Okay, I think we're gonna get started with our next session. It's for those who don't know me, my name's Eric Sheridan. I'm Goldman Sachs's U.S. internet analyst. It's my pleasure to have the team from Coursera here for our conference, for our fireside chat. We've got Shravan Goli, our COO, and Cam Carey, head of IR. So why don't we jump right in? I think, you know, for those who are less familiar with Coursera, I think it's a rather unique business model, and that there are multiple tenets of go-to-market strategy and growth opportunities that sit in front of the companies. Maybe if you guys wanna set the table in terms of where your focus is, in terms of what you're trying to build on the product side, and how the platform continues to sort of evolve.
Absolutely. First of all, thanks, Eric, and thank you all for attending this. I appreciate the opportunity. Let me start with the Coursera story. Over the past 10 years at Coursera, we've been you know, this is our founder's mission, to transform lives through learning. The vision has been about building an ecosystem of global online learning, one that connects learners, educators, and institutions. The way we do this is through a unified platform with a shared set of common assets across this ecosystem. We started our business with the consumer side. We sell branded job-relevant content and credentials to over 130 million registered learners around the globe.
And when I think about the consumer segment, it's with regards to, you know, with the large reach and the global learner base, it's not only contributing the direct revenue to Coursera as a business, but it's also powering and fueling the growth in our newer and higher-margin businesses, that in particular, enterprise and degrees. And when I think about the enterprise segment, it's got somewhat of a unique characteristics because it serves three different verticals: businesses, governments, and campuses. But once again, we share, kind of, leverage this same catalog of job-relevant content and credentials. You know, we have shared how the corporate learning market has been under pressure over the last few quarters.
So having sort of this ability to kinda have a diversification with to serve governments and campuses has been helpful for us. And then finally, when I think about the degree segment, obviously, this is the largest TAM and largest opportunity, but it is our sort of the early-stage growing business, is kinda how I would put it. We're fundamentally looking to transform the way the degrees operate with what we call as Pathway Degree programs. And essentially, they're focused on kind of leveraging the best of the platform capabilities that we've been building over the years. To the question that you said, like, you know, the product side, et cetera.
Most importantly and central to my role as the Chief Operating Officer, when we are operating this business across these three segments, it's operated as a single unified business. It's grounded on the sort of this unified platform with shared set of assets to provide the highest leverage, but also means that it creates certain unique competitive advantages for the platform.
Got it. Understood. Maybe just taking a step back and, and thinking about the competitive landscape you find yourself in. I find folks generally sort of lump terms like education and technology together-
Mm-hmm.
More broadly, and you guys have three specific end-market verticals or product sets you're trying to go after. How do you view the competitive landscape, who you're competing with, against, and what you're trying to disrupt?
Mm-hmm.
From an end-market standpoint?
Mm-hmm. Absolutely. So when we think about the market landscape, I think what I fall back on is our platform approach, which has proven to be unique and has created competitive advantage for us over the past few years. And what I mean by that is the diversified offerings, global reach, and the ability to kind of serve learners at various stages of their career, means that it enables us to capitalize on multiple growth opportunities. So when I think about competitively, what are some of the key differentiators that we are focused on? First and foremost is the catalog. This is the world-class, premium, branded catalog of content and credentials. We started with working with academic partners, so university partners, especially, and our customers have most recently benefited from our work with industry partners.
Especially as I think about where the kind of world is headed in terms of the digital and digital jobs, there has been a sort of insatiable demand with regards to this entry-level professional certificates. And so working with these industry partners, we've been able to increase this particular area of the catalog. And what it does really is, for the learners to be able to map their career ambitions with these entry-level professional certificates. They not only get the skills, but also a credential to kinda land the potential jobs. We've seen this play out nicely, as you can see in the consumer segment. So as such, you know, that's number one. Secondly, it's about growth with leverage.
Yeah.
What it comes down to is, like, how do we share assets across this unified platform? What I mean by that is our data, our content, our marketing, and product and technology. So one quick example is, we've talked about Coursera Coach at our conference, which is a generative AI-based personalized coach for learners. The way we're building this is actually gonna have a positive impact on the learner experience, no matter where you're coming from across these segments. The third interesting differentiator is around the inter-segment or intra-segment network effects that we're starting to see. I'll give you two examples. One is within the enterprise segment. We work with a lot of the governments, so for Coursera for Government works with the governments.
And whenever we're closing a deal with the government, it's leading to potential opportunities for campuses, system-wide deal for campuses. Another example would be between the consumer and the degrees. When we look at the millions of learners who are finishing these professional certificates, they're not only first getting the benefit to be able to go pursue a job, but what we have been doing this, is this model of stackable learning, which through ACE, which is American Council on Education, these professional certificates go through the process of ACE, and they become ACE credit recommended. And so if, as an individual, wants to go get a job, then later on, "Hey, I wanna go get a bachelor's degree or a master's degree," some of these professional certificates count as credit towards those degrees.
And so this is a two-for-one from a learner perspective, and that's something unique to our platform. And so we feel we're well positioned for the future.
Okay. Maybe going a little bit more micro or short-term nature, you know, there's been volatility in the broader macro environment. You guys have called out more downward volatility in the enterprise space a couple of quarters ago.
Yeah.
But then on this last earnings call, you actually talked about-
Yeah.
... a rising uptick in-
Yeah.
... the consumer landscape.
Yeah.
You've got a lot of different end market exposures-
Yeah.
... within your mix of products on the platform.
Yeah.
How do you guys see the broader macro environment playing out, and elements of how it feeds back into your different approaches to market?
Yeah. We love the diversification. Also, I would say, I mean, as we've seen over the years, the three-sided platform and this diversified business model, and the offerings, and the global reach, has really exposed us to multiple, opportunities. And so if you truly wanna understand the impacts of the macroeconomic environment, you do need to understand sort of how it impacts differently each of the segments. And yes, we raised the outlook, and a lot of it is driven by the outperformance we're seeing in the consumer business. And so talking about consumer segment, it remains strong, and the demand for entry-level professional certificate, remains strong, especially in North America. And we're excited about that. When I look at the enterprise segment, across the three different verticals, businesses, governments, and campuses, business spend has been under pressure.
You know, as a CEO, we've been looking at all of the SaaS spend across all the software tools and et cetera, and we've been consolidating and-
Yeah.
... trimming costs, right? So it's happening everywhere. And I think the large global macroeconomic or cyclical nature of the enterprise spend is what we're seeing in the enterprise business. B for B, which is Coursera for Business, is our largest and the oldest of the three verticals. And so as a result, you're starting to see sort of this pressure visible in our financial performance in lead generation or NRR on the enterprise. However, I think, you know, with the solid performance continues to be in the case of Coursera for Government, and also some of the opportunities with Coursera Campus are positioning ourselves to be in a reasonable place, and the diversification actually helps us.
And then in degrees, we're, you know, really starting to see sort of this early success with some of the pathway programs, and as a result, you know, we've, we're excited about kinda where that is headed. What we're watching is, you know, clearly some of the fall enrollment cycle that's coming up with some of our newer programs. Overall, I feel like, you know, we're in, we're in good shape.
Okay. You talked a little bit earlier about generative AI on the platform more broadly. You guys held an investor day shortly after the AI theme started to take off, which I'm, I'm sure created its own challenges of scrambling to address that in real time at the investor day. But talk about how you guys see the company positioned for the AI theme, both-
Yeah.
... outward facing and how your products are gonna evolve, and then inward facing as a company and how it might drive efficiencies longer term.
Mm-hmm. Yeah, it's a great question, and I think I'm sure if Jeff was here, he would pull up his laptop and start doing the demo. I'd love to show that one day as well. I mean, you know, we're very excited about generative AI and the impact it can bring on the education, but also broadly for what's happening in the world, such the impact of generative AI. And I would classify it in kind of three different ways. So one is sort of the demand side of the equation. So, when you look at the trends like data science or cloud or mobile, that meant that, you know, rapid change in technology meant a new imperative of reskilling and upskilling.
Yeah.
AI is actually, I think, is a whole new level. You know, I've been talking to a lot of my peers and others in other enterprise companies. Every leader, including the CEO and the boards, they're looking at, like, okay, how can we improve the productivity of each of the functions using generative AI? And if you don't use generative AI, you're gonna fall behind, or you're gonna lose your job kind of situation, right? Generally speaking, and this is affecting the white collars as well as the blue collars historically from a automation versus generative AI perspective. So what it means is, essentially, enterprises will have to invest in retraining and reskilling and upskilling their workforces. And so that's an opportunity for Coursera in terms of upskilling and generative AI content, et cetera. So we're focused on that part.
Secondly, to the point about internal, there are two main things we're looking at, like, how do we leverage generative AI to dramatically improve the learner and the learner experience, to make it like interactive, engaging, a highly personalized experience? We announced Coursera Coach at our conference back in April. We actually launched it in beta in our consumer segment with our Coursera Plus subscribers in Q2. Starting to see some early signs where the learners are actually engaging better with the coach with regards to, "Hey, I wanna get a very quick summary of this video." "I wanna get related videos or related concepts attached to this course or module I'm looking at."… And the important thing to underscore here is Coursera Coach is really powered by the same trusted expert.
So there's less room for hallucination as the AI goes and gets the results from outside instead, like, you know, we're restricting it to the domain and the catalog of content that we have. We're seeing, like, you know, learners are also asking for practice questions and quizzes, et cetera. There's a lot of opportunity as we think about the entire learner life cycle and the journey, starting from discovery. Like, you know, what kind of content and credentials I should be taking, to the sort of the coach in its form today, which is called—we call the tutor-type experience, personal tutor experience, to a career counseling experience. As you go through these professional certificates, what are the kinds of jobs that I get mapped to, and how do I prepare for those interviews?
So we're excited about how it can improve the, the learner experience. The third piece to this would be, again, internal, is really focused on our catalog of content, and how we can enhance the value of the content that is being created from these great partners of ours. So first is the Course Builder tool. We announced this AI-assisted course authoring tool, again, back in April at our conference. We've launched the pilot of Course Builder in Q2 to a handful of Coursera for Campus and Coursera for Business customers. These are the institutions where the... The reason for this is, they're looking at this whole catalog of 5,000+ courses. So they're like: You know, I really wanna personalize.
I wanna create my own course around machine learning, or data science, or data analytics, or leadership skills, with mix and match of content. Course Builder is really helping to do that process very easily. When you use the Course Builder, you can just give it, like, very small prompt. Once you give the prompt, it is able to generate the outline, it generates the learning outcomes, and also bring a whole bunch of modules, videos, and readings together into that course, as well as the ability to generate quiz questions automatically. So we have this AI question generator that we've also launched in beta. All of a sudden, you have your own course.
On top of it, if you're the CEO, and like, every one of this company needs to be generative AI-enabled, you can record that video and make it part of that course, to kind of say, "This is our version of generative AI course." And so we're starting to see a lot of engagement around this in terms of those use cases. More to come on that front. And then the second one is the, within sort of this enterprise side of the equation, is the translations.
Mm-hmm.
Internally, how we improve the productivity. Excited to share, once again, you know, following from the Investor Day, we've been able to launch translations for over 2,000 courses with subtitles, just with subtitles, in Q2, are really on track to launch the full course translations. That means, you know, the videos and the assessments and the user experience across these seven different languages for 2,000 courses by the end of the year, at a much, much lower cost. And so, if I think about sort of the next six-12 months, language should not be a barrier to learn from the experts from anywhere in the world, and I think we will continue to again invest in this machine-based translations.
I wanna stay mostly on the product and the initiative side-
Mm-hmm.
But I am, I am curious, and, and maybe this will bring Cam into the conversation, just how to strike the right balance inside the company between sort of the broader compounded profitability goals you're trying to go after the longer term, but making sure you're allocating the right amount of capital and investment dollars today, to make sure you don't skip out on any of the growth opportunities, especially like areas of AI-
Yeah.
... that you wanna sort of accomplish.
Yeah.
So the elements of... And I've had this conversation with Jeff. I'm sure striking that right balance seems pretty...
Yeah.
Key at this moment in time.
Yeah, yeah. Absolutely, I can take on it and-
Maybe I'll start with just the sorta model that we're operating under, and then Shravan can talk about all the trade-offs he makes with the engineering and product teams on what they focus on in any quarter. But yeah, we are at an inflection point as a company, right, Eric? You've followed us since the IPO, but we've spoken openly and stuff. We're planning to be break-even EBITDA in Q4 of this year, and targeting positive EBITDA in 2024. And that's annual EBITDA margin, right? We do that on an annual basis. The past five plus years, you've seen us migrate up towards that break-even amount, and you know, we've made that commitment to the street on a pacing schedule going forward as well.
Any year that we do this, what you'll see us do is we set essentially our planning cycle at the beginning of the year on an EBITDA margin. Whether the top line overperforms at that level, you'll see us do incremental investment in areas where Shravan and the team might find opportunities to put additional growth bets into the company. The flip side of it is in years like last year, where the top line isn't performing as well, you'll see us pull back on efficiency measures as well, right? So we'll actually pull back cost so that we make sure we make that commitment on an annual basis. This year is a good example where, for the first time ever, we've actually raised that EBITDA margin midway through the year.
We've improved it from -500 to -350 basis points for the year, partly because we've made that commitment towards Q4, and quite frankly, the overperformance in the company, we're not gonna waste dollars or investment dollars, right? It's dropping to the bottom line naturally as the company sees some scaling. But Shravan and the team were just in the middle of financial planning over the past few weeks, and so he can maybe give you an idea on the trade-offs that they think about on sort of the technology roadmap as well.
Sure.
Yeah.
Yeah.
I mean, most simplistically, the way I think about it is, growth and leverage.
Yeah.
Right? And so we need to accomplish both, and we're committed to creating the long-term growth trajectory that we wanna be. At the same time, we're also committed to scaling our business model and the business along the profitability dimension. So when I think about the growth opportunities, continues to be in these areas of really expanding the entry-level professional certificates and what we're calling as Pathway Degrees. Secondly, you know, really thinking about, like, how do we improve the learning experience, but also open up more learners to be able to consume content as a result of pay, so more payments work, international sites, translation. This coach is actually. The purpose of the coach is to really improve the learning experience, but the underlying metric is retention.
How can we improve the month-to-month retention, whether it's on consumer or even on the enterprise? It will have an impact on the NRR, right? As we demonstrate the ROI. So that's kind of the way we think about it. And last but not least, generative AI, continued innovation through with the Course Builder to accelerate our content engine or really looking at all kinds of other ways, translations or anything else that can leverage this technology. So operational efficiency for with growth.
Okay, sounds like a busy business planning cycle.
It is, we-
Coming back to the strength you called out in the consumer business, I wanted to go a little bit higher level than just the short-term dynamic.
Mm-hmm.
Help us understand how you see the consumer business continuing to evolve, and what that might mean for product mix, over time, and, and how that business continues to scale.
Mm-hmm, mm-hmm, mm-hmm. Yeah, you know, we love our consumer segment. I was the GM for consumer until I became the COO last year, so I've spent a lot of years in consumer segment. So as I think about it, you know, clearly the performance has been great, but it starts with the catalog, catalog of the content. And kind of where we're really focused on is adding these entry-level professional certificates mapped to specific jobs. And then the value we can add to the learners, not only through the learning experience, but getting them closer to those job outcomes.
Yeah.
So we feel like I think we can continue to play an increasingly differentiated role, and create that differential value that a learner can only get on Coursera. So what we're seeing is this dynamic where, Cam and I were just talking about it, in the hallway. We're continuing to see strong top-of-the-funnel performance. We've added over five million registered learners last quarter. And a lot of it is like, you know, we've invested over the years in SEO, and brand building, and I'm starting to feel like, you know, that's really showing up, at this point, sort of, you know, a little bit of sort of this network effects. The second is sort of this real focus around, these job role and content and credentials with these professional certificates.
We're really proud of how rapidly we've been expanding this catalog of content, especially, you know, both from sort of the existing partners like Google and IBM, but also newer partners. We launched some new certificates that included from Microsoft, CVS Health, Akamai, HRCI, et cetera. You know, we've announced about 50 professional certificates to date and launched about 40 to date. What really, I think about the differentiated value from a learner perspective, they're able to go through these professional certificate. They gain the knowledge, they gain the skills. A lot of hands-on learning and experience has been built into these professional certs, but we also, we have these projects, guided projects, that are mapped to these professional certs for the individual to practice those skills.
Then in the end, they're getting a job-relevant credential from these branded partners, and so they can go and land a digital job to start with. This goes back to the other point I was making earlier. We've been working with credit recommendation bodies around the world, ACE here in the U.S., ECTS in Europe, and another one in India, wherein these learners can actually continue to pursue higher education. Whether it could be on Coursera or it could be off Coursera, they can carry this forward for credit, and so that creates a lot more value. I don't think there's anywhere else that a learner can get something like this, other than Coursera today.
Got it. Okay, understood. Shifting to the enterprise business, obviously, we spoke earlier about the volatility you're seeing in that business as an output of the broader enterprise and spending environment. But if we were to look at that business through a number of different verticals, business, government, campus, are you seeing variances in behavior across some of those verticals, or a pretty broad base that enterprise spending is what it is in the current macro environment, and it applies across the board?
Yeah, absolutely. When I think about the enterprise, obviously, you know, we're addressing the needs of businesses, governments, and campuses. Although it's all under enterprise segment, these are three verticals. And we've grown this enterprise business rapidly during 2022, but I think the biggest macroeconomic shift that we're facing is in the Coursera for Business side of the equation, where the enterprises are pulling back on the spend.
Yeah.
We're gonna continue to... You know, we're monitoring this macroeconomic environment, and we're continuing to see sort of the pressure on the NRR and sort of the pipeline building on that front. But on the other hand, when I flip over government, the Coursera government side of the equation remains really solid. Governments are continuing to invest in workforce development programs and also upskilling of their own employee base. You know, everyone recognizes they also have to go through digital transformation themselves. Campuses, on the other side, you see, you know, the falling enrollments on one side-
Yeah.
... and the challenges to kind of provide employability-worthy skills to their students. And so what we're seeing is, going back to these entry-level professional certs, these are the industry micro-credentials. We're seeing a lot of demand for those from these campuses as well. And so they're trying to offer these alongside their core curriculum. And essentially, what it means is it enables these students to get employability skills and knowledge and the ability of a, can I say, potentially a credential, but also a portfolio for them to kind of showcase to potential employers. A nd so we're starting to see this play out in the for-credit offerings. You know, a couple different examples here.
We've been, we've talked about international growth as well, but Kazakhstan is a major deal that we've seen, where the government purchased this, but all the educational institutions, higher ed institutions, are integrating these industry micro-credentials into their curriculum. University of Texas System has also kind of bought this for some of the universities within Texas to kinda be able to offer for credit as well. So it's varied, and I think, you know, we'll continue to see how this dynamic plays out.
So leaving aside the short-term dynamic, where there could be variances-
Mm-hmm.
... in the performance, even though all three of those-
Mm-hmm.
... Verticals sort of fall under enterprise, how should we be thinking about the relative rank order of growth opportunities from those?
Mm.
It's even though there's short-term pressure on enterprise-
Yeah
... does Enterprise go back to the top in terms of-
Yeah.
... the larger addressable market opportunity? How do they maybe compare-
Yeah.
... i n terms of market opportunity going forward?
Yeah. It's interesting. You know, we always talk about the higher ed TAM as the $2 trillion TAM. And when I look at the Coursera Campus, it is going after a slice of the $2 trillion TAM, in essence, right? For-credit offering. The degrees is another way that we're-
Yeah.
... going after this $2 trillion TAM. And so certainly, I think, you know, we're excited about the prospects of Coursera for Campus, especially in emerging markets as well. There's a lot of scope and opportunity. What's happening, for example, in India, as an example, you as an institution, university, can offer up to 40% of credits through online. And as I think about, like, if I'm one of these institutions, I'm looking to supplement and complement what I do on my campus to attract more enrollments.
Yep.
That means they need to offer, you know, data, machine learning, AI, cybersecurity, and so on and so forth. And so they see this opportunity as kind of, hey, integrating Coursera catalog for credit is a really great way, because it's both cost efficient for them, but also profitable in a way that, you know, for-credit fees, they're not teaching. They don't have the faculty to do all of that stuff. So that's just a very small example of this. So we're excited about that.
Okay. Just jumping off from the Campus point, maybe pivoting to the Degrees business.
Mm-hmm.
You talked last quarter about the sort of potential for .growth-
Mm-hmm
... in the Degrees business looking out to 2024.
Mm-hmm.
When we speak to people broadly around the college landscape, it's still volatile as an environment in the very, very short term.
Yeah.
How do you think about the visibility you have in that business between now and the end of this year-
Mm-hmm
... versus some of your longer-standing, medium-term goals for growth in the Degrees business, looking out to 2024 and beyond?
What I would say is our excitement around the opportunity has not changed, you know, since the earnings call or from our Investor Day as such. It is our largest market opportunity, and, you know, we think we're coming to market with a fundamentally different value proposition, so that allows us to compete differently from within the market. And we have, you know, Degrees has returned to growth this year, which is exciting. And we're continuing to see success in terms of sourcing new degree programs. And equally interestingly, is really thinking about how we're gonna differentiate with this, what we call as the Pathway Degree programs.
Well, they are specifically designed for learners in mind, and then the ability for partners to kinda actually work with us to capitalize on the core strengths of the platform.
Yeah.
What it is, a Pathway Degree is affordable from a learner perspective. It is flexible; they can start any time on the platform with the open content. Like, you know, we talk about start your degree with $49 as a course. And then in terms of the admissions process, it's very little hassle because there's no application. You just have to perform in this open content to be considered for admission into the degree program. So if I think about from a learner perspective, we're really breaking down these units of learning for them to have the ability to have very affordable way, a very flexible and a seamless way to get into the degree programs. I think the other thing is, as we talked about, this idea of pathway. Pathways are getting built from these entry-level professional certificates.
Through ACE credit recommendation or ECTS recommendations, the learners go through these professional certs and get a job, but then they can actually go pursue a degree. We see this happening in our degrees, like University of London Bachelor's in Computer Science degree, as an example. That's kind of where we're focused on, and I think as you think about building for the future, that's what you will hear more from us.
Let me ask one follow-up there. One question I get from investors, a fair bit is, when you look at the degree opportunity over the medium to long term.
Mm-hmm.
How do you think about the elements of getting the content side-
Mm-hmm.
... and the university side right, so that that's scaled to a certain opportunity set to drive the growth?
Yeah.
Versus elements of driving the user side of the equation.
Yeah.
I know that's a bit of a chicken and egg problem.
It's marketplace behavior, right?
Yeah, yeah.
There are sort of two sides to this equation here. I mean, I think this is what the real focus of Pathway Degrees is, but it has to start with learner first.
Yeah.
If the learners don't care, it doesn't matter, right? And so the value proposition has to resonate with learners. So that's why we call this as learner-first degrees, in fact, and what is the product market fit for these learners? And that's where I think, you know, as we've been doing these degrees for a few years, what we've realized is those three dimensions. It needs to be affordable, it needs to be flexible, and it needs to be easy from an admissions process standpoint to kind of build on the credit. And so try before you buy, try before you commit. Degrees is a long consideration process for the learner and a long commitment, both from a investment standpoint in terms of dollars and cents, but also from a time spent wise, right?
So that's why we're trying to kind of transform how the degrees work. On the partner side, I think what we're really focused on with, you know, for example, with the Boulder, Colorado, and Ball State, is really aligning these partners to come up with these learner-first degrees. And, you know, they have to kinda meet this criteria of same thing, like, you know, affordable, flexible, and sort of performance-based admissions, or even really thinking about this sort of credit stackability. Mm-hmm. Right. And so this, it, it's gonna take time to change kind of the way the world works, especially in the higher ed ecosystem, as you all know. But I think this early success is very promising.
Okay.
The only thing, the only thing I'll add on that, which I think is evident to folks, but it has changed our sourcing strategy on degrees as well. So a little over a year ago, the types of universities that we're sourcing to bring on platforms really have to fit a spec sheet-
Yeah.
... of the type of attributes that we think are important for these degrees. So everything that Shravan listed, if universities aren't necessarily interested, they may not be the right partner for the platform. And part of this is around scale of cohorts.
Sure.
I think historically, because of the legacy of the company, we worked with the really elite universities. Those may actually not be the preferable universities to do large-scale degrees with a lot of these program innovations in the past. And so you are seeing the change, and that's part of what Shravan is talking about. Seven of these Pathway Degrees and stuff launched this fall, so us watching what happens in the funnel is sort of lifetime data we're seeing now.
Okay. Interesting. I know we only have a minute or two left, but if we try to bring it all together, we talked a lot about the different go-to-market strategies and product initiatives around the company. What do you guys, as a team, see as the biggest product initiatives that have to get invested in, have to be executed against, if we were to be sitting here in a year and having this conversation, that are mission critical inside the company in terms of executing or investing capital behind to drive some of that growth you're going after?
Well, the industry is moving quickly. I mean, I think the edtech industry is also changing rapidly as well, and the AI, generative AI imperative is going to have a major impact as well. So as I think about the two key focus areas, first is AI and the impact of AI. You know, sitting in my shoes as the COO, I manage product and engineering and operations teams as part of my charter. It's exciting to kinda work with these individuals who are investing and building a lot of these AI-driven innovations. And so, we're gonna continue to focus on the demand side, for one.
I think, you know, as the reskilling imperative really accelerates, from the AI standpoint, I think it builds on the leadership that we have, kind of building out a lot more of the AI content and the ability to kinda scale the enterprises. And I think, you know, it's also not just enterprises, right? Individuals have to become good at AI, and businesses and governments and campuses, all of them have the need for this. Secondly, from an internal standpoint, like, gonna continue to drive innovation through Coursera Coach and Course Builder and Translations, et cetera. These are all focus areas. It creates a lot of scale. These Pathway Degrees and entry-level professional certs is the other part where we're trying to invest.
So that's one, and then the second big milestone, I'll be looking back, you know, 12 months from now, is the promise of the growth with leverage.
Sure.
So being able to hit, continue to hit our EBITDA profitability margin is equally important for us.
Okay. Well, please join me in thanking Shravan, Cam, and the whole team from Coursera for being part of the conference this year. Thanks so much, guys.
Thank you.
Thanks, guys.