Jeff Maggioncalda: And then, Josh, as we look at this and say, all right, what leads to some of the negative variances there, a bit of it is recruitment into Degree programs. But when we look at the specific Degree programs, and we say, well, how are we doing recruiting into different populations of Degree programs. We are seeing encouraging signs that when there are Degrees that have these pathways, they are looking pretty good. It’s more of the more expensive traditional Degrees without the pathways where we are seeing some of that, kind of continuing headwinds, I think, from a tight labor market and many of the things that we have seen in the past, which I think are affecting not only traditional online Degrees, but frankly, traditional Degrees in the United States. So, I think, a lot of is we are still seeing a tight labor market put pressure on people saying, I want to go for one of those more expensive traditional Degrees.
Josh Baer: Got it. Very helpful. And then on Consumer with just the impressive growth, number that you put up, an acceleration. And I think in the first question was on Consumer, and Jeff you could sort of talked about just strength there and expecting that growth to kind of continue. I just wanted to see, I know we are going to get some thoughts on 2024, next quarter, for Consumer, but with the growth accelerating so much, like, is there any need to moderate sort of expectations on that trajectory of growth in that segment just given where it is and where people might expect it to go?
Ken Hahn: Sure, Josh. So, we have provided, of course, overall guidance for the coming quarter as we always do. We don’t provide different segment — we — we are just not in that business to do that across each of the three segments every quarter. We do feel very good about Consumer. We — that momentum continues. We are hopeful it continues at the same pace it does. But we don’t update guidance between the segments. And again, it’s captured in the overall guidance, of course, for the quarter. But we are really pleased with the results and we — there’s — always see as positive on the Consumer side.
Jeff Maggioncalda: Yeah. And the other thing, Josh, a way to also kind of think through your question is, what are the factors that are causing this growth and are there reasons to believe that some of those factors might be temporary? And we think a lot of it is kind of what’s happening in the global labor markets, and as Ken said in the script, like people are looking for cheaper, more flexible job-oriented ways to switch a career or to start a new career. So, we don’t see why that would change necessarily. Another thing is that some of this growth and you see it in the sales and marketing line, Ken mentioned this in the script as well, we are seeing pretty good returns from paid media spend on these professional certificates.
And I think part of what that is, is as the portfolio has gotten big enough, now over 40 of these, it appeals to a lot more people and it makes your — it’s making our ad spend a bit more productive. And so, at some point, the marginal benefits of that start tapering off, but we are seeing pretty good leverage from advertising spend. So that’s feeling pretty good there. And then we have got the language translations which are just starting and we think that look good. Now something that often is a little bit temporary is when a blockbuster new title comes out and it produces kind of a big bang spurt of growth when the new title comes out. But when you look at the full year, it’s not really a story of one big title producing all the growth, I mean, it is more diversified than that.
And so unlike, maybe three years, four years ago, where one title would have been responsible for a majority of the growth, that’s not really the case in 2023. And that way we think we could probably bring a lot of this momentum into 2024, because it’s — if not sort of a one-time bump that we received in the 2023 numbers.
Josh Baer: Really helpful. Thank you.
Jeff Maggioncalda: Yeah.
Operator: We will take our next question from Jeff Silber with BMO Capital Markets.
Jeff Silber: Thanks so much. Your growth has been strong. You expect it to continue. I am just curious, do you have the infrastructure specifically the people to continue this strong growth. You have talked about the tight labor market, I am just curious if we can get some color on that?
Jeff Maggioncalda: Yeah. Thanks, Jeff. It’s a great question and it really does play to our HR strategy. During the pandemic, when we all started working for home — from home, we recognized a number of things. One is, we can be pretty productive even when picking our business model, even when we are working from home. Another thing that we realized is our ability to drive increased diversity and a more global talent pool when you are able to work more remotely. And so we have a pretty remote first working culture. Part of what that means is we are finding talent all over the world and we are not really constrained to a certain talent pool. And so our recruitment’s been really great. Plus, people really love working for mission driven companies these days.
So I think when it comes to talent recruitment, we are not seeing any major constraints on our ability to find really good talent that wants to work for Coursera and to find that talent at affordable cost. And so, I would say that, no, we really aren’t seeing talent constraints and we don’t foresee, at least I don’t foresee next year, talent constraints as one of the major features. Another thing I will just say is as you look at the executive team, for example, our exec team lives in the Bay Area, New York, Denver, Utah, I mean, we can really get the talent at all levels from a number of different places and I think that gives us a pretty good flexibility in securing the talent that we need.
Jeff Silber: All right. That’s really helpful. If I could shift over to the Enterprise segment. The net retention rate increased a bit sequentially, it’s been dropping for a number of quarters. Is there some seasonality or are you seeing some improvement there? Again, if we can get some color, that would be great?
Ken Hahn: Yeah. Jeff, it’s — this is Ken. It’s a little early to tell. We don’t want to declare victory yet. We are pleased it’s rebounded a little bit. We don’t like the fact it’s not triple digits to be perfectly honest and we see room for improvement. I’d say our commentary overall in the Enterprise space hasn’t changed. Then — and when I am talking about specifically a C4B. We are definitely more excited in the C– about the C4G, and particularly, the C4C verticals where we are seeing some really nice progress. But overall, it — the macro has remained tough in C4B, but the numbers are stabilizing, we like that, but Again, we are not declaring victory yet.
Jeff Maggioncalda: Yeah. Another thing I will mention, Jeff, is and when Ken says C4B that’s Coursera for Business, Coursera for Campus, and then C4G is Coursera for Government. We do see different NRRs by vertical, right, among those. The other thing I will point out that is and is promising from my perspective is, it also depends on the use case. When academic institutions deploy Coursera for Campus for credit towards Degree, we see pretty strong NRRs. And so, we are trying to identify and then really drive use cases of Coursera in those institutional settings where we have high NRRs, where we are delivering great value with a distinctive offering and when customers try, they are like, I want more of it. So we are seeing some positive signals underneath that average that you say there and I will reinforce what Ken said, double-digit NRRs are not where we want to be at all. Our aspirations are much higher and we see pathways to drive that back up.
