What Lies Ahead In This Small Cap Stock-COUR

Acrobull UK Advisory Services Ltd.

October 10

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
Coursera, Inc.	COUR-NYSE	Consumer Defensive	$1.161 Billion	Medium

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees.

Recent Highlights

Consumer revenue was $97.3 million, up 12% from a year ago on growth in Coursera Plus amid demand for entry-level Professional Certificates and generative AI credentials. Segment gross margin was $52.4 million, or 54% of Consumer revenue, compared to 52% a year ago. We added approximately 7 million new registered learners during the quarter for a total of 155 million.

Enterprise revenue was $58.7 million, up 8% from a year ago on growth across our business, campus, and government verticals. The total number of Paid Enterprise Customers increased to 1,511, up 17% from a year ago. Segment gross margin was $39.9 million, or 68% of Enterprise revenue, compared to 71% a year ago. Our Net Retention Rate for Paid Enterprise Customers was 93%.

Second Quarter 2024 Financial Highlights

The business reported the total sales was $170.3 million, up 11% from $153.7 million the year before.
The company achieved a gross profit of $90.2 million, or 53% of revenue, up from $79.7 million, or 52% of revenue the previous year. NonGAAP gross profit increased to $92.3 million (54% of revenue) from $81.9 million (53% of revenue) the previous year.

The company recorded Adjusted EBITDA of $10.4 million, or 6.1% of revenue, up from $(2.9) million or (1.9%) of revenue the previous year.
The company reported that net cash created by operational activities was $23.9 million, compared to $(6.4) million last year. Free Cash Flow was $17.0 million, up from $12.2 million the previous year.

Stock Observation- Millennium Management LLC increased its stake in Coursera, Inc. (NYSE:COUR - Free Report) by 67.0% in the second quarter, according to the company's most recent filing with the Securities and Exchange Commission. During the period, the fund purchased an additional 1,123,397 shares of the company's stock, bringing its total to 2,800,912. According to the most recent SEC filing, Millennium Management LLC owned around 1.79% of Coursera, which was worth $20,055,000. The RSI level for the stock is at 42 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$7.40 USD
Acrobull Recommendation	Buy
Target Price	$8.51 USD
RSI Level	14 Day RSI 42
Total Shares Outstanding	156.92 Million
Shares held by Insiders Risk Factor	5.62% Medium