Josh Baer's questions to Coursera Inc (COUR) leadership • Q4 2024
Question
Josh Baer of Morgan Stanley questioned the strategy to de-emphasize the Degrees segment, pointing out it has recently been the fastest-growing business. He asked if this decision was driven by the segment's profitability.
Answer
CFO Kenneth Hahn explained that Degrees revenue recognition has a lag, and the model has not scaled as quickly as initially hoped. He clarified the decision is about reallocating resources to initiatives with more immediate growth potential, like Enterprise and Consumer, rather than being a direct result of the segment's profitability. CEO Jeff Maggioncalda added that the new focus is on a more standardized, scalable model that leverages Coursera for Campus to offer for-credit courses, which they believe is a more differentiated approach.