Q4 2021 Coursera Inc Earnings Call

Speaker 1: job relevant skills to advance their careers as well as the platform through which institutions are able to drive powerful collaboration to better meet the needs of our digital world.

Against their careers as well as the platform through which institutions are able to drive powerful collaboration to better meet the needs of our digital world.

Speaker 1: Together with our ecosystem of learners, partners, and institutions, we're broadening access to higher education and creating a new and inclusive lifelong learning model.

Together with our ecosystem of learners partners and institutions, we're broadening access to higher education, and creating a new and inclusive lifelong learning model.

Speaker 1: This year we reported 415 million dollars of revenue which represents 41 percent annual growth. This was on top of the 59 percent growth we delivered in 2020. Our diversified offerings and global distribution exposes us to multiple tailwinds being driven by the need for new skills in an accelerating digital world.

This year, we reported $415 million of revenue, which represents 41% annual growth.

This was on top of the 59% growth we delivered in 2020.

Our diversified offerings and global distribution exposes us to multiple <unk> being driven by the need for new skills and accelerating digital world.

Speaker 1: Performance in 2021 was broad-based, with momentum across our three segments and in all regions.

Performance in 2021 was broad based with momentum across our three segments and in all regions.

Speaker 1: but is also reflected in our strong outlook for the year ahead and the long-term growth prospects that we see across our platform.

But it is also reflected in our strong outlook for the year ahead, and our long term growth prospects that we see across our platform.

Speaker 1: In 2021, we rapidly expanded our global reach and scale advantages, growing relationships with individual learners and institutional customers.

In 2021, we rapidly expanded our global reach and scale advantages growing relationships with individual learners and institutional customers.

Speaker 1: We ended the fourth quarter with 97 million registered learners on the platform, adding nearly 21 million over the course of the year. Since the start of 2020, we've attracted more than 50 million learners, doubling the size of our learner base over the past two years.

We ended the fourth quarter with 97 million registered learners on the platform, adding nearly $21 million over the course of the year.

Since the start of 2020, we've attracted more than 50 million learners doubling the size of our learner base over the past two years.

Speaker 1: Our broad catalog of job-relevant content and credentials from recognized world-class brands are helping meet the needs of learners across all stages of their learning journey, from hands-on projects and short courses to multi-year, bachelor and master's degrees from accredited universities.

Our broad catalog of job relevant content and credentials from a recognized world class brands are helping meet the needs of learners across all stages of their learning journey from hands on projects and short courses to multiyear Bachelor and master's degrees from accredited universities.

Additionally, we doubled the number of paid enterprise customers since the start of the year to 803.

Speaker 1: Additionally, we've doubled the number of paid enterprise customers since the start of the year to 803.

Speaker 1: Institutions are continuing to invest in the digital skills required to compete in today's economy. Both in-demand skills changing faster than ever. They require solutions to identify and deploy the right skills for the right roles and especially across an entire organization workforce or population.

Institutions are continuing to invest in the digital skills required to compete in today's economy.

Both in demand skills changing faster than ever they require solutions to identify and deploy the right skills for the right roles and especially across an entire organization workforce our population.

Speaker 1: Products like our skill sets, academies, and level sets, powered by data from millions of learners on Coursera around the world, are helping our customers understand the skills their organization has today and where they need to invest for tomorrow.

Products like our skill sets academies and level sets powered by data from millions of learners on coursera around the world are helping our customers understand the skills of our organization has today and where they need to invest for tomorrow.

Speaker 1: Over the past year, I've used these quarterly calls to answer an important question. Why Coursera and why now?

Over the past year I've use these quarterly calls to answer an important question.

Why coursera and why now.

Speaker 1: And while the world continues to evolve and change, the fundamental reasons have not. In fact, the drivers underlying our momentum have only been reinforced. First, the global trends reshaping our world are not slowing down. Digital transformation continues to accelerate. Second, new skills for new digital jobs require that our system of higher education adapt to be more accessible, affordable, and flexible, and better teach students skills that are required by employers.

And while the world continues to evolve and change the fundamental reasons have not.

In fact, the drivers underlying our momentum have only been reinforced.

First the global trends reshaping our world are not slowing down digital transformation continues to accelerate.

New skills for new digital jobs required our system of higher education adapt to be more accessible affordable and flexible and better teach students skills that are required by employers.

Speaker 1: Third, the advantages of our three-sided platform continue to deepen with scale.

Third the advantages of our <unk> platform continue to deepen with scale.

And finally, the drivers of long term growth across our business are proving durable and sustainable.

Speaker 1: And finally, the drivers of long term growth across our business are proving durable and sustainable.

Let's discuss each in more detail starting with the trends that we see at play.

Speaker 1: Let's discuss each in more detail, starting with the trends that we see at play.

Speaker 1: The first major trend is digital transformation. The forces of technology, globalization, and more recently, remote work are transforming industry after industry. The impact of these forces has served to amplify the criticality of technology and digital tools, redefine the way that businesses, governments, and campuses operate, and reshape both the supply and demand for jobs globally.

The first major trend is digital transformation.

The forces of technology globalization and more recently remote work are transforming industry after industry the.

The impact of these forces has served to amplify the criticality of technology and digital tools redefine the way that businesses governments and campuses operate.

And reshape both the supply and demand for jobs globally.

Speaker 1: In its simplest form, this ongoing transformation, fast forwarded by the pandemic, has created an accelerated rate of change that we believe will be a permanent feature of our increasingly digital world. This leads to the second major trend.

In its simplest form this ongoing transformation fast forwarded by the pandemic has created an accelerated rate of change that we believe will be a permanent feature of our increasingly digital world.

This leads to the second major trend skills development.

Speaker 1: With the combined effects of the pandemic and automation, employers are rapidly digitizing work processes and jobs that are repeatable and predictable. And the pace of this digital transformation has widespread impact.

With the combined effects of the pandemic and automation employers are rapidly digitizing work processes and jobs that are repeatable and predictable.

And the pace of this digital transformation has widespread impact busy.

Speaker 1: Businesses are investing to upskill, reskill, and benchmark their talent to remain competitive in a changing economy.

Businesses are investing to upskill, and Reskill and benchmark their talent to remain competitive in a changing economy.

Speaker 1: Governments are looking to skill up their public sector employees while also launching national and statewide development initiatives to build equitable workforces that drive sustainable economic growth.

Governments are looking to scale up their public sector employees, while also launching national and statewide development initiatives to build equitable workforces that drive sustainable economic growth.

Speaker 1: Campuses are realizing that they must enhance the quality of their offering, as competition from alternative credentials and the substitution effect of a strong labor market requires them to deliver stronger employability outcomes more cost-effective.

Campuses are realizing that they must enhance the quality of their offering as competition from alternative credentials and the substitution effect of a strong labor market requires them to deliver stronger employability outcomes more cost effectively.

Speaker 1: And just about every individual in every job will need to keep learning throughout their life to stay relevant in a fast changing world.

And just about every individual.

Every job, we will need to keep learning throughout their life to stay relevant in a fast changing workplace. We believe that this will require a new model for higher education with remote access to flexible and affordable learning at scale.

Speaker 1: We believe that this will require a new model for higher education, with remote access to flexible and affordable learning at scale.

Speaker 1: The final trend driving our business is the transformation of higher education and adult learning more broadly.

The final trend driving our business is the transformation of higher education and adult learning more broadly.

Speaker 1: While technology is accelerating the pace of change around the world, it is also the means by which society is adapting.

<unk> technology is accelerating the pace of change around the world. It is also the means by which society is adapting.

Speaker 1: Equitable access to high quality education is no longer just a dream, but a growing reality for learners worldwide.

Equitable access to high quality education is no longer just a dream, but a growing reality for learners worldwide.

Speaker 1: More individuals are accessing online learning than ever before, and the demand for online learning on Coursera continues to outpace pre-pandemic levels.

More individuals are accessing online learning than ever before and the demand for online learning and Coursera continues to outpace pre pandemic levels.

Speaker 1: Unlike most other transformative platforms, we are more of an enabler than a disruptor. Coursera works directly with universities, industry leaders, and governments, enabling institutional collaboration to meet the needs of this new digital world with unprecedented speed and scale. Our platform is transforming the way that learners learn. It is transforming the way that educators teach. And it is transforming the way that employers upskill and reskill their child.

Most other transformative platforms, we are more of an enabler than a disruptor.

Coursera works directly with universities industry leaders and governments, enabling institutional collaboration to meet the needs of this new digital world with unprecedented speed and scale.

Our platform is transforming the way that learners learn is transforming the way that educators teach and it is transforming the way that employers upskill and reskill their talent.

Speaker 1: Together, we're creating a new and inclusive lifelong learning model.

Together, we are creating a new and inclusive lifelong learning model.

Speaker 1: Our three-sided platform connects learners, educators, and institutions in a global learning ecosystem with three distinct advantages.

Our three sided platform connects learners educators and institutions and a global learning ecosystem with three distinct advantages.

Speaker 1: First are the leading educator partners, including world-class universities and global industry leaders who've created an unmatched catalog of branded content and credentials. Second is the global reach of our platform to 97 million individuals and more than 800 paid enterprise customers, which attracts partners who want to teach the world.

First are the leading educate our partners, including World class universities, and global industry leaders, who created an unmatched catalog of branded content and credentials.

Second is the global reach of our platform to 97 million individuals in more than 800 paid enterprise customers, which attracts partners who want to teach the world.

Speaker 1: And third is the data and technology that powers our unified platform. Let's discuss how we continue to deepen each of these advantages.

And third is the data and technology that powers our unified platform.

Let's discuss how we continue to deepen each of these advantages.

Speaker 1: We now have over 250 educator partners on Coursera, including 175 universities and 75 industry partners. Over the course of a year, existing partners have continued to expand our catalog of content credentials, and we're honored to have welcomed more than 50 new partners to our platform.

We now have over 250 educator partners on courses, including 175 University and 75 industry partners.

Over the course of the year existing partners, who continue to expand our catalog of content credentials and we're honored to have welcomed more than 50, new partners to our platform.

Speaker 1: This includes top-tier universities with international and regionally recognized brands around the globe, like Dartmouth, Howard University, and several of the Indian IITs and IIMs, as well as industry leaders like Intuit, Microsoft, and Oracle.

This includes top tier universities with international and regionally recognized brands around the globe like Dartmouth Howard University, and several of the Indian <unk> and <unk> as well as industry leaders like Intuit, Microsoft and Oracle.

Speaker 1: Partners are attracted to Coursera for several reasons, including the scale of our large and growing learner base and global brand, the ability to create and deliver high quality, affordable content and credentials, and our unified platform of content and credentials that is modular and stackable, allowing for greater flexibility for learners. As educator partners create content on Coursera, the revenue, reach, and insights provided by our three-sided platform incentivize further content creation.

Partners are attracted to coursera for several reasons, including the scale of our large and growing learner base and global brand the ability to create and deliver high quality affordable content and credentials and our unified platform of content credentials that is modular and stackable, allowing for greater flexibility for learners.

As educator partners create content on Coursera, the revenue reach and insights provided by our three sided platform incentivize further content creation and.

Speaker 1: In 2021, our partners received over $120 million in content fees from our consumer and enterprise business.

In 2021, our partners received over $120 million in content feeds from our consumer and enterprise business.

Our broad catalog of content and credentials created by these educated partners continues to grow IBM recently launched three new entry level professional certificates, including data warehouse engineer Dev ops and software engineering and mainframe practitioner.

Speaker 1: Our broad catalog of content and credentials created by these educated partners continues to grow. IBM recently launched three new entry level professional certificates, including data warehouse engineer, DevOps and software engineering, and mainframe practitioner. And for degrees, I'm pleased to share that our sourcing team had a strong fourth quarter. We recently announced five new programs, including one bachelor and four masters from universities across the globe.

And for degrees I am pleased to share that our sourcing team had a strong fourth quarter we.

We recently announced five new programs, including one Bachelor and for Masters from universities across the globe.

Speaker 1: They include two programs from the US, a Bachelor's of Science in General Business from the University of North Texas and a Master of Engineering in Engineering Management from the University of Colorado Boulder.

They include two programs from the U S. A Bachelor of Science in General business from the University of North, Texas, and a master of Engineering and Engineering management from the University of Colorado Boulder.

Speaker 1: two programs from the UK, a Master of Science in Cybersecurity from the University of London, and a Master of Science in Applied Data Analytics from Queen Mary University of London, as well as a Master in Business Management from Tech de Monterrey in Mexico.

Two programs from the U K, a master of science in cyber security from the University of London, and a master of science in applied data analytics from Queen Mary University of London, as well as a master in business management from Tech the Monterrey and Mexico.

Speaker 1: With these recent additions, the Coursera catalog now includes over 2,200 guided projects that offer hands-on learning, more than 5,300 courses, and 625 specializations.

With these recent additions of course Erik catalog now includes over 2200 guided projects that offer hands on learning more than 5300 courses and 625 specializations.

Speaker 1: over 75 certificates including 18 entry-level professional certificates and 38 announced degree programs including bachelors masters and postgraduate diplomas. Our second advantage

Over 75 certificates, including 18 entry level professional certificates and 38 announced degree programs, including Bachelors Masters and post graduate diplomas.

Our second advantage is the global reach of our platform.

Speaker 1: Our large growing learner base attracts educator partners looking to teach individuals and institutions around the world, but it also provides a unique set of advantages that allow us to compete differently. As I mentioned earlier, we added nearly 21 million registered learners over the course of the year, with the highest rate of new learner growth coming from emerging economies.

Our large growing learner base attract educator partners looking to teach individuals and institutions around the world, but it also provides a unique set of advantages that allow us to compete differently.

As I mentioned earlier, we added nearly $21 million registered learners over the course of the year with the highest rate of new learner growth coming from emerging economies are stackable system, a branded high quality premium content enables us to attract learners at low cost and serve them at a range of price points.

Speaker 1: Our stackable system of branded high-quality, freemium content enables us to attract learners at low cost and serve them at a range of price points. Learners come to Coursera for our freemium content and bite-sized learning, including hands-on projects and short courses, enabling us to grow our top of funnel and attract registrants at low cost.

<unk> come to Coursera for our freemium content in bite sized learning, including hands on projects and short courses, enabling us to grow our top of funnel and attract registrants at low cost.

Speaker 1: As these learners look to progress their careers by earning more valuable credentials, we aim to maximize lifetime value with premium credentials from our partners, including specializations, professional certificates, and bachelor's and master's degrees from accredited universities.

As the learners look to progress their careers by earning more valuable credentials, we aim to maximize lifetime value with premium credentials from our partners, including specializations professional certificates and bachelor's and master's degrees from accredited universities.

Speaker 1: This freemium model of education provides learners around the world with access to high quality free content, while also supporting our degrees business with a low cost of student acquisition. In 2021, approximately 50% of degree students came from our registered learner base.

This freemium model of education provides learners around the world with access to high quality three content, while also supporting our degrees business with a low cost of student acquisition.

In 2021, approximately 50% of degree students came from our registered learner base.

Speaker 1: And we're working with our partners to make this journey more seamless for learners. We're adding features like degree pathways and career pathways. We're securing ACE credit recommendations for entry-level professional certificates, including eight today and more to come, to allow individuals the ability to earn academic credit towards a college degree for completion of content in professional certificates.

And we're working with our partners to make this journey more seamless for learners, we're adding features like degree pathways and career pathways.

We are securing a credit recommendations for entry level professional certificates, including eight today and more to come that will allow individuals the ability to earn academic credit towards a college degree for completion of content in professional certificates and our University partners offer performance based admissions for certain degree programs such as the <unk>.

Speaker 1: and our university partners offer performance-based admissions for certain degree programs, such as the recently announced masters from the University of Colorado Boulder.

Recently announced masters from the University of Colorado Boulder.

Speaker 1: The benefit of our global reach also extends to our rapidly growing enterprise channel, which now includes over 800 paid enterprise customers.

The benefit of our global reach also extends to our rapidly growing enterprise channel, which now includes over $800 paid enterprise customers.

Speaker 1: For new customer acquisition, our large base of learners who become familiar with Coursera platform through their own learning provides us with leads.

For new customer acquisition, our large base of learners, who become familiar with coursera platform through their own learning provides us with leads <unk>.

Speaker 1: But our platform also facilitates network effects and institutional collaboration within our enterprise customers.

But our platform also facilitate some network effects and institutional collaboration within our enterprise customers.

Speaker 1: For example, we won a number of new and upsell opportunities over the past year that began as Coursera for government coverage.

For example, we won a number of new and upsell opportunities over the past year that began as coursera for government customers. These.

Speaker 1: These included public sector employee upskilling use cases that expanded to citizen workforce programs.

These included public sector employee Upskilling use cases that expanded to citizen workforce programs or coursera for campus engagements, which originated as a government relationship and then led to a larger initiative to up level entire higher education systems, and a state or a nation.

Speaker 1: or Coursera for campus engagements, which originated as a government relationship and then led to a larger initiative to up-level entire higher education systems in a state or a nation.

Speaker 1: As our ecosystem continues to grow, the rich data generated by our learner base, including catalog performance, learner insight, and feedback from our institutional customers, help our educator partners identify and prioritize the content and credentials they create for today's in-demand jobs.

As our ecosystem continues to grow the rich data generated by our learner base, including catalog performance learner insight and feedback from our institutional customers help our educator partners identify and prioritize the content and credentials they create for today's in demand jobs.

Speaker 1: It also allows Coursera to deliver products and features that meet the specific needs of learners, educators, and institutions.

It also allows coursera to deliver products and features that meet the specific needs of learners educators and institutions.

Speaker 1: And this brings me to our final advantage, the ongoing product innovation on our unified platform. The Coursera learning platform combines data, technology and content into a single shared platform that serves our individual consumers and institutions around the world.

And this brings me to our final advantage the ongoing product innovation on our unified platform.

The Costello learning platform combines data technology and content into a single shared platform that serves our individual consumers and institutions around the world.

Speaker 1: Core capabilities like our marketing systems, skills graph, assessments, and lectures are deployed and leveraged across our offerings and business sectors.

Core capabilities like our marketing systems skills graph assessments and lectures are deployed and leveraged across our offerings and business segments.

Speaker 1: And the data generated by our learners allows us to develop proprietary products, features, and services that better meet the needs of all of our users.

And the data generated by our learners allows us to develop proprietary products features and services that better meet the needs of all of our users.

Speaker 1: Let me highlight several of the product enhancements we delivered in 2021. For learners, we expanded the availability of Coursera Plus as a monthly all-inclusive subscription. Additionally, we invested to localize the learning experience in emerging economies like India, including new payment options, geopricing, local partnerships, and content discovery.

Let me highlight several of the product enhancements, we delivered in 2021.

For learners, we expanded the availability of Coursera plus as a monthly all inclusive subscription. Additionally.

Additionally, we invested to localize the learning experience and emerging economies like India, including new payment options Geo pricing local partnerships and content discovery.

Speaker 1: For institutions, we continue to leverage the rich data underpinning our skills graph to provide new products for enterprise customers.

For institutions, we continued to leverage the rich data underpinning our skills graph to provide new products for our enterprise customers with skill sets and skills dashboards individuals and institutions can see job roles map to specific targeted skills received dynamic content and hands on learning recommendations and measure and.

Speaker 1: With skill sets and skills dashboards, individuals and institutions can see job roles mapped to specific targeted skills, receive dynamic content and hands-on learning recommendations, and measure and benchmark skill development in real time.

Benchmark skill development in real time.

Skill set started as a coursera for business offering but was extended the university's using coursera for campus, who saw value in helping their students develop scale proficiencies for real world in demand jobs.

Speaker 1: Skill set started as a Coursera for business offering, but was extended to universities using Coursera for campus who saw value in helping their students develop skill proficiencies for real world in demand jobs.

Speaker 1: Additionally, our academies that are powered by skill sets provided our enterprise customers with job-based learning programs to develop targeted skills across an organization at scale.

Additionally, our academies that are powered by skill sets provided our enterprise customers with job based learning programs to develop targeted skills across an organization at scale.

Speaker 1: Academies are a complete skills development solution that offer a personalized skills-first approach to enterprise learning for the most critical job roles. We currently have four academies in general release, including the Data Analytics Academy, the Leadership Academy, the Marketing Academy, and the Tech Academy. And we are pilot testing a finance academy with customers today.

Academies are a complete skilled development solution that offer a personalized skills first approach to enterprise learning for the most critical job roles weaker.

We currently have four academies in general release, including the data analytics Academy the leadership Academy.

Marketing Academy and the Tech Academy, and we are pilot testing, a finance academy with customers today.

Speaker 1: And finally, we rolled out LevelSets as part of our enterprise offering in November . LevelSets is a new skill assessment tool designed to help learners determine their current proficiency levels. It helps them understand where their training should begin, and it helps create a clear development path with content recommendations at the appropriate difficulty for each learner at every scale.

And finally, we rolled out level sets as part of our enterprise offering in November level sets as a new skill assessment tool designed to help learners determined their current proficiency levels. It helps them understand where their training should begin and it helps create a clear development path with content recommendations at the appropriate difficulty for each learner at every school.

Yes.

Speaker 1: For our educator partners, we developed a suite of academic integrity features, including plagiarism detection and deterrence, to help with the validity and efficacy of remote instruction. We also introduced our content ingestion solution. This feature allows content from a learning management system to be automatically ingested into the Coursera platform, significantly reducing the time needed to author and launch a course, generally in one-third of the typical time.

For our educator partners, we developed a suite of academic integrity features including plagiarism detection and deterrence to help with the validity and efficacy of remote instruction. We also introduced our content ingestion solution. This feature allows content from a learning management system to be automatically adjusted into the Coursera platform Cigna.

Reducing the time needed to author and launch of course generally in one third of the typical time.

Speaker 1: Since June , approximately 80 courses from 20 university and industry partners have been adjusted into Coursera using this functionality, and we continue to broaden the number of systems from which content can be ingested.

This June approximately 80 courses from 'twenty University and industry partners had been adjusted in the course, there using this functionality and we continue to broaden the number of systems from which content can be adjusted.

Speaker 1: We're also driving innovation for our educators who offer degree programs. The Coursera integrated application is a flexible and seamless admission solution that aims to improve both the learner and partner admissions experience.

We're also driving innovation for our educators, who offer degree programs. The coursera integrated application as a flexible and seamless admission solution that aims to improve both the learner and partner admissions experience learners access a customizable application, which is integrated into the corsair experience with single sign on.

Speaker 1: learners access a customizable application, which is integrated into the Coursera experience with single sign-on. From the partner's perspective, they can use a streamlined workflow to efficiently track their admissions decisions while also gaining access and transparency to applicants' prior coursework and learning history on Coursera, something that we call a performance pathway.

From the partners perspective, they can use a streamlined workflow to efficiently track their admissions decisions, while also gaining access and transparency to applicants prior course work and learning history on Coursera something that we call a performance pathway.

Yeah.

Speaker 1: We believe that the transformation of higher education is only in the early innings. So before Ken goes through the financials in more detail, let me highlight some of the key priorities that we believe position us for long-term growth.

We believe that the transformation of higher education is only in the early innings. So before Ken go through the financials in more detail. Let me highlight some of the key priorities that we believe position us for long term growth.

Speaker 1: First, we will continue to invest in our growing enterprise channels, focusing on both new customer acquisition and expanding relationships with existing customers. This quarter, I'm pleased to announce we signed two of the largest deals in our enterprise segment's history. The National eLearning Center in Saudi Arabia is an independent entity run by the Kingdom of Saudi Arabia Council of Ministers, with a mission of enhancing trust in and leading innovation in online learning.

First we will continue to invest in our growing enterprise channels, focusing on both new customer acquisition and expanding relationships with existing customers.

This quarter I am pleased to announce we signed two of the largest deals in our enterprise segments history.

The National E Learning Center in Saudi Arabia, as an independent entity run by the Kingdom of Saudi Arabia Council administers with emission of enhancing trust in and leading innovation and online learning.

Speaker 1: They have chosen Coursera to help equip learners across the kingdom with the high-demand digital skills needed to participate in the workforce and advance their education and careers in the new digital economy. Under this expanded partnership, university students and government employees in Saudi Arabia will have access to Coursera.

They have chosen coursera to help equip learners across the kingdom with a high demand digital skills needed to participate in the workforce and advance their education and careers and the new digital economy.

Under this expanded partnership University students and government employees in Saudi Arabia will have access to Coursera.

Speaker 1: Next is the Abu Dhabi School of Government, which was our very first Coursera for government customers.

Next is the Abu Dhabi School of government, which was our very first coursera for government customer.

Speaker 1: Our original partnership began as an upskill initiative for 60,000 government employees focused on building critical digital skills in data science, AI, and leadership.

Our original partnership began as an upscale initiative for 60000 government employees focused on building critical digital skills and data science AI and leadership with.

Speaker 1: With Coursera, they curated a subset of content for each government entity, identifying and prioritizing skills based on each department's mission.

With Coursera the curated a subset of content for each government entity identifying and prioritizing skills based on each department's mission.

Speaker 1: Based on the success of our initial use case, the School of Government has extended the partnership with Coursera and expanded the program to now include Abu Dhabi's citizens.

Based on the success of our initial use case the school of government has extended the partnership with Coursera and expanded the program to now include <unk> citizens.

Next while we're still in the beginning stages of our degree business. The pandemic has fundamentally changed how universities are thinking about online degrees stool.

Speaker 1: Next, while we're still in the beginning stages of our degree business, the pandemic has fundamentally changed how universities are thinking about online degrees.

Speaker 1: Students want the flexibility to learn online, and universities are responding by scaling online degree programs using partners like Coursera to meet that demand.

Students want the flexibility to learn online and universities are responding by scaling online degree programs using partners like course, Erik to meet that demand.

Speaker 1: We've announced 13 new programs since the start of 2021, but I want to highlight one of our earliest partners who is at the forefront of this innovation, the University of Illinois.

We've announced 13 new programs since the start of 2021, but I want to highlight one of our earliest partners who is at the forefront of this innovation the University of Illinois.

Speaker 1: Starting with the pilot of their MBA in 2015, Illinois has grown their offerings on Coursera to include more than 60 courses that stack into four degree programs and one master track certificate. I'm excited to announce that this important relationship has recently been renewed for an additional five years.

Starting with a pilot of their MBA in 2015, Illinois has grown their offerings on Coursera to include more than 60 courses that stack into four degree programs and one master track certificate.

I am excited to announce that this important relationship has recently been renewed for an additional five years.

Speaker 1: We look forward to growing our relationship with the University of Illinois and together demonstrating the power of our partnership and platform to deliver worldwide degree programs at scale.

We look forward to growing our relationship with the University of Illinois, and together demonstrating the power of our partnership and platform to deliver worldwide degree programs at scale.

Speaker 1: And finally, we'll continue to reinforce our flywheel effect, investing in growth of our registered learner base, increasing our network of educator partners and their content and credentials, and delivering more product innovation across our unified platform to better serve our ecosystem of learners, institutions, and educators around the world. And now I'd like to turn it over to Ken. Ken? Thanks, Jeff. I appreciate it, Jeff. OK. I'll mute my phone.

And finally, we will continue to reinforce our flywheel effect investing in growth of our registrar learner base, increasing our network of educate our partners and their content and credentials and delivering more product innovation across our unified platform to better serve our ecosystem of learners institutions and educators around the world and.

Now I'd like to turn it over to Ken Ken.

Thanks, Jeff and good afternoon, everyone.

Speaker 1: We are pleased to report strong financial results for our fourth quarter, capping off another exciting year of rapid growth for Coursera.

We are pleased to report strong financial results for our fourth quarter capping off another exciting year of rapid growth for Coursera.

Speaker 1: In Q4, we generated total revenue of $115 million, up 38% from a year ago, with strength across all three of our business segments.

In Q4, we generated total revenue of $115 million up 38% from a year ago with strength across all three of our business segments.

Speaker 1: As Jeff mentioned, we continue to see strong demand from individual learners, as well as our growing number of enterprise customers, including businesses, campuses, and governments.

As Jeff mentioned, we continue to see strong demand from individual learners as well as our growing number of enterprise customers, including businesses campuses and governments.

Speaker 1: Our results continue to reflect a differentiated business model that benefits from our three-sided platform.

Our results continued to reflect a differentiated business model that benefits from a three sided platform.

Speaker 1: It provides diversification and exposure to multiple levers of growth.

It provides diversification and exposure to multiple levers of growth.

Speaker 1: This includes our business segments, but also our ability to serve learners and grow with them throughout their studies and careers.

This includes our business segments, but also our ability to serve learners and grow with them throughout their studies and careers.

Speaker 1: At the end of the day, enabling human capital creation for our learners is what defines our value proposition.

At the end of the day, enabling human capital creation for our learners is what defines our value proposition.

It also allows us to leverage our significant strategic assets across our segments to compete differently, including our large rapidly growing learner base that attracts partners and acts as a channel.

Speaker 1: It also allows us to leverage our significant strategic assets across our segments to compete differently, including our large, rapidly growing learner base that attracts partners and acts as a channel.

Speaker 1: branded credentials, and the technology and data that underpin our businesses.

Branded credentials and the technology and data that underpin our businesses.

Speaker 1: And finally, it provides us with a unique vantage point that encompasses the needs of learners, employers, and educators to navigate the trends shaping higher education.

And finally, it provides us with a unique vantage point that encompasses the needs of learners employers and educators to navigate the trends shaping higher education.

Please note that for the remainder of the call as I review, our business performance and outlook in the fundamental fashion, we view it I will discuss our non-GAAP financial metrics inclusive of pro forma adjustments unless otherwise noted.

Speaker 1: Please note that for the remainder of the call, as I review our business performance and outlook in the fundamental fashion we view it, I will discuss our non-GAAP financial metrics, inclusive of pro forma adjustments, unless otherwise noted.

Speaker 1: Our non-GAAP adjustments remove only stock-based compensation and related payroll tax. Nothing else.

Our non-GAAP adjustments remove only stock based compensation and related payroll tax nothing else.

Speaker 1: Gross profit was seventy one point nine million dollars up sixty five percent from a year ago a sixty two point five percent gross margin.

Gross profit was $71 9 million up 65% from a year ago, a 62, 5% gross margin.

Speaker 1: This margin was approximately 10 percentage points or 1,000 basis points higher than the prior year period, a continuation of the dynamics we've discussed in the previous two quarters.

This margin was approximately 10 percentage points or 1000 basis points higher than the prior year period, a continuation of the dynamics we've discussed in the previous two quarters.

Speaker 1: As a reminder, there are two components of our cost of services. First is our content cost, which varied based on both the revenue mix amongst our three businesses, as well as the content margin rate within each segment.

As a reminder, there are two components of our cost of services first is our content costs, which vary based on both the revenue mix amongst our three businesses as well as the content margin rate within each segment.

Speaker 1: Our higher margin enterprise and degree segments accounted for 43 percent of our overall revenue mix this quarter compared to 36 percent in the prior year period.

Our higher margin enterprise and degree segments accounted for 43% of our overall revenue mix this quarter compared to 36% in the prior year period.

Speaker 1: This mixed shift is key to our long-term financial framework, including structurally expanding margins over time.

This mix shift is key to our long term financial framework, including structurally expanding margins over time.

Additionally in Q4, we've continued to enjoy the positive changes in the consumer segment content margin, which we anticipated on our call in November .

Speaker 1: Additionally, in Q4, we have continued to enjoy the positive changes in the consumer segment content margin, which we anticipated on our call in November .

Speaker 1: Our consumer segment content margin rate increased from 57% in the prior year period to 69% this quarter, as learners consumed a larger portion of industry partner content, which tends to have lower-than-average content costs.

Our consumer segment content margin rate increased from 57% in the prior year period to 69% this quarter as learners consumed a larger portion of industry partner content, which tends to have lower than average content costs.

We have been pleased with the level of success, we've achieved with our consumer segment margins. This year as we continue to capitalize on the strong entry level certificate performance.

Speaker 1: We have been pleased with the level of success we've achieved with our consumer segment margins this year, as we continue to capitalize on the strong entry-level certificate performance.

The second component of our cost of services as our non content costs, which were nine 8% of total revenue this quarter.

Speaker 1: The second component of our cost of services is our non-content costs, which were 9.8% of total revenue this quarter.

Speaker 1: Total operating expense was $95.7 million, or 83% of revenue, compared to 77% in Q4 of last year.

Total operating expense was $95 $7 million or <unk>, 83% of revenue compared to 77% in Q4 of last year.

Speaker 1: Sales and marketing expense represented 44 percent of total revenue, up from a prior 40 percent, an increase we expected and discussed in our quarterly outlook as we invest for the year ahead.

Sales and marketing expense represented 44% of total revenue up from our prior 40% an increase we expected and discussed in our quarterly outlook as we invest for the year ahead.

Speaker 1: Research and development expense was 24% of revenue, slightly lower than 25% in the year-ago period. And general and administrative expense was 15% of revenue compared to 12% in the prior year, given incremental costs associated with being a public company.

Research and development expense was 24% of revenue slightly lower than 25% in the year ago period.

And general and administrative expense was 15% of revenue compared to 12% in the prior year, given incremental costs associated with being a public company.

Speaker 1: Net loss was $24.1 million, or 21% of revenue, and our adjusted EBITDA loss was $19.7 million, or 17.1% of revenue.

Net loss was $24 1 million or 21% of revenue and our adjusted EBITDA loss was $19 7 million or 17, 1% of revenue.

Speaker 1: This was consistent with our messaging and operating framework discussed on the Q3 call. Similar to 2020, while performing better than our previous forecast for annual EBITDA, we invested heavily in growth in Q4 for the long-term competitive position of our business.

This was consistent with our messaging and operating framework discussed on the Q3 call.

Similar to 2020, while performing better than our previous forecast for annual EBITDA, we invested heavily in growth in Q4 for the long term competitive position of our business.

Speaker 1: For the full year, our adjusted EBITDA loss as a percentage revenue was 8.6 percent in more than 500 basis point improvement over the prior year.

For the full year, our adjusted EBITDA loss as a percentage of revenue was eight 6% a more than 500 basis point improvement over the prior year.

Speaker 1: even as we absorb significant additional overhead costs as a new public company.

Even as we absorbed significant additional overhead costs as a new public company.

Speaker 1: Now, turning to cash performance in the balance sheet, free cash flow was a use of $1.9 million compared to a use of $21.2 million a year ago.

Now turning to cash performance in the balance sheet free cash flow was a use of $1 9 million compared to use of $21 2 million a year ago.

Speaker 1: and we ended the year in a strong cash position. As of December 31st, we had approximately $822 million of unrestricted cash, cash equivalent, and marketable securities with no debt, which is up from the approximately $800 million we had immediately after the close of our initial public offering in April .

And we ended the year in a strong cash position as of December 31, we had approximately $822 million of unrestricted cash cash equivalent and marketable securities with no debt, which is up from the approximately $800 million. We had immediately after the close of our initial public offering in April .

Speaker 1: Next, let's discuss more details of each of our business segments.

Next let's discuss more details of each of our business segments consumer revenue was $65 8 million up 24% from the prior year, an acceleration from last quarter.

Speaker 1: consumer revenue was $65.8 million, up 24% from the prior year, an acceleration from last quarter. We continue to see strong demand for a portfolio of entry-level professional certificates, and this includes recent launches as well as sustained interest in existing programs.

We continue to see strong demand for our portfolio of entry level professional certificates and this includes recent launches as well as sustained interest in existing programs.

Speaker 1: These certificate training programs are typically taken over a series of several months. Upon completion, learners receive a branded credential that signals their employability for an entry-level job or, in the case with ACE credit recommendation, the ability to receive college credit from participating colleges and universities.

These certificate training programs are typically taken over series of several months upon completion learners receive a branded credential that signals their employability for an entry level job or in the case with <unk> credit recommendation the ability to receive college credit from participating colleges and universities.

Speaker 1: Additionally, adoption of our Coursera Plus subscription remains strong and continues to increase both consumption and retention amongst these learners.

Additionally, adoption of our Coursera plus subscription remains strong and continues to increase both consumption and retention amongst these learners.

Speaker 1: Segment gross profit was $45.6 billion, or 69% of consumer revenue, as we continued to benefit from a lower content cost rate during the fourth quarter.

Segment gross profit was $45 6 billion.

Or 69% of consumer revenue as we continued to benefit from a lower content cost rate during the fourth quarter.

Speaker 1: And we added another 5 million new registered learners for a total base of 97 million.

And we added another 5 million new registered learners for a total base of $97 million.

Speaker 1: In summary, our consumer segment is vibrant and growing at scale with attractive economics.

In summary, our consumer segment is vibrant and growing at scale with attractive economics.

Speaker 1: But, in addition to its substantial financial contribution, the consumer segment is also an important strategic asset.

But in addition to a substantial financial contribution the consumer segment is also an important strategic asset.

Speaker 1: It attracts our ecosystem of partners acting as a global channel.

It attracts our ecosystem of partners acting as a global channel.

Speaker 1: It provides rich data visibility, deepening our understanding of skills and data, and empowering our institutional customers with the insights they value around changing skill requirements.

It provides rich data visibility deepening our understanding of skills and data and empowering our institutional customers with the insights de value around changing skill requirements.

Speaker 1: It serves as a top of funnel source for enterprise and degree segments, allowing us to attract learners at low cost.

It serves as a top of funnel source for our enterprise some degree segments, allowing us to attract learners at low cost.

Speaker 1: And finally, it allows us to better serve the broad needs of our learners over their lifetimes, meeting them where it matters most, whether that's job relevant credentials in preparation for a career or meaningful in-depth courses that impart mastery of skills or knowledge.

And finally, it allows us to better serve the broad needs of our learners over their lifetimes meeting them, where it matters, most whether thats job relevant credentials in preparation for a career or a meaningful in depth courses that impart master his skills or knowledge.

Next is enterprise.

Speaker 1: Enterprise revenue was $35.9 million, up 72% from a year ago, on robust growth across all three of our customer verticals, businesses, campuses, and governments, and strong execution by our direct sales force.

Enterprise revenue was $35 9 million up 72% from a year ago and robust growth across all three of our customer verticals.

Mrs campuses and governments and strong execution by our direct sales force.

Speaker 1: Our enterprise annual recurring revenue continues to grow rapidly. In particular, we're seeing strong momentum in our newer government and campus vertical.

Our enterprise annual recurring revenue continues to grow rapidly in particular, we're seeing strong momentum in our newer government and campus verticals.

As Jeff highlighted earlier, we signed several of our largest deals in the history of the enterprise business. This includes $2 eight figure multiyear contracts that demonstrated the expansion opportunities within this business and the urgency with which institutions are investing in digital skills.

Speaker 1: As Jeff highlighted earlier, we signed several of our largest deals in the history of the enterprise business. This includes two eight-figure multi-year contracts that demonstrated the expansion opportunities within this business and the urgency with which institutions are investing in digital skills.

Speaker 1: The total number of paid enterprise customers increased to 803, up 107% from a year ago. And our net retention rate for paid enterprise customers was 110%.

The total number of paid enterprise customers increased to 803 up 107% from a year ago.

And our net retention rate for paid enterprise customers with 110%.

Speaker 1: Segment gross profit was $24.2 million, or 68% of enterprise revenue, consistent on a percentage basis with the prior year.

Segment gross profit was $24 2 million or 68% of enterprise revenue consistent on a percentage basis with the prior year.

And finally, our degree segment.

Speaker 1: And finally, our degrees segment. Degrees revenue was $13.3 million, up 43% from a year ago, on scaling a student cohort.

<unk> revenue was $13 $3 million up 43% from a year ago and scaling of student cohorts.

Speaker 1: Our total number of degree students grew 36% from a year ago to 16,204. As a reminder, there's no content cost attributable to the degree segment, so degree segment gross margin was 100% of revenue.

Our total number of degree students grew 36% from a year ago to 16204.

As a reminder, there is no content cost attributable to the degree segment. So degree segment gross margin was 100% of revenue.

Speaker 1: As Jeff mentioned, our degree sourcing team had a very strong finish to the year. In addition to the five programs we recently announced, we continue to be excited about our growing pipeline of programs for new and existing university partners. Now.

As Jeff mentioned, our degree sourcing team had a very strong finish to the year.

In addition to the five programs, we recently announced and continue to be excited about our growing pipeline of programs for new and existing University partners.

Now onto our financial outlook.

Speaker 1: For Q1, we are expecting revenue to be in the range of $114 to $118 million. This represents a growth rate of 31% at the midpoint of the range.

For Q1, we're expecting revenue to be in the range of $114 million to $118 million. This.

<unk> a growth rate of 31% at the midpoint of the range for adjusted EBITDA, We're expecting a loss in the range of $15 five to $18 $5 million.

Speaker 1: For just an EBITDA, we're expecting a loss in the range of $15.5 to $18.5 million.

Speaker 1: For full year 2022, we anticipate revenue to be in the range of 536 to 544 million dollars, representing 30 percent growth at the midpoint of the range.

For full year 2022, we anticipate revenue to be in the range of $536 million to $544 million.

Representing 30% growth at the midpoint of the range.

Speaker 1: And for adjusted EBITDA, we're expecting a loss of $45.5 to $51.5 million, or a negative 9% adjusted EBITDA margin at the midpoint of revenue in EBITDA guidance range.

And for adjusted EBITDA, we're expecting a loss of $45 five to $51 5 million or.

Or a negative 9% adjusted EBITDA margin at the midpoint of revenue and EBITDA guidance ranges.

Our messaging and operating framework with regards to EBITDA margin has been consistent since before the IPO, we plan to demonstrate scale and leverage while targeting EBITDA margin improvements over time, and we do not optimized business for any single quarter.

Speaker 1: Our messaging and operating framework with regards to EBITDA margin has been consistent since before the IPO. We plan to demonstrate scale and leverage while targeting EBITDA margin improvements over time. And we do not optimize business for any single quarter.

Speaker 1: We set an annual EBITDA margin target and work within that plan to maximize our growth opportunity.

We set an annual EBITDA margin target and work within that plan to maximize our growth opportunities.

Speaker 1: Our three-sided platform, with exposure to the needs of learners, educators, and institutions, provides us with a viewpoint into our own business, as well as a broader lens with regards to the trends we see driving the future of online learning.

Our three sided platform with exposure to the needs of learners educators and institutions provides us with a viewpoint into our own business as well as a broader lens with regards to the trends, we see driving the future of online learning.

Speaker 1: As we enter our first full years of public company, we thought it'd be helpful to provide some color on the shape of the business in 2022, given the demand trends Jeff outlined earlier.

As we enter our first full year as a public company, we thought it'd be helpful to provide some color on the shape of the business in 2022, given the demand trends Jeff outlined earlier.

This includes one time segment level annual growth expectations.

Speaker 1: This includes one-time segment-level annual growth expectations.

Speaker 1: Colloquially, these are rough approximations across three different but interdependent growth businesses to help you better understand how we plan to deliver on our overall revenue guidance.

Colloquially these are rough approximations across three different but interdependent growth businesses to help you better understand how we plan to deliver on our overall revenue guidance.

For consumer we believe that the resiliency demonstrated in 2021, we'll continue with our initial expectations anticipating over 20% growth in the upcoming year.

Speaker 1: For consumer, we believe that the resiliency demonstrated in 2021 will continue with our initial expectations anticipating over 20% growth in the upcoming year.

As a reminder, our consumer segment has the least Ford visibility, but we do expect our catalog of content and credentials from recognized world class brands to continue serving learners seeking alternate credentials to skill up for digital career.

Speaker 1: As a reminder, our consumer segment has the least forward visibility, but we do expect our catalog of content and credentials from recognized world-class brands to continue serving learners seeking alternate credentials to skill up for a digital career.

Speaker 1: For enterprise, we are excited about the ongoing momentum and believe skilling investments by businesses, campuses, and governments will continue to drive growth of over 50%.

For enterprise, we are excited about the ongoing momentum and beliefs scaling investments by businesses campuses and governments will continue to drive growth of over 50%.

Four degrees, we expect approximately 20% growth in 2022 with a slower first half that accelerates in the third quarter as we launched a number of fall programs.

Speaker 1: For degrees, we expect approximately 20% growth in 2022, with a slower first half that accelerates in the third quarter as we launch a number of fall programs.

Speaker 1: We have fairly good visibility into our anticipated degrees performance given the elongated revenue bill to the business and wanted to provide some additional color on the drivers for the later start to 2022.

We have fairly good visibility into our anticipated degrees performance given the elongated revenue build of the business and wanted to provide some additional color on the drivers for the later start to 2022.

First there are economic trends at play with enrollments, including the substitution effect of a strong labor market.

Speaker 1: First, there are economic trends at play with enrollments, including the substitution effect of a strong labor market.

Speaker 1: This impacted the size of new cohorts layering onto existing programs, particularly in the U.S., where the bulk of our learners reside today.

This impacted the size of new cohorts layering onto existing programs, particularly in the U S where the bulk of our learners reside today.

Speaker 1: Second, our degrees business is still in its very early stages with concentration in a small base of programs at full maturity. We're excited about the momentum in our new program announcements, but many of these recent launches will take time to build given the extended ramp we've discussed.

Second our <unk> business is still in its very early stages with concentration in a small base of programs at full maturity.

We're excited about the momentum in our new program announcements that many of these recent launches will take time to build given the extended ramp we've discussed.

Speaker 1: Additionally, while our ongoing high growth does mask some of the seasonality in our model, we do expect 2022 to more closely reflect the traditional education cycle with a seasonally lighter Q2.

Additionally, while our ongoing high growth does mask some of the seasonality in our model. We do expect 2022 to more closely reflect the traditional education cycle with a seasonally lighter Q2.

Speaker 1: This reflects lower consumption by learners in the spring and summer that re-accelerates in the second half of the year.

This reflects lower consumption by learners in the spring and summer that Reaccelerate in the second half of the year.

Finally, we expect 2022 to be an investment year as reflected in our outlook in comparison to 2021 as a percentage of revenue, we anticipate sales and marketing expense to remain consistent.

Speaker 1: Finally, we expect 2022 to be an investment year as reflected in our outlook. In comparison to 2021, as a percentage of revenue, we anticipate sales and marketing expense to remain consistent.

Speaker 1: a modest increase in our R&D expense, and a slight improvement in our general and administrative expenses as the companies scale.

A modest increase in R&D expense and a slight improvement in our general and administrative expenses as the company scales.

Speaker 1: Overall, we continue to see strong growth opportunities that build upon and expand in the areas that drove our 41% growth in 2021 and anticipated 30% growth in 2022. They include increasing our global reach and providing more localized experiences.

Overall, we continue to see strong growth opportunities that build upon and expand in the areas that drove our 41% growth in 2021 and anticipated 30% growth in 2022.

I include increasing our global reach and providing more localized experiences.

Speaker 1: broadening our entry-level professional certificate catalog.

Broadening our entry level professional certificate catalog.

Speaker 1: Landing and expanding within enterprise, including growing the capacity of our direct sales force and leveraging our technology, like skill sets, academies, and level sets, to provide a differentiated experience, and launching more degree programs for more partners around the world.

Landing and expanding within enterprise, including growing the capacity of our direct sales force and leveraging our technology like skill sets academies and level set to provide a differentiated experience and launching more degree programs for more partners around the world.

Speaker 1: Before just closing comments, let me recap the three key highlights of our long-term financial framework.

Before Jeff closing comments, let me recap the three key highlights of our long term financial framework.

First we have a unique set of strategic assets that allow us to compete differently as well as diversify our revenue model, which we believe we demonstrated in this year's performance.

Speaker 1: First, we have a unique set of strategic assets that allow us to compete differently, as well as diversify our revenue model, which we believe we demonstrated in this year's performance.

Speaker 1: Second, we expect to have increasingly better forward visibility on our top line in the years ahead as our mix of revenue evolves.

Secondly, we expect to have increasingly better forward visibility on our top line in the years ahead as our mix of revenue evolves.

Speaker 1: And third, in addition to our rapid growth, we expect ongoing structural gross margin expansion over the long term, driven by a revenue-mixed shift to our enterprise and degrees segment.

And third in addition to our rapid growth, we expect ongoing structural gross margin expansion over the long term driven by revenue mix shift to our enterprise and degrees segments.

Speaker 1: The enormous opportunity in front of us is increasingly clear. The pandemic created a permanent acceleration and shift requiring people to regularly enhance their human capital through lifelong learning.

The enormous opportunity in front of US is increasingly clear the pandemic created a permanent acceleration in shift requiring people to regularly enhance their human capital through lifelong learning.

Speaker 1: As our results in 2021 have shown, we're well positioned to capture this growth while addressing the global need for high quality education in collaboration with our partners.

As our results in 2021 have shown we're well positioned to capture this growth while addressing the global need for high quality education in collaboration with our partners.

I'll now turn the call back to Jeff.

Speaker 2: Thanks, Ken. Early in the pandemic, online learning provided the means for educators, businesses, and governments to respond to a global crisis that changed the way we learn and work. Two years later, new trends show that the combined forces of online learning and remote work are creating a powerful opportunity to provide not just skills, but the foundation for better access to education and more equitable job opportunities for everyone worldwide.

Thanks, Ken.

Early in the pandemic online learning provides the means for educators businesses and governments to respond to a global crisis that changed the way we learn and work two years later, new trends show that the combined forces of online learning and remote work are creating a powerful opportunity to provide not just skills with the foundation.

For better access to education, and more equitable job opportunities for everyone worldwide.

Speaker 2: In 2021, we've highlighted the growing possibilities for learners who complete one of our entry-level professional certificates.

In 2021, we've highlighted the growing possibilities for learners, who complete one of our entry level professional certificates. The certificates allow learners with no college degree or prior industry experience to develop the skills needed for an entry level digital job fully online in less than a year.

Speaker 2: These certificates allow learners with no college degree or prior industry experience to develop the skills needed for an entry level digital job fully online in less than a year. And because of remote work, learners with these newly acquired digital skills are rewarded with a growing selection of job opportunities in high demand fields no matter where they live.

And because of remote work learns with these newly acquired digital skills are rewarded with a growing selection of job opportunities in high demand fields, no matter, where they live.

Speaker 2: But in addition to these career pathways, learners are able to also pursue a degree pathway. Our partnerships with universities and ongoing efforts to expand ACE credit recommendation across these certificates enable learners to earn up to 12 college credits towards an eligible degree when they choose to continue their education using professional certificates on Coursera.

But in addition to these career pathways learners are able to also pursue a degree pathway our partnerships with universities and ongoing efforts to expand ace credit recommendation across these certificates enable learners to earn up to 12 college credits towards an eligible degree when they choose to continue their education using professional certificates.

Coursera.

Speaker 2: In this sense, technology is both lowering the cost and increasing the benefit to education.

In this sense technologies, both lowering the cost and increasing the benefit to education.

Speaker 2: And the potential of this return on investment is increasingly valued not only by individuals.

And the potential of this return on investment is increasingly value not only by individuals but also by institutions, who can deploy workforce development programs designed to keep pace with the fast changing labour market.

Speaker 2: but also by institutions who can deploy workforce development programs designed to keep pace with a fast-changing labor market.

Speaker 2: This growing collaboration between universities, industry leaders, and governments underscores the power of higher education infrastructure at scale.

This growing collaboration between universities industry leaders and governments underscores the power of higher education infrastructure at scale.

Speaker 2: Over the past year, we announced a number of nationwide reskilling and upskilling initiatives, including the Saudi Arabia and Abu Dhabi examples I highlighted earlier, as well as programs spanning the globe, from Barbados to Costa Rica and Morocco. But this also applies

Over the past year, we announced a number of nationwide reskilling and upskilling initiatives, including the Saudi Arabia, and Abu Dhabi Examples I highlighted earlier as well as program spanning the globe from Barbados to Costa Rica and Morocco.

But this also applies at the local level.

Speaker 2: The California State Library recently announced a digital inclusion initiative that makes Coursera available for free to residents with their library card at over 1,000 libraries across the state.

The California State Library recently announced a digital inclusion initiative that makes coursera available for free to residence with their library card at over 1000 libraries across the state.

Speaker 2: Californians can now visit their local library in person or online and access Coursera training, including our entry-level professional certificates, the same way that they would check out a book.

Californians can now visit their local library in person or online and access Coursera training, including our entry level professional certificates the same way that they would check out a book.

Speaker 2: But in this case, when they complete their course or program, they earn a valuable branded credential to unlock job opportunities, advance their career, or build towards a broader course of study.

But in this case when they complete their course of or program. They earn valuable branded credential to unlock job opportunities advance their career or build towards a broader course of study.

Speaker 2: Our mission is to provide universal access to world-class learning so that anyone anywhere has the power to transform their life through learning.

Our mission is to provide universal access to world class learning so that anyone anywhere has the power to transform their life through learning.

Speaker 2: Opportunities like these are what inspires our team members, attracts our partners, and ultimately creates value for all of our constituents. And with that, let's open up the call to questions. Thank you.

Opportunities like these are would inspire our team members attracts our partners and ultimately creates value for all of our constituents.

And with that let's open up the call to questions. Thank you.

Speaker 3: At this time, I would like to remind everyone, in order to ask a question, please press star, followed by the number 1 on your telephone keypad.

At this time I would like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad.

Speaker 3: Your first question comes from the line of Josh Baer with Morgan Stanley . Your line is open.

Your first question comes from the line of Josh Baer with Morgan Stanley . Your line is open.

Speaker 4: Hi, Jeff and Ken. Congrats on a strong quarter and the growth outlook. Question for me is on consumer. So I think a lot of times investors might group consumer businesses across EdTech together, maybe assume there's just transactional revenue and kind of put everything in the same bucket. So I was hoping you could provide a bit of insight into the revenue mix within consumer. You have all those different product offerings with different price points, but also with

Hi, Jeff again, congrats on a strong quarter and the growth outlook.

Question from me is on consumer so I think a lot of times investors might group consumer businesses across AD Tech together.

Maybe assume theres, just transactional revenue and kind of put everything in the same bucket. So I was hoping you could provide a bit of insight into the revenue mix within consumer.

All of those different product offerings.

With different price points, but also with different.

Speaker 4: timelines as far as revenue recognition period. So I was hoping you could probably provide some context as far as the biggest contributors to consumer revenue, like what's the recurring revenue mix and ultimately how does that dictate your visibility into future consumer revenues.

Timelines as far as revenue recognition periods so was.

Was hoping you could provide some context as far as the biggest contributors to consumer revenue like what's the recurring revenue mix and ultimately how does that dictate your visibility into future consumer revenues.

Speaker 2: Yeah, hey, Josh, let me let me start with maybe some of the environmental considerations to answer the question. And then maybe, Ken, you could take up some of the numbers answers. But environmentally, you know, I think it is pretty interesting what we're seeing clearly in the US and around the world. I think coming out of the pandemic, you're seeing a lot of people reevaluating their lives, reevaluating their careers, and realizing I can I can do something different. I mean, there's a better job for me out there.

Yeah, Hey, Josh Let me, let me start with maybe some of the environmental considerations to answer the question and then maybe Ken you can pick up some of the numbers answers.

But environmentally I think it is pretty interesting what we're seeing I mean, clearly in the U S and around the world I think coming out of the pandemic and Youre seeing a lot of people reevaluating their lives reevaluating their careers and realizing I can I can do something different and it is a better job for me out there.

Speaker 2: But if you don't have a college degree, or even if you do, if it's not in the domain of like, you know, STEM or computer science or whatever, you got to figure out not only how do I get the skills, but how do I get a credential that could signal to someone, even though I don't have a degree or any background in that field, like I know how to do this job.

But if you don't have a college degree or even if you do if it's not in the domain of like stem or computer science or whatever you got to figure out not only how do I get the skills, but how do we get a credential that could signal to someone even though I don't have the degree of any background and I feel like I know how to do this job.

Speaker 2: I think that the major tailwind that we're picking up, and I don't think it's totally unique to Coursera, but clearly we've been pushing hard on these professional certificates, is that they are a long structured program, usually four, five, sometimes 10 courses. They come from a branded entity, like a Google or an IBM or an Intuit or a Facebook. They end up with a credential that's pretty hard.

Think that the a major tailwind that we're picking up and I don't think is totally unique to coursera, but clearly we've been pushing hard on these professional certificates.

They are they're a long structured program literally four or five sometimes 10 courses they come from a branded entity like a Google or an IBM went into it or a Facebook.

End up with a credential, that's pretty hard to get.

Speaker 2: And I think a lot of people are looking for that more, you know, structured, rigorous, branded credential learning in order to signal to an employer that they're ready for this new job.

And I think a lot of people are looking for that more structured rigorous branded credential learning in order to signal to an employer that they are ready for this new job.

Speaker 2: Those I think are more distinctive offerings than what you might find generally on the Internet or from other platforms. They're typically longer form. So there's more content there that people take over a longer period of time.

I think are more distinctive offerings and what you might find generally on the internet or from other platforms. They are typically longer form so theres more content there that people take over longer period of time arguably the credential value is higher because you want to improve to someone that you've got those skills Thats why youre doing this in the first place and the only way you get the.

<unk> did you finish it so thats a longer period of time and so.

Speaker 2: You know, we're seeing really good uptake on this. Again, you know, mostly in the US, but around the world. And right now we're at, I think, at 18 entry level special certificates. And we continue to say, what are the jobs in demand that can be done by somebody who doesn't have a college degree or prior experience? And the skills can be learned online. And so we're continuing to really build out the catalog. And frankly, you know, Ken talked a little bit about Coursera for government. This is the kind of solution that governments are very attracted to.

We're seeing really good uptake on this again, mostly in the U S, but around the world.

Right now we're at I think at 18 and fill a professional certificates and we continue to say what are the jobs and demand that can be done by someone who doesn't have a college degree of prior experience and the skills can be learn online and so we're continuing to really build out the catalog and frankly.

<unk> talked a little bit about coursera for government.

This is the kind of solution. The governments are very attracted to and frankly for <unk>.

Speaker 2: and frankly for higher education higher education institutions.

Higher education higher education institutions, where maybe a lot of the content is more theoretical coupling it with some of these job relevant professional certificates from branded entities is also something that they find pretty valuable now that shows up more in the enterprise revenue side, but I think I think that to your question. It's the content that we're seeing really get a hold here.

Speaker 2: where maybe a lot of the content is more theoretical. Coupling it with some of these job-relevant professional certificates from branded entities is also something that they find pretty valuable. Now, that shows up more on the enterprise revenue side, but I think that, to your question, the content that we're seeing really get a hold here seems to be these entry level professional certificates. We've been seeing it for the last few quarters, and that has kept up. Ken, anything on the numbers side that you would add there?

It seems to be these entry level professional certificates and we've been seeing over the last few quarters in that.

Has kept up Ken anything on the numbers side that you would add there.

Speaker 1: Yeah, sure, and I might be a tiny bit repetitive to your question, Josh, but the consumer revenue is not all the same across different companies. If you look at where we sit on the spectrum, as Jeff mentioned, it's heavily branded content, the top universities, the top companies.

Yes, sure and I might be a tiny bit repetitive to your question Josh.

Consumer revenue is not all the same across different companies. If you look at where we sit on the spectrum as Jeff mentioned, it's heavily branded content the top universities the top companies and.

Speaker 1: And the entry-level certs that Jeff talked about that become very, very popular for a number of reasons, tend to last over multiple months.

The entry level search that Jeff talked about that become.

Very very popular for a number of reasons.

Tend to last over multiple months, so the revenue spreads over the period of the time when the student of course is taking this course and so for us because it's longer form content and extends for a longer period of time. Additionally, we have coursera plus our subscription product.

Speaker 1: So the revenue spreads over the period of the time when the student, of course, is taking this course. And so for us, because it's longer form content, it extends for a longer period of time.

Speaker 1: Additionally, we have Coursera Plus, our subscription product. We don't plan to update the ratio on an ongoing basis, but last quarter we announced that we had incredibly quick traction since introducing it roughly a year before that, and then we were up to about a quarter of the consumer revenue coming through Coursera Plus.

We don't plan to update the ratio on an ongoing basis, but last quarter, we announced that we had an incredibly quick traction since reduced and since introducing it roughly a year before that and that we're up to about a quarter of the consumer revenue coming through Coursera plus that's continued to increase but again, we don't plan to.

Speaker 1: That's continued to increase, but again, we don't plan to continue to update that. We're comfortable where it is, and then broadly, again, on the spectrum, if we're looking at different players in the space, you'd see us on the deeper, longer-form content part of the spectrum. That is what we do. Not necessarily that there's anything wrong with shorter-form content, but it is a very different product.

Continue to update that we're comfortable where it is.

And then broadly again on the spectrum, if we're looking at different players in the space you'd see us on the deeper longer form content part of the spectrum that is what we do not necessarily that there's anything wrong with shorter form content, but it is a very different product.

Ken one other thing I'll just mentioned Josh in terms of what is also a special about this longer form entry level professionals for the content.

Speaker 2: Ken, one other thing I'll just mention, Josh, in terms of what is also special about this longer form, entry-level professional-certificate content. You heard it in the script quite a bit. We're more and more valuable in ways that we think only Coursera can. So trying to link these things with career pathways to hiring opportunities, of course, that's why most adults learn anyway.

<unk> heard it in the script quite a bit.

More and more valuable in ways that we think only coursera cam so trying to link these thing with career pathways to hiring opportunities of course Thats why most adults learn anyway, but also these degree pathways. We continue to talk about American counts on education, where we're getting credit recommendations, we're starting with this consumer.

Speaker 2: but also these degree pathways. We continue to talk about American Council on Education, where we're getting credit recommendations. We're starting with this consumer entry-level job content can be a way to earn credit toward the college degree.

Entry level job content can be a way to earn credit towards a college degree.

Speaker 2: I will tell you this is certainly happening in the U.S. It's not just the U.S.

I will tell you. This is certainly happening in the U S. If not just the U S. When you look on a global basis. There are a number of countries at the Ministry of education level, who are saying, we need more industry relevant content into higher education, and we will create favorable regulatory policies to help facilitate the provision or the acceptance of Craig.

Speaker 2: You look on a global basis, there are a number of countries at the Minister of Education level who are saying we need more industry relevant content into higher education, and we will create favorable regulatory policies to help facilitate the provision or the acceptance of credit for industry kind of content that would count towards a higher education degree. So we think this is a very big trend, and we think it really plays to some of our advantages.

Four and dust industry kind of content that would count towards a higher education degree. So we think this is a very big trend and we think it really plays to some of our advantages.

Great. Thank you.

Your next question comes from the line of Stephen Sheldon with William Blair. Your line is open.

Speaker 3: Your next question comes from the line of Stephen Sheldon with William Blair. Your line is open.

Hey, thanks.

Speaker 5: Hey, thanks. Congrats on the big government contracts and enterprise. It seems like that's a pretty large opportunity.

Congrats on the big government contracts in enterprise it seems like that that's a pretty large opportunity. So.

Speaker 5: Wondering if you could talk more about the pipeline you're seeing there, plans for investing and more sales capacity to target it, and the level of competition you face when pursuing these large government contracts. And specifically, is the competitive environment maybe for these government contracts different relative to what you normally face on the business side?

I'm wondering if you could talk more about the pipeline you are seeing their plans for investing in more sales capacity that targeted.

The level of competition you face in pursuing these large government contracts.

If it is the <unk>.

<unk> environment, maybe for these government contracts differ.

Different relative to what you'd normally face on the on the business side.

Speaker 2: Yeah, thanks, Stephen. So we are definitely seeing something. I think that

Yes, Thanks Stephen.

So we are definitely seeing something I think that was <unk>.

Speaker 2: was structurally changed by the pandemic. I think, you know, governments have been realizing for some time.

Structurally changed by the pandemic I think governments have been realizing for some time.

Speaker 2: that for various reasons and in different countries it does vary, but their industrial policy, their education policy, their labor policies need to be integrated so that they can develop a human capital base in their economy that sets them up to be positioned the way they want five or ten years down the road. You look across the Gulf Coast countries and they're trying to position, well, create the backbone for an economy and a human capital stock for an economy that doesn't depend so much.

That for various reasons and in different countries. It does vary but there their industrial policy the education policy their labor policies need to be integrated so that they can develop a human capital base in their economy that sets them up to be positioned the way they want five or 10 years down. The road you look across the Gulf coast countries and they are trying to position.

We will create.

The backbone for an economy and a human human capital.

Stock for an economy that doesn't depend so much on oil you go to India, Philippines, Costa Rica, where they do a lot of multinational outsourcing where automation is starting to automate a lot of the jobs that those multinationals are asking them to do they are starting to realize we've got to really upgrade the human capital stock in our country.

Speaker 2: on oil. You go to India, Philippines, Costa Rica, where they do a lot of multinational outsourcing, where automation is starting to automate a lot of the jobs that those multinationals are asking them to do, they're starting to realize, you know, we've got to really upgrade the human capital stock in our country.

Speaker 2: What I think has changed because of the pandemic is that for the most part these government training programs were in person.

What I think has changed because of the pandemic is that for the most part these government training programs we're in person.

Speaker 2: And the pandemic forced governments to basically say, how do we take these learning programs online? And when they did that, they realized that the speed and the scale and also the efficacy, because a lot of the online content is not just easier to access and lower costs.

And the pandemic forced governments to basically say how do we take these learning programs online and when they did that they realized that the speed and our scale and also the efficacy because it because a lot of the online content is not just easier to access and lower cost.

Speaker 2: But it's also a lot more current. I mean it teaches skills that are much more current and relevant in the labor market. So I do see governments realizing hey there's a tool that we didn't have in our toolbox before that we can now use. And it's not an either or. It's not just industry content versus my higher education system. It's really a way of using digital learning and integration.

But it's also a lot more current I mean, it teaches skills that are much more current and relevant and labor market. So I do see governments. Realizing hey, there is a tool that we didn't have in our toolbox before that we can now use and its not an either or it's not just industry content versus my higher education system.

Really a way of using digital learning and integration.

Speaker 2: of what industry can do to educate as well as what higher education can do to integrate that is getting these governments I think you know attracted to the kinds of opportunities.

What industry can do to educate as well as what higher education.

Great that is getting these governments I think.

Attracted to the kinds of opportunities. So we are definitely seeing more interest we're getting more traction that create case studies and ways of showing here's how you do this often as BDC and through enterprises, but facilitated by governments you asked about competition, yes, theres definitely some competition, but the way I would kind of.

Speaker 2: So we are definitely seeing more interest. We're getting more traction. That creates case studies and ways of showing here's how you do this often as B2C and through enterprises, but facilitated by governments. You asked about competition.

Speaker 2: There's definitely some competition, but the way I would rank competition right now in the enterprise space is there's most competition in Coursera for Business.

Competition right now in the enterprise space and Theres, most competition and Coursera for business. Those are corporations, who are looking at different offerings. They care, a little bit less about credentials and theyre already dealing with a fairly skilled labor force and so I'd say, where we're differentiating with our skill sets and level set an academy is a little bit more on the.

On the higher end advanced skilling.

Speaker 2: But in Coursera for government, there's less competition in the sense that governments are looking for mass scale programs that are high quality and the brands on Coursera really help that quality.

But corsair for government.

Less competition in a sense that governments are looking for mass scale programs that are high quality in the brands on course here are really helped that quality.

Premium that the government places on Coursera and Theyre also looking to do it at very low cost and so there are some bootcamp providers. There is some kind of physical.

Speaker 2: And they're also looking to do it at very low cost. And so there are some boot camp providers. There's some kind of physical in-person-based training. But the scale of those is quite low. And the cost of those is quite high.

In person based training, but the scale of those is quite low and the cost of those is quite high and I think they are now starting to see that you can get speed and scale.

Speaker 2: And I think they're now starting to see that, wow, you can get speed and scale.

Speaker 2: on a platform like Coursera that works pretty well and the quality levels are actually quite high. So we actually do see, I would say, a lower intensity of competition in the government space than what we see in business. And then, frankly, even lower still with the campus piece, with Coursera for Campus. So that's a huge reason why we're playing into these markets, obviously. Like, this is like basic strategy, right? You're like, where's the big market where you can be differentially successful? Well, we think these are really big markets, and we think a lot of the features of Coursera that are different from our competitors play particularly well into these.

On a platform like Coursera that works pretty well and the quality levels are actually quite high. So we actually do see I would say a lower intensity of competition in the government's based on what we see in business and then frankly, even lower still with the campus space Coursera for campus.

Huge reason why we're playing into these markets. Obviously like this is like basic strategy regularly, whereas the big market, where you can be differentially successful well. We think these are really big markets and we think a lot of the features of course. They are they are different from our competitors play, particularly well into these markets.

Speaker 5: Got it. Makes sense. That's incredibly helpful. Maybe just to follow up on the degree side, appreciate the metric for 50% of degree learners that come from the consumer side. Is that actually improved? I think that might have been closer to the mid-40s in 2020, if I remember correctly. And if so, I guess what's moving that higher? Is it anything that you're doing better, or is it just the broader benefits of scale on both sides?

Got it makes sense and that's incredibly helpful and maybe just a follow up on the degree side. Appreciate the thank you hit the metrics of 50 percentage degree learners that come from the consumer side. I guess is that is that actually improved as I think that might have been closer to the mid $40. In 2020, if I remember correctly and if so I guess, what's moving that higher is it is it.

That you are doing better or is it just the broader benefits of scale on both sides.

Speaker 2: You know, I would say there's nothing structurally that we've really seen that we can look at and say, yeah, there's a clear signal that's coming from what we think will be a durable source, and therefore we can say that it will continue to go higher. I think generally the model's working the way that we had expected. Of course, we do have more degrees on platform, and even though it's pretty early stages with some of the degrees that are being offered by our university partners in other countries and regions.

I would say I would say, there's nothing structurally that we've really seen that that we can look at and say, yes. There is a clear signal that's coming from.

What we think will be a durable source and therefore, we can say that it will continue to go higher.

Generally the model is working the way that we had expected of course, we do have more degrees on platform and even though it's pretty early stages with some of the degrees that are being offered by our University partners in other countries and regions.

Speaker 2: We do think that there is a certain amount of latent demand that will be better met once you have degrees with a local branded university, taught in a local language, and so we think that there'll be opportunities.

We do think that there is a.

A certain amount of latent demand that will be better met once you have degrees with a local branded university and a local language.

And so we think that there'll be opportunities to leverage of the consumer base internationally. Once we fill out our broader portfolio and that's why we really are looking for degree programs that are more global than where we started which was mostly in the U S and Ken talked a little bit about some of the softness I mean, frankly, the U S labor market.

Speaker 2: to leverage the consumer base internationally once we fill out a broader portfolio. And that's why we really are looking for degree programs that are more global than where we started, which was mostly in the U.S. And Ken talked a little bit about some of the softness. I mean, frankly, the U.S. labor market.

Speaker 2: is really good right now, and I think a lot of students are thinking, hey, I would rather, you know, get some of that job opportunity and better income than to be earning. I mean, degrees in the U.S. have been counter-cyclical, you know, pretty much, I think, for a long time, maybe ever.

Is really good right now and I think a lot of students are thinking hey, I would rather get some of that job opportunity and better income than to be earning I mean, the reason the U S had been countercyclical pretty much I think for a long time, maybe ever and I think we're seeing some of that in the U S. But diversifying internationally, we think will be helpful.

Speaker 2: And I think we're seeing some of that in the U.S. But diversifying internationally, we think, will be helpful.

Speaker 5: Very helpful. Congrats on the results. Yeah. Thanks, Stephen. Thank you, Stephen.

Very helpful. Congrats on the results. Thanks.

Thank you Steven.

Your next question comes from the line of <unk> <unk> with RBC. Your line is open.

Wonderful nice to see continued success. Thanks for taking my questions any interest of time I'll just do one question here, but philosophically I wanted to get a sense for with all the Bachelor degree program announcements that we've seen over the recent months really encouraging to see that.

Speaker 2: What wonderful. Nice to see you continue success. Thanks for taking my question. In the interest of time I'll just do one question here. But philosophically I wanted to get a sense for with all the.

Speaker 2: bachelor degree program announcements that we've seen over the recent months, you know, really encouraging to see that.

Speaker 2: How would you, you know, maybe characterize the institutional or consumer sentiment in terms of the attitude towards, you know, online undergrad degrees, right? I mean, graduates obviously become mainstream over the past.

How would you characterize the institutional or consumer sentiment in terms of the attitude towards online undergrad degree graduates obviously.

Stream over the past several years or half a decade, but how are you seeing that potentially driving a mix them online programs on the underground side. Thanks.

Speaker 2: several years or half a decade, but how are you seeing that potentially driving a mix of online programs on the undergrad five?

Speaker 2: Yeah, thanks Rishi. And there's a supply side of this question, there's a demand side of the question. On the supply side, you know, the elite schools, your top ranked schools.

Yes, Thanks Mircea.

Why side of this question is the demand side of the question.

On the supply side, the elite schools Youll top rank schools.

It's going to be a lot lower likelihood that theyre going to put their undergraduate programs online because I think a lot of very selective and as our residential experience or frankly, the students apply those programs really really appreciate it.

Speaker 2: it's going to be a lot lower likelihood that they're going to put their undergraduate programs online because I think a lot of they're very selective and there's a residential experience that frankly you know the students who apply those programs really really appreciate. I think though when you start seeing undergraduate programs from relatively highly ranked schools that are available that are more affordable and also come from a regionally recognized brand and the thing about that is I mean students in high school are thinking oh where do I want to go to college if there's an online bachelor's degree.

I think though when you start seeing undergraduate programs from relatively highly ranked schools that are available that are more affordable and also come from a regionally recognized brands and the thing about that is I think students in high school or thinking Oh, where do I want to go to college. If there is an online bachelors degree from a from a university that they never heard.

Speaker 2: from a university that they've never heard of before. It's a lot less likely they're gonna do it because they're like, I don't know anyone who went there and I don't know that any employers would recognize that.

Before it's a lot less likely they're going to do it because like I don't know, what and who went there and I don't know that any employers would recognize that.

Speaker 2: I do think that there, with bachelor's degrees, I think that there is a regional brand element to this where if you can get a degree, you know, maybe faster, more conveniently, more affordably, but from a top branded or maybe not elite, but like a well-known regional brand, I think that you could be in the labor market and earning a bachelor's degree. I think that might open up the opportunity a bit. I mean, we do have a number of bachelor's degrees that we've been announcing. We're working hard to get more.

I do think that there with bachelor's degrees I think that there is a regional brand element to this where if you can get a degree maybe faster more convenient more affordably, but from a top branded or maybe not a leap, but like a well known regional brand.

I think that you can be in the labor market and earning a bachelor's degree I think that might open up the opportunity a bit I mean, we do have a number of bachelors degrees that we've been announcing we're working hard to get more.

Speaker 2: I think the elites will be doing their own thing with residential education. But frankly I think the availability of regional.

I think the elite will be doing their own thing with residential education, but frankly, I think the availability of regionally branded high quality online bachelor's degrees will be a really attractive option over the longer term and I think chip.

Speaker 2: high quality online bachelor's degrees will be a really attractive option over the longer term. And I think Chip, you talked about something pretty similar to like the bachelor's. Personally, what I think is that these people are going to need to differentiate their talent more and more. And so if you do have a college degree versus if you don't have a college degree.

You talked about something pretty similar to like the bachelors.

Personally what I think is that piece.

People are going to need to differentiate their talent more and more and so if you do have a college degree versus if you don't have a college degree that will be one basis of competing in the labor market. So I'm still bullish on degrees I'm bullish on bachelor's degrees.

Speaker 2: That'll be one basis of competing in the labor market. So I'm still bullish on on degrees. I'm bullish on bachelor's degrees. All right, really helpful. Thank you so much.

Alright really helpful. Thank you so much.

Servicing.

Speaker 3: Your next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.

Your next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.

Speaker 2: Thanks for taking the question. Maybe also in the interest of time, I'll just ask one on on hiring in the enterprise. Can you give us an update on what you're seeing in the broader landscape in terms of the ability to onboard sales people at effective our allies and whether there's been any change in terms of the type of people you're getting or seeing and the path to productivity in the in the sales force on the enterprise side. Thanks so much.

Thanks for taking the question maybe also in the interest of time I'll just ask one on hiring in the enterprise can you give us an update on what youre seeing in the broader landscape in terms of the ability to onboard salespeople at effective rois and whether there's been any change in terms of the type of people, you're getting or seeing in the path to productivity.

In the Salesforce on the enterprise side. Thanks, so much.

Speaker 2: Yeah, thanks, Eric. You know, when the pandemic happened almost immediately, before we even shut the office in March of 2020, I said, our head of people, Rich Jacquet and I, we sat down, we're like, look, let's just game plan this out.

Yes, Thanks, Eric.

When the pandemic happened almost immediately before we even shut the office in March of 2020 I said.

Our head of people rich chocolate and I, we sat down with <unk>.

Gain plan this out.

Speaker 2: Once people get a chance, once employees get a chance to work from anywhere, they're not all going to want to come back in. So we should immediately adopt this talent strategy that says we can recruit people from anywhere.

Once people get a chance once employees get a chance to work from anywhere they are not all going to want to come back in so we should immediately adopt this talent strategy that says we can recruit people from anywhere.

Speaker 2: That has served us really well. I mean frankly we're seeing good success hiring in all positions and.

That has served us really well I mean, frankly, we're seeing good success hiring in all positions.

Speaker 2: with a broad level of diversity and representation. So I think we're feeling good about the ability for Coursera to attract good talent. And when we announced our B Corp designation, part of that was it's consistent with our mission. Part of it is we know we're competing in competitive talent markets. And we think we're feeling really good about our ability to attract people. So that's good, pretty much anywhere in the world.

With a broad level of diversity of them representation.

So I think we're.

Feeling good about the ability for coursera to attract good talent, when we announced our B Corp designation, we part of that was it is consistent with our mission part of it is we are we know we're competing in.

Competitive talent markets and we think we're looking really we're feeling really good about our ability to attract people. So thats pretty much anywhere in the world in terms of the on boarding and productivity of course, we have ramping models and.

Speaker 2: In terms of the onboarding and productivity, you know, of course we have ramping models and

Speaker 2: you know, the exec team, our view of this on the ramping piece is part of it is how effective are your training programs.

The exec team our view of this on the ramping piece is part of it is how effective are your training programs, but a lot of it is how simple as your product like you have a very simple product that you can sell to a certain type of customer you don't need a lot of training and a lot of playbooks to do it so.

Speaker 2: But a lot of it is how simple is your product like if you have a very simple product that you could sell to a certain type of customer, you don't need a lot of training and a lot of playbooks to do it. So when I'll give you 1 little piece of color, we have we have enterprise sales forces that are product specific and regionally specific. So it's 1 of the great scale advantages is that we can cover a lot of surface area and play into multiple markets.

I'll give you one little piece of color we have we have.

Enterprise sales forces that are product specific and regionally specific so it's one of the great scale advantages is that we can cover a lot of surface area and play into multiple markets, but because we have the scale that we do we can have designated Gov people in the middle East and designated campus people in Latin America, and so frankly.

Speaker 2: But because we have the scale that we do, we can have designated gov people in the Middle East and designated campus people in Latin America. And so frankly, we're we're not having trouble hiring them. And we can be pretty specific about how we onboard training, get them into the market, get them productive. So we're feeling pretty good about it.

We're not having trouble hiring them and we can be really specific about how we onboard train and get them into the market and get them productive. So we're feeling pretty good about.

Speaker 2: Thanks so much for the color, and to the whole team, thanks so much for all the commentary in the area. I really appreciate it.

Thanks, so much for the color and to the whole team. Thanks, so much for all the commentary and really appreciate it.

Speaker 2: Yeah, you know, and just really quickly on that Eric, Ken and I have been around for a long time.

And just really quickly on that Erik and Ken and I have been around for a long time.

Speaker 2: Our job is to build a successful company and with respect to Wall Street educate people on how it works and what we're seeing. And so we're we're just going to try to be as helpful as possible for all of us to understand that the world changes and we morph the business like what's happening and kind of what can we expect. So I'm not only are we happy to do it I think that's our job is part of our job is to build a great company and educate people how it works.

Our job is to build a successful company and with respect to Wall Street educate people on how it works and what we're seeing and so we're just going to try to be as helpful. As possible for all of us to understand that as the world changes will be more of a business like what's happening and kind of what can we expect so.

Not only are we happy to do it I think that's our job is part of our job is to build a great company and educate them about how it works.

Speaker 3: Your next question comes from the line of Jason Salino with KeyBank. Your line is open.

Your next question comes from the line of Jason <unk> with Keybanc. Your line is open.

Speaker 6: Great, thanks guys for fitting in. Maybe in the essence of your comment, you know Jeff, on the education side.

Great. Thanks, guys for fitting me in maybe in the essence of your comment Jeff on the education side with.

With the degree guidance for 2022.

Speaker 6: commentary around the first cohort, maybe just a reminder on, you know, how these degrees ran and then maybe what.

Commentary around the first cohorts, maybe just a reminder, on how these degrees ramp and then maybe what this means visibility for future years. Thanks.

Speaker 2: Yeah, thanks Jason. So Ken can go through, I think, the cohort building, but generally speaking, large swaths.

Yes, thanks, Jason.

So Ken could go through I kind of I think the cohort building, but generally speaking large swaths first piece of the puzzle of sourcing a degree that EE is source of all vessel supply does accomplish wanted to give you the degree the most elite ones.

Speaker 2: First piece of the puzzle is sourcing a degree that a is source of all that's a supply. Like does a college want to give you the degree. The most elite ones are a lot harder to get.

Harder to get.

Speaker 2: And then the second question is for the degrees that you bring on will students in that region or on the platform actually buy it on the demand side. Will we go out the source? Generally it takes

And then second question is for the degree that you bring on what will students in that region are on the platform actually bite on the demand side.

We got the source generally it takes.

Speaker 2: you know, some number of years often. What you'll see, and I mentioned this as did Ken in the past, we are successfully bringing on more degree programs from the same degree partners, and we like that. That's great. That was part of that tiered pricing mall that we went after. We're definitely playing for both scale and scope. We believe that you can create variations of degrees on Coursera when a university has more degrees on Coursera, because you can mix and match courses, electives, and pieces like that. So generally speaking, it's harder to get started, but once you do, and you have a portfolio of degrees, you can mix and match them with a little bit more flexibility. The way that the cohorts go, you know, first you have to generate initial awareness and interest, and if it's a new degree in a new region, it takes a little bit longer.

Some number of years, often what youll see and I mentioned that thats been Ken in the past.

We are successfully bringing on more degree programs from the same degree partners and we like that that's great. I was part of that tiered pricing model that we went after we are definitely planning for both scale and scope. We believe that you can create variations of the ingredients on coarse ore when a university has more degrees on coronary because you can mix and match courses elected the pieces like.

So generally speaking it's harder to get started but once you do when you have a portfolio of degrees you can mix and match them with a little bit more flexibility and the way that the cohorts go first you have to generate initial awareness and interest and if it's a new degree in a new region. It takes little bit longer and then typically there are three starts per year ideally.

Speaker 2: And then typically there are three starts per year. Ideally you have more than that but often there's three starts per year. And then those degree programs are often two years sometimes three if it's a British bachelor's degree for if it's a.

More than that but often there's three starts per year and then those degree programs are often two years, sometimes three if it's a British bachelor's degree for if it's a.

U S degree, although these completion degrees can be done more quickly, but they are multi year and so you get a student in early cohort maybe theres. The first cohort there'll be around ideally for couple of years three years and then the next cohort starts 90 days later and then they will layer on so it builds overtime and I think when we enter a new region.

I think the initial cohort size starts growing and then you've got more cohorts in there as you kind of start filling up the slots and typically happens over multiple years, Ken anything you'd add to that.

Speaker 2: Ken, anything you'd add to that?

Speaker 1: Not much, really. It tends, after we land the program, it tends to take six months to a year for the partner to put the degree on the platform. And so that is when we begin the cohort process. And so maybe using some slightly different words, right, let's say we have a two-year program. Oftentimes that will fill over a few years because students taking online might take three years to finish a two-year. We charge by the credit hour. We don't charge by the degree, by the year. And so...

Not much really.

Tens after we land the program tend to take six months to a year for the partner to put the degree on the platform and so that is when we began the cohort process and so maybe using some slightly different words right, but let's say we have a two year program oftentimes that I'll fill over a few years.

Speaker 1: taking online might take three years to finish a two-year. We charge by the credit hour. We don't charge by the degree, by the year. And so each year, it increases, of course, as we layer cohorts until it gets to full capacity. And so a three-year program will take three years before it's filled up with essentially each class. Excellent. Thank you. No problem.

Because students taking online might take three years to finish a two year, we charged by the credit hour, we don't charge by the degree by the year and so.

Speaker 1: And so each year it increases, of course, as we layer cohorts till it gets to full capacity. And so a three-year program will take three years before it's filled up with essentially each class.

So each year it increases of course, as we layer cohorts tell it gets to full capacity and so a three year program will take three years before it's filled up with essentially each class.

Excellent. Thank you.

No problem.

So quite a bit of visibility while to build but a lot of visibility.

Speaker 1: So quite a bit of visibility, takes a while to build, but a lot of visibility.

Speaker 3: Our last question comes from the line of Ryan McDonald with Need Him, your line is open.

Our last question comes from the line of Ryan Macdonald with Needham Your line is open.

Hi, Thanks for taking my questions. Congrats on a great quarter I wanted to ask about gross margins can consumer business continues to be extremely impressive and the gross margins that it's producing how should we think about in 2022 guidance here sort of the implied gross margin or what confidence do you have sort of and the ability to store.

Speaker 6: Thanks for taking my questions. Congrats on a great quarter. I wanted to ask about gross margins. Ken, consumer business continues to be extremely impressive in the gross margins that it's producing. How should we think about in the 2022 guidance here sort of the implied gross margin or what confidence do you have sort of in the ability to stick with these 68%, 69% gross margin levels that you're hitting on the consumer business? Thanks.

With these 68, 69% gross margin levels that youre hitting on the consumer business. Thanks.

Speaker 1: Sure. It's a great question. The answer is we have a very high level of confidence. We are continuing to build out these programs, and we said it in the script.

Sure it's a great question.

The answer is we have a very high level of confidence we are continuing to build out these programs and we said it in the script.

But the reason for the continued shift is as consumers consume more as we have more success with the specialization those tend to have lower content cost for us.

Speaker 1: lower content costs for us. Our partners do these for a number of reasons. It's a lot more than just revenue. It's building their brands. It's creating their ecosystem. And so it's a little bit different. So we continue to have great success. Jeff talked about the number of programs. We see more being added this entire year. So it's really a bit of a mixed question in a way. And we see a very bright future. I mean, these work. It's what the consumer needs. You know, this is part of the result of the pandemic. So many people want to think about the pandemic with, you know, people stuck inside, the edutainment, and you fill your time, if you will, if you go back to the early stages. That's not what it has been for us. For us, it's been the increase in the rate of change of skills required in the consumer. So it's the consumer needing to update their skills. That's the pace of change. That's the real effect of the pandemic for us. And all we see is that strengthening. And for that reason, I feel very comfortable that that's where that's what we're going to see going forward. Yeah. And I'll just add, you know, in Q2, when you started seeing some of that expansion in the consumer segment, gross margin, we were like, well, you know, this is a little bit of a surprise. We don't know if this is going to persist. And then over the next few quarters, we're like, well, it does seem like consumers seem to be tilting towards these professional certificates. It looks like they're trying to get new jobs, start new careers. These new brands are playing really well. I think, you know, you know,

Partners do these for a number of reasons its a lot more than just revenue it's building their brands, it's creating their ecosystem and so it's a little bit different. So we continue to have great success, Jeff talked about the number of programs, we see more being added this entire year. So it's really a bit of a mix question.

In a way and we see a very bright future I mean these work it's what the consumer needs. This is part of the result of the pandemic. So many people want to think about the pandemic with people stuck inside the Edu Tainment and you fill your time, if you will if you go back to the early stages that's not.

What it has been for us for US it's been the increase in the rate of change of skills required in the consumer so the consumer needing to update their skills. That's the pace of change thats the real effect of the pandemic for us.

And all we see is that strengthening and for that reason I feel very comfortable that that's where that's what we're going to see going forward.

And al I'll, just add in Q2, when you started seeing some of that expansion in the consumer segment gross margin we were like well.

This was a little bit of a surprise, we don't know if this is going to persist and then over the next few quarters were like well it does seem like consumers seem to be tilting towards these professional certificates. It looks like theyre trying to get new jobs start new careers that the brands are playing really well.

Speaker 2: consumers seem to be tilting towards these professional certificates. It looks like they're trying to get new jobs, start new careers, the brands are playing really well.

Speaker 2: I think you never know for sure where consumers are going to go. But we're now kind of feeling like we've seen this for three quarters. I think it's really about Q4 was pretty darn high. I don't know if you should expect this stuff to keep going up in terms of growth margins. But we do think there is.

You never know for sure where consumer is going to go but we're now kind of feeling like all right. We've seen this for three quarters I think it's now by the Q4 it was pretty darn high I don't know that you should expect us to keep going up in terms of gross margins, but we do think there is.

Speaker 2: probably some durable nature to this idea that people are switching careers and are looking for these job skilling programs, which generally do have lower content fees from us because they come from our industry partners.

Some durable nature to this idea that people are switching careers and are looking for these jobs skilling programs, which generally do have lower content fees from us because they come from our industry partners.

Speaker 7: Thanks, Ryan. That wraps the Q&A. A replay of this webcast will be available on our Investor Relations website along with a transcript in the next 24 hours. We appreciate everyone joining us today.

Thanks, Ryan that wraps the Q&A.

Replay of this webcast will be available on our Investor Relations website, along with the transcript in the next 24 hours. We appreciate everyone joining us today.

Speaker 3: This concludes today's conference call. Thank you for participating. You may now disconnect.

Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker 8: framed up. You you

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Okay.

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