Business Wire | Aug 3, 2021 04:10PM EDT

Coursera Reports Second Quarter Fiscal 2021 Financial Results

Aug. 03, 2021

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Aug. 03, 2021--Coursera (NYSE: COUR) today announced financial results for its second quarter of fiscal 2021, ended June 30, 2021.

"Our second-quarter result reflects the growing adoption and impact of our platform around the world. Institutions are using Coursera to launch large-scale reskilling efforts, and learners are coming to the platform to upskill for high-demand digital roles," said Coursera CEO Jeff Maggioncalda. "Working with global brands like Google, IBM and Facebook, we have assembled a broad catalog of job-relevant content and credentials that are helping learners with no college degree or industry experience learn the skills needed to start new digital careers."

Financial Highlights for Second Quarter Fiscal 2021

* Total revenue was $102.1 million, up 38% from $73.7 million a year ago. * Gross profit was $60.9 million or 59.7% of revenue, up 58% from $38.6 million a year ago. Non-GAAP gross profit was $61.8 million or 60.6% of revenue, up 60% from $38.7 million a year ago. * Net loss was $(46.4) million or (45.4)% of revenue, compared to $(13.9) million or (18.9)% of revenue a year ago. Non-GAAP net loss was $(6.9) million or (6.8)% of revenue, compared to $(10.3) million or (14.0)% of revenue a year ago. * Adjusted EBITDA was $(2.9) million or (2.8)% of revenue, compared to $(7.9) million or (10.6)% of revenue a year ago. * Net cash used in operating activities was $(5.5) million, compared to $11.4 million provided by operating activities a year ago. Free cash flow was $(8.5) million, compared to $8.3 million a year ago.

For more information regarding the non-GAAP financial measures discussed in this press release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

"In the second quarter, revenue grew 38% year-over-year with strong momentum across our three-sided learning platform," said Ken Hahn, Coursera's CFO. "Following our pandemic-related surge in 2020, we believe we are seeing sustained structural demand for online learning as businesses, governments and individual learners seek the skills required to compete in today's economy."

Operating Segment Highlights

* Consumer revenue for the second quarter was $62.0 million, up 23% from a year ago on sustained demand for our career-oriented Professional Certificates targeted at entry-level digital jobs. Segment gross margin was $40.7 million, or 66% of Consumer revenue, compared to 54% a year ago. The company added 5 million new registered learners during the quarter for a total of 87 million. * Enterprise revenue for the second quarter was $28.2 million, up 69% from a year ago on a combination of strong renewals and growth in new customers. The total number of Paid Enterprise Customers increased to 584, up 109% from a year ago. Segment gross margin was $19.0 million, or 67% of Enterprise revenue, compared to 70% a year ago. Our Net Retention Rate (NRR) for Paid Enterprise Customers was 114%. * Degrees revenue for the second quarter was $11.9 million, up 78% from a year ago on scaling of prior cohorts and newly launched programs. Segment gross margin was 100% of Degrees revenue; there is no content cost attributable to the Degrees segment as students pay tuition directly to the university, and the university pays us a fee based on the amount of tuition. The total number of Degrees Students reached 14,630, up 81% from a year ago.

All key business metrics are as of June 30, 2021. For more information regarding the metrics discussed in this press release, please see "Key Business Metrics Definitions" below.

Content, Customer and Platform Highlights

* Content and Credentials: Announced 6 new industry partners, including Intuit, Infosec and Tencent. Expanded our entry-level Professional Certificate catalog, including the Intuit Bookkeeping Professional Certificate and Facebook Marketing Analyst Professional Certificate. Announced a new degree program with the Global Master's in English Language Teaching Leadership from Tomsk State University, which was in addition to the 5 degrees announced at Coursera Conference in April. * Enterprise Customers: Expanded programs with Coursera for Business customers focused on accelerating their digital transformation strategies, including PwC ProEdge (U.S.), Pernod Ricard (France), and Go1 (U.K.). Launched nationwide reskilling program with the Government of Barbados National Transformation Initiative, ramped up statewide program with the U.S. Tennessee Department of Labor and Workforce Development, and expanded our partnership with the Commonwealth of Learning, serving 54 member nations across Asia Pacific, Africa, Latin America, and the Caribbean. Leading public and private universities adopted Coursera for Campus, including the Universidad de Guadalajara (Mexico), L'Universit Hassan II de Casablanca (Morocco), UNext Learning (India), BAC Education (Malaysia), and Riphah International University (Pakistan). * Learning Platform: Expanded availability of Coursera Plus as a monthly subscription to all learners, offering unlimited access to thousands of courses and all Guided Projects for one all-inclusive price. Announced general availability of our new LMS content ingestion solution, enabling educators to quickly and seamlessly migrate large amounts of content to Coursera from Learning Management Systems including edX, Canvas, Blackboard, Moodle and others. Announced general availability of Live2Coursera app for Zoom, helping to address the digital divide facing universities with flexible download options and mobile device compatibility.

Highlights reflect developments since March 31, 2021 through today's announcement. For additional information on these developments, see the Coursera Blog at blog.coursera.org.

Financial Outlook

* Third quarter fiscal 2021: Revenue in the range of $105 to $109 million Adjusted EBITDA in the range of $(7.5) to $(10.5) million * Full-year fiscal 2021: Revenue in the range of $402 to $410 million Adjusted EBITDA in the range of $(38.0) to $(44.0) million

Actual results may differ materially from Coursera's Financial Outlook as a result of, among other things, the factors described under "Special Note on Forward-Looking Statements" below.

A reconciliation of our non-GAAP guidance measure (adjusted EBITDA) to corresponding GAAP guidance measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release.

Conference Call Details

As previously announced, Coursera will hold a conference call to discuss its second quarter performance today, August 3, 2021 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

A live, audio-only webcast of the conference call and earnings release materials will be available to the public on the company's Investor Relations page at investor.coursera.com. For those unable to listen to the broadcast live, an archived replay will be accessible in the same location for one year.

Disclosure Information

In compliance with disclosure obligations under Regulation FD, Coursera announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, company blog posts, public conference calls and webcasts, as well as the investor relations website.

About Coursera

Coursera was launched in 2012 by two Stanford Computer Science professors, Andrew Ng and Daphne Koller, with a mission to provide universal access to world-class learning. It is now one of the largest online learning platforms in the world, with 87 million registered learners as of June 30, 2021. Coursera partners with over 200 leading university and industry partners to offer a broad catalog of content and credentials, including Guided Projects, courses, Specializations, certificates, and bachelor's and master's degrees. Institutions around the world use Coursera to upskill and reskill their employees, citizens, and students in many high-demand fields, including data science, technology, and business.

Key Business Metrics Definitions

Registered Learners

We count the total number of registered learners at the end of each period. For purposes of determining our registered learner count, we treat each customer account that registers with a unique email as a registered learner and adjust for any spam, test accounts, and cancellations. Our registered learner count is not intended as a measure of active engagement. New registered learners are individuals that register in a particular period.

Paid Enterprise Customers

We count the total number of Paid Enterprise Customers at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. We define a "Paid Enterprise Customer" as a customer who purchases Coursera via our direct sales force. For purposes of determining our Paid Enterprise Customer count, we exclude our Enterprise customers who do not purchase Coursera via our direct sales force, which include organizations engaging on our platform through our Coursera for Teams offering or through our channel partners.

Net Retention Rate (NRR) for Paid Enterprise Customers

We calculate annual recurring revenue ("ARR") by annualizing each customer's monthly recurring revenue ("MRR") for the most recent month at period end. We calculate "Net Retention Rate" as of a period end by starting with the ARR from all Paid Enterprise Customers as of the twelve months prior to such period end, or Prior Period ARR. We then calculate the ARR from these same Paid Enterprise Customers as of the current period end, or Current Period ARR. Current Period ARR includes expansion within Paid Enterprise Customers and is net of contraction or attrition over the trailing twelve months, but excludes revenue from new Paid Customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at our Net Retention Rate.

Number of Degrees Students

We count the total number of Degrees students for each period. For purposes of determining our Degrees student count, we include all the students that are matriculated in a degree program and who are enrolled in one or more courses in such degree program during the period. If a degree term spans across multiple quarters, said student is counted as active in all quarters of the degree term. For purposes of determining our Degrees student count, we do not include students who are matriculated in the degree but are not enrolled in a course in that period.

Non-GAAP Financial Measures

In addition to financial information presented in accordance with GAAP, this press release includes non-GAAP gross profit, non-GAAP net loss, adjusted EBITDA, adjusted EBITDA margin and Free Cash Flow, each of which is a non-GAAP financial measure. These are key measures used by our management to help us analyze our financial results, establish budgets and operational goals for managing our business, evaluate our performance, and make strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, we believe these measures are useful for period-to-period comparisons of our business. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance. However, the non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. These non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered as a substitute for or in isolation from financial information presented in accordance with GAAP. These non-GAAP metrics have limitations as analytical tools.

Non-GAAP Gross Profit and Non-GAAP Net Loss

We define non-GAAP gross profit and non-GAAP net loss as GAAP gross profit and GAAP net loss excluding the impact of stock-based compensation, and payroll tax expense related to stock-based activities. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA as our net loss excluding: (1) depreciation and amortization; (2) interest income, net; (3) stock-based compensation; (4) income tax expense; and (5) payroll tax expense related to stock-based activities. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

Free Cash Flow

Free Cash Flow is a non-GAAP financial measure that we calculate as net cash used in operating activities, less cash used for purchases of property, equipment, and software, and capitalized internal-use software costs. We exclude purchases of property, equipment and software, and capitalized internal-use software costs as we consider these capital expenditures to be a necessary component of our ongoing operations.

Reconciliations of the non-GAAP measures to the most directly comparable GAAP financial measures are included in the Appendix.

Special Note on Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this press release that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by the words "may," "might," "will," "can," "could," "would," "should," "expect," "intend," "plan," "objective," "target," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. These forward-looking statements include statements regarding: the growing adoption and impact of our platform around the world; trends in the online learning market, including with respect to institutions using online learning for skilling at scale; trends in the higher education market, including learner interest in online credentials as a pathway into digital roles; our ability to assemble a broad catalog of content and credentials; our ability to differentiate from our competitors; demand for online learning, including for skills to compete in today's economy, and our ability to meet the needs of learners and institutions; anticipated features and benefits of our content and platform offerings, including partner adoption of and satisfaction with content ingestion, pricing and access to our content and platform offerings, and mobile device compatibility and download options; our ability to scale our business; and our financial outlook, future financial performance, and expectations, among others. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our ability to manage our growth; our limited operating history; the nascency of online learning solutions and risks related to market adoption of online learning; our ability to maintain and expand our partnerships with our university and industry partners; our ability to attract and retain learners; our ability to increase sales of our Enterprise offering; our ability to compete effectively; the COVID-19 pandemic's impact on our business and our industry; regulatory matters impacting us or our partners; risks related to intellectual property; cyber security and privacy risks and regulations; potential disruptions to our platform; and our status as a B Corp, as well as the risks discussed in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and as detailed from time to time in our SEC filings. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Such forward-looking statements relate only to events as of the date of this press release. We undertake no obligation to update any forward-looking statements except to the extent required by law.

Coursera Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except number of shares and per share amounts)

Three Months Ended June 30, Six Months Ended June 30,

2020 2021 2020 2021

(in thousands) (in thousands)

Revenue $ 73,728 $ 102,089 $ 127,575 $ 190,451

Cost of revenue^ 35,161 41,162 60,112 79,987 (1)

Gross profit 38,567 60,927 67,463 110,464

Operatingexpenses:

Research and 18,046 41,004 33,829 63,144 development^(1)

Sales and 25,414 43,862 46,110 76,475 marketing^(1)General and 8,943 21,846 16,029 34,991 administrative^(1)

Total operating 52,403 106,712 95,968 174,610 expenses

Loss from (13,836 ) (45,785 ) (28,505 ) (64,146 )operations

Interest income 265 85 961 165

Interest expense (12 ) - (12 ) -

Other income 34 42 (218 ) 35 (expense), netLoss before income (13,549 ) (45,658 ) (27,774 ) (63,946 )taxes

Income tax expense 367 705 456 1,080

Net loss $ (13,916 ) $ (46,363 ) $ (28,230 ) $ (65,026 )

Net loss per shareattributable tocommon $ (0.38 ) $ (0.35 ) $ (0.79 ) $ (0.75 )stockholders-basicand diluted

Weighted-averageshares used incomputing net lossper share 36,185,155 131,804,121 35,925,639 86,761,169 attributable tocommonstockholders-basicand diluted

(1) Includes stock-based compensation expense asfollows:

Three Months Ended June 30, Six Months Ended June 30,

2020 2021 2020 2021

(in thousands) (in thousands)

Cost of revenue $ 115 $ 903 $ 225 $ 1,010

Research and 1,492 18,363 2,769 20,391 developmentSales and 833 11,310 1,542 12,658 marketing

General and 1,123 8,599 2,041 10,400 administrativeTotal stock-basedcompensation $ 3,563 $ 39,175 $ 6,577 $ 44,459 expense

Coursera Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

December 31, 2020

June 30, 2021

Assets:

Current assets:

Cash and cash equivalents

$

79,878

$

749,649

Marketable securities205,402

51,088

Accounts receivable, net of allowance for doubtful accounts of $48 and $153

40,721

51,757

Deferred costs14,077

17,881

Prepaid expenses and other current assets

14,993

17,983

Total current assets355,071

888,358

Property, equipment and software, net

18,644

23,049

Operating lease right-of-use assets

21,622

18,906

Intangible assets, net

10,570

10,336

Restricted cash

2,548

2,548

Other assets

9,169

10,383

Total assets$

417,624

$

953,580

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity (Deficit):

Current liabilities:

Educator partners payable

$

39,005

$

41,666

Other accounts payable12,897

9,260

Accrued compensation and benefits

12,997

15,469

Operating lease liabilities, current7,926

7,970

Deferred revenue, current

76,080

95,917

Other current liabilities4,739

6,861

Total current liabilities

153,644

177,143

Operating lease liabilities, non-current

18,305

15,071

Other liabilities

644

593

Deferred revenue, non-current

4,562

5,364

Total liabilities

177,155

198,171

Redeemable convertible preferred stock

462,293

-

Stockholders' equity (deficit):

Common stock

-

1

Additional paid-in capital

126,408

1,168,681

Treasury stock

(4,701

)

(4,701

)

Accumulated other comprehensive income

20

5

Accumulated deficit

(343,551

)

(408,577

)

Total stockholders' equity (deficit)

(221,824

)

755,409

Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)

$

417,624

$

953,580

Coursera Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

December 31, June 30, 2021 2020

Assets:

Current assets:

Cash and cash equivalents $ 79,878 $ 749,649

Marketable securities 205,402 51,088

Accounts receivable, net of allowance for 40,721 51,757 doubtful accounts of $48 and $153

Deferred costs 14,077 17,881

Prepaid expenses and other current assets 14,993 17,983

Total current assets 355,071 888,358

Property, equipment and software, net 18,644 23,049

Operating lease right-of-use assets 21,622 18,906

Intangible assets, net 10,570 10,336

Restricted cash 2,548 2,548

Other assets 9,169 10,383

Total assets $ 417,624 $ 953,580

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity(Deficit):

Current liabilities:

Educator partners payable $ 39,005 $ 41,666

Other accounts payable 12,897 9,260

Accrued compensation and benefits 12,997 15,469

Operating lease liabilities, current 7,926 7,970

Deferred revenue, current 76,080 95,917

Other current liabilities 4,739 6,861

Total current liabilities 153,644 177,143

Operating lease liabilities, non-current 18,305 15,071

Other liabilities 644 593

Deferred revenue, non-current 4,562 5,364

Total liabilities 177,155 198,171

Redeemable convertible preferred stock 462,293 -

Stockholders' equity (deficit):

Common stock - 1

Additional paid-in capital 126,408 1,168,681

Treasury stock (4,701 ) (4,701 )

Accumulated other comprehensive income 20 5

Accumulated deficit (343,551 ) (408,577 )

Total stockholders' equity (deficit) (221,824 ) 755,409

Total liabilities, redeemable convertiblepreferred stock, and stockholders' equity $ 417,624 $ 953,580 (deficit)

Coursera Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

Six Months Ended June 30,

2020

2021

Cash flows from operating activities:

Net loss

$

(28,230

)

$

(65,026

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization

4,364

6,371

Stock-based compensation

6,577

44,459

Amortization or accretion of marketable securities

(187

)

319

Other

25

105

Changes in operating assets and liabilities:

Accounts receivable, net

(11,497

)

(11,141

)

Prepaid expenses and other assets

(7,691

)

(4,124

)

Operating lease right-of-use assets

2,543

2,716

Educator partners and other accounts payable

13,202

(5,274

)

Accrued and other liabilities

(431

)

4,347

Operating lease liabilities

(2,822

)

(3,191

)

Deferred revenue

27,992

20,639

Net cash (used in) provided by operating activities

3,845

(9,800

)

Cash flows from investing activities:

Purchases of marketable securities

(35,633

)

-

Proceeds from maturities of marketable securities

98,434

153,981

Purchases of property, equipment and software

(1,737

)

(739

)

Capitalized internal-use software costs

(3,669

)

(6,598

)

Purchases of content assets

-

(531

)

Net cash provided by investing activities

57,395

146,113

Cash flows from financing activities:

Proceeds from exercise of stock options and warrants

2,073

14,284

Proceeds from initial public offering, net of offering costs

-

525,284

Payment of deferred offering costs

-

(6,110

)

Net cash provided by financing activities

2,073

533,458

Net increase in cash, cash equivalents, and restricted cash

63,313

669,771

Cash, cash equivalents, and restricted cash-Beginning of period

59,845

82,426

Cash, cash equivalents, and restricted cash-End of period

$

123,158

$

752,197

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

$

119,354

$

749,649

Restricted cash

3,035

2,548

Restricted cash in prepaid expenses and other current assets

769

-

Total cash, cash equivalents, and restricted cash

$

123,158

$

752,197

Coursera Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

Six Months Ended June 30,

2020 2021

Cash flows from operating activities:

Net loss $ (28,230 ) $ (65,026 )

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization 4,364 6,371

Stock-based compensation 6,577 44,459

Amortization or accretion of marketable securities (187 ) 319

Other 25 105

Changes in operating assets and liabilities:

Accounts receivable, net (11,497 ) (11,141 )

Prepaid expenses and other assets (7,691 ) (4,124 )

Operating lease right-of-use assets 2,543 2,716

Educator partners and other accounts payable 13,202 (5,274 )

Accrued and other liabilities (431 ) 4,347

Operating lease liabilities (2,822 ) (3,191 )

Deferred revenue 27,992 20,639

Net cash (used in) provided by operating activities 3,845 (9,800 )

Cash flows from investing activities:

Purchases of marketable securities (35,633 ) -

Proceeds from maturities of marketable securities 98,434 153,981

Purchases of property, equipment and software (1,737 ) (739 )

Capitalized internal-use software costs (3,669 ) (6,598 )

Purchases of content assets - (531 )

Net cash provided by investing activities 57,395 146,113

Cash flows from financing activities:

Proceeds from exercise of stock options and warrants 2,073 14,284

Proceeds from initial public offering, net of - 525,284 offering costs

Payment of deferred offering costs - (6,110 )

Net cash provided by financing activities 2,073 533,458

Net increase in cash, cash equivalents, and 63,313 669,771 restricted cash

Cash, cash equivalents, and restricted cash-Beginning 59,845 82,426 of period

Cash, cash equivalents, and restricted cash-End of $ 123,158 $ 752,197 period

Reconciliation of cash, cash equivalents andrestricted cash:

Cash and cash equivalents $ 119,354 $ 749,649

Restricted cash 3,035 2,548

Restricted cash in prepaid expenses and other current 769 - assets

Total cash, cash equivalents, and restricted cash $ 123,158 $ 752,197

Coursera Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except number of shares and per share amounts)

Three Months Ended June 30, 2021

GAAP

Stock-based compensation

Payroll tax expense related to stock-based activities

Non-GAAP

Revenue

$

102,089

-

-

$

102,089

Cost of revenue

41,162

(903

)

(15

)

40,244

Gross profit

60,927

903

15

61,845

Operating expenses:

Research and development

41,004

(18,363

)

(101

)

22,540

Sales and marketing43,862

(11,310

)

(34

)

32,518

General and administrative

21,846

(8,599

)

(106

)

13,141

Total operating expenses

106,712

(38,272

)

(241

)

68,199

Loss from operations

(45,785

)

39,175

256

(6,354

)

Interest income85

-

-

85

Other income, net

42

-

-

42

Loss before income taxes

(45,658

)

39,175

256

(6,227

)

Income tax expense

705

-

-

705

Net loss

(46,363

)

39,175

256

(6,932

)

Net loss per share attributable to common stockholders-basic and diluted

$

(0.35

)

$

(0.05

)

Weighted-average shares used in computing net loss per share attributable to common stockholders-basic and diluted

131,804,121

131,804,121

Six Months Ended June 30, 2021

GAAP

Stock-based compensation

Payroll tax expense related to stock-based activities

Non-GAAP

Revenue

$

190,451

-

-

$

190,451

Cost of revenue

79,987

(1,010

)

(16

)

78,961

Gross profit

110,464

1,010

16

111,490

Operating expenses:

Research and development

63,144

(20,391

)

(124

)

42,629

Sales and marketing76,475

(12,658

)

(35

)

63,782

General and administrative

34,991

(10,400

)

(109

)

24,482

Total operating expenses

174,610

(43,449

)

(268

)

130,893

Loss from operations

(64,146

)

44,459

284

(19,403

)

Interest income165

-

-

165

Other income, net

35

-

-

35

Loss before income taxes

(63,946

)

44,459

284

(19,203

)

Income tax expense

1,080

-

-

1,080

Net loss

(65,026

)

44,459

284

(20,283

)

Net loss per share attributable to common stockholders-basic and diluted

$

(0.75

)

$

(0.23

)

Weighted-average shares used in computing net loss per share attributable to common stockholders-basic and diluted

86,761,169

86,761,169

Coursera Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

(In thousands, except number of shares and per share amounts)

Three Months Ended June 30, 2021

Payroll tax expense GAAP Stock-based related Non-GAAP compensation to stock-based activities

Revenue $ 102,089 - - $ 102,089

Cost of revenue 41,162 (903 ) (15 ) 40,244

Gross profit 60,927 903 15 61,845

Operating expenses:

Research and 41,004 (18,363 ) (101 ) 22,540 development

Sales and marketing 43,862 (11,310 ) (34 ) 32,518

General and 21,846 (8,599 ) (106 ) 13,141 administrative

Total operating 106,712 (38,272 ) (241 ) 68,199 expenses

Loss from operations (45,785 ) 39,175 256 (6,354 )

Interest income 85 - - 85

Other income, net 42 - - 42

Loss before income (45,658 ) 39,175 256 (6,227 )taxes

Income tax expense 705 - - 705

Net loss (46,363 ) 39,175 256 (6,932 )

Net loss per shareattributable tocommon $ (0.35 ) $ (0.05 )stockholders-basicand diluted

Weighted-averageshares used incomputing net lossper share 131,804,121 131,804,121 attributable tocommonstockholders-basicand diluted



Six Months Ended June 30, 2021

Payroll tax expense GAAP Stock-based related Non-GAAP compensation to stock-based activities

Revenue $ 190,451 - - $ 190,451

Cost of revenue 79,987 (1,010 ) (16 ) 78,961

Gross profit 110,464 1,010 16 111,490

Operating expenses:

Research and 63,144 (20,391 ) (124 ) 42,629 development

Sales and marketing 76,475 (12,658 ) (35 ) 63,782

General and 34,991 (10,400 ) (109 ) 24,482 administrative

Total operating 174,610 (43,449 ) (268 ) 130,893 expenses

Loss from operations (64,146 ) 44,459 284 (19,403 )

Interest income 165 - - 165

Other income, net 35 - - 35

Loss before income (63,946 ) 44,459 284 (19,203 )taxes

Income tax expense 1,080 - - 1,080

Net loss (65,026 ) 44,459 284 (20,283 )

Net loss per shareattributable tocommon $ (0.75 ) $ (0.23 )stockholders-basicand diluted

Weighted-averageshares used incomputing net lossper share 86,761,169 86,761,169 attributable tocommonstockholders-basicand diluted

Three Months Ended June 30, 2020

GAAP

Stock-based compensation

Payroll tax expense related to stock-based activities

Non-GAAP

Revenue

$

73,728

-

-

$

73,728

Cost of revenue

35,161

(115

)

-

35,046

Gross profit

38,567

115

-

38,682

Operating expenses:

-

Research and development

18,046

(1,492

)

(3

)

16,551

Sales and marketing25,414

(833

)

(12

)

24,569

General and administrative

8,943

(1,123

)

-

7,820

Total operating expenses

52,403

(3,448

)

(15

)

48,940

Loss from operations

(13,836

)

3,563

15

(10,258

)

Interest income265

-

-

265

Interest expense

(12

)

-

-

(12

)

Other income, net34

-

-

34

Loss before income taxes

(13,549

)

3,563

15

(9,971

)

Income tax expense

367

-

-

367

Net loss

(13,916

)

3,563

15

(10,338

)

Net loss per share attributable to common stockholders-basic and diluted

$

(0.38

)

$

(0.29

)

Weighted-average shares used in computing net loss per share attributable to common stockholders-basic and diluted

36,185,155

36,185,155

Six Months Ended June 30, 2020

GAAP

Stock-based compensation

Payroll tax expense related to stock-based activities

Non-GAAP

Revenue

$

127,575

-

-

$

127,575

Cost of revenue

60,112

(225

)

-

59,887

Gross profit

67,463

225

-

67,688

Operating expenses:

-

Research and development

33,829

(2,769

)

(3

)

31,057

Sales and marketing46,110

(1,542

)

(12

)

44,556

General and administrative

16,029

(2,041

)

-

13,988

Total operating expenses

95,968

(6,352

)

(15

)

89,601

Loss from operations

(28,505

)

6,577

15

(21,913

)

Interest income961

-

-

961

Interest expense

(12

)

-

-

(12

)

Other income (expense), net(218

)

-

-

(218

)

Loss before income taxes

(27,774

)

6,577

15

(21,182

)

Income tax expense

456

-

-

456

Net loss

(28,230

)

6,577

15

(21,638

)

Net loss per share attributable to common stockholders-basic and diluted

$

(0.79

)

$

(0.60

)

Weighted-average shares used in computing net loss per share attributable to common stockholders-basic and diluted

35,925,639

35,925,639

Three Months Ended June 30, 2020

Payroll tax expense GAAP Stock-based related Non-GAAP compensation to stock-based activities

Revenue $ 73,728 - - $ 73,728

Cost of revenue 35,161 (115 ) - 35,046

Gross profit 38,567 115 - 38,682

Operating expenses: -

Research and 18,046 (1,492 ) (3 ) 16,551 development

Sales and marketing 25,414 (833 ) (12 ) 24,569

General and 8,943 (1,123 ) - 7,820 administrative

Total operating 52,403 (3,448 ) (15 ) 48,940 expenses

Loss from operations (13,836 ) 3,563 15 (10,258 )

Interest income 265 - - 265

Interest expense (12 ) - - (12 )

Other income, net 34 - - 34

Loss before income (13,549 ) 3,563 15 (9,971 )taxes

Income tax expense 367 - - 367

Net loss (13,916 ) 3,563 15 (10,338 )

Net loss per shareattributable to common $ (0.38 ) $ (0.29 )stockholders-basic anddiluted

Weighted-average sharesused in computing netloss per share 36,185,155 36,185,155 attributable to commonstockholders-basic anddiluted



Six Months Ended June 30, 2020

Payroll tax expense GAAP Stock-based related Non-GAAP compensation to stock-based activities

Revenue $ 127,575 - - $ 127,575

Cost of revenue 60,112 (225 ) - 59,887

Gross profit 67,463 225 - 67,688

Operating expenses: -

Research and 33,829 (2,769 ) (3 ) 31,057 development

Sales and marketing 46,110 (1,542 ) (12 ) 44,556

General and 16,029 (2,041 ) - 13,988 administrative

Total operating 95,968 (6,352 ) (15 ) 89,601 expenses

Loss from operations (28,505 ) 6,577 15 (21,913 )

Interest income 961 - - 961

Interest expense (12 ) - - (12 )

Other income (expense), (218 ) - - (218 )netLoss before income (27,774 ) 6,577 15 (21,182 )taxes

Income tax expense 456 - - 456

Net loss (28,230 ) 6,577 15 (21,638 )

Net loss per shareattributable to common $ (0.79 ) $ (0.60 )stockholders-basic anddiluted

Weighted-average sharesused in computing netloss per share 35,925,639 35,925,639 attributable to commonstockholders-basic anddiluted

Three Months Ended June 30,

Six Months Ended June 30,

2020

2021

2020

2021

(in thousands)

(in thousands)

Net loss

$

(13,916

)

$

(46,363

)

$

(28,230

)

$

(65,026

)

Depreciation and amortization

2,371

3,440

4,364

6,371

Interest income, net

(253

)

(85

)

(949

)

(165

)

Stock-based compensation

3,563

39,175

6,577

44,459

Income tax expense

367

705

456

1,080

Payroll tax expense related to stock-based activities

15

256

15

284

Adjusted EBITDA

$

(7,853

)

$

(2,872

)

$

(17,767

)

$

(12,997

)

Adjusted EBITDA margin

(11

)%

(3

)%

(14

)%

(7

)%

Three Months Ended June 30,

Six Months Ended June 30,

2020

2021

2020

2021

(in thousands)

(in thousands)

Net cash (used in) provided by operating activities

$

11,381

$

(5,453

)

$

3,845

$

(9,800

)

Less: Purchases of property, equipment and software

(1,155

)

(432

)

(1,737

)

(739

)

Less: Capitalized internal-use software costs

(1,895

)

(2,613

)

(3,669

)

(6,598

)

Free Cash Flow

$

8,331

$

(8,498

)

$

(1,561

)

$

(17,137

)

Source Code: COUR-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005997/en/

CONTACT: For investors: Cam Carey, ir@coursera.org

CONTACT: For media: Arunav Sinha, press@coursera.org