Coursera, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Coursera's fourth quarter and full year 2022 earnings call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, simply press star one again. And now at this time, I'll turn things over to Cam Carey, head of investor relations. Mr. Carey, you may begin.

Hi, everyone, and thank you for joining our Q4 earnings conference call. With me today is Jeff Maggi and Calda, Coursera's chief executive officer, and Ken Hahn, our chief financial officer. Following their prepared remarks, we will open the call for questions. Our press release, including financial tables, was issued after market close and is posted on our investor relations website, located at investor.coursera.com, where this call is being simultaneously webcast and where versions of our prepared remarks and supplemental slides are available. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measure can be found in today's press release and supplemental presentation, which are distributed and available to the public through our investor relations website. Please note, All growth percentages refer to year-over-year change unless otherwise specified. Additionally, all statements made during this call related to future results and events are forward-looking statements based on current expectations and beliefs. These forward-looking statements include, but are not limited to, statements regarding the potential impacts of trends affecting our industry and uncertainties in the current economic and educational environment, our ecosystem, platform, content, and partner relationships. Our anticipated plans and the anticipated benefits thereof, our strategy and priorities, and our business model, mission, opportunities, outlook, and future intentions. Actual results and events could differ materially from projections due to a number of risks and uncertainties discussed in our press release, SEC filings, and supplemental materials. These forward-looking statements are not guarantees of future performance or plans, and investors should not place undue reliance on them. We assume no obligation to update our forward-looking statements. And with that, I'd like to turn it over to Jeff.

Thanks, Cam, and welcome, everyone. It's great to be with you all. You know, I've been a CEO for over 25 years. And in that time, I have witnessed many economic cycles, societal challenges, and technological leaps that have required individuals and institutions to embrace how to learn, change, and grow. The past year has proven to be one of those times. Organizations are exercising caution given the macroeconomic uncertainty. Students are demanding an education system that is more affordable, accessible, and relevant. And as the year came to a close and ChatGPT mesmerized the world, we were all reminded of the transformative power of technology to change the way we teach, learn, and work. Despite the dynamic environment, I'm inspired by our team and confident in our ability to deliver on our long-term strategy. We grew revenue 26% over the prior year with total revenue of $524 million. We rapidly expanded the Coursera ecosystem, welcoming new learners, educators, and institutions around the globe. And we deepened the advantages of our three-sided platform. The structural trends reshaping our world are not slowing down. Let's discuss the latest on each, starting with digital transformation. The forces of technology and globalization have been accelerating the transformation of every institution in our society. And the rise of remote work has led to a globalization of talent that is reshaping the supply and demand for jobs no longer confined to a specific city, state, or country. Over the course of my career, I have seen how areas of disruptive technology, be it the internet, cloud computing, social media, or mobile, have helped advance the world and create opportunity. But they've not been without consequences, including dislocation and job losses. I believe that AI is ushering in the next major inflection point with implications that go beyond the traditional boundaries of automation. It appears that AI will impact the future of learning and the future of work more quickly and more profoundly than many of us had been expecting. This brings me to my second major trend, which is skills development. Employers are rapidly digitizing work processes and jobs that are repeatable and predictable. But generative AI has the potential to impact an entire new class of knowledge workers, unleashing a new wave of reskilling imperatives. We believe that generative AI will require businesses to retool systems, processes, and talent while harnessing these new technologies to improve their customer offerings, increase productivity, and stay competitive. It will push universities to enhance their curriculums and the learning experience, in order to make quality education more affordable, interactive, and relevant. It will drive governments to deliver job training programs at the speed and scale needed to keep pace with job dislocation and unemployment challenges. And it will push every individual in every job to keep learning in order to stay relevant. This leads me to the third trend that is driving our business, the transformation of higher education and adult learning more broadly. In a world where machines are increasingly capable of producing content at scale, we believe that trusted institutions will play an increasingly valuable role in education. The growth in online learning has provided more equitable access to learners around the world, but the design of traditional systems of higher education have not kept pace with the changing skill requirements that have been driven by technology and automation. These higher education institutions must meet this challenge with rapid speed and scale, evolving to better serve the needs of students, graduates, and communities in an increasingly digital and disruptive labor market. And this is why I'm glad to share that Coursera has partnered with the University of Texas system. This is a three-year system-wide initiative. Students and faculty at all eight UT campuses have access to the Coursera catalog, including our entry-level professional certificates that have been created by some of the world's best-known industry brands. Many of these industry micro-credentials come with ACE credit recommendations, and several universities have already begun integrating content on Coursera into their four credit curriculum, including UT Arlington, El Paso, San Antonio, and Tyler. We believe students will benefit not only from learning skills, but also from earning industry micro-credentials that complement the degree they earn from their local campus. And the University of Texas system will be preparing the next generation of talent to meet the state's workforce and industry demands. Historically, collaboration between industry and academia has been slow and piecemeal. By integrating industry expertise into university curriculum, at the scale of entire systems of higher education and government, we are beginning to witness what our platform and our ecosystem can make possible. Coursera is increasingly becoming the platform through which institutions are able to drive powerful collaboration to better meet the needs of our digital world. We believe our platform has three distinct advantages that allow us to compete differently. First, our leading educator partners who've created a broad catalog of branded, high-quality content and credentials. Second is our global reach and distribution. And third is the data and technology that powers our unified platform. Let's discuss our recent progress for each of these. First, our educator partners. Universities play a prominent role in society, fostering education, research, and knowledge while teaching durable skills like critical thinking, communication, and collaboration. And the curriculum can be complemented by practical hands-on learning from industry partners who are better equipped to keep pace with a fast-changing skills landscape and evolving job requirements. Coursera's learning ecosystem, includes a powerful combination of 300 university and industry partners. And we welcome many new partners to our platform over the last year. This includes top tier universities around the globe, like Georgetown University, Indian Institute of Science, and King Abdullah University of Science and Technology, as well as industry leaders in the fields of technology, business, and health. This includes Accenture, Mayo Clinic, NVIDIA, PWC India, and SAP. and these partners continue to expand the Coursera catalog. We announced 14 new degree programs in 2022, including two recent additions since our last call. We welcome the first liberal studies degree on Coursera from Georgetown University. This is a bachelor's completion program that offers an affordable, flexible way for adult learners to finish their degree. Additionally, we announced our first degree from West Virginia University, It's a master's of science in software engineering, and it's offered at an affordable price for students around the world. Next, we are rapidly expanding our catalog of entry-level professional certificates, adding new partners, job roles, and language translations, while creating stronger connections to career and degree pathways. A year ago, we had 18 of these certificate training programs. Today, we have 38 that have been announced. more than doubling the catalog with titles from new and existing partners. Recently, we announced the first entry-level professional certificates from two new industry partners, including SAP Technology Consultant and Goodwill Career Coach and Navigator. We believe that industry micro-credentials will be a critical component of the transformation of higher education. They offer learners with no college degree or prior work experience an affordable, flexible way to start or switch into a digital career. They provide a turnkey solution for campuses or entire systems of higher education to upgrade their curriculum with career electives and produce graduates who have the skills and capabilities that employers are looking for. And they enable businesses and governments to deliver workforce and talent development at scale. Our second major advantage is the global reach of our platform. We have a large, grown learner base that attracts educators looking to teach individuals and institutions around the world. Our freemium model, paired with the world-class brands of these universities and industry partners, allows us to grow our top of funnel, attract learners at low cost, and serve them at a range of price points. This year, we added nearly 22 million new registered learners, growing our global learner base to 118 million by the end of December. Learner growth continues to be broad-based. with double-digit percentage increases in all regions. We also grew the number of paid enterprise customers to more than 1,000, including new business, campus, and government customers. As the reach of our ecosystem continues to grow, the data generated by our learner base, including catalog performance, learner assessments, and feedback from institutional customers, allow us to identify and prioritize sourcing opportunities, deliver skillset insights to our enterprise customers, and create products, features, and pathways that deliver more value to our learners, educators, and customers. And this brings me to our final advantage, the ongoing product innovation on our unified platform. My first update focuses on the learner experience. Coursera is increasingly becoming a global destination for learners seeking job relevant skills and recognized credentials that can unlock the next phase in their education or career. Our team has been focused on creating strong connections between our open content and career and degree pathways. And this begins with the discovery experience. As part of our career academy launched last year, we began surfacing credentials through the lens of career pathways, helping learners better understand the job roles, number of openings, median salary information, and in-demand skills associated with our entry-level professional certificates. This quarter, we focused on degree pathways, and started rolling out enhancements to our catalog search and discovery with credit eligible filtering and badging that allows learners to more easily identify content and credentials that count as credit towards a college degree. This is tied directly to my second update on the American Council on Education, also known as ACE, which offers credit recommendations. From our campus survey in 2022, We learned that more than half of students want to earn a professional certificate that counts as credit towards their degree, and we have continued to pursue credit recommendations across our catalog. These credit recommendations provide learners with the opportunity to earn academic credit towards a degree program, typically at a much lower cost. And universities can consider offering credit for these industry micro-credentials, which can complement traditional curriculum with job-relevant skills, or what we like to refer to as career electives. This quarter, we secured ACE credit recommendations for two additional entry-level professional certificates, with a total of 14 now recognized for academic credit. We believe more of our professional certificates have the potential to receive this distinction in the future, and we are pursuing similar credit recommendations from accreditation agencies in additional regions around the globe. Now, my final update is for institutions. Our academies product is a complete skills development solution. It offers personalized skills first approach to enterprise learning for the most critical job roles. Today, we offer six academies spanning technical and non-technical domains. Customers tell us that stronger leadership, change management, and human skills are needed across their organizations, not just at the executive level, particularly with the unique challenges that remote work and hybrid work are presenting. We recently created a new Leadership Academy with a more targeted, more selective portion of the catalog, including 11,000 clips, 500 courses, and 70 guided projects. This has been designed for buyers looking to offer high-quality leadership training at scale for all levels of the organization. As AI accelerates change and puts more jobs at risk, one job appears to be more important and less at risk than ever, the job of a leader. Leaders are responsible for managing people through change, which is more important now, but also more difficult now than ever. Leadership requires human skills and an awareness of change and context that AI will likely never replace. We are seeing strong demand for Leadership Academy and believe that tailwinds will increase demand for this kind of workplace training. Before I turn the call to Ken for a closer look at our financial performance and outlook, Let me remind you of several key priorities we are focusing on in the years ahead. We're focused on growing our enterprise segment across business, government, and campus customers seeking to address their needs in this changing environment. We are expanding our portfolio of degree programs, especially those tailored to meet the unique needs of working adults, including flexibility, affordability, and stronger pathways from open content and industry micro-credentials into degrees. We are broadening our entry-level professional certificate catalog, expanding with new roles, new partners, new languages, and credit recommendations. We are focused on deepening our advantages while driving more scale and leverage across our platform. And we see exciting possibilities for the use of generative AI across our business model. And now I'd like to turn it over to Ken. Ken, please.