COUR - Coursera's Q4 2023 Earnings: A Course In Financial Growth (Rating Upgrade)

2024-02-06 06:48:04 ET

Summary

• Coursera's FY2023 financial performance exceeds expectations, marking its strongest year to date, with positive adjusted EBITDA and a promising outlook for FY2024.
• The company's strategic focus on AI, micro-credentials, and global partnerships positions Coursera favourably in the highly competitive edtech sector.
• Coursera presents an attractive investment opportunity with financial stability, a strong cash position, and increasing levered free cash flow.

The edtech sector is growing rapidly, with forecasts predicting a market value of $605 billion by 2027 , fueled by a CAGR of 15%. Within this landscape, Coursera, Inc. (COUR), a diverse education platform, has been expanding its business and improving its financial performance. Previously, I had recommended a hold rating on Coursera, primarily due to concerns around profitability and economic headwinds. However, Coursera's Q4 2023 earnings report has prompted a reassessment. The company has exceeded EPS and revenue expectations, marking its strongest year to date and posting positive adjusted EBITDA for the first time....

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