Coursera : Shareholder Letter
COUR
Shareholder Letter
Q1 2025
Results Summary
Key Financial Measures
Revenue
Revenue of $179.3 million increased by 6% from the prior year on growth in both our Consumer and Enterprise segments.
Q1 2025
$179.3M
Net income (Loss)
$(7.8)M
Net loss was $(7.8)M, or (4.4)% of revenue. Non-GAAP Net income was $19.7
(63)% Y/Y
million, or 11.0% of revenue.
4.4% Net loss margin, ↑ 820 bps Y/Y
Adjusted EBITDA
$18.7M
Non-GAAP Net income was $19.7 million, or 11.0% of revenue, and Adjusted
↑ 125% Y/Y
EBITDA was $18.7 million, or 10.4% of revenue. We continue to demonstrate our
10.4% Adjusted EBITDA Margin, ↑ 550 bps Y/Y
ability to grow with leverage, as well as discipline in managing our cost structure.
Net cash provided by operating activities
$33.5M
Net cash provided by operating activities was $33.5 million, up 37%
↑ 37% Y/Y
year-over-year.
Free Cash Flow ("FCF")
Generated $25.3 million of FCF, up 40% from the prior year period. This was our strongest quarter of cash performance to date.
Operating Segment Performance
Consumer Revenue
Consumer revenue of $117.6 million increased by 5% from the prior year, driven by new registered learners and Coursera Plus subscriptions.
$25.3M
$117.6M
Consumer Gross Profit
$72.4M
Consumer segment gross profit was $72.4 million, up 9% Y/Y, and represented a
↑ 9% Y/Y
62% gross profit margin, up 190 bps Y/Y on learner engagement with content that
62% gross profit margin, ↑ 190 bps Y/Y
has lower revenue share arrangements.
Enterprise Revenue
$61.7M
Enterprise revenue of $61.7 million was up 7% year-over-year, driven by growth in
↑ 7% Y/Y
our business and campus verticals.
Enterprise Gross Profit
$43.2M
Enterprise segment gross profit was $43.2 million, up 10% Y/Y, and represented a
↑ 10% Y/Y
70% gross profit margin, up 200 bps Y/Y on learner engagement with content that
70% gross profit margin, ↑ 200 bps Y/Y
has lower revenue share arrangements.
Coursera results for the three months ended March 31, 2025. Numbers are rounded for presentation purposes. Segment gross profit is defined as segment revenue less content costs in our unaudited condensed consolidated financial statements. Starting in Q1 2025, we have simplified our segment reporting, with degrees product results incorporated into our Consumer segment. A reclassification table for current results and two years of historicals is included in the Appendix. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix.
Q1 2025 Shareholder Letter
2
To our shareholders,
Coursera is off to a solid start in 2025. First quarter revenue grew 6% year-over-year to $179.3 million. We delivered 820 basis points of improvement on net loss margin, as well as 550 basis points of Adjusted EBITDA Margin expansion. Further, we generated $33.5 million of net cash provided by operating activities and $25.3 million of Free Cash Flow, up 37% and 40% year-over-year, respectively. We are demonstrating our ability to scale our business with discipline as we invest in driving durable, long-term growth.
This quarter, we welcomed more than seven million learners, marking a first quarter record and underscoring the global demand for job-relevant skills and trusted credentials. To better serve our global learner and customer base, we are starting to implement thoughtful changes to our operating model, focused on driving more innovation and engagement throughout our learner experience, more rapid product development cycles, and a data-driven approach to continuous improvement in all aspects of our business.
As part of this effort, we have simplified our business model and segment reporting. We are combining the Consumer and Degrees segments, as both support Consumer learners around the world. By focusing on an integrated learner journey, we are working to ensure that investments in platform capabilities, marketing and discovery, or the next breakthrough learning experience, allow us to serve the broadest audience of learners throughout all stages of advancing their careers.
It remains early in the year, but we are confident in the clear direction we are taking and Courseraʼs role in shaping the future of education. Our full year growth expectations have improved following our solid first quarter, and we now expect to deliver 2025 revenue of $725 million at the midpoint of the range. Our foundational elements are in place: solid financial performance with a strong balance sheet, an expanding ecosystem with distinct assets and global scale, and a growing market opportunity to serve both individuals and institutions with an integrated platform.
We are focused on unlocking Courseraʼs next chapter of innovation and growth, while building a world-class business for the benefit of our shareholders and the millions of learners we serve. We look forward to sharing our
continued progress on our growth strategy as the year proceeds.
Greg Hart
Ken Hahn
President and Chief Executive Officer
Chief Financial Officer
Growth priorities
In the coming quarters, our growth strategy will be centered around three key priorities:
Coursera results for the three months ended March 31, 2025. Numbers are rounded for presentation purposes. Refer to the Outlook section for a complete discussion of Q2 and Full Year 2025 guidance. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix.
Q1 2025 Shareholder Letter
3
Ecosystem expansion
Our growing base of learners and Enterprise customers continues to attract trusted content creators, from world-class universities to industry leaders. These creators are valued by learners for their academic rigor, industry expertise, and real-world relevance. As demand for career-aligned education grows, we believe top universities and industry partners will increasingly view Coursera as a strategic platform to extend their reach and impact.
Coursera ecosystem
Branded 9,800+
Content Courses
Platform
175M+
1,651
Reach + Data + Tech
Registered
Paid Enterprise
Learners
Customers
350+
Trusted
Learners &
Content
Creators
Enterprise Customers
Creators
Global reach
Courseraʼs global reach not only drives scale, but creates powerful opportunities for localization, enabling us to tailor content, language, and experiences to meet the needs of learners and labor markets in different regions. Over time, we have attracted more than 175 million learners, with the U.S., India, Mexico, and Brazil among our largest markets.
Additionally, many working adults access learning in institutional settings. We now serve over 1,650 Paid Enterprise Customers spanning businesses, governments, and campuses. Our customers partner with Coursera for high-quality content and skills training, as well as a robust set of platform capabilities that can meet the unique needs of each vertical with a shared foundation. This includes driving skills transformation for employees, enabling government workforce development at scale, as well as powering academic innovation.
Coursera data as of March 31, 2025.
Q1 2025 Shareholder Letter
4
Registered Learners
in millions % Y/Y change
+18%
+19%
+19%
+20%
+20%
+20%
175.3
+20%
162.1
168.2
+21%
148.5 155.1
135.9 141.9
129.4
Q2ʼ23
Q3ʼ23
Q4ʼ23
Q1ʼ24
Q2ʼ24
Q3ʼ24
Q4ʼ24
Q1ʼ25
Paid Enterprise Customers
% Y/Y change
+18%
+12%
+19%
+18%
+17%
+35%
+21%
+19%
1,651
1,612
1,480
1,511
1,564
1,369
1,291 1,315
Q2ʼ23
Q3ʼ23
Q4ʼ23
Q1ʼ24
Q2ʼ24
Q3ʼ24
Q4ʼ24
Q1ʼ25
Coursera data as of March 31, 2025. Numbers are rounded for presentation purposes and percentages refer to year-over-year change. Refer to the Key Business Metrics page for definitions and more information.
Q1 2025 Shareholder Letter
5
Content engine
Content is the engine of our business and the foundation of our ecosystem. Our catalog now includes nearly 10,000 courses, growing by 37% over the past year. We are building a faster, more agile content model that preserves the value of our credible, high-quality brands and meets the rapid pace of skills development for real-time learner and business needs. This includes new content creators, formats, and domains, such as healthcare micro-credentials.
Broad catalog
Our branded catalog is uniquely capable of serving learners throughout multiple stages of their careers. Whether itʼs a standalone course, a professional certificate, or a college degree, our job is to deliver the right content, at the right time, to support each learner's personal goals. We are focused on building an integrated, end-to-end learner journey in order to provide course, credential, and skill recommendations across different levels of career progression and expertise.
2,000+
9,800+
1,300+
150+
50+
Projects
Courses
Specializations
Certificates
Degrees
Generative AI skills
Entry-level Professional Certificates
A key offering is our catalog of generative AI content and credentials. Our content creators, many of which are the worldʼs leading AI companies, have launched nearly 700 AI courses as they look to meet the growing demand for these skills. So far this year, we are seeing 12 enrollments per minute in AI content, up from one per minute in 2023 and eight per minute in 2024.
In April 2024, Google launched AI Essentials, a course designed to help learners across roles and industries gain valuable AI skills and hands-on experience with AI tools to boost productivity. It was the most popular course on Coursera in 2024, with over one million enrollments to date.
We continue to expand our catalog of entry-level Professional Certificates. This year, we have launched five new certificates from industry partners (below), expanding our total catalog to 90 certificates. These certificates provide our learners with a pathway to entry-level jobs in fields such as software development, cybersecurity, data science, business, and healthcare, while students can increasingly earn college credit. More than 30 of our certificates in this catalog have received one or more credit recommendations.
Adobe Marketing Specialist
DeepLearning.AI Data Analytics
IBM Java Developer
Johns Hopkins Medicine Medical Office Manager
Microsoft Python Development
Coursera content and product information as of the Q1 2025 earnings report on April 24, 2025. Numbers are rounded for presentation purposes. Content and credential figures exclude suspended partner content that is not currently discoverable or available on platform. The number of degrees reflects masterʼs, bachelorʼs, and postgraduate diploma programs with multiple tracks as a single count.
Q1 2025 Shareholder Letter
6
Platform innovation
We believe our next chapter of growth will be defined by innovation, and we are committed to accelerating the role our platform will play in shaping the future of learning. Courseraʼs ecosystem is powered by our platform, which benefits from rapidly expanding global reach, data-driven insights to inform content strategy and skill recommendations, and advanced AI and technology tools to enhance discovery, personalize learning, and empower instructors. We have made strong recent progress building new products and capabilities that demonstrate how we are focused on driving improvements in engagement, retention, and conversion by delivering more valuable experiences for our learners.
AI-powered translations
Coursera started rolling out AI-powered text translations in 2023, which have enabled nearly three million learners to access more than 5,000 courses across 26 languages. In April, we announced the next phase of our translation initiative with the launch of more than 100 AI-dubbed courses in Spanish, French, German, and Brazilian Portuguese.
Now, learners cannot just read, but hear courses in their native language, with natural voice, tone, and lip sync; a remarkably better experience than conventional dubbing. In the initial text-based phase, learners completed translated courses at higher rates and nearly 25% faster compared to those offered only in the original language.
With the advancements in audio, we are excited about the possibility of driving stronger engagement and better outcomes. Over the course of this year, we will expand the breadth of courses and range of languages available with AI dubbing as we continue our efforts to bring the worldʼs best education to learners everywhere.
Coursera Coach
Coursera Coach started as a learning assistant, but is rapidly expanding in breadth and depth. It is becoming core presence across our platform, with expanding features in career guidance and discovery, instructional design, and customer support. In the fourth quarter, we introduced Coach Dialogues, which allow instructors to incorporate personalized, interactive learning experiences throughout their courses, acting as an extension of their teaching to help learners think more deeply about course material and concepts.
The early signals are promising, showing a significant impact in learner engagement for courses with Dialogues. Dialogues are generally available as of the first week of April, and we will be closely monitoring performance as we seek to drive broad adoption of this new capability across our catalog.
Coursera product information as of the Q1 2025 earnings report on April 24, 2025.
Q1 2025 Shareholder Letter
7
Product Spotlight
Career-based discovery
maps our broad selection of trusted credentials
to in-demand job roles and critical skills
Enhanced onboarding
allows us to better understand learner goals and provide more personalized recommendations
Role description pages
for 60 in-demand job roles map pathways to recommended credentials based on expertise
Localized labor market insights provide median salary and job availability in up to 40 countries
Coursera product information as of the Q1 2025 earnings report on April 24, 2025.
Q1 2025 Shareholder Letter
8
Career-based discovery
Courseraʼs prominence as a global destination for career-motivated learning attracts a broad range of learners. From our survey data, we know that the majority of learners looking to start or switch their careers do not know what they need to learn, or where to begin. Historically, our search and discovery experience has emphasized the breadth of our offerings. We know we have an opportunity to better understand our learners' goals, help guide them on what roles can be learned fully online, and illuminate how high-quality education and credentials can provide a pathway to a more satisfying and rewarding career.
Starting in the fourth quarter, we began testing an improved career-based discovery experience that maps our broad selection of credentials to specific job roles and skills. The new experience, which continues to be rolled out globally, includes an improved onboarding experience, allowing us to better understand learner goals and tailor personalized recommendations. Additionally, we have created approximately 60 role description pages, which provide credential recommendations across different levels of career progression and expertise, as well as localized salary and job data for approximately 40 countries.
The preliminary results are showing positive impacts in our paid learner conversion. We expect to rapidly expand these early features, with a wider selection of roles, a deeper understanding of learner goals to personalize guidance and recommendations, and a clear learning and career progression: from beginner courses, to industry certificates, and college degrees. We believe this is an experience that Coursera is uniquely capable of creating.
Coursera product information as of the Q1 2025 earnings report on April 24, 2025.
Q1 2025 Shareholder Letter
9
Q1 2025 financial results
$179.3M
$(7.8)M
$18.7M
Revenue
Net loss
Adjusted EBITDA
↑ 6% Y/Y
↑ 13.5M Y/Y
↑ 125% Y/Y
(4.4)% Net loss Margin
10.4% Adjusted EBITDA Margin
↑ 820 bps Y/Y
↑ 550 bps Y/Y
$33.5M
$25.3M
$66.5M
Net cash provided
Free Cash Flow
TTM Free Cash Flow
by operating activities
↑ 40% Y/Y
↑ 165% Y/Y
↑ 37% Y/Y
Revenue
We delivered solid first quarter results, extending our strong track record of operating with discipline as we seek to reignite our growth trajectory. Revenue was $179 million, up 6% year-over-year. Growth was driven by both our Consumer and Enterprise segments, which were up 5% and 7% year-over-year, respectively. Our expectations for full year growth have improved as we begin to implement new operating capabilities and a focused set of initiatives.
+21%
+19%
+15%
+11%
+23%
165.5 168.9 169.1 170.3
153.7
+6% +6% +6%
176.1 179.2 179.3
99.5
110.7
110.6
111.6
111.6
115.7
116.9
117.6
Consumer segment
54.2
54.9
58.3
57.5
58.7
60.4
62.3
61.7
Enterprise segment
in millions
Q2ʼ23
Q3ʼ23
Q4ʼ23
Q1ʼ24
Q2ʼ24
Q3ʼ24
Q4ʼ24
Q1ʼ25
% Y/Y change
Coursera results for the three months ended March 31, 2025. Percentages refer to year-over-year change and numbers are rounded for presentation purposes. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix.
Q1 2025 Shareholder Letter 10
Disclaimer
Coursera Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 20:39 UTC.