Analysts Downgrade Coursera on Disappointing Guidance, Shares Tumble Over 30%
2022.07.28 17:57
Analysts Downgrade Coursera on Disappointing Guidance, Shares Tumble Over 30%
By Senad Karaahmetovic
Shares of Coursera (NYSE:COUR) are down 30% in premarket trading Wednesday after the company’s results and guidance missed consensus.
The online course provider reported a Q2 loss per share of 34c, compared to a loss per share of 35c in the year-ago quarter, and much worse than the consensus of negative 13c. Revenue came in at $124.8 million, up 22% YoY, though short of the estimated $130.8 million.
Coursera reported a net loss of $49.3 million, up 6.4% YoY. Adjusted EBITDA loss stood at $15.6 million, compared to a $2.9 million loss in the year-ago period.
Looking ahead, Coursera expects Q3 revenue in the range of $126 million to $130 million, missing the consensus estimates of $142.3 million. The company expects Q3 adjusted EBITDA loss to be in the range of $10.5 million to $13.5 million.
For the full fiscal year, Coursera expects revenue in the range of $509 million to $515 million, down from the previous forecast of $538 million to $546 million, while analysts were estimating $542.8 million.
COUR also said it expects FY adjusted EBITDA loss in the range of $42.5 million to $48.5 million, down from the earlier adjusted EBITDA loss forecast of $45.5 million to $51.5 million.
A Goldman Sachs analyst downgraded Coursera’s stock to Neutral from Buy on limited visibility and cut the price target to $14 from $23.
“We wait for a higher degree of visibility into sustained revenue trends (in either direction) to have a more active rating on the shares from current after hours levels,” he wrote in a client note.
A Stifel analyst also cut the rating on COUR stock as he went to Hold from Buy with a $14 price target, down from $26.
“We acknowledge that the long-term opportunity for Coursera is still appealing, and the company is well positioned from a balance sheet perspective with $783mm in cash/equivalents, no debt, and minimal cash usage. That being said, we see few catalysts as the company works through a period of slower growth, which management primarily attributes to macro weakness and headwinds impacting enrollments. We view the stock as a “show me” story from here as we wait for evidence of reaccelerating growth and more meaningful progress on the path to profits,” he wrote in a research note.
Raymond James analysts also downgraded COUR stock.
