Key insights
- The post highlights Coursera's low Enterprise Value after merging with Udemy, driven by a large cash balance. While the company's free cash flow is technically negative due to stock-based compensation, the trend is improving. This could signal a potential undervaluation and positive future performance for Coursera, potentially influencing investor sentiment in the EdTech sector.
Coursera, the leading Edtech provider had 205million registered learners prior to its merger with Udemy, another Edtech provider. Post merger, there are now 290million registered learners.
(Post-merger figures below):
- Market Cap = $1.46B
- Enterprise Value = $360m
The company has a staggering ~1.1B Cash on the balance sheet and barely any debt.
The only red flag I can find is this:
- Free cash flow = $159m
- Stock-based compensation = $164m
So they are technically still FCF Negative if you account for SBC. However, the trend is going in the right direction.