Following the third quarter results, which surpassed consensus, there was a downward adjustment in the fourth quarter revenue guidance and a reduction in the anticipated revenue growth for FY24 from 10% to 9%. This was attributed to a decrease in consumer retention alongside a 4 point decline in Net Revenue Retention to 89% within the Enterprise segment. This situation is expected to exert downward pressure on the stock. Nevertheless, it is believed that the current valuation of the shares does not fully reflect the company's profitable growth prospects.

It is evident that Coursera is navigating through evolving market dynamics within its target markets, with challenging macroeconomic factors adding to the headwinds, particularly in the North American region. There's also a noticeable demographic pivot towards more cost-sensitive emerging regions and a gradual uptake of Gen-AI technology among educational bodies. Nonetheless, Coursera is seen as being strategically placed to transform the higher education landscape in emerging markets, which tend to be more open to innovation.

The company exceeded expectations slightly with its Q3 revenue and EBITDA, yet projected a softer Q4 revenue, mainly due to a dip in professional certificate retention. Despite the less encouraging forecast, the long-term prospects for the company's enterprise and degree segments continue to be viewed optimistically.