Shares of Coursera Inc. tumbled more than 26% in after-hours trading Wednesday after the company, which operates a platform for online courses, delivered a lower-than-expected revenue forecast for the year.
The company logged a second-quarter net loss of $49.3 million, or 34 cents a share, whereas it posted a net loss of $46.4 million, or 35 cents a share, in the year-prior quarter. The FactSet consensus was for a 29-cent GAAP loss per share.
also reported a $15.6 million loss on the basis of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), compared with a $2.9 billion loss on that metric a year before, and in line with the FactSet consensus.
Revenue rose to $124.8 million from $102.1 million, while analysts had been looking for $130.4 million.
The latest numbers reflected “strong demand” for Coursera’s entry-level professional certificates as well as continued revenue growth in the enterprise business, Chief Financial Officer Ken Hahn said in a release.
For the third quarter, Coursera’s management team anticipates $126 million to $130 million in revenue along with a $10.5 million to $13.5 million loss on the basis of adjusted Ebitda. Analysts were calling for $142.3 million in revenue and a $9.8 million adjusted Ebitda loss.
Looking to the full year, Coursera executives are modeling revenue of $509 million to $515 million, whereas analysts were looking for $542.3 million. The company’s adjusted Ebitda forecast called for a loss of $42.5 million to $48.5 million on the metric, while analysts were expecting $48.4 million.
Coursera’s downbeat revenue forecast comes as the latest negative signal for the online-education market, as Chegg Inc.
executives indicated last quarter that students were taking fewer classes and prioritizing “earning over learning.”
Chegg shares have lost 32% so far this year as Coursera’s stock has dropped 33% and as the S&P 500
has fallen 16%.