could all current to Additionally, call statements relate turn to I'd number like And are Actual results release, are you We expectations. discussed materials. based supplemental to projected results uncertainties, materially that remind risks to over like no which press forward-looking made obligation and this events events filings I'd to that, our from assume and those differ future forward-looking SEC with due update in on statements. it Jeff. to during our and a statements that and

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catalog. second advantage content our is The big

first our meet Conference courses, the announce including: on Our across in stackable our Salesforce, MasterTrack free Ivy cost IBM projects can degrees professional to At points, business products master's programs first first our low Bite-sized all and for bachelor additional branded programs university, certificate and of Coursera degrees. degree. first multiyear, an to learning, the I educator their broader universities And MasterTrack freemium stages Coursera Brazil certificate and and including our of grow. most to and a from international last new six and in-demand of world-class to five price accredited like Australia; partners, companies, Professional including India; globe, Coursera short as content them range system content modular build attract of degree us a skills. MasterTrack leading journey. a from technology a learners Content program the towards leading from credentials leading of from master's around some including course month, universities, enables to on hands-on MasterTrack learners Certificates universities or exciting of catalog new lifelong serve program three from proud our from study, designed at and stackable, from from today's is at for entry-level was such continues and branded, and Spanish-language League $XX,XXX needs high-quality,

that degrees. Coursera With and XXX final To easier hands-on content, mention to over of a X,XXX create certificates, including bachelor's experience for our learning catalog guided number additions, to and platform in-demand advantage Certificates than over enhance Coursera and degree; educators college that is X,XXX projects now make innovations specializations; more now The XX to product Professional it includes: I'll require courses learning; no master's introduce XX further learning these team recent the offer our the platform. competitive continues on innovations. and new

X,XXX content over innovations real-time, Innovations upload-based mobile and AA key authoring educators effectively, and and the experiences for drive to we growth Academy institutions, including in and accessibility continuous and credentials benchmark other include process. Coursera, advantages on create leading power see authoring Coursera's increase a speeds only reduce And and and advantages, turn product more that LMS and many credentials skills. content measure the institutions for educator higher which develop, the SkillSets which in and Coursera costs for partners, scale, of early of reinforce value increase is ingestion decades up to on content Data subtitle ahead. world-class, our produce is author the the selection unified partners to learners and top educator learners, in scalable the recommendations, organizations help that each and and to Science platform language acquisition both years real motivates all courses including education the for more the personalized innovation, to tools Individually, innings, we're branded and attracts introducing believe translations But desktop of these customers flywheel shift and growing We supports content individuals X.X that For for include content a in efficiently effect coming WCAG and as preferred abilities. Coursera. credentials. way content opportunities

Campus we In relationships acquiring strategy on our focuses with customers using in land-and-expand Coursera and to new large learning offering to a and of only growing turn pace invest help customers. see developing for our particular, enterprise a recently, we XXXX, as channels will to colleges and we around continue in in our launched that keep market First, opportunity digital the existing world. October world universities growing a efficiently online

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our Third, build we increasing learner on grow number brand, to learners will and the registered platform. in investing continue of base our our

that content educator localizing to educator payments discovery. world-class trends continue economies, When grow credentials growth in certain it continuously catalog over also and a need a partners. our of now in deliver delivering degrees Ken? content, discuss innovation, and learners and and And the some pricing, platform more and to unique results Coursera content, of believe our new that We branded, we I the high-quality our programs finally, at will position world our in-demand network And are and we going partners and turn our and to scalable fundamental forward. around model to to invest content I'd seeing growth, I in Ken our in will driving fastest emerging skills, look today financial detail. the is like learners

Jeff, hello, everyone. Thanks, and

first of strong Our quarter on of saw quarter ago the XX% across up start we marked momentum $XX.X segments. to throughout continued business million year year three driven build Total was the XXXX. as strong by all performance our QX as a the to execution robust to we revenue compared

will as metrics call, of million, financial was measures operational percentage approximately a discuss pro gross than forma the revenue. Gross XXX the from key quarter. That non-GAAP otherwise XX.X% profit of For and up ago noted. $XX.X excluding year basis higher year I ago margin adjustments, well points the as represented XX% remainder unless was

our in components past have of of and they the changed Let's the services cost look at year. two how

costs. content has rate Consumer our on illustrate costs margin in rough of effect our vary depending is and content our margin. business amongst the the the To terms, shift, each content mix XX% businesses. first these will Content The mix a of for revenue segments

XXX% Degrees has has margin margin, Our content a business content no business costs. and Enterprise it given XX% is our

of portion volume total of also margin can rate sales, to expect The of gross driver our mix a this overall Over overall segments percentage profitability and the a and vary. Degrees segments driving financial rate. our larger significant relative expanding each performance structurally of we content Enterprise margin affects time, So our be for our gross as become those margins.

XX% rate content XX% content. segment increased lower-revenue This Consumer quarter, from of due share our a margin consumption to to year-over-year larger

cost On XX.X% of of to from The percentage costs second resulting basis, of a basis year-over-year non-content non-content our component gross overall XXX point in a revenue margin. a improvement costs. services decreased as X.X%, is total in

release to refer expense revenue to our detail. results non-GAAP this of XX% supplemental the media and the compensation operating non-GAAP Sales today's to we the remarks charge in related statement earnings prior provide sure completion $XX.X stock-based associated some expenses. of QX QX XX% revenue, reconciliation or compensation. of with like to for Total our restricted of first, IPO. be I'll began are of Please operating I'd compared as we about a stock-based follow of The XX% tax. million GAAP presentation large compensation But stock there measures of additional marketing details appendices Next, In in to as clear spend in represented expect last lower a our QX, total expense amortization XX% year. down investments units payroll in from year. that for with related in income stock-based were and and which exclude definitions was

We total expense ago growth in Research expense represent of percentage the XXXX a has in XXXX. was revenue versus leverage. and to as overall revenue expect higher of as development similar sales XX% XX% in period marketing strong our and year provided our

in General We revenue overall as year. of R&D revenue ahead IPO. the expect to similar investments given versus personnel, in this in systems XX% our was year our of a expense QX administrative and XX% expense of consulting percentage and represent of XXXX prior

revenue loss this of our or continue in percentage XX.X% of was adjusted as higher XX.X% was revenue, or and XXXX. $XX.X a expect loss $XX.X Net We EBITDA revenue. expense of million to million

base better $X.X incrementally incur ago. on innovation demonstrate We our communication the foreseeable focusing on and consistent will basis. $X.X an cash $X.X that future, our learner that expanding was or for an continue losses year than a marketing, though been XXXX of be platform. and a year, million flow Free and sales our to in the plan investment offering we figure to content our leverage on million in scale growth driving through million have We we'll annual anticipate use

strong quarter position. a Looking We at cash in balance the sheet. ended the

we of securities equivalents On taking cash and we $XXX of forma be As XX, cash pro into closed a the unrestricted March $XXX net in from proceeds April, $XXX basis, million cash, would equivalents securities. million IPO over and our marketable no of had account over with total million marketable debt.

invest of Regarding we capital early pursue the aggressively to to our us. scaling to life continue allocation, cycle we in of leverage business are opportunities growth intend stages ahead ensure model. our believe substantial ongoing these and in have opportunities and and We

Enterprise in Turning and segments. Degrees. results X Consumer, report to our segments: our business We

While platform costs they technology revenue and associated and each is segment content how unique financial as revenue credentials, which content margin, audited segment segment we data, less the statements. in our our are and in unified benefits define from of generated

our was XX% discuss on Professional year-over-year revenue broad-based strength all regions recently $XX.X launched let's First, Certificates. adoption initial across Consumer of strong business. and Consumer million, up

to lectures for learners as have a view cost, Certificate subscribes or earn learner of gross lower Coursera Plus While of quarter. content benefited Segment specialization or or subscription, $XX.X a a and pays XX% was cost content other revenue completion. purchases model when at million we from a the Consumer we during where revenue rate course profit Professional freemium can we no Consumer certificate a

the Our of is and Enterprise our registered during XX quarter top-of-funnel segments, a base it for new Consumer Degrees segment because serves important and million. added million X we total for as source learners

purchase seat growth with across new in revenue revenue to to and their and employees, courses, customers licenses businesses, these Next access earn campuses Enterprise that was professional $XX.X reskill students. and and provide certificates citizens is Enterprise specializations our existing We order categories. and upscale Enterprise. when institutional partners' XX%, up all in million, governments strong institutions,

Paid for learners gross Degrees million or due a was $XX.X Customers rate on take which to of program lower percentage Enterprise than slightly our prior basis the XX% XXX%. degree was We on segment. in rate Enterprise earn QX Degrees retention a when net finally, XXXX. profit year Segment And Coursera. lower revenue, revenue of cost Our was a university hosted content

our was million, students new cohorts revenue scale Degrees and XX% prior offerings. up embrace as Our $XX student expanded

year East our XX announcement Am new the partners and reached now our recent Degrees US Segment margin of of content as spanning up XXX% includes students Asia. from based tuition. and the revenue a the to from And globe university university was the portfolio gross Lat Students on amount university Degrees the of With segment. of ago. attributable degree programs, to tuition the XX% Degrees Middle X the degrees a XX,XXX, from no and total number fee pays to us cost there's directly pay

on to outlook. our moving financial Now

have basis, revenue particularly good into Degrees a Enterprise We in on visibility our quarter-to-quarter fairly and segments. the

is However, growing by as impacted onetime, courses in visibility we registered perfect subscription. the our large don't have where a learner segment individuals can pay single as our Consumer base revenue in of and or form

to XX% $XX of a QX, expecting the at the This growth to in rate revenue be the represents of million. we're million For QX range versus $XX XXXX. range midpoint of of

revenue XX% of next the reminder, compares a to than lap the we year. from In pandemic. our more grew QX from of begin the will last onset COVID-XX prior quarter, year, As difficult

EBITDA For of translates at to the adjusted negative to of in midpoint. which adjusted expecting million, million a EBITDA, XX% margin the we're $X.X an $XX.X loss range

$XXX the For anticipate at million to of million, representing midpoint range. of $XXX the XX% range revenue growth full be nearly in year to the XXXX, we

an margin to of the million midpoint. For adjusted we're $XX.X at EBITDA of expecting XX% loss or negative million EBITDA, adjusted $XX.X

and our sales additional business to costs, marketing We as optimize and our and a and being year term any outlook not the single with Our quarter. and for expenses company. manage administrative full well on associated for an adjusted development reflects EBITDA. costs incremental long in for public general run product personnel-related We XXXX annual cadence do for as investments plan business

learning, continue moats. time. while also competitive the expand of grows, to demonstrating we and pursue opportunities online our invest opportunities plan intend see transformation growth to As to as over our scale business leverage We we to in

passing to model. summarize Jeff like for several Before closing business comments, I'd of to our highlights

Within top First, the in greater experiencing, the addition from contribution visibility we years to line contracts. with as over customer evolves, including to This strongly our our of ahead with segments. increases we're new clearer cohort the in Degrees cohorts multiyear forward the sales growth revenue customers, a Enterprise our growth predictability and growing rapid mix Enterprise, revenue on along expect have recurring includes that we as early annual customer time. layering is of sign

from even next forward given cohorts we academic student Additionally, to the year that the our builds. one and visibility and better business revenue Degrees naturally has predictably fill

platform. have model, a finally, from expansion we'll ongoing believe through attract and low driven And our by to brands term acquisition to our Coursera's learners the over partners. we our costs margin our long higher-margin and new freemium structural us of enables shift gross Second, business of which registered the mix by platform business benefits scaling at power the

match As we see us grow profile background able to institutions goals, turn them just based proud expand opportunities learning ahead Coursera their and key rapidly significant getting over new on we're And certificate to I'll and learners our our of Coursera that to support advantages, back learners, summary, and In platform, personalized are With degree programs attract business Jeff. with we're built, higher are including value we've revenue a high-margin educators of we free and attracted that, it and businesses. time. and opportunity started. margin to our the with course projects the to for lectures,

leading to first And us in to and scholarships the are Magazine XXX Coursera B us on world. more has has we the responsibility our needs world duty in to Time equal that this prosperity and opportunity open the reason so Cloud. join to announced few is to That's lives Q&A. always was underserved legal unlock full us or we you to attracted opportunity, views April will help believe me hard impact to With balance the what we join companies to ourselves, mission. society transform started in for Companies from humanity call questions, let equal DoorDash. serve, the education We and introduce help, has we with which to please in have. get its world. wholeheartedly, poverty It power every employees We matter let's with The to and thoughts. lives can question? learning empowers our Coursera's and place. our the XXXX embrace more peace. Black Thanks. learning than our that, the change, It's in shareholder impact that needs to person, and Influential in Daphne transform what are, February, we health, a forward day. more means power and Can for SpaceX believe families alongside to from Corp, illness of drawn leave to our a list, No included the the Andrew we has If world. Most grow Before It's We where it And from XX, move the and possible. you what first communities. Coursera lives, to XX,XXX to to Coursera more we universities to companies Who world, we every potential will transform and our transform conflict help inspires Coursera work who became redefine creates like and and access how Code Airbnb, Tesla, testament ability a desire that creates for Facebook, that with Goodwill, the have a Google, Microsoft, why Women to more and just learners broadly. We Girls to is a

we Baer from Josh [Operator Stanley. question, Morgan Instructions] And for our have first

question are relates as My enterprise some of to those wondering it potential side efforts. the as those the paid? And efforts, and as timing monetization far the we of is of converting from COVID relief where free just on institutions to the

then workforce April. response Obviously, recovery relationships was back big of first digital with That say of workforce unemployment I to and of the and new was seems the pace. And see back campuses, that and with government and XXXX, I than acceleration the now to in are work was a the we we recovery and in started is uptake would with workforce conversion the people one initiative happening be an of was reasons campus then of jobs that to level starting March a at the ago. free those into in the governments is urgency definitely recovery bit think of a quicker higher getting agencies. the it of year doing

me were that seeing kind embrace Another they have is mean we're that the They most, I agencies training least, that government thing to old online were it way. seems at programs. all with forced most of didn't workforce experience doing to online-based development programs.

how it is, how is well how is, it pandemic it is, all pretty working scalable cost effective I think in it how is, it modern the seeing that how works effective environment they're well.

So with there. conversion the we're good efforts pretty

of terms just institutions On it's bigger a in the there. initiative, campus response of number opportunity think we the out

have making Faculty different power. the regulatory different say good, I'd in and to stances. We but move the have like the that XXXX. steady have around pipeline we're It built QX, influence We're of levels steady of different a hockey we stick good, campus seeing conversion not, of is side. in along, regions continue policies, conversion world progress. on

Degrees. of like If does I a through OpEx of some Degrees. could costs look other could hoping What We segment I was know that are Ken on just margins talk one segment? XXX%. for you the quick ask

that the line. of to So to we the and not like, the different plan operating biggest break those those is do in it partnership what the help looks what But on with and out supporting clients, discuss operate course, who cost new expand universities specific effort they university the and have ensure both or need. the of on universities, day-to-day with a to that basis segments degrees costs, group structure they people biggest bring

group operating in lives to dedicated doing expenses. that, and a that our there's So

technology a just as I'll Josh, imagine, thing is we're company. you Another add, probably can

so processes are we And automatable. love love, that human seeing

build to point a a for is they how I'll back And goes the author, lot associated don't automate to, there think, big Andrew in is that is all QA degree partners of the well. are those with to lot know on single can author, relates authoring, just side degrees, it so as only the not that our I courses, self-serve, pretty also we look much most doing We're of and got they the end And repeatable but programs. time courses capabilities now degree professor post, automated course accomplishment leverage much part, just it pretty Pretty and are for learner-facing. technology the single when Daphne as through the see to which and days at the which team on they to, you part, X,XXX, early a process. just not scalable, is over more But over use self-serve. the that the building a most tools, processes the we serving

is used broken differently the of that, the business it's is us fact these why I'd various haven't that benefits because, scale than other overall And general one add competitors, part to of model out which that across helps all technology costs is is businesses. and add-on we that, the and

segment. the is that the only for partner people distinct so And university one

next our Stephen have Blair. from For Sheldon question, we William

the half of trends an Enterprise trends there successful force in in give and the acceleration quarter productivity, really IPO in additions enterprise on the growth. guess, maybe and seeing of But sales direct the you strong you're the within sales first Customer the XXXX? force quarter. the made to second size the first, I especially Enterprise for update this on Paid Can segment, Congrats there you nice and strong

of would a we on COVID reflected sort tailwind this, if say, take to QX if at I Ken, in arrived color QX in you Stephen marketing direct numbers team. our any the put reasonable sales that you surplus and -- will, what don't QX our of guess know that QX, pretty I I a and of and reasonable and sales if door financial amount want but ramping looked our primarily. And at you did the,

to hiring. with on respect are We track

ramping. feeling that to is we're We're our enterprise opportunities a to the continue good respect capability giving of close seeing progress lot this space. in us We and about that the are on track here, the to we with expect

be coming So all add that that? seems anything along schedule. Ken, to right to stuff you'd

lot to we been capacity. to consistent because of that pay hiring plan, the it's just sales a and attention Yes, has

asked reason. question track for on group. on You Enterprise sales our obvious an right capacity the And the we're with

just see then advertisers on to types. continuing different media from Coursera And

in more of talk burners can spend how segment? the be some for year? that maybe Consumer in the awareness over could much and about the So registered marketing brand helping you pulling remainder And plans

atypical had the different that investments We the to year and direct QX, of what ROI. We ran basic market. segments took somewhat brand marketing that than the Disney unlike the different not build awareness in in might of force, cost we TV love I hard effectively, in it cool just model. we left It I made and, really markets some we additional is an very see that be co-branded made dollars. were and advertising Soul. we also feeling Last interesting had the sales portfolio with more to of we to investments mix freemium some really mean in the just think, campaign that in us past, with kind

marketing you than case were speaking, really to more XXXX. and into doing we through far. part pretty go to channel. that? later in word more. of sort we've credentials. our high would pretty are Ken, We're pushing and So us in content with as mouth, earlier be we're highly we them that of of well XXXX that those been just line Pretty that see SEO, the TV the that going model, heavily leveraged, add And might I noticing might dollars sales partners' to advertisement. in XXXX which generally love the with It rolling affiliate kind you're marketing But experiments with you'd more not mix marketing here, freemium and just do say standard our doing that so a see some of anything seems you against

you which But I'm will we a because that theme, actually is hitting our question want Stephen, plan we QX spot recurring around as margins be going we're glad public have on very a earnings we Well, weren't the something a We're asked that call because we didn't annual to now in basis, we're see getting to show business. year-to-year. that having focus an the discussion expenses, QX not is better to the on EBITDA leverage We right quarter-to-quarter, on plan and on. company.

that basis. and our spending. may in on get going within to to to leverage we an between, band manage do in our annual We're again experiment better that -- more future. accelerate But to and accelerate and expect the the We show business

this sure a we to going take since that so earnings forward anyway, so call. everybody I capture market, make So right? wanted to the we're have QX knows didn't time doing we what And we point make

next Tillman Truist. have question, from Terry our For we

I'll IPO throw and first I'll it also on just out quarter. there. the echo Maybe the the the congrats in question,

you an specializations of as update notable how another X-part is meaningful a business, question. a that. behind the have special most certificates, the how fit one traction. the terms see In Microsoft does proportion this was first maybe or that? where of into that And I So on some unfortunately, of

a more and created for subscription-based, Professional you So these where our a you'd And Professional is universities I type of entry-level sauce Certificate. media you right the generally got not the as the of specialization. series, going and the multicourse It's to specializations. social earn any the technology type five partners, a comes They're a thinking science marketing time levels. sort which Coursera, lot it uptake more teaching the segment: was cybersecurity. learners data more often And that think similar. business and or high-demand, It and it government. is intermediate a times generally, which advanced available. universities. have couple is a you At don't was of either are course first don't come Professional that, IBM off. was Coursera started Certificates. product And was These on are Johns almost It of of level which science the Professional the a series. is business, the the job. first are specializations, was that secret launched specialization Certificate, a Hopkins the difficult data from getting think One there's every think certain in These really that are Those we also industry basically year taking it one entry-level, by degree, that college of has it XXXX. think consumer, in got -- number of Google, Facebook a seeing and And field about are monetization around these four first lot often ones with assuming very product science, another for we a them the has they things. science any what at kind was When takes data on Certificates background and credential be portfolio from were they're have a in across There's an to attracted data you campus entry specializations, is than one happening we or advanced what of of well-paying bigger. less is skills online that the all of

two. So this we time had year, last

the position; Google have if will. the first entry-level IBM really for science in IT the we had certificate, science Certificate, So an and data data support you the was reference which Professional we

cover we bookkeeping. in went We've Salesforce. with from QX then, announced in one from careers. and media Google. entry-level many Now XX three have Facebook live, certs We different additional just in from social And with they more one one since marketing. they live got also include, We Intuit

I are myself to design, I a seeming college larger and UX of think post all, get pandemic to they're software is again, -- got project higher analyst. and no into the really So job, the resonate. people management data unemployment and degree required. portfolio These incidence digital really And thinking, really

put we little in the around this texture a So more script.

some suited here, years that the see of and for that to be well and market environment We think numbers nice are this sort going environment, the we the come. probably is now we to seeing many for job

might maybe I the Maybe not but easy, it easy second it's an question, be one. thought

going just you question the a can say looks? opportunity give want to COVID to you the registered amount. going of it. Consumer a of learners, if your what a because to forward, it's nice particularly to is But how if levels. thing, whether there's commitment Or international Ken ongoing double-digit the at quite not about Consumer this there segment take I you kind does business vitality don't lot a we're the So you Obviously, know want the adding I So But the of in the to such the get are still post-COVID, segment? mean, Consumer about vitality the of vitality growth. or

think pacing really of so give real question, to over tough it to I'll registered the me be Ken. funnel, the a about term, longer learners, quick No, it. is the In with how sort generally let of It business. top you I of a want turn the here's we number

we to so generally, XX% or year. more want grow per And

So longer want number do to term. double digits over the we that on definitely

getting if by conversion more get revenue more we higher rates. and to generate obviously, you shift can monetize, conversion products like that. things you course, Of And rates have a and getting higher mix

say, average LTM, if higher degrees you LTV, have at can selling point. a I like buying, You mean, things higher get people

growing to I'd say, be top funnel. So the do we overall, want of

mid-teens. road where Consumer on again, world think historically, strength it's of do high towards will of We revenue able be we the rates. unemployment vitality be. world I side a issue a that a the of revenue double-digit, of in to that, the think think segment, these And and we the is be time. is will that that and a career-oriented should for longer-term it on the just said big digital will jobs, show, mid-teens, growth think We lot some to we least better pretty been That's at where lot switching and credentials. the provide

we from MacDonald question, Needham. next our have Ryan For

start I want in to the Consumer segment.

quarter talked the Would trending quarter. Plus success strong on free you're how all? improvements in in the I has conversion to understand top pro quite being any of contributed paid Coursera been to if has guess there. seeing of that, at And any and about love certs the to You

wants level, put high I'll on and texture see a financial then at if any it do I'll Yes, it. to Ken

these, pretty and of portfolio, although we had with certificate So the had we are IT we Google things in of the we XXXX, these Certificates, Professional one launched two a thin of the January that Google about things. noticing

And so a early days. It's have still data. we didn't of lot

interesting it quite the and more try are to that of I And someone's It's for that is pay. And assigning Coursera is bought I They're society coming time that the sort of think of Professional to across time. came interesting one, that there's in higher speaking, first that first are careers, the XX% lot to ROI one higher post-COVID the representative seeing think they're buying launched scientists. Coursera. about broad people new it a they of learners equally people a will They came assigning than well, causing learners more generally days these when is been learning obviously monetizable? Coursera. that, because was that of of phenomenon which in to necessarily as equally monetizable. a these, Not like to is be from But changing they of assigning clear data are they're whether commitment were they're higher that your from off-platform. well advanced more over propensity not the launched the from to that early of is them when online about we've There's to value we say the who monetization percentage first of we swath it, thinking to when who's wanted the Certificates, the happened on-platform they're the question XXXX, One things we in an countries. like, a of many XXXX

good XXXX. compelling results on add to all up Certificates partners that? pretty to do familiar. like It's the relative Professional model learner value these you'd This to access you almost subscription aren't Coursera. seem course, like a who on so the side, in Ryan, typical one is Ken, of line And bit where average everyday to with are of a you who our a kind to general a entry-level on of fee, proposition seems anything seeing the we're Coursera so little there. on they for Plus Coursera the Spotify So those from get courses show

mostly mechanism a could seeing different offerings. types payment are that facilitate this as We of

facilitated Professional wanted sure have a maybe to by the ability across do they sample learners explore say, We seeker marketing want who want or IT or Coursera do or a types want job catalog obviously I I not do to The is if of specializations to Certificates, Plus. who's do certain do seen to cybersecurity.

consumption And so times certain it at segments is looking certain in tool phase. be like the will a this for

useful And more. we it. hockey stick hope a it's we And But QX. so even us in help in tool like us. not have. It's the helping necessarily future, to like find that It's going to ways could

segment, terms like enterprise in just new the looked quarter And near-record a on follow-up, paid addition. Enterprise a as of it

from Business Coursera in prioritizing had of and that what for and of role terms curious reskilling the you're in upskilling. strong enterprise hearing organizations what or seeing Just additions

paying So of say I Obviously, in useful Enterprise to I shapes at side, customers on number sizes. the look kind would all customers. the of it's and mean, come

expensive buying are Some who with some smaller, and some more franchises, expensive. less large stuff buying some very with

So useful look look I a be and doesn't I that could number too or wouldn't it metric. think it's at that's carefully. versa. a so quarter really good There great vice

back and of they the competitive. really combination angle. It what lot a know is be businesses changing. The from that's thinking oh, really that comes a all a my to employability think I campuses to gosh, that but governments need of reflecting about, slightly world's businesses different and

survey, seen, they in reemployed. and to We've interested and digital much generally more COVID online seen from World seem the were using to just in the businesses governments rise and programs But Forum people move transformation, people. abate. skilling skill we training saying this because not have is we than that addition, about of of need to be So get now faster AI Economic pre-pandemic

say I years the better in good get more and or I individual hope job really what are uptake will seen better market, of four paying And tuition is spend a students a campuses, I in a dollars wage. also for So difficult can we've a that lot should definitely my there. job so looking for

one On so hand, it's you a a want distinguishes market, tougher job the that yourself. credential

for of On see sure in in didn't the to we In it actually the way enhances we proposition value resonating Coursera really the a Campus, back really you it other launched employability make that student October hand, when employability. want XXXX. product that

labor speaking, behind across given businesses, No? to market that tough is you'd seems all a to institutions, that? say we demand tailwinds add of anything campuses, on say, yes, there. Ken, good and us enterprise So three long think, creating answer be, governments types some I'd generally

Yes, nothing to add there.

Loop have For our Markets. next question, we Kim from Yun Capital

of international a market the value, US Ken. the in I and balancing different Jeff, economics and US how a dynamics just different business, user am am in the you a learners. to between also assuming you Jeff regard on conversion opportunity. and are start year, strategic Congrats I assuming on and high-level there's a model? different international are learner learners your the acquisition question seeing to considerable Can between solid difference that dynamics especially two around dynamics in international LTV, the users. types rate and talk about or just between preferences you lifetime And those

at and rates that lot term, college, turn in they an lot that we young conversion not of a they those the if lifetime, a their human over if, money stock regionally a have in a go human in right at cannot high debt is us paid. capital, in also into their will, person first or don't and can when very there lot human we skills needs. then not buy now, might we they So stages and learning capital going in different capital say, a to fund obviously, someone's often it's of of region, value knowledge, financial a education, you you about life, economic lifelong simple capital. think given high be into level see through principal you capital, financial think if if stuff cetera, about fact, this college, And way longer high kind and their supply reasonable But et see school creating you're undergrad to the in of of although employability,

they So human human will capital, reinvest bit making as monetize. a harder capital, of start developing in they that then income when But little some building start they're income be that and some to future that's conversion we or master's buy that degree or they specialization, when buy human a advanced an when they development, think that's they capital a degree, the better. that's where could bachelor's buy be

if building China, you when similarly, about America it and about regions think think but So stages, a Latin as Africa, in early you are if think think still if India, region, you you about overnight about start of capital. an as of But process. typically, disposable income this more stocks I long middle And it's a mean they rises, the not class putting is their thing. human education. into

They the are of is business coming Those highest developed of today, every conversion rates we North America revenue They're Europe. economies. the highest across disposable money the our So the and it. to what see the making segment spend and have percentage income. from

we really as through that. hope and rises government classes credentials. working these at learning developed really conversion building a only middle almost at do longer is costs can that's markets regions more term, Today, in stages grow, early those as And because still is the the the greater also and conversion costs, level long-term often institutional it, low as you and but we are the activity than though, we like the a costs learning it. Over higher higher but we're really income on economies, on from low. disposable emerging is think not then acquisition the partnerships funnel say to That's global play we about coming our high way mature, focused acquisition where way think to the only and keep LTV attention build in acquisition I'd free

kind I minor is think one Ken. of increment And Yun, -- this just

consumer tech one the on one itself. So and minor piece increment

build we great, of have universities. Beyond traffic reason much the the so for the As to we also, is the which have quality credit have we the the of SEO getting right? we're content links the it, and been rest search, institutions,

SEO consumers naturally the topics site. come up to So in search, when are these drawn

So a content, that as of funnel. search once as piece of the again, SEO word general building of mouth, awareness, well on brand free secondary that's building

expect the in any learner of So how trend new material there that versus do to for quarter? year? change that organic acquisition along mix line, And Ken, the was this you paid remaining the

There were quarter. not notable this any differences

provided the kicks haven't independent efforts primarily We projections. that group an marketing It's off.

last say on to historically plans, future of it's not couple So quarters. much the been but consistent

KeyBanc. And for we have our from Celino next question, Jason

Maybe follow-up a previous a question. to

enterprise spending a year are As and emerges, of recover for now? work Enterprise for tailwinds customer new budget any budgets from this business you version any right uptick hybrid seeing the

need there's It don't furlough say don't action, them don't but engaged, money, is getting it I would do. reopening. was I to That in are not to you and that it companies skilling to people, coming EMEA know necessarily seems emergency employers, our we're and EMEA stepping when here's like to train starting like business, we people. mostly of okay, a folks. now from lot And necessarily. that, government now the need fire COVID by do off, budget people, back what that taper be saying, governments. in We're back was keep happened, Like, right seems. subsidized

to opening we just back that, like because have a say online. businesses that coming I the as awash sound it's too don't would overall, So I would big of it want haven't seen make been say wallets precise.

steady. I been think pretty it's

they is learning that But work markets way and they your academic students more if likely with, these look to opportunity? will least diversify hope. of US, new comes, for do a how from offerings, look you about know partners, base as And we comes outside -- to at then fact, the tap to international digital or or US think for digital learner that that your I your like in or they do, XX% colleges students,

and both it -- one but is individuals. offer would partners reaching value proposition the educator we I the biggest audience, say lot primary, primary global that the of of a individuals well, is institutions, a to frankly,

a of of pandemic say And with was to really been so just, thinking where and Am, a idea in that so I'd the of little got have the reach you emphasis demographics young of time curtailed population can lot I people, people you've are India, in towards US sort reach especially hurting attractive. and In been people. favorable much want the has really they're global. a a global mean don't more an bit builds pre-pandemic, Lat a growing travel about world who at There brand your if and it colleges. going -- zones where look I there's enrolled The rows to also Africa of demographics. lot look a students demographics you in be was

we economies they're that be a So And resonating be increasingly, of proposition. reach of part number where to post-COVID, there's reaching international the definitely global proposition younger as to value degrees developing one within the value that, to who with. are a people primarily a going see seems audience students in lot getting big college

from Raymond one, have we next the Brian for James. Peterson And

and be would to about made see do and a question. if of or think Jason's get But this to you I'm how higher-level business for really when deploy question start a that Degrees an looking me, I'm you inflection curious is just now but post-pandemic, as point? know partners looking of growth that. being people when one So curious impressive, comment to to solution maybe utilize decisions to on I think the your really follow-up we'll it's are year. those be kind the would Jeff, some actually

wide kind it's I of of think responses. a variety

in at If university that international. been months they have we the partners, disproportionately with have our last degrees the you announced look six

uptake quicker who degrees from seeing online. been to universities have a we So move international want

degree been that degree is are multiple to one more degrees done partners on who've -- offered one that thing likely seeing we've degree already Coursera Another on do Coursera.

think Coursera, So I think putting America, our an if to the that chronology be was degrees online university it where degrees generally just based, partners Europe. globalization English-speaking, do of if part is of on at I you inflection, going North of there's it US look

six Latin diversified the a bit has America, look last to XX in India. quite Russia you months, If it and in

I think continue. that that's going to

to that's I think going continue.

need the I think appetite think and linked I and for to into, the the question one Jason's of just this is, demographics reasons that Brian, you is important.

OPM for US in wisely Daphne is XXX-plus much And the it universities more the The almost market had other international back is thing, international than of many day, too, in the in many, internationally markets. relationships we've right universities the gate, cases. in because with that and is decade many mature Andrew signed a up out years,

telling did might inflection one point you degree quickly of crystal going that right But our if inflection can we're more point, saying degrees is said saying you, were and started a global things on reason say. degrees point. at that I inflection or have they a and quickly, And that that some who why if went an quickly, kind did that partners I'm of Jeff already putting experience So would I would things genie that happen, suggests say not I'm to that now, mix, a because I'm be think happen. there how would additional match be you're what reuse. there's me, and -- lot I ball, to if going have I -- an it and telling That's

time Capital. one for It's last question. from from have Berenberg We Knoblauch Brett

was just, regarding engagement the just you keep in on guys offer guess, I segment Degrees I curious data about if segment. could you to maybe do have or one and outcomes. the outcomes quantitative student qualitative I engagement and different any what student high Degrees

you degree program, degrees I on different the things pretty Coursera a one Coursera other also outcome credentials generally college got university it there what and of from as on known. placement are Coursera with offer degree whether degree is, on that. employers have that specializations to, are in degrees our that rates and is different that is you've job partners of campus. certain or to or got identical the like compared on-campus world useful things say, on a it and well idea know don't schools people the mean have or associated just whether out So Because lots types of about that's pretty courses content the credentials open of good

domains be the guess, Coursera university I would if hear Obviously, partners, would they universities generally elite versus as credential campus The and best get the And Our the expect, same. in we are retention retention we will outcomes recognition that that have data for the different, same. the When we who and degrees, expect not teaching same we we've health on-campus and as students really four demographics, the rates you'd from and selective more well. on science though, how that rates, more different. we in care, of same do programs. on generally engage degree you it which heard are anything better is student are the categories term-to-term the technology think business, outcomes focus on about demand, that are high about outcomes the generally. think The as are slightly see and

the campus. of program, on is years average on typically, And are degree about to than programs depending XX% degree Coursera, working XX% delivered the on students, age on XX already. the older So I'd say

So piece people the taking because employability working. of in already are is degrees a baked bit already little most the

advance as really having them think college there's opposed or a evidence The master's to will question that is, bachelor's a helps advancement. degree really with no this bachelor's of suggest have in their career help opposed job. degree a as just lot to a job? they having I a So

things heard only positive far. So from we've so and of and university our we're students seeing kind partners, it that's how

follow-up. And then maybe just one quick

about base comps should think year, is throughout there about I the Consumer for? out improving as we the progress watch difficult potentially we segment the should a that we or that year, progressing on throughout revenue think As

Ken, because I the dollars, which you revenue percentage? mean Consumer the you think in Well, not expecting -- I In dollars over absolute don't progressing, expecting we growth we'll year-on-year on so in segment three I speaking, you in play out XXXX. or do the to to is absolute next in say think generally are when say, percentage us did what year-on-year we're XX% do quarters? no, side, year-on-year XXXX, would how

guidance it we've that, understanding. expect about have to single guide is as firstly, on state show and don't we basis. a individual on which of ongoing we've There's to to continue road to the did is made to digits have And segments, within no in an provide COVID, low an not the the talked reason course. mix obvious. We the what overall it before people the We commentary for

everyone. Q&A. Investor replay for the our next Thanks XX of Relations hours. on joining will Thanks, the this That in along transcript A with webcast wraps today. available website be the us

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