The Covid-19 pandemic sparked an online learning boom that has increased revenue for educational technology company Coursera.
Educational technology company Coursera filed its initial public offering prospectus with the Securities and Exchange Commission on Friday, and plans to list on the New York Stock Exchange under the symbol “COUR.”
The Mountain View, California-based company offers people access to online courses and degrees from top universities, a business that flourished during the Covid-19 pandemic.
Coursera has been featured on the CNBC Disruptor 50 chart multiple times and most recently was ranked # 4 on the 2020 list.
The nine-year-old company generated approximately $ 293 million in revenue for the fiscal year ending December 31, a growth rate of 59% over 2019, according to the filing. Net losses increased by approximately $ 20 million year-over-year, reaching $ 66.8 million in 2020.
“Our revenue increased significantly primarily due to an increase in the number of registrations during the Covid-19 pandemic,” the company’s IPO prospect indicates. “Similarly, we have experienced a significant increase in our operating costs associated with our services, driven primarily by our freemium offerings and marketing efforts. As the pandemic made remote working and online learning mainstream, we did not it is clear what impact the reduction of Covid -19 that the pandemic could have on our operating results. “
The company said it added more than 12,000 new degree students during the two years ending December 31, 2020 at an average acquisition cost of less than $ 2,000.
Total registered users grew 65% year-over-year in 2020.
According to PitchBook data, Coursera was recently valued at $ 2.5 billion.
The company was founded by former Stanford University computer science professors Daphne Koller and Andrew Ng. When Coursera was founded in 2012, they had both spent enough time in higher education to realize that change was overdue and that online learning was a good way to go.
As of December 31, 2020, more than 150 universities were offering more than 4,000 courses through Coursera, which features more than two dozen degree programs at lower prices than many face-to-face school offerings. A bachelor’s or master’s degree completed through Coursera can cost anywhere from $ 9,000 to $ 45,000, depending on the prospect.
During the pandemic, Coursera has also partnered with more than 330 government agencies in 70 countries and 30 US states and cities as part of Coursera’s Workforce Recovery Initiative, which helps governments deliver to Unemployed workers have free access to thousands of business, technology and data courses. Scientific insights from companies like Amazon and Google.
It also offers a wide variety of educational certificates and professional skills courses ranging in price from just $ 9.99 to $ 99.
“While the impact of the ongoing Covid-19 pandemic is severe, widespread, and continues to evolve, it has accelerated the need for education delivered online. Individuals and institutions have relied and continue to rely on online learning to navigate the change and interruption, “states the prospectus for the company’s IPO.
The number of shares and the price range of the proposed offering have yet to be determined. Morgan Stanley, Goldman Sachs and Citigroup are listed as top underwriters.