The coronavirus pandemic led to a structural shift in the way we learn and work. Amid the stay-at-home mandates, demand for online learning amplified, while platforms providing digital-learning services witnessed a higher adoption rate.
Coursera Inc. (COUR), a leading online learning platform, is one of those companies that benefited from this foundational shift. The company’s CEO, Jeff Maggioncalda, said during August 3’s Q2 conference call that the company’s strong financials reflect “growing adoption and impact of our platform around the world.”
Coursera’s Q2 revenues jumped 38% year-over-year to $102.1 million, exceeding the consensus estimate of $91.5 million. Adjusted net loss narrowed to $6.9 million compared to $10.3 million in the prior-year period.
Despite better-than-expected quarterly numbers, Coursera stock is down about 5.6% since it debuted on the New York Stock Exchange on March 31. (See Coursera stock charts on TipRanks)
Nevertheless, Coursera projects 2021 revenues in the range of $402 million to $410 million; the midpoint of which represents year-over-year growth of about 38%. Management further added that it has good visibility into its Enterprise and Degree segments revenues.
Echoing management’s view, analyst Ryan MacDonald of Needham said that he sees favorable trends for the company’s Enterprise and Degrees business segments, thanks to the increasing L&D (learning & development) budget for reskilling and upskilling.
MacDonald noted that interest in Coursera’s new “Academies and Skillsets, which offer a skill-first approach to enterprise learning, were in high demand with prospective and existing clients.”
MacDonald has a Buy rating on Coursera stock with a price target of $56 (53% upside potential).
Alongside MacDonald, the rest of the Street is also bullish on COUR stock. On TipRanks, Coursera is a Strong Buy based on six unanimous Buys. The average Coursera price target of $51.40 implies approximately 40.6% upside potential to current levels.
Disclosure: Amit Singh held no position in any of the stocks mentioned in this article at the time of publication.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities
