The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patrick McIlwee - William Blair - Analyst
: Hi, team. You have Pat McIlwee on for Stephen today. Thank you, all, for being here and taking my questions. My first question, can you just talk
more about the trends you're seeing in Enterprise and more specifically where you're seeing notable weakness or strength across campus B2B and
government?
Question: Patrick McIlwee - William Blair - Analyst
: Okay. Thank you, Jeff.
Question: Patrick McIlwee - William Blair - Analyst
: Okay. Thank you, both, for clarifying that and the additional color. One more question if I may. At your 2023 Investor Day, you had expected Degrees
to be a core growth engine for this business and we're now looking at declining revenue in 2025. So understand there's some shift in strategic
priorities there. But can you just talk us through a bit what has changed in that business versus your prior expectations?
Question: Patrick McIlwee - William Blair - Analyst
: Okay. Thank you. Appreciate that, Jeff.
Question: Rishi Jaluria - RBC Capital Markets - Analyst
: Wonderful. Thanks so much for taking my question. Jeff, it's been a pleasure working with you since IPO. Wish you all the best in the next chapter,
and Greg looking forward to working with you.
Maybe I wanted to start for you, Jeff. As we reflect over your seven-year tenure as CEO, you've been through some major, major sales, right, with
the initial onset of the company as you took over as CEO. COVID and the rise of virtual learning and now AI.
And from the outside perspective, it seems like virtual learning while still transformational has not been quite as widely adopted or transformational
or at the very least, we've snapped back to more traditional ways of learning than we would have expected if we rewound the tape back to late --
or early 2021, late 2020.
And on the AI front, you've given some really encouraging stats in terms of course adoption and users and courses. But maybe the monetization
or at least the disruption from AI that necessitates that hasn't been quite as profound as maybe we would have expected when ChatGPT first came
out. Maybe can you walk us through your reflections over the past seven years and through the (technical difficulty) waves and just how to think
about the time line of things going forward?
Question: Rishi Jaluria - RBC Capital Markets - Analyst
: All right. Thanks. Really detailed answer and in the interest of time, I'll jump back in the queue. Thank you so much.
Question: Josh Baer - Morgan Stanley & Co. LLC - Analyst
: Great. Thanks for the question and congrats and thanks, Jeff. Congrats, Greg. I wanted to dig in on degrees and on the strategy there. And like part
of this strategy is to focus investments on some other initiatives that are going to drive a faster return to more attractive growth trajectory ahead.
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JANUARY 30, 2025 / 10:00PM, COUR.N - Q4 2024 Coursera Inc Earnings Call
The last three quarters, Degrees has been the fastest-growing business. So could you talk through that a little bit? Like it seems like taking away
focus from what's actually been growing fast. If you could talk about the growth rate of Coursera for Campus in 2024?
And then I wanted to just understand like what that actually means for Degrees? Are you pulling away marketing dollars? Are you not launching
any more degrees? Like how does that growth rate turn negative looking ahead?
Question: Josh Baer - Morgan Stanley & Co. LLC - Analyst
: Thank you. One follow-up, like a lot of this conversation around Degrees and different priorities and focus is around growth. I was hoping you could
comment on the bottom line, like I know the way you frame it, is the segment margins and 100%. But is part of this, like now with the commitment
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JANUARY 30, 2025 / 10:00PM, COUR.N - Q4 2024 Coursera Inc Earnings Call
to continue expanding EBITDA margins and the cost savings that you've recently talked about like is part of -- basically is the degrees business
profitable? Like is that part of the decision to pull back?
Question: Josh Baer - Morgan Stanley & Co. LLC - Analyst
: Got it. Thanks.
Question: Ryan MacDonald - Needham & Company Inc. - Analyst
: Hi. Thanks for taking my questions. And, Jeff, best luck in the future endeavors. I know it was a pleasure working with you. Maybe just to talk about
the consumer segment. One of the things, obviously, that we learned in 2024 is that the cadence and timing of content launches and certification
rollouts is obviously a driver of segment performance for the year.
And so as we go into 2025, can you just talk about the level of visibility you have in terms of, one, the number of new certification launches expected
for '25 and to what the timing of those expected rollouts are. And as we think about with generative AI being a high priority, in demand, of the
new certifications you're expecting to launch, what's the general mix of Gen AI-related certifications there? Thanks.
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JANUARY 30, 2025 / 10:00PM, COUR.N - Q4 2024 Coursera Inc Earnings Call
Question: Ryan MacDonald - Needham & Company Inc. - Analyst
: Super helpful. Maybe just a quick follow-up to that. Given the -- obviously, the impact in the markets that DeepSeek has had this week, have you
seen impact in terms of demand or interest coming to the website and the platform specifically for DeepSeek related content? And could that be
an unexpected tailwind for '25? Thanks.
Question: Ryan MacDonald - Needham & Company Inc. - Analyst
: Excellent. Appreciate all the color.
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