Shares of Coursera, Inc. (COUR) experienced a significant plunge of 12.69% in pre-market trading on Friday, as investors reacted negatively to the company's disappointing fourth-quarter revenue guidance, overshadowing its better-than-expected third-quarter results.
The online learning platform reported mixed third-quarter earnings, with revenue of $194.2 million surpassing the consensus estimate of $190.3 million and adjusted earnings per share of $0.10 beating the expected $0.08. Coursera's Consumer segment showed particularly strong performance, growing revenue by 13% compared to the previous year. However, these positive results were overshadowed by the company's outlook for the fourth quarter.
Coursera provided fourth-quarter revenue guidance in the range of $189 million to $193 million, which fell short of market expectations. This outlook suggests a potential slowdown in growth compared to the 10% year-over-year increase seen in Q3, raising concerns about the company's near-term growth trajectory. Despite raising its full-year 2025 revenue outlook to a range of $750 million to $754 million, up $10 million from previous guidance, investors remained unconvinced. The market's sharp negative reaction reflects growing skepticism about Coursera's ability to maintain its growth momentum in the crucial fourth quarter and beyond.
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