Coursera (NYSE: COUR) announced its fourth-quarter and full-year 2024 financial results, showing steady revenue growth fueled by its subscription offerings. The online learning platform reported $694.7 million in annual revenue, a 9% increase from 2023, with its Coursera Plus consumer subscription and enterprise upskilling programs playing a key role in its performance.

The company also reported its first full year of positive Adjusted EBITDA, signaling improved financial efficiency. However, Coursera remains in transition as Greg Hart steps in as CEO, succeeding Jeff Maggioncalda, who led the company for seven years.

Subscription Business Drives Growth

• Consumer Segment: Revenue reached $101.7 million for the quarter, up 5% year-over-year, largely driven by Coursera Plus subscriptions.
• Enterprise Segment: Revenue grew 7% to $62.3 million, supported by business and university partnerships. Paid enterprise customers increased 18% to 1,612.
• Degrees Segment: Revenue climbed 14% to $15.2 million, reflecting growth in online degree enrollments, particularly in India.

Despite these gains, Coursera’s net loss narrowed to $79.5 million from $116.6 million in 2023. The company also generated $59 million in free cash flow, reflecting improved operational efficiency.

AI, Professional Certificates, and Enterprise Partnerships Expand Coursera’s Reach

Coursera continued expanding its content catalog in 2024, launching nearly 40 new professional certificates and over 450 generative AI courses from partners like Google, IBM, and DeepLearning.AI. The platform’s AI-powered learning assistant, Coursera Coach, saw 1.7 million users exchange over 21 million messages, enhancing personalized learning experiences.

The enterprise segment also saw expansion, with new partnerships in workforce upskilling, including initiatives with Banco Santander, Canara Bank, and Schneider Electric. Meanwhile, Coursera for Government expanded its partnership with Pakistan’s Higher Education Commission, aiming to equip 120,000 students across 200 universities with in-demand skills.

INSIDER TAKE
Subscription-Led Strategy is Paying Off, But Challenges Remain

Coursera’s subscription-first model is working, with Coursera Plus and enterprise upskilling programs driving recurring revenue growth. However, the consumer segment faces retention challenges, as noted in Coursera’s earnings call, which could impact long-term revenue stability.

The company’s AI-driven course expansion is a competitive advantage, allowing it to stay ahead in a rapidly evolving online learning market. Greg Hart’s leadership transition will be critical in determining whether Coursera can accelerate growth while maintaining profitability.

With AI reshaping education and enterprise learning, Coursera’s ability to scale its subscription offerings—particularly in enterprise upskilling—will define its next phase of growth. Investors and industry watchers will be looking to Coursera’s Q1 2025 performance to see how well the new leadership navigates these challenges.