Nafeesa Gupta

Nafeesa Gupta asked for updates on the potential timelines and any regulatory hurdles for the Udemy merger. She also inquired about the type and volume of traffic Coursera is observing from AI platforms like OpenAI and Gemini, and future expectations. Finally, she sought clarification on whether the Platform Fee is a one-time or ongoing charge and the percentage of Coursera's consumer revenue derived from subscriptions.

Answer

CFO Mike Foley stated no new updates on the Udemy merger timeline, reiterating H2 guidance with a wide range of potential outcomes, and confirmed regulatory filings are progressing. Regarding AI traffic, Mike Foley noted it's still early days for OpenAI/ChatGPT integration but observed higher intent traffic from LLMs compared to traditional search. Mike Foley clarified the Platform Fee is an ongoing 15% charge applied to new eligible revenue before revenue share payments, and President and CEO Greg Hart reiterated no change to consumer or enterprise pricing.

Nafeesa Gupta asked for potential timelines for the Udemy merger and any regulatory hurdles anticipated in the process.

Answer

Mike Foley, Chief Financial Officer, stated there were no new updates on the Udemy merger timeline, with guidance remaining for the second half of the year, acknowledging a wide range of potential outcomes. Nafeesa Gupta also inquired about traffic from AI platforms like OpenAI and Gemini, and expectations for future traffic. Greg Hart, President and CEO, noted it's still very early days for integration with OpenAI/ChatGPT, but observed higher intent traffic from LLMs compared to traditional search. Finally, Nafeesa Gupta asked for clarification on the Platform Fee structure, specifically if it's a one-time or ongoing fee and its application to consumer subscriptions. Mike Foley clarified it's an ongoing 15% fee applied to new eligible revenue before revenue share calculations, with no change to customer pricing.

Nafeesa Gupta inquired about the primary drivers behind the consistent growth and increased paid subscription conversion for Coursera Plus, acknowledging the impact of pricing and product updates.

Answer

CEO Greg Hart attributed the momentum to strong demand for AI-related content (14 enrollments per minute, 10M+ GenAI enrollments), improved marketing efficiency, a sharper focus on the consumer funnel, and product innovations like the updated homepage and geo-pricing. He also emphasized the compelling value proposition of Coursera's extensive catalog of over 12,000 courses.

Nafeesa Gupta asked about the consistent growth of Coursera Plus and the uptick in consumer subscription conversion, inquiring what factors are primarily driving this success, beyond pricing and product updates.

Answer

CEO Greg Hart attributed the momentum to a combination of factors: clear consumer demand for AI-related learning (14 enrollments per minute for GenAI content), overall improvements in marketing and consumer focus, product innovation (like pricing changes and homepage updates), and the compelling value of Coursera's rich catalog of over 12,000 courses, made more accessible in international markets through pricing adjustments.

Nafeesa Gupta of Bank of America Securities questioned the booking mix for the Experiences segment across different points of sale and sought the rationale behind the expected Q4 revenue reacceleration for Viator, given difficult comparisons.

Answer

CFO Mike Noonan explained that the third-party (3P) channel is a growing, profitable, and incremental source of bookings, particularly from OTA partners outside core markets. President and CEO Matt Goldberg clarified that the Viator point of sale remains the largest revenue source. Regarding Q4, Noonan cited healthy forward booking trends, while Goldberg highlighted the anticipated performance uplift from deeper operational coordination between the Viator and TripAdvisor brands.

Nafeesa Gupta from Bank of America inquired if the positive momentum in the Consumer segment represented a true inflection point and asked about the outlook for sales and marketing leverage.

Answer

CEO Hugo Sarrazin described the consumer trend as a deliberate strategic shift to a subscription-first model, not just a change in user behavior. On leverage, CFO Sarah Blanchard cited the upmarket shift and higher LTV of subscriptions, while Sarrazin emphasized that new partnerships, like the one with Indeed, will create significant, long-term leverage in customer acquisition for both business segments.

Nafeesa Gupta from Bank of America inquired about the drivers of the consumer segment's softness, asking if it was specific to certain geographies and if the decline in revenue per user would continue.

Answer

CFO Sarah Blanchard attributed the consumer softness to two main factors: price sensitivity in North America and EMEA, and a continued geographical mix shift toward lower average selling price (ASP) regions. She indicated that these trends, particularly in North America, could persist in the near term.