Coursera is a leading global platform connecting learners with educational content providers. It offers a wide variety of courses, including university programs that award diplomas upon completion. Universities partner with Coursera to develop and deliver online degree programs, paying the platform a percentage of student tuition as a fee. Coursera sees significant potential for expansion in emerging markets, such as Egypt and Nigeria, alongside its established presence in South America and Asia.
Coursera, founded in 2012, is a U.S.-based online education provider operating across three primary segments: - Consumer: Offers individual learners access to single courses or subscription-based learning. - Enterprise: Provides organizations with annual seat license subscriptions for employee education and development. - Degrees: Collaborates with universities to deliver online degree programs. As of 3Q24, Coursera reported: 162 million registered learners 350+ educator partners, including universities and industry leaders 1,560+ paid enterprise customers
The higher education industry represents a $2 trillion global market that has experienced relatively little innovation until recently. The transformation of the educational sector accelerated significantly during the pandemic, which reshaped the job market and compelled many companies to adopt digital transformation initiatives. Advancements in technology have introduced greater flexibility for both educators and learners, making education and re-skilling more accessible and affordable. Over the next decade, approximately 1.3 billion people are expected to enter the working-age population, including 43 million in the United States, 241 million in India, 170 million in China, 29 million in Brazil, and 22 million in Mexico. As automation continues to reduce the need for low-skill jobs, the demand for re-skilling and upskilling will rise, emphasizing the critical role of education in preparing the global workforce for the future.
- Coursera operates one of the largest educational platforms, serving over 160 million registered learners worldwide.
- Coursera offers recognized diplomas and certificates in partnership with leading universities.
- The platform supports a global scale of operations, with a strong presence in rapidly developing emerging markets such as India, Africa, and South America.
- Coursera caters to both enterprises and individual learners, providing tailored educational solutions.
- Industry leaders collaborate with Coursera to develop professional certificates, attract new talent, and enhance workforce skills.
- The online learning sector faces increasing competition, posing challenges for Coursera's growth and market share.
- Coursera has a history of operating losses, which may impact its financial sustainability.
- High inflation has reduced the affordability of education for learners, potentially limiting enrollment growth.
- The consumer segment is growing with a modest 3% YoY rate in 2024.
- Changes in consumer engagement in the post-COVID macroeconomic environment may negatively affect new customer acquisition dynamics.
- Coursera’s revenue is highly concentrated in a limited number of master’s degree programs offered by universities in the U.S. and EU, exposing the company to risks related to program-specific performance.
- A weak macroeconomic environment with high inflation impacts the affordability of courses for learners, potentially affecting both Coursera's revenue and cost structure.
- Post-COVID shifts in consumer preferences and reduced time availability may lead to lower engagement on the platform.
- Increased competition from other online learning platforms and universities launching their own platforms poses a significant risk to Coursera’s market share.
- Coursera’s revenue is highly concentrated in a small number of master’s degree programs, creating dependency and exposing the company to risks associated with these programs' performance.
| Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
|---|---|---|---|---|---|---|---|---|---|
| Coursera Inc | COUR.N | 1,315 | 2023-12-31 | 27.3 | 23.9 | 15.9 | 10.9 | 0.9 | 0.8 |
| Chegg Inc | CHGG.N | 256 | 2023-12-31 | 3.3 | 3.7 | 3.4 | 3.8 | 0.8 | 1.0 |
| Coupa Software Inc | COUP.OQ^C23 | 6,117 | 2022-01-31 | ||||||
| Instructure Holdings Inc | INST.N^K24 | 3,471 | 2023-12-31 | ||||||
| Zoominfo Technologies Inc | ZI.OQ | 3,777 | 2023-12-31 | 11.8 | 12.2 | 10.7 | 10.2 | 4.0 | 4.1 |
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 184 | 294 | 415 | 524 | 636 | 692 | 738 | 798 |
| Growth | 59% | 41% | 26% | 21% | 9% | 7% | 8% | |
| EBITDA | -27 | -40 | -36 | -37 | -10 | 37 | 56 | 77 |
| EBITDA margin | -14.6% | -13.6% | -8.6% | -7.1% | -1.6% | 5.3% | 7.5% | 9.7% |
| Net income | -47 | -67 | -52 | -53 | 2 | 49 | 56 | 73 |
| Net margin | -25.3% | -22.8% | -12.6% | -10.2% | 0.3% | 7.1% | 7.6% | 9.1% |
| Net debt | -173 | -80 | -581 | -780 | -722 | -722 | -722 | -722 |
| MktCap | 3,184 | 1,679 | 2,866 | 2,866 | 2,866 | 2,866 |
Historical Multiples
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|
| EV/Revenue | 6.3 | 1.7 | 3.4 | 3.1 | 2.9 | 2.7 |
| EV/EBITDA | -72.7 | -24.3 | -214.3 | 58.4 | 38.6 | 27.7 |
| P/E | -60.8 | -31.4 | 1582.3 | 58.7 | 51.1 | 39.3 |
