What changed in Coursera, Inc.'s 10-K — 2022 vs 2023
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Paragraph-level year-over-year comparison of Coursera, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+163 added−178 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-23)
Top changes in Coursera, Inc.'s 2023 10-K
163 paragraphs added · 178 removed · 130 edited across 1 sections
- Item 1. Business+163 / −178 · 130 edited
Item 1. Business
Business — how the company describes what it does
130 edited+33 added−48 removed53 unchanged
Item 1. Business
Business — how the company describes what it does
130 edited+33 added−48 removed53 unchanged
2022 filing
2023 filing
Biggest changeAND SUBSIDIARIES Consolidated St atements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (In thousands, except share and per share amounts) Redeemable Accumulated Convertible Additional Other Total Preferred Stock Common Stock Paid-In Treasury Stock Comprehensive Accumulated Stockholders’ Shares Amount Shares Amount Capital Shares Amount Income (Loss) Deficit Equity (Deficit) Balance—December 31, 2019 67,658,342 $ 332,681 38,430,678 $ — $ 94,364 ( 2,747,938 ) $ ( 4,701 ) $ 74 $ ( 276,736 ) $ ( 186,999 ) Issuance of Series F redeemable convertible preferred stock 7,647,058 130,000 — — — — — — — — Issuance costs of Series F redeemable convertible preferred stock — ( 388 ) — — — — — — — — Issuance of common stock upon exercise of options — — 4,204,065 — 10,081 — — — — 10,081 Issuance of restricted stock awards — — 36,250 — — — — — — — Issuance of common stock upon exercise of warrants — — 190,930 — 38 — — — — 38 Vesting of early exercise stock options — — — — 196 — — — — 196 Issuance of common stock in connection with content asset — — 187,305 — 3,956 — — — — 3,956 Stock-based compensation expense — — — — 17,773 — — — — 17,773 Change in unrealized loss on marketable securities — — — — — — — ( 54 ) — ( 54 ) Net loss — — — — — — — — ( 66,815 ) ( 66,815 ) Balance—December 31, 2020 75,305,400 $ 462,293 43,049,228 $ — $ 126,408 ( 2,747,938 ) $ ( 4,701 ) $ 20 $ ( 343,551 ) $ ( 221,824 ) Conversion of redeemable convertible preferred stock to common stock upon initial public offering ( 75,305,400 ) ( 462,293 ) 75,305,400 1 462,292 — — — — 462,293 Issuance of common stock upon initial public offering, net of offering costs — — 17,024,276 — 518,869 — — — — 518,869 Issuance of common stock upon exercise of options — — 8,731,889 — 32,287 — — — — 32,287 Issuance of common stock related to employee stock purchase plan — — 228,048 — 6,397 — — — — 6,397 Issuance of restricted stock awards — — 4,722 — — — — — — — Vesting of restricted stock units — — 502,135 — — — — — — — Tax withholding on vesting of restricted stock units — — ( 191,719 ) — ( 7,172 ) — — — — ( 7,172 ) Vesting of early exercise stock options — — — — 77 — — — — 77 Stock-based compensation expense — — — — 96,073 — — — — 96,073 Change in unrealized loss on marketable securities — — — — — — — ( 272 ) — ( 272 ) Net loss — — — — — — — — ( 145,215 ) ( 145,215 ) Balance—December 31, 2021 — $ — 144,653,979 $ 1 $ 1,235,231 ( 2,747,938 ) $ ( 4,701 ) $ ( 252 ) $ ( 488,766 ) $ 741,513 Issuance of common stock upon exercise of options — — 4,310,630 — 17,750 — — — — 17,750 Vesting of restricted stock units — — 1,940,200 — — — — — — — Tax withholding on vesting of restricted stock units — — ( 774,054 ) — ( 11,886 ) — — — — ( 11,886 ) Issuance of restricted stock awards — — 5,518 — — — — — — Issuance of common stock related to employee stock purchase plan — — 547,334 — 6,829 — — — — 6,829 Stock-based compensation expense — — — — 116,192 — — — — 116,192 Change in unrealized loss on marketable securities — — — — — — — ( 466 ) — ( 466 ) Net loss — — — — — — — — ( 175,357 ) ( 175,357 ) Balance—December 31, 2022 — $ — 150,683,607 $ 1 $ 1,364,116 ( 2,747,938 ) $ ( 4,701 ) $ ( 718 ) $ ( 664,123 ) $ 694,575 See notes to consolidated financial statements. 80 Table of Contents COURSERA, INC.
Biggest changeAND SUBSIDIARIES Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (In thousands, except share and per share amounts) Redeemable Convertible Preferred Stock Common Stock Additional Paid-In Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity (Deficit) Shares Amount Shares Amount Shares Amount Balance—December 31, 2020 75,305,400 $ 462,293 43,049,228 $ — $ 126,408 (2,747,938) $ (4,701) $ 20 $ (343,551) $ (221,824) Conversion of redeemable convertible preferred stock to common stock upon initial public offering (75,305,400) (462,293) 75,305,400 1 462,292 — — — — 462,293 Issuance of common stock upon initial public offering, net of offering costs — — 17,024,276 — 518,869 — — — — 518,869 Issuance of common stock upon exercise of options — — 8,731,889 — 32,287 — — — — 32,287 Issuance of common stock related to employee stock purchase plan — — 228,048 — 6,397 — — — — 6,397 Issuance of restricted stock awards — — 4,722 — — — — — — — Vesting of restricted stock units — — 502,135 — — — — — — — Tax withholding on vesting of restricted stock units — — (191,719) — (7,172) — — — — (7,172) Vesting of early exercise stock options — — — — 77 — — — — 77 Stock-based compensation — — — — 96,073 — — — — 96,073 Change in unrealized loss on marketable securities — — — — — — — (272) — (272) Net loss — — — — — — — — (145,215) (145,215) Balance—December 31, 2021 — $ — 144,653,979 $ 1 $ 1,235,231 (2,747,938) $ (4,701) $ (252) $ (488,766) $ 741,513 Issuance of common stock upon exercise of options — — 4,310,630 — 17,750 — — — — 17,750 Vesting of restricted stock units — — 1,940,200 — — — — — — — Tax withholding on vesting of restricted stock units — — (774,054) — (11,886) — — — — (11,886) Issuance of restricted stock awards — — 5,518 — — — — — — — Issuance of common stock related to employee stock purchase plan — — 547,334 — 6,829 — — — — 6,829 Stock-based compensation — — — — 116,192 — — — — 116,192 Change in unrealized loss on marketable securities — — — — — — — (466) — (466) Net loss — — — — — — — — (175,357) (175,357) Balance—December 31, 2022 — $ — 150,683,607 $ 1 $ 1,364,116 (2,747,938) $ (4,701) $ (718) $ (664,123) $ 694,575 Issuance of common stock upon exercise of options — — 6,621,448 1 27,314 — — — — 27,315 Vesting of restricted stock units — — 8,449,866 — — — — — — — Tax withholding on vesting of restricted stock units — — (3,485,308) — (54,122) — — — — (54,122) Repurchases of common stock — — — — — (4,829,803) (58,453) — — (58,453) Issuance of restricted stock awards — — 13,516 — — — — — — — Issuance of common stock related to employee stock purchase plan — — 615,150 — 6,031 — — — — 6,031 Stock-based compensation — — — — 116,625 — — — — 116,625 Change in unrealized gain on marketable securities — — — — — — — 777 — 777 Net loss — — — — — — — — (116,554) (116,554) Balance—December 31, 2023 — $ — 162,898,279 $ 2 $ 1,459,964 (7,577,741) $ (63,154) $ 59 $ (780,677) $ 616,194 See notes to Consolidated Financial Statements. 90 Table of Contents COURSERA, INC.
SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Our Chief Executive Officer is our chief operating decision maker (“CODM”). For the purposes of allocating resources and assessing performance, the CODM examines three segments which are our three revenue sources: Consumer, Enterprise, and Degrees. This is also consistent with how we disaggregate revenue.
SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Our chief operating decision maker (“CODM”) is our Chief Executive Officer. For the purposes of allocating resources and assessing performance, the CODM examines three segments which are our three revenue sources: Consumer, Enterprise, and Degrees. This is also consistent with how we disaggregate revenue.
Our corporate headquarters is located in Mountain View, California. Reporting Segments We conduct our operations through three reporting segments: Consumer, Enterprise, and Degrees. Refer to Note 15 for additional information. Initial Public Offering On April 5, 2021, Coursera, Inc. completed its initial public offering of common stock, in which 14,664,776 shares were sold (the “IPO” ).
Our corporate headquarters is located in Mountain View, California. Reporting Segments We conduct our operations through three reporting segments: Consumer, Enterprise, and Degrees. Refer to Note 14 for additional information. Initial Public Offering On April 5, 2021, Coursera, Inc. completed its initial public offering of common stock, in which 14,664,776 shares were sold (the “IPO”).
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Basis of Presentation The accompanying consolidated financial statements of Coursera, Inc., a Delaware public benefit corporation, and its subsidiaries (“Coursera”, the “Company”, “we”, “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Basis of Presentation The accompanying Consolidated Financial Statements of Coursera, Inc., a Delaware public benefit corporation, and its subsidiaries (“Coursera”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).
Revenue Recognition We recognize revenue from contracts with customers for access to the learning content hosted on our platform and related services. Revenue is recognized when control of promised services is transferred to our customer. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services.
Revenue We recognize revenue from contracts with customers for access to the learning content hosted on our platform and related services. Revenue is recognized when control of promised services is transferred to our customer. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services.
On August 16, 2022, the U.S. enacted the Inflation Reduction Act (“IRA”) of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy.
On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (“IRA”), which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy.
Sales commissions and related payroll taxes paid for Enterprise contract renewals are amortized over the renewal term, which is generally two years. Deferred commissions and related payroll taxes are recorded within deferred costs or other assets in the consolidated balance sheets, depending on the timing of the related amortization.
Sales commissions and related payroll taxes primarily paid for Enterprise contract renewals are amortized over the renewal term, which is generally two years. Deferred commissions and related payroll taxes are recorded within deferred costs or other assets in the Consolidated Balance Sheets, depending on the timing of the related amortization.
Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash, cash equivalents, and marketable securities. We only invest in high-credit-quality instruments and maintain our cash equivalents and marketable securities in fixed-income securities. We place our cash primarily with domestic financial institutions that are federally insured within statutory limits.
Concentrations of Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash, cash equivalents, and marketable securities. We only invest in high-credit-quality instruments and maintain our cash equivalents and marketable securities in fixed-income securities. We place our cash primarily with domestic financial institutions that are federally insured within statutory limits.
These expenses include the cost of servicing support requests from paid learners and educator partners; hosting and bandwidth costs; amortization of acquired technology and internal-use software; customer payment processing fees; and attributed depreciation and facilities costs. 86 Table of Contents Fair Value Measurements Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date.
These expenses include the cost of servicing support requests from paid learners and educator partners; hosting and bandwidth costs; amortization of acquired technology and internal-use software; customer payment processing fees; and attributed depreciation and facilities costs. 97 Table of Contents Fair Value Measurements Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date.
The tax returns for the fiscal years ended 2021 and 2020 are currently under examination in India. We believe that we have provided adequate reserves for income tax uncertainties in all open tax years. We are not under examination in any other jurisdiction.
The tax returns for the fiscal years ended 2022, 2021, and 2020 are currently under examination in India. We believe that we have provided adequate reserves for income tax uncertainties in all open tax years. We are not under examination in any other jurisdiction.
The Enterprise segment is focused on serving businesses, governmental organizations, and academic institutions by providing an intuitive online platform with access to job-relevant educational content enabling them to train, upskill, and reskill their employees, citizens, and students, faculty, and staff, respectively. The Degrees segment is engaged in partnering with universities to deliver fully online bachelor’s and master’s degrees.
The Enterprise segment is focused on serving businesses, governmental organizations, and academic institutions by providing an online platform with access to job-relevant educational content enabling them to train, upskill, and reskill their employees, citizens, and students, faculty, and staff, respectively. The Degrees segment is primarily engaged in partnering with universities to deliver fully online bachelor’s and master’s degrees.
In addition, the functional currency of our international subsidiaries is U.S. dollars. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured to the functional currency at period-end exchange rates. Foreign currency transaction gains and losses resulting from remeasurement are recognized in other (expense) income, net in the consolidated statements of operations.
In addition, the functional currency of our international subsidiaries is U.S. dollars. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured to the functional currency at period-end exchange rates. Foreign currency transaction gains and losses resulting from remeasurement are recognized within other expense, net in the Consolidated Statements of Operations.
In addition, we have indemnification agreements with certain of our directors, executive officers, and other employees that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service with Coursera. The terms of such obligations may vary. 13.
In addition, we have indemnification agreements with certain of our directors, executive officers, and other employees that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service with Coursera. The terms of such obligations may vary. 10.
Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance for credit losses and related activities were not material for the years ended December 31, 2022, 2021, and 2020. Property, Equipment, and Software, Net Property, equipment, and software, net is stated at cost, less accumulated depreciation and amortization.
Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance for credit losses and related activities were not material for the years ended December 31, 2023, 2022, and 2021. Property, Equipment, and Software, Net Property, equipment, and software, net is stated at cost, less accumulated depreciation and amortization.
During the year ended December 31, 2022, we recognized an impairment loss related to deferred partner fees of $ 2,915 , related to our operating lease ROU asset of $ 2,304 , and related to property and equipment of $ 904 . There were no impairments of long-lived assets during the years ended December 31, 2021 and 2020.
During the year ended December 31, 2022, we recognized an impairment loss related to deferred partner fees of $2,915, related to our operating lease ROU asset of $2,304, and related property and equipment of $904. There were no impairments of long-lived assets during the year ended December 31, 2021.
Specializations are a series of courses offered by the same educator partner where learners are provided access to these courses on a month-to-month subscription basis. Coursera Plus is our catalog-wide consumer subscription product, sold in monthly or annual subscriptions.
Specializations are a series of courses offered by the same educator partner, and learners are provided access to these courses on a month-to-month subscription basis. Coursera Plus is our catalog-wide consumer subscription product, sold in monthly or annual subscriptions.
A time-elapsed output method is used to measure progress because our efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. Fixed fees for these services are generally recognized ratably over the contract term. We include any fixed consideration within our contracts as part of the total transaction price.
A time-elapsed output method is used to measure progress because our efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. Fixed fees for these services are generally recognized ratably over the contract term. 95 Table of Contents We include any fixed consideration within our contracts as part of the total transaction price.
We amortize these costs over three years, since the commissions paid upon a contract renewal are not commensurate with the commissions paid on the initial contract and as such, the sales contract term is not commensurate with the expected period of benefit.
We amortize these costs over four years, since the commissions paid upon a contract renewal are not commensurate with the commissions paid on the initial contract, and as such, the sales contract term is not commensurate with the expected period of benefit.
The offering periods start on the first trading day on or after May 11 and November 11 of each year, except for the first offering period, which commenced on the IPO effective date, or March 30, 2021, and ends on May 10, 2023.
The offering periods start on the first trading day on or after May 11 and November 11 of each year, except for the first offering period, which commenced on the IPO effective date, or March 30, 2021, and ended on May 10, 2023.
Actual results could differ from those estimates, and any such differences could be material to our consolidated financial statements. 82 Table of Contents Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents.
Actual results could differ from those estimates, and any such differences could be material to our Consolidated Financial Statements. Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents.
Consumer Revenue We generate revenue from consumers by selling access to learning content hosted on our platform. Consumer products include certifications for single courses, Specializations, and catalog-wide subscriptions. Access to single courses are generally purchased at a fixed price for a set period of time, typically six months.
Consumer Revenue We generate revenue from consumers by selling access to learning content hosted on our platform. Consumer products include certifications for single courses, professional certificates, and catalog-wide subscriptions. Access to single courses are generally purchased at a fixed price for a set period of time, typically six months.
In return, educator partners earn a fee that we recognize as a content cost in the same period in which the related revenue is recognized and is classified as a cost of revenue in the consolidated statement of operations.
In return, educator partners earn a fee that we recognize as a content cost in the same period in which the related revenue is recognized and is classified as a cost of revenue in the Consolidated Statements of Operations.
We amortize our finite-lived intangible assets on a straight-line basis over an estimated useful life of three to six years . Amortization of content assets and developed technology is included in cost of revenue, and assembled workforce is included in research and development in the consolidated statements of operations.
We amortize our finite-lived intangible assets on a straight-line basis over an estimated useful life of two to six years. Amortization of content assets and developed technology is included in cost of revenue, and assembled workforce is included in research and development, both in the Consolidated Statements of Operations.
One such agreement stipulates that certain fees earned by the educator partner are to be allocated to a development fund to be held and spent by Coursera on activities such as developing, marketing, and advertising the educator partner's content, according to a mutually agreed upon plan.
One such agreement has stipulated that certain fees earned by the educator partner are to be allocated to a development fund to be held and spent by Coursera on activities such as developing, marketing, and advertising the educator partner's content, according to a mutually agreed upon plan.
Deferred Partner Fees These fulfillment costs are paid to educator partners in advance of completing our performance obligations; are recorded within prepaid expenses and other current assets or other assets in the consolidated balance sheets, depending on the timing of the related revenue recognition; and are amortized into cost of revenue ratably over the subscription term of the access being provided to the customer.
Deferred Partner Fees These fulfillment costs are paid to educator partners in advance of completing our performance obligations; are recorded within prepaid expenses and other current assets or other assets in the Consolidated Balance Sheets, depending on the timing of the related revenue recognition; and are amortized into cost of revenue ratably over the subscription term.
Research and Development Expenditures for research and development of our technology and non-refundable contributions to the development of partner content are expensed when incurred unless they qualify as internal-use software development costs. Research and development costs consist principally of personnel costs, consulting services, content development contributions, and attributed facilities costs.
Research and Development Expenditures for research and development of our technology and non-refundable contributions to develop educator partner content are expensed when incurred unless they qualify as internal-use software development costs. Research and development costs consist principally of personnel costs, consulting services, content development contributions, and attributed facilities costs.
The CODM measures the performance of each segment primarily based on its revenue and gross profit. Segment gross profit, as presented below, is defined as segment revenue less certain costs of revenue that represent content costs paid to educator partners.
The CODM measures the performance of each segment primarily based on its revenue and gross profit. 113 Table of Contents Segment gross profit, as presented below, is defined as segment revenue less certain costs of revenue that represent content costs paid to educator partners.
For purposes of this calculation, redeemable convertible preferred stock, common stock options, RSUs, ESPP Rights, early exercised common stock options, and common stock warrants are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for the periods presented. 88 Table of Contents Comprehensive Loss Comprehensive loss includes net loss and other comprehensive income (loss), net of tax.
For purposes of this calculation, redeemable convertible preferred stock, common stock options, RSUs, and ESPP Rights are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for the periods presented. 99 Table of Contents Comprehensive Loss Comprehensive loss includes net loss and other comprehensive income (loss), net of tax.
All Consumer contracts are billed in advance and revenue is recognized ratably over the contract term, after access has been granted to the learner, as learners have unlimited access to the course content during the contract term. Consumer learners are entitled to a full refund up to two weeks after payment is received.
All Consumer learners pay in advance, and revenue is recognized ratably over the contract term once access has been granted to the learner, as learners have unlimited access to the course content during the contract term. Consumer learners are entitled to a full refund up to two weeks after payment is received.
We utilize the asset and liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating losses (“NOLs”) and tax credit carryforwards.
We utilize the asset and liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Balance Sheets, as well as from net operating losses (“NOLs”) and tax credit carryforwards.
We partner with leading university and industry partners (“educator partners”) to bring quality higher education to a broad range of individuals, businesses, organizations, and governments. We also sell directly to institutions, including employers, colleges and universities, organizations, and governments, to enable their employees, students, and citizens to gain critical skills aligned to the job markets of today and tomorrow.
We partner with university and industry partners (collectively, “educator partners”) to bring quality higher education to a broad range of individuals, businesses, organizations, and governments. We also sell directly to institutions, including employers, colleges and universities, organizations, and governments, to enable their employees, students, and citizens to gain critical skills aligned to job markets.
Our cash and cash equivalents consist of cash and money market funds at financial institutions, and are stated at cost, which approximates fair value because of their immediate or short-term maturities. Our restricted cash consists of a letter of credit required to fulfill our corporate headquarters’ operating lease agreement . Marketable Securities Marketable securities consist of U.S.
Our cash and cash equivalents consist of cash and money market funds at financial institutions, and are stated at cost, which approximates fair value because of their immediate or short-term maturities. Our restricted cash primarily consists of a letter of credit required to fulfill our corporate headquarters’ operating lease agreement.
Under the 401(k) Plan, participating employees may elect to contribute up to 100 % of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. We made matching contributions of $ 1,791 to the 401(k) Plan for the year ended December 31, 2022.
Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. We made matching contributions of $1,710 and $1,791 to the 401(k) Plan for the years ended December 31, 2023 and 2022.
We earn a service fee based on a percentage of total tuition collected by the university from Degrees students, net of refunds. As a result, the revenue we earn is dependent upon the number of learners enrolled and the tuition charged by the university.
As a result, the university is our customer with respect to Degrees revenue. We earn a service fee based on a percentage of total tuition collected by the university from Degrees students, net of refunds. As a result, the revenue we earn is dependent upon the number of learners enrolled and the tuition charged by the university.
We recognize the liability and related expenses associated with this development fund consistent with the timing of when we recognize educator partner content costs given our liability is established in the same period the revenue is recognized. The expenses are classified in the consolidated statement of operations based on the nature of the underlying spend.
We recognized the liability and related expenses associated with this development fund consistent with the timing of when we recognized educator partner content costs given our liability is established in the same period the revenue is recognized. The expenses have been classified in the Consolidated Statements of Operations based on the nature of the underlying spend.
The term of the sublease commenced on June 1, 2022 and terminates on October 31, 2024 .
The term commenced on June 1, 2022 and terminates on October 31, 2024.
Interest and penalties accrued were immaterial as of December 31, 2022, 2021, and 2020. We file income tax returns subject to varying statutes of limitations. Due to our loss carryovers, the statutes of limitations remain open for all tax years since inception in our major tax jurisdictions.
Interest and penalties were not material as of December 31, 2023, 2022, and 2021. We file income tax returns subject to varying statutes of limitations. Due to our loss carryovers, the statutes of limitations remain open for all tax years since inception in our major tax jurisdictions.
COMMITMENTS AND CONTINGENCIES Purchase Obligations Purchase obligations relate mainly to a third-party cloud infrastructure agreement and subscription arrangements as well as service agreements used to facilitate our operations.
COMMITMENTS AND CONTINGENCIES Purchase Obligations Our purchase obligations primarily relate to a third-party cloud infrastructure agreement, subscription arrangements, and service agreements used to facilitate our operations.
When evaluating contract modifications, we must identify the performance obligations of the modified contract and determine both the allocation of revenues to the remaining performance obligations and the period of recognition for each identified performance obligation. We derive our revenue from three sources: Consumer, Enterprise, and Degrees. Refer to Note 15 for our disaggregation of revenue.
When evaluating contract modifications, we must identify the performance obligations of the modified contract and determine both the allocation of revenues to the remaining performance obligations and the period of recognition for each identified performance obligation. We generate revenue from our three reportable segments: Consumer, Enterprise, and Degrees. Refer to Note 14 for our disaggregation of revenue.
For the period prior to our IPO, we treated all series of our redeemable convertible preferred stock as participating securities, since the holders of such stock had the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend was paid on common stock.
Prior to our IPO, we treated all series of our redeemable convertible preferred stock as participating securities, since such stockholders had the right to receive non-forfeitable dividends on a pari passu basis in the event that a dividend was paid on common stock.
We recognize interest and penalties related to income tax matters as a component of income tax expense in the consolidated statement of operations. 87 Table of Contents Stock-Based Compensation Expense We measure and recognize compensation expense for stock-based awards granted to employees, directors, and nonemployees based on the estimated grant date fair value.
We recognize interest and penalties related to income tax matters as a component of income tax expense in the Consolidated Statements of Operations. Stock-Based Compensation Expense We measure and recognize compensation expense for stock-based awards granted to employees, directors, and non-employees based on the estimated grant date fair value.
We apply judgment in determining our customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience, credit, or financial information.
We apply judgment in determining our customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience, credit, or financial information. Consumer revenue customers are required to pay in advance.
For purposes of assessing concentration of credit risk with respect to accounts receivable and significant customers, we treat a group of customers under common control or customers that are affiliates of each other as a single custo mer.
For the purpose of assessing the concentration of credit risk with respect to accounts receivable and significant customers, we treat a group of customers under common control or customers that are affiliates of each other as a single customer.
Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. For the years ended December 31, 2022, 2021, and 2020, these costs were $ 39,940 , $ 28,740 , and $ 21,005 , respectively. Foreign Currency The majority of our sales contracts are denominated in U.S. dollars.
Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing in the Consolidated Statements of Operations. For the years ended December 31, 2023, 2022, and 2021, these costs were $44,818, $39,940, and $28,740. Foreign Currency The majority of our sales contracts are denominated in U.S. dollars.
Participants in the terminated offering are automatically enrolled in the new offering (an "ESPP Rights Reset"), triggering a revaluation of stock-based compensation expense and a modification charge to be recognized ratably over the new offering peri od if the revalued expense is greater than the original expense.
Participants in the terminated offering are automatically enrolled in the new offering (an “ESPP Rights Reset”), triggering a revaluation of stock-based compensation expense and a modification charge to be recognized ratably over the new offering period if the revalued expense is greater than the original expense.
As a result of this reduction, we recognized restructuring charges, within operating expenses, of $ 10.1 million mainly related to personnel expenses, such as employee severance and benefits costs, and made cash payments of $ 4.8 million in the year ended December 31, 2022.
As a result of this reduction, we recognized restructuring related charges, within operating expenses, of $10.1 million mainly related to personnel expenses, such as employee severance and benefits costs during the year ended December 31, 2022.
AND SUBSIDIARIES NOTES TO CO NSOLIDATED FINANCIAL STATEMENTS (In thousands, except share and per share amounts) 1.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except share and per share amounts) 1.
Internal-Use Software and Website Development Costs We capitalize certain costs associated with our internal-use software and website development during the application development stage when management with the relevant authority authorizes and commits to the funding of the project, it is probable that the project will be completed, and the software will be used as intended.
Refer to Note 6 for additional information. 94 Table of Contents Internal-Use Software and Website Development Costs We capitalize certain costs associated with our internal-use software and website development during the application development stage when management with the relevant authority authorizes and commits to the funding of the project, it is probable that the project will be completed, and the software will be used as intended.
Cost of Revenue Cost of revenue consists of content costs in the form of fees paid to educator partners and expenses associated with the operation and maintenance of our platform.
Cost of Revenue Cost of revenue consists of content costs, which are generally fees paid to educator partners, and expenses associated with the operation and maintenance of our platform.
The following table presents the cost basis and fair value of AFS marketable securities by contractual maturity date: December 31, 2022 December 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 460,372 $ 459,654 $ 241,369 $ 241,117 Investments in an unrealized loss position consisted of the following: December 31, 2022 December 31, 2021 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S.
The following table presents the cost basis and fair value of our AFS securities by contractual maturity date: December 31, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 65,765 $ 65,746 $ 460,372 $ 459,654 Investments in an unrealized loss position consisted of the following: December 31, 2023 December 31, 2022 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S.
For the years ended December 31, 2022 and 2021, income tax benefits realized related to stock-based awards vested and exercised were $ 387 and $ 968 , respectively, and were immaterial for the year ended December 31, 2020 due to cumulative losses and valuation allowances.
For the years ended December 31, 2023, 2022, and 2021, income tax benefits realized related to stock-based awards vested and exercised were $1,326, $387, and $968 due to cumulative losses and valuation allowances.
The activity related to the unrecognized tax benefits was as follows: Year Ended December 31, 2022 2021 2020 Gross unrecognized tax benefits—beginning of period $ 12,539 $ 7,477 $ 14,099 Increases related to tax positions taken during current year 3,641 4,850 2,210 Increases related to tax positions taken during prior years 248 220 — Decreases related to tax positions taken during prior years ( 57 ) ( 8 ) ( 8,832 ) Gross unrecognized tax benefits—end of period $ 16,371 $ 12,539 $ 7,477 We recognize interest and penalties related to unrecognized tax benefits in income tax expense.
The activity related to the unrecognized tax benefits was as follows: Year Ended December 31, 2023 2022 2021 Gross unrecognized tax benefits—beginning of period $ 16,371 $ 12,539 $ 7,477 Increases related to tax positions taken during current year 5,052 3,641 4,850 Increases related to tax positions taken during prior years 1,163 248 220 Decreases related to tax positions taken during prior years (51) (57) (8) Gross unrecognized tax benefits—end of period $ 22,535 $ 16,371 $ 12,539 We recognize interest and penalties related to unrecognized tax benefits in income tax expense.
As of December 31, 2022 , we had approximately $ 40,977 of future minimum payments under our noncancelable purchase obligations with a remaining term in excess of one year, which are expected to be paid through 2026.
As of December 31, 2023, we had approximately $23,058 of future minimum payments under our non-cancelable purchase obligations with a remaining term in excess of one year, which are expected to be paid through 2026.
These leases do not contain residual value guarantees, covenants, or other restrictions. In May 2022, we entered into a sublease agreement pursuant to which we subleased a part of our existing office space in Mountain View, California. We classified the sublease as an operating lease.
These leases do not contain residual value guarantees, covenants, or other restrictions. In May 2022, we entered into an agreement to sublease a portion of our existing office space in Mountain View, California.
We estimate and establish a refund reserve based on historical refund rates. The refund reserve was immaterial as of December 31, 2022 and 2021. Enterprise Revenue We sell subscription licenses to businesses, organizations, governments, and educational institutions that provide users the ability to enroll in courses and Specializations and receive certifications upon completion.
We estimate and establish an allowance for refunds based on historical refund rates, which was immaterial as of December 31, 2023 and 2022. Enterprise Revenue We sell subscription licenses to businesses, organizations, governments, and educational institutions that provide their learners with the ability to enroll in courses and Specializations and receive certifications upon completion.
During the year ended December 31, 2022, there were two ESPP Rights Resets that resulted in modification charges of $ 9,047 , which are being recognized ratably over the new offering periods. 97 Table of Contents Stock Options We may grant stock options at prices not less than the grant date fair value.
During the years ended December 31, 2023 and 2022, we had ESPP Rights Resets that resulted in modification charges of $3,119 and $9,047, which are being recognized ratably over the new offering periods. Stock Options We may grant stock options at prices not less than the grant date fair value.
AND SUBSIDIARIES Consolidated Statements of Comprehensive Loss (In thousands) Year Ended December 31, 2022 2021 2020 Net loss $ ( 175,357 ) $ ( 145,215 ) $ ( 66,815 ) Change in unrealized loss on marketable securities, net of tax ( 466 ) ( 272 ) ( 54 ) Comprehensive loss $ ( 175,823 ) $ ( 145,487 ) $ ( 66,869 ) See notes to consolidated financial statements. 79 Table of Contents COURSERA, INC.
AND SUBSIDIARIES Consolidated Statements of Comprehensive Loss (In thousands) Year Ended December 31, 2023 2022 2021 Net loss $ (116,554) $ (175,357) $ (145,215) Change in unrealized gain (loss) on marketable securities, net of tax 777 (466) (272) Comprehensive loss $ (115,777) $ (175,823) $ (145,487) See notes to Consolidated Financial Statements. 89 Table of Contents COURSERA, INC.
Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period.
All significant intercompany balances and transactions have been eliminated in consolidation. 92 Table of Contents Use of Estimates The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the Consolidated Financial Statements, as well as the reported amounts of revenue and expenses during the reporting period.
The components of lease costs were as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 5,853 $ 6,663 $ 6,856 Short-term lease cost 1,388 1,122 779 Variable lease cost 1,753 1,690 1,302 Sublease income ( 1,587 ) — — Total lease costs $ 7,407 $ 9,475 $ 8,937 92 Table of Contents Future lease payments under our non-cancelable operating leases, which do not include short-term leases, as of December 31, 2022 were as follows: 2023 $ 7,853 2024 7,411 2025 46 Total lease payments 15,310 Less imputed interest ( 861 ) Present value of operating lease liabilities $ 14,449 Operating lease liabilities, current 8,658 Operating lease liabilities, non-current 5,791 Total operating lease liabilities $ 14,449 Supplemental cash flow information as well as the weighted-average remaining lease term and discount rate related to our operating leases were as follows: Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,875 $ 7,683 Operating lease ROU assets obtained in exchange for lease liabilities 427 — December 31, 2022 December 31, 2021 Weighted-average remaining operating lease term (in years) 1.93 2.92 Weighted-average operating lease discount rate 5.76 % 5.70 % 8.
The components of lease costs were as follows: Year Ended December 31, 2023 2022 2021 Operating lease cost $ 5,510 $ 5,853 $ 6,663 Short-term lease cost 970 1,388 1,122 Variable lease cost 2,066 1,753 1,690 Sublease income (2,720) (1,587) — Total lease costs $ 5,826 $ 7,407 $ 9,475 104 Table of Contents Future lease payments under our non-cancelable operating leases, which do not include short-term leases, as of December 31, 2023 were as follows: 2024 $ 6,764 2025 47 Total lease payments 6,811 Less imputed interest (215) Present value of operating lease liabilities $ 6,596 Operating lease liabilities, current 6,557 Operating lease liabilities, non-current 39 Total operating lease liabilities $ 6,596 Supplemental cash flow information as well as the weighted-average remaining lease term and discount rate related to our operating leases were as follows: Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 8,509 $ 6,875 $ 7,683 Operating lease ROU assets obtained in exchange for lease liabilities — 427 — December 31, 2023 December 31, 2022 Weighted-average remaining operating lease term (in years) 0.93 1.93 Weighted-average operating lease discount rate 5.78 % 5.76 % 7.
Depreciation and software amortization are recorded using the straight-line method over the estimated useful lives of the assets, generally two to five years . Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.
Depreciation and software amortization are recorded using the straight-line method over the estimated useful lives of the assets, generally two to five years.
As of December 31, 2022 , we had remaining performance obligations of $ 324,009 and expect to recognize approximately 62 % as revenue over the next 12 months and the remainder thereafter.
As of December 31, 2023, we had remaining performance obligations of $320,936 and expect to recognize approximately 68% as revenue over the next 12 months and the remainder thereafter.
Consumer revenue customers are required to pay in advance. 84 Table of Contents At contract inception, we assess the performance obligations, or deliverables, we have agreed to provide in the contract and determine if they are individually distinct or if they should be combined with other performance obligations.
At contract inception, we assess the performance obligations, or deliverables, we have agreed to provide in the contract and determine if they are individually distinct or if they should be combined with other performance obligations.
In addition, as of December 31, 2022, total unrecognized compensation cost related to unvested RSUs was $ 286,554 , which is expected to be recognized over a weighted-average period of approximately 3.0 years.
In addition, as of December 31, 2023, total unrecognized compensation cost related to unvested RSUs was $230,963, which is expected to be recognized over a weighted-average period of approximately 2.5 years.
REVENUE RECOGNITION Contract Balances Contract assets and liabilities were as follows: December 31, 2022 December 31, 2021 January 1, 2021 Contract assets: Billed accounts receivable, net of allowance for credit losses $ 45,337 $ 22,286 $ 39,976 Unbilled accounts receivable 8,397 12,110 745 Total contract assets $ 53,734 $ 34,396 $ 40,721 Contract liabilities: Deferred revenue $ 118,777 $ 98,488 $ 80,642 Total contract liabilities $ 118,777 $ 98,488 $ 80,642 Revenue recognized during the years ended December 31, 2022, 2021, and 2020 that was included in the corresponding deferred revenue balance at the beginning of each year was $ 92,806 , $ 74,775 , and $ 37,906 , respectively.
REVENUE Contract Balances Contract assets and liabilities were as follows: December 31, 2023 December 31, 2022 January 1, 2022 Contract assets: Billed accounts receivable, net of allowance for credit losses $ 62,407 $ 45,337 $ 22,286 Unbilled accounts receivable 5,011 8,397 12,110 Total contract assets $ 67,418 $ 53,734 $ 34,396 Contract liabilities: Deferred revenue $ 140,089 $ 118,777 $ 98,488 Total contract liabilities $ 140,089 $ 118,777 $ 98,488 Revenue recognized during the years ended December 31, 2023, 2022, and 2021 that was included in the corresponding deferred revenue balance at the beginning of each year was $116,002, $92,806, and $74,775.
Long-lived Assets The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease ROU assets, by geographic region: December 31, 2022 December 31, 2021 United States $ 35,457 $ 40,245 Rest of World 1,244 801 Total $ 36,701 $ 41,046 101 Table of Contents 16.
Long-lived Assets The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease ROU assets, by geographic region: December 31, 2023 December 31, 2022 United States $ 34,047 $ 35,457 Rest of World 1,100 1,244 Total $ 35,147 $ 36,701 15.
Realized gains and losses are reported within other (expense) income, net as a component of net loss. Accounts Receivable, Net Accounts receivable, net includes trade accounts receivable, both billed and unbilled, net of an allowance for credit losses. Billed receivables are recorded at the invoiced amount in the period that our right to consideration is unconditional.
Any remaining impairment is included in accumulated other comprehensive income (loss). Accounts Receivable, Net Accounts receivable, net includes trade accounts receivable, both billed and unbilled, net of an allowance for credit losses. Billed receivables are recorded at the invoiced amount in the period that our right to consideration is unconditional.
The aggregate intrinsic value of stock options exercised was $ 57,311 , $ 296,635 , and $ 50,286 for the years ended December 31, 2022, 2021, and 2020. The weighted-average grant date fair value of options granted for the years ended December 31, 2022, 2021, and 2020 wa s $ 7.26 , $ 16.23 , and $ 5.66 , respectively.
The aggregate intrinsic value of stock options exercised was $72,649, $57,311, and $296,635 for the years ended December 31, 2023, 2022, and 2021. The weighted-average grant date fair value of options granted for the years ended December 31, 2023, 2022, and 2021 was $8.41, $7.26, and $16.23.
The federal NOL carryforwards generated after December 31, 2017 have an indefinite carryforward period and are subject to an 80 % deduction limitation based upon taxable income prior to NOL deduction.
The federal NOL carryforwards generated after December 31, 2017 have an indefinite carryforward period and are subject to an 80% deduction limitation based upon taxable income prior to NOL deduction. Of the total federal NOL carryforwards as of December 31, 2023, $405,529 are carried forward indefinitely, but are limited to 80% of taxable income.
The liability associated with the development fund is recorded within other accounts payable and accrued expenses within the consolidated balance sheets. 83 Table of Contents Leases We determine if an arrangement is a lease and the classification of that lease, if applicable, at inception by evaluating various factors, including if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances.
Leases We determine if an arrangement is a lease and the classification of that lease, if applicable, at inception by evaluating various factors, including if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances.
Expected Volatility —Since we do not have a sufficient trading history of our common stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies, within our industry, that we consider to be comparable to our business over a period equivalent to the expected term of the stock option or ESPP Rights.
Expected Volatility —The expected volatility is derived from the average historical stock volatilities of several unrelated public companies within our industry that we consider to be comparable to our business, and to the extent available, our historical volatility over a period equivalent to the expected term of the stock option.
Common Stock Reserved for Issuance Our common stock reserved for future issuance was as follows: December 31, 2022 December 31, 2021 Stock options outstanding 18,153,195 23,000,872 RSUs outstanding 22,773,053 7,387,288 Shares available for future grants 8,819,998 16,905,525 Total shares of common stock reserved 49,746,246 47,293,685 99 Table of Contents 401(k) Plan We have a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code.
Common Stock Reserved for Issuance Our common stock reserved for future issuance was as follows: December 31, 2023 December 31, 2022 Stock options outstanding 11,165,138 18,153,195 RSUs outstanding 18,361,046 22,773,053 Shares available for future grants 16,913,085 8,819,998 Total shares of common stock reserved 46,439,269 49,746,246 401(k) Plan We have a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code.
NET LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share: Year Ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 175,357 ) $ ( 145,215 ) $ ( 66,815 ) Denominator: Weighted-average shares used in computing net loss per share—basic and diluted 145,263,726 113,587,523 37,207,492 Net loss per share—basic and diluted $ ( 1.21 ) $ ( 1.28 ) $ ( 1.80 ) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Year Ended December 31, 2022 2021 2020 Redeemable convertible preferred stock — — 75,305,400 Common stock options 18,153,195 23,000,872 32,458,408 RSUs 22,773,053 7,387,288 3,276,600 Shares subject to repurchase — 2,607 52,084 ESPP Rights 123,603 65,446 — Total 41,049,851 30,456,213 111,092,492 12.
NET LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share: Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ (116,554) $ (175,357) $ (145,215) Denominator: Weighted-average shares used in computing net loss per share—basic and diluted 150,957,814 145,263,726 113,587,523 Net loss per share—basic and diluted $ (0.77) $ (1.21) $ (1.28) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Year Ended December 31, 2023 2022 2021 Common stock options 11,165,138 18,153,195 23,000,872 RSUs 18,361,046 22,773,053 7,387,288 Shares subject to repurchase — — 2,607 ESPP Rights 126,768 123,603 65,446 Total 29,652,952 41,049,851 30,456,213 108 Table of Contents 9.
AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except share and per share data) Year Ended December 31, 2022 2021 2020 Revenue $ 523,756 $ 415,287 $ 293,511 Cost of revenue 192,277 165,818 138,846 Gross profit 331,479 249,469 154,665 Operating expenses: Research and development 165,134 135,410 76,784 Sales and marketing 227,676 179,337 107,249 General and administrative 105,900 77,785 37,215 Restructuring charges 10,149 — — Total operating expenses 508,859 392,532 221,248 Loss from operations ( 177,380 ) ( 143,063 ) ( 66,583 ) Interest income 9,144 320 1,163 Other (expense) income, net ( 2,401 ) ( 346 ) 120 Loss before income taxes ( 170,637 ) ( 143,089 ) ( 65,300 ) Income tax expense 4,720 2,126 1,515 Net loss $ ( 175,357 ) $ ( 145,215 ) $ ( 66,815 ) Net loss per share—basic and diluted $ ( 1.21 ) $ ( 1.28 ) $ ( 1.80 ) Weighted average shares used in computing net loss per share—basic and diluted 145,263,726 113,587,523 37,207,492 See notes to consolidated financial statements. 78 Table of Contents COURSERA, INC.
AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except share and per share data) Year Ended December 31, 2023 2022 2021 Revenue $ 635,764 $ 523,756 $ 415,287 Cost of revenue 305,993 192,277 165,818 Gross profit 329,771 331,479 249,469 Operating expenses: Research and development 160,077 165,134 135,410 Sales and marketing 222,771 227,676 179,337 General and administrative 98,325 105,900 77,785 Restructuring related charges (5,806) 10,149 — Total operating expenses 475,367 508,859 392,532 Loss from operations (145,596) (177,380) (143,063) Interest income, net 34,432 9,144 320 Other expense, net (19) (2,401) (346) Loss before income taxes (111,183) (170,637) (143,089) Income tax expense 5,371 4,720 2,126 Net loss $ (116,554) $ (175,357) $ (145,215) Net loss per share—basic and diluted $ (0.77) $ (1.21) $ (1.28) Weighted average shares used in computing net loss per share—basic and diluted 150,957,814 145,263,726 113,587,523 See notes to Consolidated Financial Statements. 88 Table of Contents COURSERA, INC.
In addition, any impairment as a result of a sublease to the associated ROU asset and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment is recognized in the period the sublease is executed and recorded in the consolidated statements of operations.
In addition, impairment of an ROU asset and other lease related assets, including leasehold improvements, furniture and fixtures, and computer equipment, that results from entering into a sublease arrangement is recognized in the Consolidated Statements of Operations in the period the sublease agreement is executed.
We are generally the principal with respect to Consumer and Enterprise revenue as we control the performance obligation and are the primary obligor with respect to delivering access to course content.
We are generally the principal with respect to Consumer and Enterprise revenue as we control the performance obligation and are the primary obligor with respect to delivering access to course content. Additionally, we have inventory risk through recoupable advances sometimes paid to educator partners.
In February 2021, we adopted the 2021 Stock Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on March 30, 2021 when the registration statement for the IPO was declared effective (collectively, the 2021 Plan, the ESPP, and the Predecessor Plans are referred to as the "Plans").
The Predecessor Plans were terminated in March 2021 in connection with the IPO but continue to govern the terms and conditions of the outstanding awards granted pursuant to the Predecessor Plans. 110 Table of Contents In February 2021, we adopted the 2021 Stock Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on March 30, 2021 when the registration statement for the IPO was declared effective (collectively, the 2021 Plan, the ESPP, and the Predecessor Plans are referred to as the “Plans”).
We evaluate our AFS debt securities with an unamortized cost basis in excess of estimated fair value to determine what amount of that difference, if any, is caused by expected credit losses.
We evaluate our AFS debt securities with an unamortized cost basis in excess of estimated fair value to determine what amount of that difference, if any, is caused by expected credit losses. Realized gains and losses as well as credit-related impairment losses are included in other expense, net in the Consolidated Statements of Operations.
The geographic identification of these assets is set forth below. 100 Table of Contents Financial information for each reportable segment was as follows: Year Ended December 31, 2022 2021 2020 Revenue Consumer $ 295,583 $ 246,187 $ 192,909 Enterprise 181,284 120,429 70,784 Degrees 46,889 48,671 29,818 Total revenue $ 523,756 $ 415,287 $ 293,511 Segment gross profit Consumer $ 214,305 $ 161,510 $ 106,509 Enterprise 126,573 81,253 48,972 Degrees 46,889 48,671 29,818 Total segment gross profit $ 387,767 $ 291,434 $ 185,299 Reconciliation of segment gross profit to gross profit Platform and support costs $ 37,471 $ 28,014 $ 22,833 Stock-based compensation expense 3,089 2,092 516 Amortization of internal-use software 13,128 9,675 5,875 Amortization of intangible assets 2,600 2,184 1,410 Total reconciling items 56,288 41,965 30,634 Gross profit $ 331,479 $ 249,469 $ 154,665 Geographic Information Revenue The following table summarizes the revenue by region based on the billing address of our customers: Year Ended December 31, 2022 2021 2020 United States $ 276,011 $ 210,513 $ 143,478 Europe, Middle East, and Africa 130,607 112,643 83,227 Asia Pacific 68,943 54,763 40,732 Other 48,195 37,368 26,074 Total $ 523,756 $ 415,287 $ 293,511 No single country other than the United States represented 10 % or more of our total revenue during the years ended December 31, 2022, 2021, and 2020.
Financial information for each reportable segment was as follows: Year Ended December 31, 2023 2022 2021 Revenue Consumer $ 365,221 $ 295,583 $ 246,187 Enterprise 219,542 181,284 120,429 Degrees 51,001 46,889 48,671 Total revenue $ 635,764 $ 523,756 $ 415,287 Segment gross profit Consumer $ 193,001 $ 214,305 $ 161,510 Enterprise 150,384 126,573 81,253 Degrees 51,001 46,889 48,671 Total segment gross profit $ 394,386 $ 387,767 $ 291,434 Reconciliation of segment gross profit to gross profit Platform and support costs $ 42,134 $ 37,471 $ 28,014 Stock-based compensation expense 2,593 3,089 2,092 Amortization of internal-use software 16,894 13,128 9,675 Amortization of intangible assets 2,994 2,600 2,184 Total reconciling items 64,615 56,288 41,965 Gross profit $ 329,771 $ 331,479 $ 249,469 114 Table of Contents Geographic Information Revenue The following table summarizes the revenue by region based on the billing address of our customers: Year Ended December 31, 2023 2022 2021 United States $ 340,672 $ 276,011 $ 210,513 Europe, Middle East, and Africa 153,037 130,607 112,643 Asia Pacific 82,331 68,943 54,763 Other 59,724 48,195 37,368 Total $ 635,764 $ 523,756 $ 415,287 No single country other than the United States represented 10% or more of our total revenue during the years ended December 31, 2023, 2022, and 2021.
We recognize sublease income on a straight-line basis over the sublease term, and it is recorded as a reduction to our operating lease expense. Refer to Note 7 for additional information.
We recognize sublease income as a reduction to our operating lease expense on a straight-line basis over the sublease term.
Degrees revenue contracts involve the performance of a number of promises, including but not limited to hosting the degree content on our learning platform, providing content authoring tools, course production support, and marketing and platform technical support services. As a result, the university is our customer with respect to Degrees revenue.
Degrees Revenue Universities contract with us to facilitate the delivery of their bachelor’s and master’s degree programs or postgraduate diplomas. Degrees revenue contracts involve the performance of a number of promises, including but not limited to hosting the degree content on our learning platform, providing content authoring tools, course production support, marketing, and platform technical support services.
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