Online learning platform Coursera (NYSE:COUR) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Coursera beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $176.1 million, up 6.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations. It reported 162 million users, up 19.1% year on year.
Is Coursera a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Coursera’s revenue to grow 4.5% year on year to $176.4 million, slowing from the 18.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Coursera has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Coursera’s peers in the consumer internet segment, only Netflix has reported results so far. It beat analysts’ revenue estimates by 1.1%, delivering year-on-year sales growth of 16%. The stock traded up 9.4% on the results.
Read our full analysis of Netflix’s earnings results here.There has been positive sentiment among investors in the consumer internet segment, with share prices up 7.4% on average over the last month. Coursera is up 16.7% during the same time and is heading into earnings with an average analyst price target of $10.06 (compared to the current share price of $9.80).
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