Why Coursera Stock Got a Failing Grade on Wednesday

Shares of Coursera (NYSE: COUR) closed 8% lower on Wednesday after the online education provider reported impressive revenue growth -- but even more impressive losses -- in its first quarterly earnings report since its recent initial public offering.

Coursera grew its revenue 64% year over year, to $88.4 million in Q1 2021. Gross profits grew even faster, up 71% year over year. Operating costs grew fast as well -- but not as fast as revenues, up only 56%.

Still, this resulted in bigger losses this quarter than one year ago -- an operating loss of $18.4 million (up 25% year over year), and a net loss of $0.45 per share (up 12.5%). On the plus side, free cash flow at the company improved somewhat, from negative $9.9 million (including capitalized software costs) in Q1 2020 to negative $8.6 million in Q1 2021.

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Source Fool.com