Coursera, Inc. (NYSE:COUR) Q4 2022 Earnings Call Transcript

Jeff Maggioncalda: Yeah. I think it comes down to two things. It’s obviously like how do we perform in the year and do we perform well against the expectations that we’re setting with you all today. Of course, most of that is the top line growth, but we want to make sure we continue to exhibit leverage. That’s part of the obvious part. But I think that a lot of why I feel pretty good is, I like where we’re sitting right here at the beginning of this year. There’s a lot of things that are changing. We believe that a lot of those play right into our advantages and our differentiation. There are some really important things that we’re going to do this year that I think are going to capitalize on some of the advantage we have. Lot of focus on quality and brands and institutions, collaboration among institutions.

So, at the end of the year, if we’re bringing on more brands, more branded credentials, especially for gateway, the €“ sorry, job starters and career switchers, that will be big. These credit pathways that we’re talking about helping people get into either career pathways to a job, but also credit pathways to a degree, we think is a really powerful, kind of system effect that we can create among institutions like governments businesses and campuses. So, I definitely want to create more of those institutional collaborations. On the Career Academy side, we see across all segments. We see a lot of interest in these industries with college degrees. And a lot of the people who are really looking for that are also looking to make the switch to a new career.

So, we think that there’s a real opportunity to help learners not only develop skills, but get a better and clearer path to a job. And with this globalization of talent that we talked about in the script, and my travels, I’ve been traveling a ton around the world, talking to business, governments and campuses. The CHROs that I talked to, especially in markets where there is emerging talent, got kind of affordable scale talent, they’re saying, wow, it’s really getting hard to hold on to my computer scientists and data scientists because they’re getting really good offers from international employers. And when I go to the campuses and talk to students, they’re all saying, hey, Jeff, we’re going to be studying data science and computer science because there’s a lot of great jobs from international companies that will hire us with pretty good compensation.

So, I really think that there are good opportunities to help learners find new job opportunities in such a dynamic and globalizing labor market. So, at the end of the year, I hope we have something really interesting to say about that. And then I did mention a bit on AI. I think my sense is and as we look at it and work with it, we’re getting a sense of this technology this generative language technology is really pretty interesting, especially if you start with high quality branded expert sources of material. And so, we think this could really play to some of our existing strengths. And I hope at the end of the year we can do something pretty special there.

Josh Baer: Thanks, Jeff. And a quick one for Ken on segment margins. I think the strength in consumer segment margins is pretty clear and understood as far as the drivers. Wondering on Enterprise segment margins, why it was down year-over-year and quarter-over-quarter? Was that mix driven as well or is there anything else going on there to consider around pricing or discounting or anything? Thanks.

Ken Hahn: No, it was nothing more. It was down just a bit. It’s a bit of a mix issue relatively minor in the big scheme of things, but you’re correct on the trending.