Coursera, Inc. [COUR] Filings

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10-Q 1 cour-20220630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 001-40275

COURSERA, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	45-3560292
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
381 E. Evelyn Ave. Mountain View, California	94041
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (650) 963-9884

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

              Common Stock, $0.00001 par value 

COUR

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 28, 2022, the registrant had 145,763,241 shares of common stock, $0.00001 par value per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets (Unaudited)	2
	Condensed Consolidated Statements of Operations (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Loss (Unaudited)	4
	Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
PART II.	OTHER INFORMATION	35
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 6.	Exhibits	72
Signatures		73

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)


	As of
	June 30, 2022			December 31, 2021

Assets
Current assets:
Cash and cash equivalents	$	380,005		$	580,658
Marketable securities		403,140			241,117
Accounts receivable, net of allowance for doubtful accounts of $189 and $105 as of June 30, 2022 and December 31, 2021, respectively		57,418			34,396
Deferred costs, net		22,496			19,666
Prepaid expenses and other current assets		20,494			16,494
Total current assets		883,553			892,331
Property, equipment, and software, net		27,862			24,725
Operating lease right-of-use assets		11,510			16,321
Intangible assets, net		9,165			10,091
Restricted cash		2,061			2,061
Other assets		18,239			13,381
Total assets	$	952,390		$	958,910

Liabilities and Stockholders’ Equity
Current liabilities:
Educator partners payable	$	55,323		$	49,206
Other accounts payable and accrued expenses		20,876			23,257
Accrued compensation and benefits		16,519			18,353
Operating lease liabilities, current		8,043			8,031
Deferred revenue, current		115,581			94,637
Other current liabilities		7,968			7,639
Total current liabilities		224,310			201,123
Operating lease liabilities, non-current		8,715			11,864
Deferred revenue, non-current		2,665			3,851
Other liabilities		913			559
Total liabilities		236,603			217,397
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.00001 par value—10,000,000 shares authorized as of June 30, 2022 and December 31, 2021; no shares issued and outstanding as of June 30, 2022 and December 31, 2021		—			—
Common stock, $0.00001 par value—300,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 148,332,771 shares issued and 145,584,833 shares outstanding as of June 30, 2022, and 144,653,979 shares issued and 141,906,041 shares outstanding as of December 31, 2021		1			1
Additional paid-in capital		1,299,173			1,235,231
Treasury stock—at cost, 2,747,938 shares as of June 30, 2022 and December 31, 2021		(4,701	)		(4,701	)
Accumulated other comprehensive loss		(2,318	)		(252	)
Accumulated deficit		(576,368	)		(488,766	)
Total stockholders’ equity		715,787			741,513
Total liabilities and stockholders’ equity	$	952,390		$	958,910

See notes to unaudited condensed consolidated financial statements.

Table of Contents

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue	$	124,754		$	102,089		$	245,187		$	190,451
Cost of revenue		46,348			41,162			89,151			79,987
Gross profit		78,406			60,927			156,036			110,464
Operating expenses:
Research and development		44,929			41,004			82,884			63,144
Sales and marketing		55,586			43,862			107,253			76,475
General and administrative		25,726			21,846			50,904			34,991
Total operating expenses		126,241			106,712			241,041			174,610
Loss from operations		(47,835	)		(45,785	)		(85,005	)		(64,146	)
Interest income		837			85			1,172			165
Other (expense) income, net		(1,173	)		42			(1,598	)		35
Loss before income taxes		(48,171	)		(45,658	)		(85,431	)		(63,946	)
Income tax expense		1,163		705				2,171			1,080
Net loss	$	(49,334	)	$	(46,363	)	$	(87,602	)	$	(65,026	)
Net loss per share—basic and diluted	$	(0.34	)	$	(0.35	)	$	(0.61	)	$	(0.75	)
Weighted average shares used in computing net loss per share—basic and diluted		144,782,220			131,804,121			143,909,469			86,761,169

See notes to unaudited condensed consolidated financial statements.

Table of Contents

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss	$	(49,334	)	$	(46,363	)	$	(87,602	)	$	(65,026	)
Change in unrealized loss on marketable securities, net of tax		(454	)		(18	)		(2,066	)		(15	)
Comprehensive loss	$	(49,788	)	$	(46,381	)	$	(89,668	)	$	(65,041	)

See notes to unaudited condensed consolidated financial statements.

Table of Contents

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(In thousands, except share data)

(Unaudited)


	Redeemable																				Accumulated
	Convertible											Additional									Other						Total
	Preferred Stock						Common Stock					Paid-In			Treasury Stock						Comprehensive			Accumulated			Stockholders’
	Shares			Amount			Shares			Amount		Capital			Shares			Amount			Income (Loss)			Deficit			Equity (Deficit)

Balance—March 31, 2022		—		$	—			146,578,434		$	1	$	1,262,283			(2,747,938	)	$	(4,701	)	$	(1,864	)	$	(527,034	)	$	728,685
Issuance of common stock upon exercise of options		—			—			1,145,682			—		5,035			—			—			—			—			5,035
Vesting of restricted stock units		—			—			400,030			—		—			—			—			—			—			—
Tax withholding on vesting of restricted stock units		—			—			(145,203	)		—		(2,227	)		—			—			—			—			(2,227	)
Issuance of common stock related to employee stock purchase plan		—			—			353,828			—		4,596			—			—			—			—			4,596
Stock-based compensation expense		—			—						—		29,486			—			—			—			—			29,486
Change in unrealized loss on marketable securities		—			—			—			—		—			—			—			(454	)		—			(454	)
Net loss		—			—			—			—		—			—			—			—			(49,334	)		(49,334	)
Balance—June 30, 2022		—		$	—			148,332,771		$	1	$	1,299,173			(2,747,938	)	$	(4,701	)	$	(2,318	)	$	(576,368	)	$	715,787

Balance—December 31, 2021		—		$	—			144,653,979		$	1	$	1,235,231			(2,747,938	)	$	(4,701	)	$	(252	)	$	(488,766	)	$	741,513
Issuance of common stock upon exercise of options		—			—			2,873,688			—		11,485			—			—			—			—			11,485
Vesting of restricted stock units		—			—			722,365			—		—			—			—			—			—			—
Tax withholding on vesting of restricted stock units		—			—			(271,089	)		—		(4,852	)		—			—			—			—			(4,852	)
Issuance of common stock related to employee stock purchase plan		—			—			353,828			—		4,596			—			—			—			—			4,596
Stock-based compensation expense		—			—			—			—		52,713			—			—			—			—			52,713
Change in unrealized loss on marketable securities		—			—			—			—		—			—			—			(2,066	)		—			(2,066	)
Net loss		—			—			—			—		—			—			—			—			(87,602	)		(87,602	)
Balance—June 30, 2022		—		$	—			148,332,771		$	1	$	1,299,173			(2,747,938	)	$	(4,701	)	$	(2,318	)	$	(576,368	)	$	715,787

Balance—March 31, 2021		75,305,400		$	462,293			45,941,154		$	—	$	140,803			(2,747,938	)	$	(4,701	)	$	23		$	(362,214	)	$	(226,089	)
Conversion of redeemable convertible preferred stock to common stock upon initial public offering		(75,305,400	)		(462,293	)		75,305,400			1		462,292			—			—			—			—			462,293
Issuance of common stock upon initial public offering, net of offering costs		—			—			17,024,276			—		518,835			—			—			—			—			518,835
Issuance of common stock upon exercise of options

Coursera, Inc. [COUR] Filings
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10-Q	[2022-05-06]
10-K	[2022-03-03]
10-Q	[2021-11-10]
10-Q	[2021-08-13]
10-Q	[2021-05-11]
S-1	[2021-03-05]