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Coursera

Leading online learning platform
Pre-IPO
Medium risk

Company's revenue in 2016-2018

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Investment Idea Details
About the company

Coursera is a leading learning platform that enables world-class online education.

The company has rapidly grown to reach 45 million learners (+30% year-over-year growth) and 2,000 businesses (+43% year-over-year growth) around the world. Coursera offers access over 3,800 courses and 400 specializations from more than150 top universities.

Coursera was founded in 2012 and has raised about $313 million in total funding. Its last funding round in April 2019 was valued at $1.3 billion, with its shares traded at $12 per share.

Market Opportunities

According to analysts' forecasts, the global market for online education platforms will see a significant jump in 2019-2026, with an increase of 41% on average. The market is expected to expand from $4.3 billion in 2018 to $65.5 billion in 2026.

The U.S. education system experiences a number of stumbles, students pay exorbitant prices for tuition, competing for the few places in top universities. On the other hand, businesses seek training and professional certifications for their employees, so Coursera works with them to build courses that train people in specific vocational areas. In Europe and the USA many companies recognize Coursera courses as full university degrees.

Coursera also successfully developed courses for such IT giants as IBM and Google, offering IBM Blockchain Foundation certification for developers taught by IBM staff.

Risks

Severe competition. A large number of companies provide online learning services. Coursera competes with edX, Udacity, Khan Academy, Udemy.

Overestimated market assessment. The online learning platform market is relatively young, and there is a risk that analysts and venture investors are overestimating the growth potential of this industry in the future.

Customer growth and revenue numbers were borrowed from open sources considered to be reliable. However, there is a risk that the actual financial indicators differ from the data from open unofficial sources, which may adversely affect the value of the company's shares.

Financials and Valuation

According to Forbes, Coursera will likely go public within the next two years (article dated October 2018).

The revenue of the company was estimated at $140 million in 2018, it is growing on average by 40% per year. Coursera generates profits from the three parts of its business: direct to consumers (sells online courses to registered users), corporate training (sells classes through enterprise customers and online degree programs.

Corporate courses are especially lucrative for Coursera - the revenue from the enterprise business grew by 300% in 2018 and by over 100% in 2019. More than 2,000 companies across the world use Coursera’s services. Among its customers - Adobe, Goldman Sachs, L’Oréal, Mastercard and other global corporations. It provides courses to over 60 companies from the Fortune 500 list.

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Publication
25 Sep
Minimum Amount
1 share
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Shares Outstanding
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Public Offering Date
Pending
Estimated Gains
+150%
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Exit
̴ 2021
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