CHGG - Coursera drops despite earnings beat as Chegg guidance spills over

Coursera (NYSE:COUR) shares plunge despite an earnings beat as Chegg's (NYSE:CHGG) warning on lower student enrollments carries over to its peer. Q3 revenue grew 33% Y/Y, driven by 16% growth in customer revenue, 75% growth in enterprise revenue, and 59% growth in degrees revenue. Gross profit margin expanded 660 bps, while net loss was -29.5% of revenue as compared to -14.4% of revenue a year ago. The company generated positive free cash flow of $7.1M versus -$4.2M during last year's comparable quarter. Q4 2021 Outlook: Coursera expects revenue between $109M and $113M vs consensus of $110M, and adjusted EBITDA between -$16.5M and -$19.5M. Seeking Alpha contributor David Harper remains bullish on Coursera after selling his stake in Chegg prior to the price drop-off.

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Coursera drops despite earnings beat as Chegg guidance spills over