Revenues in 2019-2020
Invest in IPO Coursera
Coursera is an online learning platform that connects learners, educators, and institutions with the goal of providing world-class educational content that is affordable, accessible, and relevant. Coursera combines content, data, and technology into a platform that is customizable and extensible to both individual learners and institutions.
The company partners with over 200 leading universities and industry partners to bring quality higher education to a broad range of individuals, businesses, organizations, and governments. More than 77 million learners had registered on its platform, and over 2,000 organizations, 4,000 academic institutions, and 300 government entities had used the platform to upskill and reskill their employees, students, and citizens. Coursera was founded in 2012 in California, US.
The global economy is changing rapidly. According to estimates based on data from the International Labour Organization (the “ILO”), the global workforce will grow by 230 million people by 2030. This is expected to happen at a time when up to half of today’s jobs, around 2 billion, are at high risk of disappearing by 2030 due to automation.
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.
Quarterly and annual revenue and operating results have fluctuated from period to period and may do so in the future, which could cause stock price to fluctuate and the value of investment to decline.
The company’s recent, rapid growth may not be indicative of future growth and the company expects revenue growth rate to decline compared to prior years.
Coursera has incurred significant net losses since inception, and anticipates that it will continue to incur losses for the foreseeable future.
Market adoption of online learning solutions is relatively new and may not grow as expected, which may harm business and results of operation.
Coursera (COUR) plans to sell 15.7 million shares at a price range of $30 to $33. The company intends to raise as much as $520M in an IPO of its common stock at about $4.4B valuation. Coursera has raised a total of $443.1M in funding over 11 rounds from 21 investors, including New Enterprise Ventures, Kleiner Perkins, The World Bank and others.
Coursera booked $294M in revenue in 2020. Gross margin is around 53%. Coursera grew its revenue at a 32% CAGR from 2017–2020. Growth doubled in 2020 to 59% from 30% in 2019 with help from the pandemic stay-at-home measures, which drove consumers to explore new hobbies and personal development. The Consumer segment accounted for 66% of total revenue in 2020, though Enterprise and Degree segments are growing rapidly, up from 8% and 3% of revenue in 2017 to 24% and 10% in 2020, respectively.
Similar public companies are Chegg (CHGG), which is trading at 20x sales with revenue growth of 64% and gross margin of 68% and Pluralsight (PS), which is trading at 8.5x sales with revenue growth of 18% and gross margin of 78%. Coursera is asking investors to pay 15x sales with revenue growth of 60% and gross margin of 54%, which is a reasonable valuation. This investment idea has a medium potential return of up to 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.