Coursera Shares Plunge as Profitability Guidance Misses Mark

Coursera (NYSE: COUR) experienced a sharp sell-off following its third-quarter financial results, with shares falling 12.9% in a session where major indices trended higher. The decline occurred despite the education-services specialist reporting performance that exceeded Wall Street's immediate expectations for the period. For the third quarter, the company posted non-GAAP adjusted earnings per share of $0.10 on sales of $194.2 million. These figures surpassed analyst estimates of $0.08 per share and $190.3 million in revenue. The company's revenue grew approximately 10% year-over-year, prompting management to raise its full-year sales guidance to a range between $750 million and $754 million, up from the previous consensus of $744.4 million. However, the positive top-line momentum was overshadowed by a weak profitability outlook. Coursera provided guidance for fourth-quarter adjusted EBITDA between $7 million and $10 million, falling significantly short of the $10.2 million target anticipated by analysts. The market reaction suggests that investors are increasingly concerned that Coursera's revenue growth is coming at the expense of margins. This valuation contraction happened in isolation from the broader market, as the S&P 500 and Nasdaq Composite both posted gains during the same trading session.