Why Coursera Stock Crashed Today
Shares of online learning platform Coursera (NYSE: COUR) crashed on Friday after the company reported financial results for the third quarter of 2024 and reduced its full-year financial guidance. As of 10:30 a.m. ET, Coursera stock was down about 8% but it had been down nearly 18% earlier in the day.
The drop for Coursera stock has a complex explanation because the Q3 numbers looked good. Management had said that it would generate revenue of $175 million, at most. But in Q3 the company generated revenue of $176 million. Moreover, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $13.3 million surpassed management's guidance of up to $4 million.
Considering Coursera outperformed its financial guidance, one would have expected its stock to be up, not down. But the company oddly lowered its revenue guidance for the year. Before, it had guided for revenue of $695 million to $705 million. Now, it's guiding for revenue of $690 million to $694 million, which is surprising given its outperformance in Q3.
Source Fool.com
