Shares of Coursera, Inc. (COUR) are facing a significant pre-market plunge of 6.25% on Friday, extending the 5.21% drop witnessed in after-hours trading on Thursday. The sharp decline comes in the wake of the company's mixed third-quarter results and disappointing fourth-quarter revenue guidance.
While Coursera reported better-than-expected Q3 results, 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, investors seem more focused on the company's outlook. Coursera's Q4 revenue guidance range of $189 million to $193 million fell short of market expectations, suggesting a potential slowdown in growth compared to the 10% year-over-year increase seen in Q3.
Despite raising its full-year 2025 revenue outlook to a range of $750 million to $754 million, up $10 million from previous guidance, the market appears unconvinced. The company's Consumer segment showed strong performance with 13% growth compared to last year, but this positive aspect seems overshadowed by concerns about Coursera's near-term growth trajectory. As the market digests this mixed bag of results and guidance, analysts maintain a cautious stance, with Morgan Stanley reiterating a Hold rating and a $12.00 price target on the stock.
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