Dive Brief:
- Coursera’s revenue increased to $153.7 million in the second quarter of 2023, up 23% compared to the same period last year, according to the company’s latest financial results.
- The increases were partly driven by strong demand for the MOOC platform’s entry-level professional certificates and rising enrollment in its degree programs.
- During a call with analysts Thursday, Coursera CEO Jeff Maggioncalda attributed some of that enrollment growth to new offerings, which include a cybersecurity analyst certificate from Microsoft and artificial intelligence degree programs from universities in India and Colombia.
Dive Insight:
Although Coursera saw revenue grow across all of its business segments, the growth in its degree programs is particularly notable. That’s because the company has recently been struggling with flagging revenue in this segment, with revenue slipping to $11.4 million in 2022’s second quarter, representing a year-over-year decline of 4%.
Those numbers have begun to turn around.
Degree revenue surged to $12.5 million in this year’s second quarter, up 10% compared to the year before. Increased student enrollments drove the revenue growth, with the total number of degree-seeking Coursera users surpassing 19,000.
Maggioncalda credited the MOOC platform’s growing portfolio of degree options with boosting the segment’s revenue growth.
“We have a broader selection,” Maggioncalda said on Thursday’s call. “We can find more matches among the learners on our platform.”
The company has also been pushing to align its degree offerings with certificates. That allows users to count the completion of certain short-term credentials as credits for full degree offerings, Maggioncalda said.
“Our strategy is not just like, ‘Let’s sell more degrees that are now online,’” Maggioncalda said. “It’s, ‘Let’s offer a product, a solution to working adults who are trying to switch careers.”
The company has also been experimenting with AI.
In April, the MOOC platform debuted Coursera Coach, an AI-powered chatbot that gives users personalized explanations and answers. Coursera launched the beta version of the tool to millions of users in the second quarter, according to Maggioncalda.
The company has also been using a ChatGPT plug-in that recommends content and credentials based on career fields in which users are interested.
The company’s recent moves appear to be improving its bottom line. Coursera’s net losses shrunk to $31.7 million in the second quarter, down 43.4% from the same period last year.