Coursera (COUR) 11 Feb 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Coursera's Fourth Quarter Full Year 2021 Earnings Call. At this time all participants are in listen-only mode. And please be advised that this call is being recorded. After the speakers' prepared remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. the to turn of Carey, to Relations. Investor like call Cam over Head I'd Mr. begin. may you Carey,

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

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

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

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

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

with assume press our discussed not forward-looking them. our and over projected a to or These undue number performance to that that statements should not no results made in to forward-looking but Additionally, statements during trends model that, reliance all are regarding like guarantees current to and turn not due financial on like based SEC in our platform, of events framework. call supplemental events those We plans, uncertainties, and Jeff. on this Actual relationships, it from future looking obligation and These limited expectations. remind of and statements I'd forward include, future and to which materially are you relate are I'd to our our update and results statements place are business, outlook differ could our to filings their statements statements. ecosystem, And potential investors our content on risks and priorities strategy materials. mission, partner therefore, release, in opportunities, business impact industry long-term forward-looking and

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job Our learners brands and broad all multiyear accredited content from universities. and hands-on catalog their projects credentials world and courses of short stages Bachelor of relevant the meet from degrees recognized Master's needs helping from journey are of to class across learning

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down. continues First, Digital global trends our are the to reshaping transformation world slowing not accelerate.

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more in we see trends each starting that the at with discuss Let's play. detail

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for highlight us before So through priorities believe more growth. key Ken that of the the detail, goes positioned long-term me in let financials we some

continue channels, both acquisition to and will enterprise existing growing on in customer customers. we expanding invest First, new relationships our with focusing

to signed quarter, Kingdom Council Center in largest Saudi pleased demand Coursera workforce students enhancing of partnership, expanded with I'm participate They run their with government This across high the and Arabia independent in skills economy. two Arabia mission the segments' trust and National deals Ministers, of advance in learners Saudi and of equip Coursera. the have and to education to Arabia careers The in innovation will this in to announce online help a is leaving our in chosen in have an university access of new the history. kingdom eLearning Under we entity a digital learning. the enterprise employees needed Saudi digital by

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Thanks, good Jeff afternoon, and everyone.

are ago, strong for million, from generated we of revenue our report three year strength for Coursera. $XXX quarter, financial fourth In all up segments. total off across of with QX, our growth business year rapid We of exciting another capping a pleased XX% results to

our enterprise well see strong from As and demand learners, of as Jeff to we continue including individual customers, growing mentioned, campuses, governments. businesses, number as

with that Our but leverage, our This serve their levers to model results to throughout technology learners segments, to learner And with our base and and our studies, platform. reflect data diversification, point provides a educators that of learners a partners continue I shaping growth. acts inclusive is allows business education. our as advantage and navigate segments also that includes performance the exposure that a otherwise proposition. higher benefits we learners, growing pro of remainder enabling for business unique differently, and It ability that three-sided businesses. them channel, and credentials, differentiated employers capital the non-GAAP It significant business the to forma the discuss in and noted. branded fashion strategic encompasses also grow attracts as finally, from At our provides our large, underpin multiple our value the rapidly across view needs outlook and of our careers. and unless it Please us our human what trends compete day, review financial it. our adjustments assets note of end to defines for of will our I fundamental call, metrics, the including to us creation the the

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million and from from year, last details let's our prior of segments. XX% of of each Next, Consumer more was discuss acceleration up business the quarter. $XX.X revenue

strong professional certificates. training as programs level of demand in employability colleges an over well typically this are completion, existing learners We level the taken Upon and continue see programs. from college sustained series of portfolio several with a that as to universities. launches, certificate These a participating entry for entry And recent includes branded for a credit ability receive to receive credential in ACE job, Credit or case Recommendation, months. the signals interest

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degree Our ago year grew to XX% XX,XXX. total of from a number students

was there so a Degree segment Degree's the margin revenue. reminder, no to segment of costs As is content, attributable gross XXX%

As degree strong very Jeff a sourcing the mentioned, year. had finish our team to

our and existing new addition programs the partners. about growing to university In of for announced, continue five and be excited to recently we pipeline programs

our expecting financial outlook, growth rate $XXX represents million. to revenue in midpoint range QX, the at a to for the of of This of range. XX% on be Now million to we're $XXX the

adjusted $XX.X range of to a we're loss million the expecting For million. EBITDA, $XX.X in

year $XX.X midpoint to range $XXX of full ranges. to guidance million, adjusted EBITDA XX% adjusted XXXX, million a or of loss revenue revenue the million midpoint growth margin and $XXX we're EBITDA, million the we for at at expecting representing of range. anticipate the be X% in For to of $XX.X the And EBITDA negative

target, optimize improvements before scale over to any while and time, framework and margin EBITDA with margin plan opportunities. the to within set do business our annual We plan and since been growth single regards margin the an IPO. quarter. leverage work We has EBITDA messaging operating we Our consistent targeting demonstrate and not EBITDA maximize for that to

viewpoint business, future driving to broader as of and see we three-sided with of the trends educators well exposure as our platform needs with own the us to provides institutions regards lens learners, into Our the learning. with a online a

segment color XXXX of first outlined years our enter public earlier. be Jeff demand the one-time approximations help interdependent we trends includes it provide our would Colloquially, overall level helpful across three different company, four To some to the you shape on how to in guidance. better growth growth thought plan This are we but rough of these businesses. annual expectations. the deliver given business understand we revenue As on

year. the XXXX we with anticipating believe demonstrated growth For in over XX% our in will expectations, continue upcoming initial consumer, that resiliency the

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governments investments enterprise, believe For and ongoing excited we the of to growth drive by over businesses, and XX%. continue skilling are about will campuses, moment

we with fall programs. in first quarter third a number launch accelerates as in that XXXX, approximately degrees, expect a slower For XX% the growth of half we

decrease good We anticipated into our visibility performance. have fairly

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extended of is launches many business the given stages in its program take and concentration build in to at degree's announcements recent full our about very of We're a small early that programs these momentum new our discussed. Second, ramp base excited we've time the with still maturity. will

consumption spring QX. Additionally, XXXX year. reaccelerates mask while reflect the that and our a ongoing high expect cycle traditional do second half more by some seasonality in This lower in does of we closely seasonally reflects our the to lighter the of growth in the learners model, with summer the education

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let highlights Before Jeff the framework. key me recap our financial long-term of closing three comments,

in as set we this strategic First, of we demonstrated performance. allow to differently, us have as assets which that model, our unique revenue year's we a well compete believe diversify

and we of in expect acceleration learning. have addition And our capital our front to on us our over by is degrees opportunity created shift structural increasingly margin revenue shift, as the in expect expansion lifelong Second, enterprise in forward segments. enormous mix revenue a line the people of The rapid years mix third, driven to to permanent The clear. pandemic top growth, in their increasingly better through enhance gross human to ongoing long-term, ahead evolves. visibility requiring we regularly

the shown in with education collaboration quality partners. I'll result back we're high have while growth addressing XXXX this our Jeff. to a As now well to positioned call capture global turn for the in need

for allow or certificates. professional learners with develop level These able opportunities in degree skills, learning the Two of crisis trends and later, a learns fully provides forces than skills in learn and And respond possibilities equitable education, more acquired for of less industry to XXXX, where for demand creating entry work, remote show in live. of matter Early selection not level they with experience a combined learners because that powerful also fields, needed these global online one we better career foundation growing pandemic, to opportunity digital opportunities the who changed means educators, certificates provide years learning everyone prior our rewarded degree But we've a online job to these digital complete newly of the businesses the work. new Ken. an highlighted are with remote pathway. for no a and year. governments pathways, to job the no high just way to entry a and growing In pursue to for are are addition in that online Thanks, but worldwide. skills job college to the access the learners work

is keep changing of industry workforce labor And can deploy higher universities, to by degree towards ongoing programs up designed development between but power the return at investment cost institutions underscores Recommendation potential Coursera. and to the universities individuals, to credits only college both to and choose certificate Credit expand by certificates education. their not eligible increasing is the XX technology This to sense, the of using increasingly also who scale. earn valued learners governments an education on education this benefit Our professional growing fast across partnerships collaboration with they on infrastructure the pace when lowering market. continue and ACE to enable this leaders efforts In with a

and the free initiative year, Costa upskilling announced training, card Over to makes as Dhabi they when over Barbados X,XXX Rica, their including to can and libraries library visit the across Abu a residents online initiatives, out level Coursera this the globe would earlier, library of examples they course highlighted our we number and inclusion available Arabia certificates, well level. build California digital and this past access to entry branded Californians course are I the local or nationwide advance in they Coursera State But Saudi the invaluable that way their as book. a Library from their or now at career, program, their state. a towards including The in-person reskilling case, of at but programs the professional a check Morocco, opportunities, applies recently for with same credential unlock complete or study. that announced local also spanning broader job

their learning team our to transform And learning. you. to are our life all call ultimately and Opportunities up Our anyone through attracts of open partners mission what our questions. access let's value is inspires the that, these provide has creates anywhere so the world constituents. power to members, Thank like that class with universal for to

Baer from the Morgan line Josh Your question first Instructions] with comes [Operator Stanley. of

Your line is open.

strong on congrats outlook. me the on Question Ken growth is and Jeff and consumer. a quarter Hi, for

lot a together, and investors bucket. assume put same of businesses there's think I and across might the consumer maybe of kind times this group transactional everything in tech So revenue

different I price a was hoping as you also context biggest your you some with revenue But revenues? all revenue, like as timelines provide hoping different far dictate provide far mix? into recognition was the revenue into have consumer consumer, how the what's within visibility as different And contributors consumer those product revenue bit points? I the insight So you of period, ultimately, recurring could as could mix offerings to that so does future with

you question, let answers. Josh, But environmentally, know, some think Ken in maybe could take then the start and hey interesting clearly, around the me and seeing environmental and answer numbers maybe some world. is of the it considerations we're with U.S., Yes, what up I pretty the the to of you

if there's a don't reevaluating I you you not think the careers, and or their I I have seeing lot do can think do the reevaluating a it's me - if out lives, of of coming if for better realizing job you college get not [ph] of to But domain you're their that or in pandemic, even only a background out or different, people in something figure degree, know degree I how that job. get stem whatever, know, out a I you do any someone or we but science how to like, signal how though to this have don't do could computer I credential skills, do even field, a got the like there.

is come that I we're with a But think professional they're end it's branded an people to structured, we've that of these get. new hard order on lot clearly a And they're long that or think for pretty structured tailwind is ready a Intuit in credential rigorous certificates unique a learning think like find, internet from credential I hard this up or employer signal offerings distinctive totally job. more for pushing branded a Facebook, I major the picking Those program, to that to to looking think Google up five, are IBM might generally a more longer the are they from form. what or know, platforms, typically you don't you usually that they're other four or on an than been Coursera. and I courses they XX entity, or sometimes

the those, why over if only that's you're content a because that first credential finish value the more period place, of in you've is to to take Arguably, that the credentials higher, you you there's got the want you this someone skills it. way So time. longer there doing prove get people

of that's a time. period longer So

doesn't someone And have say in the up done prior so, can good around you be And but at college now think that know, the U.S. jobs demand again, XX, could experience, who by I skills certificates. on really degree we at we're this uptick right the seeing what we're be and the a online. and world, and professional learned fill and continue or to mostly are

education be for theoretical. valuable, and that Coupling find a last lot to certificate. frankly, these number we're And here these from the Coursera kept bit This - higher of that I frankly, is are content a up. is is little the it's they so, really But and been think the build your for content We've jobs professional about branded kind there? more shows institutions, catalog for very some know, add talk also seeing that side. the Enterprise on Ken get to governments would few we're entry quarters of that level of hold Ken certificates continuing where the and has to relevant entities attracted that question, on it to that now professional that seeing maybe with really out government. pretty you something seems side the the and we're revenue anything solution you

I a across consumer companies. to same And Yes, repetitive all different revenue the Josh. bit tiny be sure. might question, the But not is your

As to Jeff certs reasons, the top months. it's mentioned, a branded last companies, tend popular Jeff and over the that level become at look number very content, on universities, sit we you talked entry about very, heavily where multiple If that of top the spectrum, for the

is when the course. period the time student, of revenue of the taking spreads over the So this course,

period for content, so it longer longer for time. it's us, because a extends form of And

again, then longer the Additionally, deeper, part announced looking but reduced at we there's on where broadly, to subscription product, plan basis, to we if we is quarter you'd product. traction, - don't of we content, But update content, that we and Coursera but we the on revenue is increase. Plus update coming roughly different to not wrong form And up with reducing since players have again, space, very in that Coursera a quick a plan of that what an that. an had incredibly through Plus or anything and spectrum, necessarily for us we're that we're we're then is, the different continue ongoing see to continued spectrum. on comfortable year That and, to don't consumer ratio do, quarter it before shorter it form it the the about since the last a

thing about one entry is level, Josh, Ken professional longer special this just I'll in you form mention, of, know, also what content. certificate other terms

You more heard career valuable to so bit, Coursera a script with it in were trying these ways that we in things link [ph] opportunities. to quite only can the think pathways hiring

a basis to on towards of towards is the will regulatory continue content count degree. anyway. industry help we why starting Minister credit entry would a U.S., at who number for to policies there saying that's or tell will content we education. higher are certainly this way a need with we more we're recommendations, level, relevant not course, look earn a the the Education facilitate adults college education that about credit acceptance also U.S. industry create But talk these you Of learn where higher kind of in countries degree most consumer to American just I And level job we're on pathways, Council content Education, favorable getting you, this your be the provision of degree. of are in It's credit can happening the global if the

we So advantages. think very and really big to it we think our a this of plays trend, is some

you. Great, thank

Blair. Stephen of Sheldon line next Your question from the comes with William

open. is line Your

that the - Hey, thanks. large like contracts and Congrats a enterprise, big seems opportunity. it on pretty that's government

targeted could government talk about for investing these side? contracts government you you - the business and you capacity the in is simply more what these relative And you that to are there, if competition faced face pursuing competitive level the the different of large seeing more contracts? when plans on wondering pipeline normally sales environment, maybe for So

Stephen. Yes thanks,

realizing years that develop think be want different I down policies their I to we we integrated economy labor position their that for various five policy, road. some base need capital but So vary where policy, up been in be pandemic, XX and by are does something their definitely or a the can their changed think, governments human education that they to so that in sets the industrial reasons, seeing it yes time, was had countries, for structurally

so Coast You to and trying human oil. doesn’t capital for the position backbone for on create depend and much economy look well economy across countries an they stock Gulf are that the

did online but the that pandemic lot we Rica, because to take and go online I the to of how programs starting not cost, much to multinational speed know, to we've you that, were to training the multinationals do. country. because where to upgrade content these capital Philippines, of just I that they most them it's a teaches You pandemic in changed is market. the lot has And easier are stock the lot asking automation governments the automate the learning of and relevant a do, they those do scale India, our more realized current really programs a lower realize, a outsourcing are They're and also What starting the where part, for that human it say got also Costa and lot of basically access is they in-person. is government that in and more to think labor when jobs the forced skills these efficacy, current. mean,

of not have of that to just education it's do - what to industry education system. now our to before opportunities. higher getting my is didn't to educate these not really governments the So know, it's versus what that industry think, learning I can using attracted can integrate we and realizing, digital way you use do either government's higher and we or do integration well that could tool a see, hey, of an there's a as toolbox in as an It's I kinds content

seeing creates do by we're and showing traction interest, getting governments. how of BXC here's case facilitated studies this, enterprises, but are ways and definitely you through we more is that So more often

they corporations rank care less I business. little different fairly about space offerings, definitely asked Coursera dealing of competition, there's there's competition, a You are kind a labor competition skilled who competition bit some for looking with at about and would the but in right enterprise most way already the credentials, they're in Those are now force. is

I'd so, that that programs and Coursera. scale government little And in mass the brands help quality, do differentiating with quality. sense advanced to bit that it at for say really for our And also end, on governments higher And competition the skilling. looking very But more are less there's academies, we're SkillSets Coursera, in LevelSets. looking are that is a the And on Coursera on they're the high places cost. low premium government,

of in-person there now those is I the on and a get And bootcamp actually to wow, works high. but providers, And some that, quality of think quite quite so is are some starting high. the they're those of Coursera the low, kind platform and speed quite based and are scale cost levels there's pretty like physical, scale that can see you well training,

with even frankly, lower So competition then we of lower space than the campus actually do a I in of still, course, And pace what campus. see, government say, business. would intensity see we every in

huge is markets, that's So a obviously, strategy, this basic like like right. these why reason playing we're into

we where's can we competitors they're you like, markets. different particularly market You're think big the of a the lot Coursera of And features really into from are think where play markets. these big successful? well differentially Well, these be our

[indiscernible] moving actually I just that improved, sense broader in incredibly sides? helpful. might correctly? Got better XXXX, the And you're been on scale is guess higher, that what's XX% have consumer that is that side. is it degree and both guess, remember is I that anything just appreciate it follow-up And it side, mid-XXs if closer that to a learners of as doing is metric come or from for I the that's think the degree the the if it makes benefits it maybe on so, of I is

and go structurally at and I yes, seen can will we say durable signal look a, clear that say source, that's think say to from we've continue we higher. it there's a we there's will coming a that nothing would therefore what that really could be

expected. working generally, think model way that is the we the had I

stages, language. by university be certain and regions. do demand latent being a branded course, and degrees are the will do platform there degrees though countries a you We think have our better even amount it's with that met partners with on Of once have university more of and that local in local is of some early offered pretty degrees we other that a

the I rather think And the and a will global think degree now. are think ever. at U.S., that cyclical, the time, we hey, broader there'll fill of earning. we to are but programs been so, in looking about mostly long helpful. know, some maybe we're that counter was the base portfolio. - be be some internationally pretty that frankly, lot I be, reason than we income the once for the to where talked I get good I better internationally opportunity in that's out right softness. opportunities started, much which just bit And we I for know, think, U.S. mean, really U.S. of than have think I a are little some U.S. you leverage job mean And the labor more students would a you of And And why we consumer thinking, Ken diversifying seeing is a market really

the on results. congrats helpful, Very

Yes, thanks Stephen.

Thank Stephen. you,

next comes RBC. line Your question Jaluria of Rishi the from with

is Your line open.

that just wanted the or degrees, Thanks. online driving really institutional degree side? Thanks you the see the potentially on success. years undergrad do I question you I'll decade. program how to philosophically, several over How to continued one obviously half undergrad seeing would a But mainstream a characterize get towards, past here. see terms consumer over months, In right. mix question. the with you, are attitude that? seen for time, of announcements encouraging graduates, mean, become sentiment the online maybe in sense nice the programs you interest the bachelor But that we've of of or to all recent a taking that Wonderful, my know, for

the There's there of thanks is of a a side Rishi. demand this Yes, question, supply question. side

who going the because play know, a you students lot programs - lot residential side, know, be I undergraduate supply going schools, your very And online, they're the is elite of you likelihood they're programs schools, selective. that, frankly, a think experience appreciate. there's really to put to On the a lower their top ranked those that

think schools to though, a more from where I element students top brand regional Bachelor's before, this, thinking, relatively online faster, know are to when branded, heard I an would that programs are like well-known do brand. I affordable, a that it, to know, can regional about but and I you to from recognize they're going And school where you went also If and that. and a is, regionally that what ranked with but undergraduate that there's available, a want highly think is there. that do not high university you the get a any there because start think employers - it's go that recognized thing seeing maybe more in a or Oh, there that if degree elite, like, degrees, from likely are never degree, [ph] college? I know don't don't from they're mean, come more a I who I Bachelor's maybe do lot conveniently they've less of affordably, brand,

been think up I number open opportunity a a hard I of announcing that to be working labor degree, do I the a earning that we in get that we've you could Bachelor's the more. have degrees market and might bachelor's bit. think we're mean,

high I option over to And their doing think Bachelor's. thing the to chip the really But education. longer be - and their online the regionally going elites availability branded quality Bachelor's pretty will be residential in a attractive something frankly, will these I what of [ph] that the degrees own think I people think are more differentiate I talked And you more. think similar talent is like to need with about term. personally

versus degree if a labor a basis do you market. have in college the so, degree if of that college And you don't will be have one competing

I'm on bullish bullish degrees Bachelor's So still degrees. on I'm on

helpful. Thank much. you All right, so really

Yes sure, Rishi.

comes Sheridan question the Eric line Your Sachs. from next Goldman with of

is Your open. line

the question. on the ability in time, of just ask or give hiring Thanks the ROI of Thanks in the side? whether effective the you to also, path and people one on you're to taking enterprise. there's I'll onboard salespeople in productivity in type at update in of broader and what Maybe terms us the seeing in terms been any the getting of for force enterprise on you're the sales change interest Can the landscape so an much. seeing

once the to before to I Jacqui get sat shut pandemic thanks chance in When back people a to all happened I come let's anywhere, plan look, office XXXX, at work Risk, March get this in. to Once they're immediately, almost even chance said, game of out. had we're just like, and Yes, not Eric. a we I, want employee we going from the down, people

in immediately So this strategy diversity from representation. of good has hiring positions, all broad frankly, a that and that really we seeing we're recruit should says can level anywhere talent served mean and adopt success people, with we us well. I

is B know attract people. we're the its competing we're part announced talent good Corp. our So talent really good with for competitive are we we we ability to mission. when we're was attract consistent think Part ability - markets, We about about really designation. to and good we're our looking I it of of think in feeling we that Coursera our feeling

don't the piece have So know, we productivity, that's training lot very a and of world. models. to of And, you product of you ramping pretty it on the view playbooks of but your it. of a a And lot of your a onboarding simple is that lot effective and type programs, like, team, terms much is you simple of how customer, sell of could to is anywhere exec you training our are the how in it need product if have ramping certain course, a the in this is part do

regionally sales of specific. you little So product have forces one have we when enterprise specific piece we - that I'll give and are color,

So in in it's designated we because advantages in people that one people can Latin and of scale the Middle have designated and do, America. the cover the of play East markets. we great that have we we multiple scale surface Gulf the can lot area a But campus is

And train hiring them. specific and market, them we be so frankly, having we're the about pretty get how them trouble, productive. onboard we And into not can get

good feeling we're So it. about pretty

Thanks all so much Thanks it. rehab, color the the for really whole for and so the the appreciate commentary to much and team.

Yes, around I've on time. Eric, a Ken for just really quickly and been that, and long

is Wall company, seeing. it to respect Street, successful and Our what works a build people to how job on with we're and educate

not more changes, there happening going of as us will And helpful be try for so, just of world kind as to to be and what's all the expect? possible we happy business, understand part a to for we works. think as do how of people our can we're and job are - like build to and what it our that's job company to So only about and great is is educate I

KeyBanc. question of comes with line Your next Celino the Jason

is open. Your line

degree Jeff, future then the in fitting what ramp, guidance on with your for for first for means around how in. essence Great, in guys you cohort, know, the of do maybe thanks and to this just years? the these XXXX the the visibility maybe commentary Maybe comment, Thanks. reminder education degrees on side, a

Yes, thanks, Jason.

cohort but I think through large speaking, swaths. the go Ken building generally So

what on generally, or First on the most well a side. And does this Ken on is is the I like bring you get. it to to ones you that's college as that is of the harder takes, to some you piece supply elite you'll number actually source, years past. the give and degree, to out platform of the in of mentioned see, region go in bite students sourcing A) the plan, often, the the know, - source that degree that second are puzzle we want the all a then degrees When demand question for

we're mix we Coursera, and believe match scope, has university model electives, create when pricing more bringing both that's that and for like of on you a was Because We great. that degrees And scale from courses, That that. we degree partners. playing of we definitely the variations like tiered same part after pieces successfully Coursera. more that on degrees a can you can are reprograms that, went on

there degrees, harder get little these region, you generate it's than degrees but to degree and three them generally have flexibility. a a U.S. three So do, But a that it's three, multiyear. first you started. initial bachelor's for British And new little quickly, although it's it's have And but you starts typically, a can bit match know, often if often portfolio in interest. and it the of takes sometimes once awareness with has, could you programs a go, And per those starts there's a completion mix then new cohorts know, way speaking, more and you then more you degree to bit that, degree year, ideally if more a they're longer. years, two be are per done degree, And year. are the

when starts student cohort cohort so typically in get Ken And there, years, as and days the these multiple think XX over add filling you enter years, next anything so, a around, it be then then of you years. get more growing. And for kind couple three and And up the to time. you then you'd over early starts cohort. the cohort, in cohorts They'll we size that? slots think new start happens on a will layer I there's maybe first they later, I ideally and initial builds regions

to really, to after partner the put it we much for degree take the program, platform. on land Not the year to tend months tends the a six

program, finish the we is students of year it charge a and to We words, so fill over three oftentimes, the take we maybe different begin cohorts full hour, years year, the the and by so each degree increases credit capacity. because right, And don't few as using a years so by till two process let's by gets might year have online when taking that cohort a the slightly we that'll year. we some say charge two layer it course,

essentially so, year each And it's three class. take with up before a three filled years program will

Excellent, thank you.

build - but No lot problem. of quite quite a of It's visibility visibility. a a bit a

Last from of McDonald question Ryan line Needham. comes with

open. line Your is

have stick here? it's margins continues on you ability sort how know, with these that you of hitting You gross Thanks XX%, should margin of guidance to be consumer do the on in Ken the Congrats or great XXXX the producing? ask my I for business extremely we impressive XX% about margins, gross questions. the business? gross that Sort wanted levels in to, know, consumer a gross Thanks. you're quarter. about implied what taking to confidence think margin the in

these But it's a these The success to out answer Sure, costs level is of continued consumers question. script. programs, more to tend content we more the specializations, confidence, us. in have we the reason a set we is for for those as have and great as we're with consume lower the shift high continuing have very it build

their do these it's a than it's for reasons, partners more of brands, it's Our lot building number a revenue, their just creating ecosystem.

so little different. bit And it's a

success. added entire to So see number being year. programs, this more we have about talked we the great continue of Jeff

a what the bright a for early think been future. has not what fill we to you people needs, so mean, part edutainment, if know, many mixed about So of inside that's stuck the back and if a the And this us. you result is the go question these people stages, to want time, bit pandemic, it's a very know, really you work, pandemic with, the in I will, it's you the of consumer of your way. you it see

the For in us, in it's the been consumer. required rate skills the increase of change of

we And So to consumer what update reason, That's we're to that's us. all real the it's of feel forward… is strengthening, for needing see the for pace that very pandemic - I see, comfortable the their fact going of going the That's that change. and skills.

in know, quarters, to be going brands Yes to few this start the trying little next certificates. jobs, new expansion we're segment, and like, the that like started new in you to know add playing we like it We this does bit It careers, they're the consumers is well. then were well, some don't of you looks of surprise. seem I'll a when And margin, gross over consumer get was well, if QX, just seeing a professional persist. seem towards these tilting really are like,

I seen think, now sure know we've But for go. you we're for like right, never kind quarters. feeling of three to where know, going consumers you this

this pretty like darn stuff gross going there terms think to margins, - was really keep should up I if know think - growth, the don't it's but I expect in we you of come switching which this programs, high. QX do durable partners. fees are nature idea they from from and some because for us industry lower skilling careers jobs probably is looking have people are these content that our generally do to

webcast Ryan, will XX We Investor be with Q&A. this the you. Thanks, our A appreciate joining that hours. of website transcript on us wraps replay available Relations the along the in next today. Thank everyone

conference you Thank participating. call. for concludes This today's

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