Online learning platform Coursera (NYSE:COUR) will be reporting earnings tomorrow afternoon. Here's what to expect.
Coursera beat analysts' revenue expectations by 2.5% last quarter, reporting revenues of $168.9 million, up 18.8% year on year. It was a mixed quarter for the company, with strong growth in its users but underwhelming revenue guidance for the next quarter. The company reported 142 million users, up 20.3% year on year.
Is Coursera a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Coursera's revenue to grow 15.4% year on year to $170.4 million, slowing from the 22.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to secome in at $0.01 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they are expecting the business to stay the course heading into earnings. Coursera has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at Coursera's peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Netflix (NASDAQ:NFLX) delivered year-on-year revenue growth of 14.8%, meeting analysts' expectations, and Roku (NASDAQ:ROKU) reported revenues up 19%, topping Wall Street's consensus estimates by 3.7%. Netflix traded down 9.1% following the results while Roku was also down 10.3%.
Read the full analysis of Netflix's and Roku's results on StockStory.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 3.9% over the last month. Coursera is down 13.9% during the same time and is heading into earnings with an average analyst price target of $22.7 (compared to share price of $11.97).
