Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| And so our recruitment’s been really great |
| We are producing this growth with consistently increasing scale and leverage resulting from the complementary benefits of our three segments |
| And we are investing in our long-term strategy from a position of financial strength, allowing us the resilience and the strategic flexibility to fundamentally transform the education market |
| Removing the noise from the shift in P&L geography, we are driving strong bottomline EBITDA performance on a year-over-year basis |
| The better-than-anticipated result was due to both overall revenue growth and strong operating expense discipline and I continue to be pleased with our ability to invest in multiple growth initiatives while delivering leverage and scale |
| We are delivering these results against the backdrop of a dynamic macro environment, which has reinforced my confidence in our vision for the future of higher education, the strategic assets that differentiate our ecosystem with quality, trust and world-class branded credentials and the global need for a platform like Coursera |
| And so, we are seeing attractiveness in Europe and other parts of the world where businesses are saying, hey, this is pretty nice, one set of courses for a global workforce |
| This trend in combination with our assets is fueling our Consumer results |
| Our third quarter performance is highlighted by the durable demand, solid execution and increased confidence associated with our Consumer segment |
| As I will discuss shortly, this is once again leading us to raise our revenue and adjusted EBITDA margin targets for the full year |
| Our diversified platform continues to serve us well, providing multiple growth opportunities and producing financial and operational leverage as we scale |
| I am pleased to report another strong quarter of performance for Coursera |
| We are definitely more excited in the C-- about the C4G, and particularly, the C4C verticals where we are seeing some really nice progress |
| Consumer revenue was $99 million, up 27% from the prior year on solid execution |
| We grew revenue 21% over the prior year, driven by 27% growth in our Consumer segment |
| Another thing that we realized is our ability to drive increased diversity and a more global talent pool when you are able to work more remotely |
| I am pleased to share that we delivered another strong set of results |
| And fourth, we are harnessing AI technologies to deepen our advantages, while reimagining the platform experience for the benefit of our learners, customers and educator partners and we are accomplishing these priorities while delivering more scale and operating leverage over time |
| We are able to pursue these partnerships because of our strategic assets and platform advantages, which include our leading educator partners who created a broad catalog of trusted and branded content and credentials, our global reach to individuals and institutions, which encompasses businesses, governments and campuses, as well as our data technology and AI advancements that we leverage across our platform |
| Another thing is that some of this growth and you see it in the sales and marketing line, Ken mentioned this in the script as well, we are seeing pretty good returns from paid media spend on these professional certificates |
| Demand remained strong for our growing portfolio of entry-level professional certificates including a number of successful recent launches from Google, IBM and Microsoft |
| We remain excited about the potential for this technology to dramatically enhance the personalized learning and discovery experience on Coursera and feedback from beta participants remains encouraging |
| But we are really pleased with the results and we -- there’s -- always see as positive on the Consumer side |
| We do feel very good about Consumer |
| Degrees revenue was $11.7 million, up 13% from year ago on growing student enrollments |
| Growth was driven by double-digit increases across all three of our segments, with particular strength in consumer |
| We are still working through on the Degrees strategy, our pathways, and we are seeing good progress and we are excited about the growth going forward, do not get us wrong on the strategy as and we have been very open about this |
| As Jeff discussed, our progress in Degrees remains promising as we prioritize the foundational work required to fundamentally transform access and affordability in online Degrees, using the capabilities of our platform and our ecosystem partners |
| But overall, we have been pretty positively impressed by the feedback that we are getting from both Consumers and from Enterprises |
| This year, we have been able to drive both topline performance and operating efficiency for revised guidance improvement of 250 basis points in a full year adjusted EBITDA margin from our initial 2023 target of negative 5% |
| Statement |
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| For the third quarter, gross profit was $84.9 million and a 51% gross margin, which was down 14 points from the prior year period |
| It’s more of the more expensive traditional Degrees without the pathways where we are seeing some of that, kind of continuing headwinds, I think, from a tight labor market and many of the things that we have seen in the past, which I think are affecting not only traditional online Degrees, but frankly, traditional Degrees in the United States |
| COVID was a shock that immediately caused businesses all around the world to increase their learning and development budgets as people went home and companies wanted to show support and give them something productive to do in the early stages of COVID |
| Net loss was $2.1 million or 1.3% of revenue and adjusted EBITDA was a loss of $5.3 million or 3.2% of revenue |
| For adjusted EBITDA, we are now expecting a reduced loss of approximately $15.7 million or negative 2.5% adjusted EBITDA margin at the midpoint of the revenue guidance range |
| We don’t know if this is the bottom or exactly, where we are heading with it, but it could look -- it doesn’t look great and it could look worse as we sort of look at how it’s turning out in Q3 |
| But overall, it -- the macro has remained tough in C4B, but the numbers are stabilizing, we like that, but Again, we are not declaring victory yet |
| Jeff Maggioncalda And then, Josh, as we look at this and say, all right, what leads to some of the negative variances there, a bit of it is recruitment into Degree programs |
| So, I think, a lot of is we are still seeing a tight labor market put pressure on people saying, I want to go for one of those more expensive traditional Degrees |
| Ken Hahn I wouldn’t reverse things saying overly negative |
| And I think that stabilizes us next year and calling the bottom is always dangerous on the C4B so I’d be hesitant to call bottom |
| And then more specifically to, yeah, well, what about Coursera for Business? It’s still pretty tough out there and it is pretty competitive |
| Do you think there could be some slowdown, especially if industry job openings pull back at all, I think a lot of learners on your platform are trying to drive the appointment outcomes at least more so than maybe some other B2C platforms out there |
| It is now getting to the point where Coursera for Business is still the biggest, but the other two which are growing faster are becoming big enough that it’s affecting the growth rates |
| As emerging technologies create new skill requirements and the world’s talent becomes more globalized, language barriers create impediments to collaboration, productivity and economic opportunity |
| But it’s competitive and it doesn’t feel terrible is what I would say |
| But at the same time, it doesn’t look as bad in certain dimensions as it did last quarter |
| Total operating expense was $94.5 million or 57% of revenue, down 15 points from 72% in the prior year period |
| If that’s the reason they are coming, maybe it would abate if there were fewer job opportunities out there |
| And general and administrative expense was 10% of revenue, down 4 points |
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