Consumer Guidance
Q: What's behind the revised consumer guidance?
A: Management explained that revised guidance reflects a mix of delayed content launches, reduced marketing spend, and softer North American conversion, compounded by broader macro headwinds.

H2 Outlook
Q: Why expect H2 acceleration?
A: They are confident that new product innovations, especially around international payments and forthcoming launches in Q3 and Q4, will drive a rebound in revenue.

Enterprise Performance
Q: What drove strong enterprise account adds?
A: Management noted that lower average deal sizes and shifting budgets helped win more enterprise accounts, even as some churn was observed; overall, stabilization is expected as customers reallocate their learning investments.

NRR Improvement
Q: Why did paid enterprise NRR fall below 100%?
A: The drop to 94% NRR was driven by softer performance in both the Coursera for Business and government segments, with one-off contract issues expected to self-correct in future periods.

Conversion Rates
Q: What explains lower North American conversion?
A: Lower conversion rates stem from delayed content and reduced fresh launches; management is mitigating this by refreshing courses and leveraging new generative AI content, aimed at boosting conversions.

Consumer Softness
Q: What's causing the consumer softness?
A: The slow start in consumer performance is mainly due to lower marketing investments and the delay in key content launches that affected North American paid learner volume, with lost revenue months unlikely to be recovered.

Learner LTV
Q: How do NA LTVs compare internationally?
A: Management confirmed that North American learners have a significantly higher lifetime value than international peers, a gap expected to narrow gradually with enhancements in payment and currency functionality.

S&M Effectiveness
Q: How effective is sales and marketing spend?
A: They reported that consumer marketing continues to yield solid returns, and the enterprise channel is set to benefit further as large-scale generative AI deals begin to drive more efficient and higher-yield sales efforts.

Content Delay
Q: What caused the content launch delay?
A: The delay was attributed to partner production challenges and reduced marketing spend that postponed a key content release; management is now actively assisting partners in creating content to improve exclusivity and production oversight.

Degree Partners
Q: Are new degree partners emerging amid OPM turmoil?
A: Management sees limited opportunities with traditional OPM models, noting that many existing designs don’t fit their affordable pathway degree strategy, so they are not expecting a significant influx of new degree partners.

Campus Engagement
Q: How receptive are campus customers?
A: There is growing interest from campus customers inspired by the UT System model, though adoption remains gradual due to the inherent sluggishness of academic bureaucracies.

Degree Funnel
Q: Will consumer softness hurt degree enrollment?
A: Management believes it won’t materially impact the funnel as they plan to pair professional certificates with degrees effectively, thereby unlocking higher conversion rates among degree-seeking students.

Content Partnership
Q: How are you supporting partners in content creation?
A: They are increasingly assisting partners in building high-quality and exclusive content, which also improves transparency over the production process and strengthens economics.

AI Impact
Q: What role does AI play in professional certificates?
A: Generative AI is expected to shape the next wave of professional certificates, mirroring cloud certification programs by expanding training to a larger user base, covering both builders and users.