COUR - Coursera shares sink ~33% premarket on disappointing Q2 results slashed FY rev outlook

Coursera ( NYSE: COUR ) stock slumped 33.2% to $10.86 in Thursday premarket trading, as the online education and learning company reported Q2 results that missed estimates and cut its FY 2022 revenue outlook.

COUR after hours on Wednesday posted Q2 GAAP EPS of -$0.34 which missed estimates by $0.03 . The company's Q2 revenue of $124.75M also missed by $6.15M .

COUR cut its FY 2022 revenue outlook to a range of $509M to $515M, compared to a previously provided range of $538M to $546M. The consensus revenue estimate for FY is $542.29M.

COUR also guided Q3 revenue in the range of $126M to $130M which was lower than the consensus revenue estimate of $142.50M.

Coursera ( COUR ) CEO Jeff Maggioncalda on the earnings conference call said that overall revenue growth for the quarter was lower than anticipated, especially in the company's consumer and degrees segments.

"In Consumer, we saw somewhat weaker conversion rates in several markets outside of the U.S....In Degrees, we are seeing lower-than-expected student enrollments, particularly in mature U.S. and European degree programs where our revenue is concentrated today," Maggioncalda said.

The company is anticipating a mid-single-digit decline on an annual basis for the degrees segment due to the enrollment challenges seen in H1, COUR CFO Ken Hahn said on the earnings conference call.

FY 2022 adj. EBITDA is expected to be a loss of $42.5M to $48.5M.

"With our reset revenue expectations for the second half of 2022, we have adjusted the pacing of our investments to align with the annual EBITDA margin target," Hahn said.

Up to Wednesday's close, COUR stock -33.5% YTD.

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