Q1 2026 Coursera Inc Earnings Call Transcript
Key Points
- Coursera Inc (COUR) reported a 9% year-over-year revenue increase to $196 million, driven by strong growth in the Consumer segment.
- The company added 7.6 million new registered learners, setting a first-quarter record and bringing the total learner base to over 200 million.
- Non-GAAP gross margin expanded to 57%, the highest in three years, due to structural improvements and stronger unit economics.
- Coursera Inc (COUR) is seeing significant engagement in AI courses, with enrollments reaching 20 per minute, highlighting the platform's relevance in the evolving job market.
- The planned combination with Udemy is expected to enhance Coursera Inc (COUR)'s scale, data, and product velocity, positioning it well to capitalize on the growing demand for skills development.
- The Enterprise segment showed mixed performance, with Coursera for Business facing challenges due to macroeconomic pressures and budget constraints.
- Net retention rate in the Enterprise segment was 90%, indicating some customer downscaling and budget pressures in larger enterprises.
- Despite strong Consumer growth, the Degrees business is experiencing a decline, impacting overall revenue growth.
- The company is cautious about the Enterprise segment's outlook for the remainder of the year, reflecting ongoing macroeconomic challenges.
- The merger with Udemy presents potential revenue dissynergies, particularly with a 20% overlap in Enterprise ARR, although this has been factored into synergy expectations.
Ladies and gentlemen, thank you for standing by, and welcome to Coursera's first-quarter 2026 earnings call. (Operator Instructions)
I would now like to turn the call over to Cam Carey, Vice President of Investor Relations. Mr. Carey, you may begin.
Good afternoon. Thank you for joining us for Coursera's Q1 2026 earnings conference call. Today, I'm joined by Greg Hart, our President and Chief Executive Officer; and Mike Foley, our Chief Financial Officer.
Following their prepared remarks, we will open the call for questions. Our earnings press release was issued after market close. It is available on our Investor Relations website at investor.coursera.com, where this call is being webcast live and where versions of today's materials, including our quarterly shareholder letter, have been published.
During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measure can be found in
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