Coursera Inc. (NYSE: $COUR) is a leading player in the online education industry. The platform connects educators, learners, institutions, and organizations. Its courses span various sectors, including business, physical science, engineering, IT, social sciences, degree courses, and more.
The company has a current market cap of $2.862 billion, and its stock has skyrocketed 65.87% in the past six months. Here is a deep dive into why Coursera Inc. stock is doing so well this year.
Coursera Inc. Earnings Report
In its latest fiscal Q3 earnings report for the quarter ending September 30, 2023, Coursera Inc. reported a total revenue of $165.5 million. This was a 21% increase from the $136.4 million reported in the previous year.
Its gross profit was at $83.3 million for Q3, which was 50.3% of revenue, compared to the $87.6 million reported last year, which was 64.2% of revenue at the time. However, the company is still not in profitability, and it had a net loss of $32.1 million for the quarter.
In Q3, Coursera Inc. beat analysts’ revenue forecast of $158.3 million, posting $165.5 million in profit. Additionally, EPS was better than expected. The company posted an EPS of $-0.01, better than the projected $-0.06, a surprise of 77.64%.
In the past four quarters, Coursera In.c has beaten analysts’ EPS estimates by an average of 76.49%. For next year, analysts predict Coursera Inc. will be profitable, with an EPS midpoint of $0.03 for FY24.
In its earnings report, Coursera Inc. reported that all segments were up year-over-year. Revenues in its consumer segment were up 27% at $99 million for Q3. The enterprise segment was also up 14% and was $54.9 million. Lastly, the degree segment was up 13%, with revenue at $11.7 million for the quarter.
Coursera Inc. (COUR) Stock Performance
Coursera Inc. (COUR) stock has had a great run in 2023. Year-to-date, the stock is up 51.90%, and it is up 45.09% in the past 12 months. COUR stock has also had a great performance recently. As of the close of trading on November 7, 2023, the stock was up 6.05%, trading at $18.76 per share.
Revenue and Stock Forecast for Coursera Inc.
Coursera Inc. is confident in its business model, and for FY23, the company has raised its revenue outlook midpoint by $10 million to $630 million. That is close to the analysts’ forecast of $633.56 million. For Q4, the company forecast a revenue of $161-$165 million. Analysts predict a revenue increase of 20.96% for this year and another bump of 15.88% in 2024, with a mid-range forecast of $734.20 million.
Stock analysts predict an average price of $22.31 for Coursera Inc. (COUR) stock, with a high of $30 and a low forecast of $17. Its average price forecast is an upside of 18.92%.
Should You Buy Coursera Inc. Stock
Based on recent strong performance, analysts have given COUR stock a moderate buy rating. With analysts predicting that the company will post net profits as of FY 2024, it is a great stock to consider. It is worth noting that analysts view COUR stock as having a fair valuation based on several key metrics. As always, deciding whether to buy a stock should be based on an in-depth analysis of all the data.
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