Coursera (COUR) 27 Apr 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Coursera's First Quarter 2023 Earnings Call. [Operator Instructions]

I'd 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

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

is this supplemental financial of including our where website issued close Investor release press slides being posted investor.coursera.com simultaneously tables our where Our on at versions and are is after available. prepared was market remarks and call located and Relations webcast

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

during are in to forward-looking beliefs. all call economic our but include statements Additionally, uncertainties to; of industry potential trends and and on affecting current impacts results are These current based this made expectations and statements regarding environment. not and statements events educational the the statements relating limited forward-looking future

content Our partner and relationships. ecosystem, platform,

mission, intentions. and plans benefits outlook, anticipated anticipated business thereof, opportunities, future model, our in Our and the our strategy and priorities

statements. and them. results or filings undue update We place performance risks supplemental to differ investors future materials. and are on Actual forward-looking and forward-looking guarantees press materially and obligation of of SEC could These assume due a to should uncertainties our reliance number events from projections our release, discussed not plans in no not statements

over to turn And with Jeff. it that, I'd to like

Cam, Thanks, good and everyone. afternoon

the first had at all. of we've to vision you platform's in with higher with deepening and executing Day. excellent future reinforced on reflect provided opportunity including for be amount the an our our It strategy, our ecosystem, many on to see of opportunity to and Last month that speak great of we advantages vision, confidence expanding our our the you Investor progress our education. it made and my It's

globally is Coursera redefining the of includes the ago, educators we believe like. had thousands together Conference two to in at vision and Annual ecosystem bringing weeks and our a I learners, future of This community connected the future learning the and will privilege discuss work of what institutions that look

to AI and personalized the reality, expand highly a learning world. that to A degrees engaging around link of workforce world's access employers industry with and globalization between stronger generative talent experience micro-credentials and like allows technologies skilled more and a college the diversify and virtual

we so the financial progress and made we on on year the institutions, needs segments. driving during trends with to like structural recently I'd better the changing today we long-term partners. will spend the grew by As our of our revenues our of we near-term our In prior along educator XX% opportunities of more discussion in announcements each my discussing slate the cover make our our detail individuals, time results, serve to and briefly which million over was Ken driven business $XXX are results. Consumer, Enterprise, to also Degrees delivering QX

social our cloud with computing, been the and reshaped start have of computing, businesses accelerating The media globalization society. the is technology of decades, profoundly Let's and institution every trend, the internet, transformation. first microprocessor, have which our forces digital in transformation In major mobile society. and recent

go this represents impact disruption we next will live. dramatically We major far and And believe traditional that how the AI boundaries of will the beyond work we automation. that change how technological

Coursera's electricity. founder Andrew the is Ng AI new said has

believe is it AI we that will and businesses. that into employees already integration with. integrated generative increase and homes widely factories, importance quickly believe into Just familiar platforms and will are reskilling and applications, the This as electricity was of integrated digital quickly talent we transformation be and and software, happening

And us trend is which our development. skills to second this brings

been years, and impact of new are imperatives. has class rapidly processes wave knowledge entirely workers For of new an have and AI unleashing digitizing potential jobs predictable. work employers upskilling the that to And repeatable generative a and reskilling

AI the scale the will will relevant. the amplify experience keep and accessible, enhance change with facing job to driving make programs to accelerate change universities deliver pace and unemployment pushing them to job trusted needed governments dislocation personalized them the to accelerate facing speed and curriculum more and already training already and at AI challenges. learning education and amplify

every to change stay pushing to one And education. AI of higher this relevant and accelerate of transformation keep being every the learning driving by our the in to trend leads business and third felt us individuals, job the will amplify order in me

The requirements quickly market. increasingly to better more higher digital by labor not education changing kept distributed traditional and Academic needs pace with system an institutions and students, of businesses driven the in has governments, automation. and technology must evolve skill the serve

example. recent a discuss Let's

The skills expanding Republic is Kazakhstan crisis new are for scope encompasses campus. partnership a growth that we Coursera both and population of government and a and for nationwide gap rapid with facing our Coursera

success Our back workforce recovery program the began of in our partnership XXXX. with

Now, thrive the to to and credentials digital and and nationwide, in skills students Science to with the Ministry needed economy. using of up-level system public is empower its higher the Education Higher Coursera faculty education

for over XXX public XX in integrating credit courses programs. on is universities Coursera degree into their MOE The

universities job-relevant education like of our pursue scale. and of unprecedented We across speed are brands able Collaboration these prepare our careers. to at because the the implementation world-class learners especially for government the and breadth digital certificates systems largely that educators content, entire of professional partnerships and enable between

ensure XX this kind to the new to between possible be more a forward-thinking young approach billion and skilled to This adults higher accessible required over is for era. of that need education ages XX the of is who

the those of in that key the So we driving see us. front are tailwinds opportunity are some of

this to talk opportunity. about differently that let's advantages allow seize compete Now us three key to

of created leading and educator partners trusted catalog our credentials. branded First, a broad content who and

third to reach and platform. technology institutions global is leverage innovation our our and the data and individuals we that across Second,

of had each them. the recent of cover each that Let's categories these progress and in we've

and partners. universities catalog credentials have These Management in Coursera's content industry more of new and and Mexico, located by than XXX of India. University Institute educator Anahuac world's London Jain and such welcomed include created to universities and proud our U.S. XX of the School First, Research we're around in Business leaders partners. trusted as and the globe, is the in SP

by Novartis, partners industry broadening university fields our partners and to of estate goods Epic and Moderna, like industry also certificates career opportunities and of catalog more. to credentials to two unlock college with I provide for want create like are on sought We're learners rapidly that set looking real learners. that These branded degrees. Williams, continue professional consumer healthcare, in categories Coursera's Unilever partners Entry-level value Keller and Games, new expand in updates

create additional well-paying increasingly earn professional digital job also which jobs new why new college certificates credit partners, recommendations. towards Coursera higher of prominent is industry the pursue and roles, pathways languages, and entry-level transformation role to that we on to degree. with new a play of this credit expansion catalog believe will in an education We secure The micro-credentials rapid continue

the XX Investor At end announced weeks than we've shared certificates Coursera our including by ago. conference more year. six unveiled new at our two that To platform expect recent of XX on we date, Day, certificates I the the

and continues. Data Estate Akamai, about roles from from in Analytics, from that developer job Architect Solution three additional Williams, Keller and Agent partners IT management, Specialist and IBM Science from pipeline we mobile of year Real to front-end development. announce our excited the Fractal will project continue And certificates app as we Including are

to take working degree affordable that the and more the of particular needs that meet to Now innovative to be believe to a world, alike college most students best valuable let's and college look relevant accessible, higher and recognized are degree. designed credentials at the the the We adopting are and the needs in education of universities degrees and adults. Coursera provide employers capabilities especially in

At resonating Masters outlined Including $XX with ability Science the University this Boulder's taking the success in start open by the learners. of time degree Colorado a attributes courses our month. first program at early of with our we any Day, are that degree Data Investor and the to demonstrated for

for pricing affordable $XX,XXX master's full degree. tuition at Second, with the

during students open based counts courses. admissions fourth, their that on in industry degree. admission, the integrated performance Third, content the And no as application credit towards

year, the particularly And working is which twice programs prior any advantage that QX, expect for full take this offers we added what quarter. learners to many capabilities of understanding of in an make the better and in adults. that Coursera want the well-suited we degrees our excited spent share help who We degree the us to transformational of are willing degree last partners that opportunity. I'm XX online announced to from programs these much types to of these unlock number

programs universities Illinois to Science on continues. a momentum forward three degree XX have early than we The building from year from degree three programs and of and Colorado more four the University from Bachelors Computer and our newly include announced of announced from one University To the Technology, date, the Ball UK, Masters Boulder, Institute degrees program, and two in international India programs State Peru. including of Masters as degrees look we Coursera on the

platform. of bit shift advantage, Now the global update major partners our educator on a which is that's an our So of to second our let's reach

with March. world. In others. to that a have and of million we end UK to added QX new base learners, countries of the X.X by attracts We percentage XXX looking teach large continues registered the largest across global growth growing our growing individuals Learner the the U.S., educators to increases million double-digit and like India, around learner base institutions the our majority be broad-based learner

to of the including additions grew ongoing me campus our and verticals, with advantage than I'd And about customers. This brings Customers Paid platform. across also across we that all third product our more talk X,XXX our to government with efforts number We in the AI. to I'd like generative innovation the is that to our start which business enterprise leverage like Enterprise new of

Coursera learners two including one innovations, when one new AI-powered At unveiled and educators. for for Conference

powered Coach virtual learners partner learning Coursera Coach to answers, explanations ask that is personalized learners. First and get and and submissions. on personalized AI for questions a their allows generative feedback by receive evaluations is

and And right interview practice support as better such and clips resources, Receive understand get Discover questions. career them. summaries context-relevant land video and quick concept. job recommended prep examples the the to for counseling specific finally to

leverages content from learners experts, time in the learning and Coursera to our the world-class authoritative they're investing that money providing that trusted and confidence be and instruction going industry it. universities Coach worth with Critically is

where content learners our valuable scale, quality. course And readings for including building. role piloting support a on overall we in course we are machines look to glossaries believe partners increasingly of course simple and producing AI-powered an as capable trusted an play This features structure, that institutions an in auto-generate few based AI a of inputs world are set will content assistant from Next, increasingly at new author. education can educator assignments

relevant video the It into that videos can customers to and smaller modules well-structured can to also course. enable integrated automatically into broader from in internal recommend will And clips it be courses. including transformed and Coursera the upload enterprise consider private catalog

high-quality to our strategy reduce to goal Investor Our use the we This discussed to also dramatically scale. month. content trusted our last localization, and at is which time producing technology approach underpins cost at Day of

to of believe the producing from accessible translation. all education content in while translations at leading And fraction many courses the the We dependencies. languages the recent at should in around that language world's scale language a Educators matter of of their one advancements world languages. to of speak. anywhere from now the local tend speaking human quality what challenges come with using they high-quality was in learning be learners Historically, no can cost translate machine world, conventional the experts learners produce

Coursera coming Indonesian on a more courses Thai. languages the more French, and framework has we translate to who months, Portuguese, into speak the than team Spanish, translation Our German, intend been scalable Arabic, benefiting learners key seven building than XX for million X,XXX focused In catalog. registered

University, experiences. In we recently our with continue for course of with learning Duke virtual to a level Peking deeper and that Michigan, in allow Washington, collaboration University expand University, new courses University of immersive Next, efforts launched of reality-enabled we engagement.

from presentation practice room the realistic delivery allows course setting. For immerse to the their a conference in speaking public a simulated or Washington learners themselves of and skills to auditorium University in example,

learners considering announced also Meta augmented specialization on including these from new a We certificate in and for focused professional new technologies. two reality credentials careers exciting

quite to we launched Coursera solutions on a in we've product been Finally, QX, that working to some for time, jobs. connect hiring learners

hiring talent traditional more of shortage qualified have look to In pools expand or a includes positions more of eliminating to a countries, many more employers X,XXX their Coursera adopting are pools talent Rapid degree talent. in for to across approaches requirement talent skills-based than XX created using than XX% technological causing from employers they recent wider fulfill shifts the beyond attract of said This considering emerging that candidates pools. roles. global to college open order survey

And verifying lack career employers is are to where considering roles degree starter while hiring or college a difficult, entry-level address switcher shortages, especially more work prior relevant a skills-based skills a may candidate's talent or experience. for

work, This coincided confined growth talent has digital longer supply state which the challenge in remote that led for with jobs, is no to learning, a reshaping jobs connectivity to specific a or and globalization country. and has online broadband city, combination in with of demand

seekers bridge coming the field. opportunity earn use in-demand Coursera digital be three for plan employers, degree if tools even credentials or develop in economic used also we how experience. jobs. digital professionals can they that and sided Job need can lack branded to to by learning to and projects to relevant with hands-on entry-level work skills learners build connecting the platform considered is They solutions a they hiring to prior college Coursera by opportunity our

to These with these portfolio. that their learners a assessments, an only skills, can their readiness projects includes the credentials, profile to lead develop job skills not that And also but employer. portfolio and showcase skills project demonstrates

from use levels to perspective, identify unique pool industry Coursera's that sourcing From talent relevant dashboard expand talent the and can their they Recruiters diversify gaining job candidate employer's proficiency on access candidates requirements, and Coursera a pre-qualified filter to their talent. by skill including meet trained assessments. can based

number a months. currently we in India Solutions employers select excited and start to in U.S. coming Hiring the is with and thousands in beta customers learners with of testing of are

on outlook call me the the look you to a remind our let several that focusing financial in Before at and key years turn priorities ahead. for of I closer Ken performance we're

broadening entry-level recommendations. certificates credit partners, with are professional industry world-class we brands, expanding new First, our with and new catalog new roles, of languages,

are working bodies that Coursera. the complete degrees they on professional we for world in learners for college academic accrediting these learning And receive credit can with so that certificates around the

those college Second, and and tailored we're the flexibility, expanding our of portfolio including pathways, open needs content especially industry meet degree micro-credentials affordability, our to adults working stronger programs, into degrees. of unique from

business, to and on needs Enterprise we're over focused And and their fast-changing deepening focused we are our driving government advantages, environment. seeking Third, in growing leverage across segment campus on address while customers this our scale more time.

opportunity make to for especially production and content interactive are the personalized our to educator to make and more We partners. faster by learners use generative learning excited and AI cheaper for

ahead. turn go And to over now it like to Ken, I'd please Ken.

Thanks, and good Jeff, everyone. afternoon

strong from revenue In pleased QX, by in growth which our Enterprise I'm first segments. driven on Consumer to quarter. total million, report generated up our we of was XX% solid year $XXX.X and ago, a

start a was company a increase new to demonstrating progress importantly Degrees large growth market nice year. this degrees. segment for as X% most but modest critical at growth a in to Additionally, our as returned It

noted. at progress financial Investor Please outlook, to we business I our month, will we note non-GAAP our As access measures otherwise that believe discuss we on to for resuming the of Day unless degrees. strategy and our last our performance remainder fundamentally I the transform call, review as discussed are

a line expectations. of our our call, contract our reminder last associated a were with as on industry Additionally, the multi-year prior quarter's changes partner with with communication largest extension in

and for chose more forward around Specifically, given going excited as we from opportunity expense of growth, the around revenue standard to reach expense closely about this this revenue a globe. remain learners aligned which cost receive incentives more operating partner shifted to share

$XX.X and revenue, slightly and was was of or in was XX% expense X.X% year the year operating up XX total from of $X.X gross down development the administrative of and of X adjusted points Research represented prior from And EBITDA a or XX%. was from on points basis million down expense year expense a prior of was profit which down ago, revenue. X and dollar Sales from XX% million, Gross period. points points XX% was Net revenue, a $XX.X or million expense loss period. margin, the XX% of XX marketing Total X.X% XX% million And was from XX%. revenue, general revenue, loss of $X.X points XX%. X down down XX% revenue. from

during $XX.X the a Now cash, incurred $XXX a securities cash ended the related quarter use performance turning Free to sheet. we payments approximately no and unrestricted the to with to $X.X remaining we charges restructuring was cash And and with balance million million of cash ago. of million million year This included late flow compared quarter $X.X marketable XXXX. debt. in the equivalents, the of

asset on believe optionality our provides considerable a stability, strategic strength our and us the vision. is sheet balance We of the execute that to long-term

our allocation outlined at approach to we our As opportunities. is investments emphasized growth Day, in organic primarily Investor capital our

the the will changing and accelerate believe pursue our having position flexibility platform model technology opportunities education and that to is to business industry our advantages. enhance rapidly to our leadership We additions provide

strong requirements changed. to we that sheet are Our of our a has views pleased operating authorized balance on have up the the given to of share program and repurchase modest needs, size Board our $XX announce cash for million. But not

dilution analysis of an of reflection is Our amount program an first business authorization above companies designed we third-party gross independent their confidence rate in benchmark place on well as The on market advisor. equity. is offset value through by as in IPO, based our performed a direct dilution specifically the shareholder the to year

one-time that that attract, long-term consider and incentives we with that at shareholder associated the large confident future employee investors pursue while going increase it program likelihood key And anomaly to a early talent year we thought markets. with equity in cash to prioritize higher important strategic for this can in are leading dilution an and understand we creation opportunities aligned repurchase retain years. was made providing Our level, value our motivate, XXXX, first our us while we XXXX after public in continuing dynamic of grants

segments Next, let's discuss each more in of detail. our

entry-level credentials or was million, to resonating We in to world performance or revenue start on compared believe a is brands was careers. the consumer million up on prior strong ago. profit Segment around XX% focus our world-class the $XX.X certificates. job-relevant of learners our XX% by revenue year from Consumer XX% with switch created strategic $XX looking year professional gross

As the quarter, discussed with of extension to revenue operating partner largest contract offset were meaning expected last lower most pronounced the impacts with a of higher our be our segment industry margin Consumer lower segment in cost expense. by margin,

activity million XX% million, or from million ago. Segment Retention three Customers new And gross for from Enterprise $XX.X strong top-of-funnel Coursera. revenue our ago was remains was XX% a verticals. $XX year to Customers another with Enterprise year Enterprise growth X.X XXX%. number ago. profit coming learners in increased up on a Finally, all our Rate XX% segment of Net was a XX% The of of to compared year X,XXX, Enterprise to Paid revenue up total registered Paid

spending segment. the we degree from XX% up student uncertainty. to year launches. program our Degrees million, XX,XXX. enrollments year from with of X% scaling was new increased number macroeconomic are students and customers a at total in a caution their and our seeing $XX.X business year, finally start The grew priorities of ago, Degrees increased And outlook exercise revenue ago Consistent the amidst of

no segment. reminder, there content Degrees is attributable cost a the to As

margin of segment, was Degrees gross revenue. So XXX%

new sourcing in our earlier. recent to Degrees the the as by growth encouraged year including well are progress early highlighted our accelerate Jeff programs We successes by mentioned XX proceeds our as ability

transforms that affordable, execute unique with high-value largest relevant our world's programs resonate accessible, that model sourcing platform's learners compete our the long-term able of more on types By industries. and and are vision one with of assets leverage the higher for our to scale we education partners uniquely that a and

Now onto our outlook. financial

range of the be range million. For loss $XXX to million million of the $XX $XX QX, we're expecting we're in EBITDA revenue million. in expecting Adjusted to $XXX a to

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

business EBITDA of annual framework, reminder position demonstrating optimize our to not worked our adjusted an target growth the plan business our any of in We single the and on year leverage to do positive outlook a at operating the and within based over be time trajectory quarter the including set we beginning As our scale for that and term XXXX. opportunities. maximize margin invest long for Coursera we'll while the strategically to EBITDA of

closing Jeff to I'll the now turn for call back comments.

Ken. Thanks,

last Report XXX literacy like talent our ESG topics several business. education justice. world. our data mission to social millions and is Governance in showcases initiatives is well in high-quality courses platform's representation It members, and on attracts over inspires a rooted to It Our our our and our deeply introduce as end, addressing workforce than around sustainability as To privacy development, role first XXX access partners including promoting to Environmental that customers learning our and key for the in our more in Social progress month. of what enables learners I team make was excited the growing reality

us. Coursera XX,XXX hear more excited than on what that's their why experiences our Learning career learning valuable Additionally, in we benefits. conducted in impactful expect driving but about which partnership can we and third-party report sake online in unlocks they a be than weeks, learning to is transformative, how countries coming for with This outcome XXXX told the personal knowledge's XXX to learner firm. learners are were opportunity is that was publish respected from more

were XX% career professional of approximately their job. benefited XX% got And XX% certificate advancements a Coursera of unemployed on after new of learners learners employed of smaller entry-level learners career. a say X,XXX learning. learning subset

from and Coursera and lives, increasingly credentials learners a career. we job-relevant as that on destination skills communities mission seeking becomes in their that can for education in inspiring with an recognized rise unlock focused validation platform the collaboration phase our so the Coursera of next global or is anywhere to world. ability opportunity change and In fulfilling can It are the community, our talent

up you. open let's call for the Now, Thank questions.

with Your Instructions] first comes line [Operator the RBC. Jaluria question Rishi from of

open. is now line Your

business and anything or implications think efficiency so productizing my Guys, you be questions. your like clear would how roadmap iterate from the on in internally generative generative taking understand the with own that, quick got for strength to wanted better I follow-up a generative and AI much laid I've then you've societal given a on the Wonderful. can do to U.S. follow-up. I continued perspective, your degrees Nice AI in greater out products see thanks degrees. generative in use be growth. on for a business drive question definitely, a got invest to us And helpful. all tailwind one can AI, to Starting AI that to quick Coursera pretty think huge functionality for it's of I've it. really

Rishi. great. Yes, That's

So of run this that business. crazy gone Coursera we've the the the kind the be not business think on just I way these we impact and days on unique to will

helping Most more learners get few get separate we I Coursera, things. get helping more educator of think and value at the expect there's partners this value. that productivity a is to our from

of a improvements more lot But productivity R&D is our the at especially Company that engineers I'm you is from and considerable. costs entry-level coder, the software and of headcount headcount terms are of that in coding a costs jobs in can hearing lot what get a our software as are

So I think is to up. coding way software productivity go going

not -- have to who our I language marketers cetera. most marketing and but messages, using performance up using up teams when GPTX is marketing like steam. quite picking has been emails, write been earlier think productivity it gone write articles, versions Their consumer doing a quality help et write the bit. started of are All ChatGPT They've this

but marketing generative show you of job. you're we on this, these the everyone like do do AI the we do this side engineering, which I've change know -- you show seen product how and design in way couple designers your using to like is every tell the let's Company and don't So weeks side

whole We script, He -- him a said was -- cetera. have had a vision, a eight it did learner it for designer bound was audio, XX-minute he only a screenshot taken hours. put he in it et it what he to hours time with video, eight video And would did journey lot like together so involved he and the week more do in did about people. thing a this

on think huge. to side, program the creative software side, I marketing side, the the design going So and be it's

was tools And goes then suggesting up just way, for productivity They're tool, all these Docs positions Salesforce not which tool services there MIT from that can an the really any Company not are becoming Google when that's or software other who you uses started more whether getting using in electrified by a the dramatically like article to productive. I'm all pretty AI. provide or the mention anybody whether with -- sure AI. generative just services

not would than Certain most but be So the be for I going to board. more not done across the structure are rethinking probably certainly how surprised people that company. I CEOs company runs and work by in expectations what productivity talented think the it's others, can positions but be

have I I a you That's very just got segment. so Degrees thorough much. the answer. a want to follow-up up. Thank follow on

Analyst growth that was assuming degrees. the and new Day, at year you talked no about next So XX%

announced and new was contemplated degrees ramp-up you. how that for XX announced there's or a and I all about then know thinking since Thank in impacts degrees but that, You that outlook that year? how next all new time the should be we

come apart degree you time can of them parsed tease can kind we've see revenue in we growth different really courses coming that? don't that lead think with know don't programs I are and Obviously, these a bit multi-year of the exactly. I see will out although XX. then from existing a would of The two XX% those how versus I wouldn't and into exactly Ken, write much lot on these new, that whole points. you combination anything of the

No, I'd I good driver. to not guess to was input you didn't say degree. Rishi guide. a It softer nothing, newer factor contribute huge you The referred takes from very a the what newer, the little. exactly it's but see new We said. to real any year programs it in start

on So will impact. it over little have the very It's if over-perform next more couple, - we about that

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

Your line is now open.

for taking thanks my Hi, questions.

XQ on would the the first revenue year. you grew one XX% the First the growth to at guidance is year-over-year half just XX% full-year imply growth closer in of of here midpoint the guide and XX% the then quarter, guidance in the I in second midpoint think

are So there from or we could seems first strong is this half like can that pretty in factors that relative a some what the business in trends Because potentially the half? slowdown the see driving it remain second point to be at conservatism overall.

at Stephen. it business whatsoever. little I Hi, an is trends This of as it's the there, the look view, in pretty It's part be bit not caution conservative of conservative in any confidence good. fair, to I it's in the you're are a is you uncertain as performing. maybe environment what macro to want early we that degree be is and looking our saying keep year Ken. of careful hearing would lack but not the business, but

your on competition seems like some and And about Got also the like versus solutions? your sense. with Universities, position follow-up you then how a monetization early could what beta employers, think It And but opportunity given it. also Makes but capabilities at competitive a in It's really look differentiating established interesting potentially there. as level? Solutions. just there's Hiring a high structure Coursera do

to value. I'd trying create learner Jeff. we Yes. Stephen, are is say, this mostly Great question.

biggest we're learners that they're what a Coursera share a can employer they and it to of to keep that achieving thing URL way the whoever So show track is private any do give want showcase to or personal can on they actually. that with or they friends so that trying with

quite the to it could skill it do grows of both I'd is piece supply you So a them it value. number allow that the talent them of learner we be and think employers first When think learner say before to demand. of sides profile talent connect really years of will just on sign allow network and will the this a as

question pretty there competitive space, sure. it's But around your out to the competitive for

actually not not there'll I our the Certainly not in anything to either. not focused doubt this of be because it's on now planning monetization monetizing, be a are play. that any models in We going game. right It's 'XX we're just we're 'XX stage longer-term at what

graduated remote are who talent from And to and the from the over With the also want around Riyadh. world. that go with et time at or be great the a global I We employees Southeast in smart and seen gets whether will inability in and we and work world the really were kind I've the all in digital be in Asia, really of world. for I I companies of of to out who visit campuses, to anywhere certainly Europe, students students this. had emerging cetera. online spent lot it employers America, to could all talk college talk East, and jobs there, this people and young differentiate when just utilizing lot how talent Latin firsthand learning Middle really Bogota that's they

really we're job a history, so on what someone do doesn't focused to on help how LinkedIn. who And you going is be experience long have say

to field even switch to career a They're from well don't switching pay one doesn't trying And degree. have automated that maybe college in get a as or is and careers. sometimes going

have you profile talent so And showcase only talent but develop career help good LinkedIn a and pools you're to emerging we an degree, starters trying what talent don't have those to employer really If know how their not you of? capable connect switchers employment. career and are a don't in really does

to of kind getting people between is that focus niche, be old, if be so that's career, But That'll we XX like miss. in the XX on. and you will, a what pretty there going But years big to new billion we're going started a a is like after. go

question UBS. of next comes McGinnis the from Your with line Taylor

Your now open. line is

to the guide. the Hi, full-year my so question Maybe much a thanks for questions. taking follow-up on

impact the you at So each So guess XQ for consumer instance, have can destocking back enterprise assumptions forward. going performance an NRR full-year I in assume the you and to the that to at the for segment? think imagine we full-year about guidance. the baked guide a we which in on how growth should would in have the now order get see significant would But weakening, time, to when I of look same

XQ might are so could So to on than others and there that far? in compare maybe and being just seeing certain areas how elaborate that you're what prudent you're that you more

Taylor. is Hi Ken. This

there the so NRR. numbers in of about look given by we each like we're it. guidance as models to the input as segment Again, you in are you we your because look individual uncertain them it, macro, guidance people problems. course, correct, to the something we the at of up or the help target increase us creates don't Stephen response to in correct, perfectly early shape And then implication providing and to only year missing blunt year, is beginning provide of their So as starting on people of end discussed and it at at the you're overall be course, -- segments

so Whereas, we're any given especially the the help really of the verticals update different overall at haven't mix each business works, the we business, model bisegment. on way given other looking the the

And guess I way. maybe just to it. Got that a ask in different then

quarter. in at the past to Just looking outsized it of what was the XQ seen I guess relative some performance we've

year? you rest one expectations of outside any the outperformed think influenced would So like your point Degrees how segments, the be may was about that to there rebound of you of the that the or guys

we've been there. As a economic during with consumer some consumer, the counter-cyclicality of durable perhaps strong but happy been and there just tough particularly bit be performance to some seeing think It's for the times. said time the remarks, prepared very think a I over in very little we tends we business

- again So

doesn't lot credentials it but of the every segment these the is I same certificates professional growth would content a can of lot that in these part industry and exactly add micro the people to and it up seeing learn. want what skills of quite in show we're you it Taylor, seems like a

to ACE we think I of people integrate what these create do accreditation, from have ACE for that recommendations a think increasingly a have trusted is pretty credential XX I which from programs. a that. person this the Academy about to make like trying have attractive credit we're calls job, Get certificates universities not you really institution that I as says asset and professional how to is those those only is portfolio we things platform certificates professional that but into on having Career call the now pathways like knows get script But certificates job, do to do degree this easier a think to from it which their saw

are those professional certificates degrees pathways hiring employers segments value now earned from all enhance the job solutions are think for in leverage and from into creating good pathways talent that We of business. certificates looking that entry-level They creating those we provide specifically and professional who of good those certificates the certificate. you've the the and with that it's across to will and going distinctiveness value expect our to

of Stanley. line from Baer Morgan Your Josh the with question comes next

open. Your line now is

quarter. that's that hoping on was campus? for rate thanks through SMB versus on seat thinking business in and you the Enterprise, net that churn congrats versus on could expansion ask enterprise step-down some context just Great, trended I wanted to and I more question government retention versus the provide how

It sale. I'll like of to for got sort Josh. offer. won't standard it's generally pressure saying a benefit pretty us you departments, the that give specific to speaking, some learning combination want companies of reduce increasing the online becoming, like is new to mean and LNG give denominator there a seems numerator. budget. to you as level. they're pricing numbers high But their I Thanks, have I've more certainly benefit. It's I

But costs terms you cutting are of down, number cut in of could down, a if their LNG teams cetera. they're et budgets cut your of lot getting heads,

sensitivity I of both that revenue the well. to on the set pieces there It's more and box to So bit cost retention a a they they big are little sensitivity that. think if as less ticket is rates expand likely price write and

of it weakness. the versus the by versus the verticals, then is And regions is If you in across EMEA although weakness verticals if business businesses, be, there campuses, historically that's to you'll agree look more governments, we've particularly East, look seen government too. pretty is at where we've like campus where it you seems Europe, biggest the which broad-based the Middle across weakness NRR business EMEA. all seen

there, on better this broad-based. so improving certificates, in degrees budgets we'll pretty using have opportunity on when building the all We're skills come more an keep profile is and more spending the keep cetera. to the the offering, as value a are more and back et people on AI best with with bit open the it but solution that

reasons uncertain to pressure don't I it's too because mean, get out that's costs. It's of on side, the with the watch far what I think, ahead Ken, of want one lot of point enterprise there to pretty on businesses, there's ourselves to we the your a guidance. and

quick of this lower we trend just should to yet. we the the there Thanks, the then on like how And about throughout we rest bottom how expect follow-up to That's mean Should context. Thanks. about Jeff. future think that, for that a context good any I think of really year, are that?

hard the uncertainty lot but going there's things always like it a feels bookings But call getting better spend bottom, to market. are It's in enterprise standpoint a forward. from still broadly of

want So in We and upticks macro completely negative it. right I this some to But spending in not see on starting places that cautious the and you we're think look to, broadly economies again, do feel I'd enterprise be we're just, the environment. how to we market so affects us. about

I look the you most of things in like declining Josh, budgets add, one and are with software, like campuses money, kind especially business. business, campuses the in there. across a not demographic see if the enrollments but and they staff similar It's colleges out are on non-elite dealing pressures. swimming I the at One universities community seeing software is would you mean between difference there they're hand, and U.S. definitely of

that resonating that new indicators. in market micro-credentials pretty students get it's very, today, pretty market. those well. exist pretty offering We're help that are to this we're that doesn't positive into be seems still There attract seeing seems going of to small. mean industry recognition still job But and I students early some sort market. like really very a still more It's to be creating that it's early, placed

So NRR it's moving overall not the a ton. really

education, that's the I these the think idea indications pretty traditional going I'm that It's the industry whole degree to we're of seeing. more credentials this to that's integration through I'm higher sure into going help happen pretty certainly content going reinvent to programs. happen. from But sure industry is and

Raymond next line from Brian with James. of the comes Peterson Your question

is line now open. Your

Thanks guys. to keep one. I'll it

Thanks stack kind wanted think rank do talk just a you to I long-term effort for Any some And rank go you about growth stack provide that? So we details Coursera hiring needed of lot, of the how do in hiring, the delinquent? there's there. that vectors, can you as to because about how market guys.

to full think I way can way talent our out enhance learners. the about, would way some nice in gets we're quality, there, in of or just economics in and value lot materially that create there mean couple proposition. in being of so who it the anyone going huge and to certainly there's near-term better it's like experience be thinking Brian. say It year, will a a little the a Sure, a bit it's play for a the obviously, of placed going it's years, I next market. further, impact

have we has a only at really and a all from is towards build and for career credit industry integrate transcript. my already get proposition degree a cannot that got courses been Coursera. looking companion professor's profile It the the a skill transcript nice college students academy from a something projects like can learn value to have and skills my they I is now and these

traditional skills study the they shows of credentials industry compelling and and more the that course they got, they it's pretty shows the hands-on and graduates. the from One that the learned the and other together grades tools

employers this really and into monetization don't in I but a come an early. find we to we not effective with really If obvious, connected crack because today, that's if But talent going numbers, this we're market to lot we're we of there's but being really really -- paper is expect way and right think probably way it's talent not connect to and kind really of for there. big or pencil and not it's now. the honestly, putting out spreadsheets calculators there count upside a emerging

next Ryan from question comes Your the line of with MacDonald Needham.

now is line Your open.

of obviously great maybe of or some Hi. because existing late the customer in questions. already terms Department to conversations Degrees any situation the of strong conversations uncertain you seeing are extent your thanks department? new him partners wins in trends this earlier the adoption curious a in for some along Education quarter Jeff, pipeline and is when were with of in impact taking seeing with that the on of Congrats my situation with quite stage guidance, and the degree maybe pumping demand program nicely announcements. just the But QX up university the new I'm

were the XXXX Ryan. Letter were The indefinite Colleague has think an not, of They this back kind services pending the put all, comments comments There's not change a at really position. with they they on this pulled first there's the I At those least though it at back Dear the thousand pull part Dear from original is They've it's point Letter, negative. of the the got of seen They not Education, original Department out suspension point. more new that of Dear suspended a well, no with we've back, We're Letter, position. of third-party than a -- that Colleague Colleague and that. this effect of lot from DOE positive. --

we would the think an a of uncertainty I there, not part, this most the it impact, look for going I matter. but in is I we're hearing there about And front. regulations certainly that fast So mean on where Most think American mean at it's really. to have the North not but America North those internationally thing. when is policy, company doesn't is what

that's who say I've universities, younger many imperative America, there's as of served. not got our make of there citizens North got my and need got to just ACT. This inflation populations we've new is ups to saying, infrastructure people re employable. a to In colleges coming We've we've to kill time the the them are students ACT, and we've chips reduction the and campus. got population the lot serve got the governors the really to final skill are second bill,

lot reskilling, of lot going apprenticeships. money more a and about a there's into There's talk infrastructure

of lot a emphasis on and colleges there's education. So

this and You've to pointed got you and where start adults. a it of appeal working University free difficulty] Colorado Boulder degree can working that serve design I for adults out program [technical really

of interest see side of degrees as we kinds the for to So as in coming supply lot when those of far on there and you seen working what's adults seems tailored be haven't degrees we can really a tell

that headwind A major policy from on of American friction sourcing North universities or looking potential at Department Education changes.

it color. good background on I and the mess all you for And that Jeff, up before quick through Ken, really you well. that's the sorry but making summarized with right, All follow go call,

No problem.

the maybe you missed are are quarter, second into the quarter. for we're a quarter through us it On back any falling adjusted performance were I you held first given strong that on why walk in Can in slight investments obviously QX, apologize QX? in I if step the taking that but off just there second EBITDA --

always focus do get -X% of particular a is to Most importantly how last Ryan. we a little we we is quarters number. And year. bit annual on were shift, There the though it's don't

to around and then budget, or in year. public. know, as we in operating It annual spending Positive well. growth But an growth basis points guidance positive been cadence. our basis within says it's you has since -XXX in this shift maximize it's 'XX before it's this our the X% well that As for that of year, and we years were and within year, future QX really,

on to And point really any so opposed focus to people for it's always quarter. the X% as the we year individual

quarters managed short longer-term the and but are the a So yes, up paybacks. business we ended has this too whole look we lot quarter year, we're at as what of being it to pursuing better, the again

to we're do quarter-by-quarter we're not basis. regularly, scaling trying but it So a on

Your last comes question the today from of KeyBanc. Jason line Celino with

Your now line open. is

ken fitting got in more I've question, me thanks Jeff enterprise Hi, for sorry

No problem.

is from a to new appears It is consolidation down coming you you that drive reflection of enabling enterprise strength better-than-expected those what these trying as lands, to the like you especially budgets benefits quarter is this mentioned? I this is guess bring lands saw

like is aspire because would there think I companies which you But say XXX to in NRR all is weakness, I numbers, see we you're the it where feel weakness, more is be that I'll to benefit I've lousy. to part that focus it where that learning this weakness got something it is of have like strength, the there when up to stay. we kind on on mean at is, online picking does there and seems the are more not about more achieve, is to us here of

more podcast automation up a interviewed train is have why There to is you've report your Forum governments that because don't coming was that's businesses say your the that it coming. people when Forum yet, I got most a but in can Everybody is do out is which report I and important Economic World out knows and World asked the to what think Economic thing actually can support business. the

train said than people to be they I need More trained. than regulation, more people. tax policy,

if it, think for have you down want try suppliers. companies spend, are trying really do like doing just So despite that. a to recognizing there want your got that much It's really don't spend an bang to environment value to trend benefit that people I do to in is learning be structural they've on you where as you cut their the

to a there this think time are the same is price one I going at need. recognition sensitivity a So companies is going that to most be and benefit that

but think the NRR. So of picked I wouldn't we've the is something call of you on I up strong seen weakness it which most super in kind

then maybe up on quickly just follow And to this. Perfect.

if you maybe it your I year, think know three still today pretty it's ago? going but Enterprise compare to does months versus in how pipeline, about the So early

mean Three is you that. shaking Ken, kind if on to I thoughts ago, want head. I don't give Ken any his months of know

wise. early to markets I this it's spending would on pipeline how corporate don't know, question overall I is There being in always we're stage. think make been there. Again there's in to say the We're where to this constraint pipeline. on in it. I pipeline tell real the environment, and just on some the hard negative overly I is want is hard What there's sure being which no is deterioration characterize. stability not it's conservative

conservative the because look being And we're environment great. doesn't partly

Yes. environment. Tough enterprise spend

Yes.

Q&A. our of wraps replay joining will That Relations with on this We XX next in available the the us. transcript A appreciate the along webcast be website Investor you hours.

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

You may now disconnect.