July 29, 2022
Coursera Reports Decline in Revenue from Degree Business
O One of the first MOOC providers, Coursera began operations a decade ago with the mission of making college-level courses accessible to everyone. In 2015, the platform hosted its first master's degree programme, and in 2018, it hosted its first bachelor's degree programme. While Coursera's overall revenue increased in the second quarter of 2022, its degree-related revenue fell by 4% to $11.4 million, according to the company's most recent earnings report.
While Coursera is still in the early stages of developing the Degree area of its business, company officials told analysts in February that the company saw significant revenue growth in the degrees segment in fiscal 2021. On Wednesday, a person from Cousera reiterated that approach and stated that the company intended to increase the range of degrees available from both new and current partner colleges. One way to do this is by offering degrees in a wider range of languages.
…lower-than-expected student enrolment, particularly in programmes provided by American and European institutions, was the cause of the degree segment's revenue decline...
CEO of Coursera Jeff Maggioncalda stated that lower-than-expected student enrolment, particularly in programmes provided by American and European institutions, was the cause of the degree segment's revenue decline. In the second quarter, the company's net loss increased by 6.4 percent to $49.3 million.
On a conference call with analysts, Coursera's chief financial officer, Kenneth Hahn, echoed that it will take time for the company to benefit from new programmes, in part because international programmes typically have lower tuition costs.
On the Coursera platform, there were nearly 17,500 students enrolled in degree programmes in the second quarter, a 19% increase from the same period last year. However, degree revenue decreased slightly on a yearly basis.
Maggioncalda also referred to the U.S.'s robust labour market, which has historically resulted in lower enrolments as people prefer to enter the workforce over higher education.
Posted in News and tagged News, Coursera, MOOC, America, Europe, Students, Degree Programmes
Bookmark the Permalink
