Terry Tillman: Okay, thanks. Solid job on the corner here in the outlook. I guess first question, Ken, for you, is the multi-parter in terms of appreciate all the color on the purchase of content assets. And it sounds like there’s a strategic rationale for that. $5 million, I think you said in ’23. Any sense on what that could look like in ’24? And then on the GenAI kind of courses, anything you can share about the materiality now of revenue being generated from the GenAI content? Then I have a follow-up for Jeff.
Ken Hahn: So perfect. In fact, I’ll let Jeff answer your second question embedded there. In regard to the content assets in the $5 million, we spent this last year as we announced this transition. Next year, this coming year, the year we’re in, sorry, we expect to see roughly $20 million. That’s where we’re budgeting today. We’ll see if we can produce it less expensively. The Jeff’s points before with the scaling we’re getting there, but I would hope we can invest that amount of money because, again, it’s a great deal. So going from $5 million to $20 million, if that number becoming material is the reason we changed the definition. It made us look at it. Again, it works against us. It makes the number lower, but it’s actually, in our mind, more accurate. We’ll track EBITDA closer, and we’re going to have a great year this coming year from a free cash flow standpoint as we forecasted that in the EBITDA. We’re quite pleased with so on —
Jeff Maggioncalda: In terms of the Generative AI courses, we’re certainly seeing a lot of demand for those Terry. We had one enrollment per minute in 2023 on average. And if you look at enrollments in Generative AI, if you look at enrollments in January of 2024 in Generative AI, they’re four and a half times higher than the number of Generative AI enrollments in June of 2023. So we are seeing a lot of demand, and this is in the consumer side. I would say enterprises are trying to figure out what to do. And I think what’s going to happen is once they start getting their bearings, they’re going to really ramp up. When we think about what kinds of Generative AI content is producing the biggest results, I mean, Andrew Ng said in the script, you’ve got Generative AI for everyone.
It’s kind of almost public interest. What is this stuff? Let me play around with it. I launched the course for CEOs. Now we’re starting to have AI for, if in law, AI in this, we have a number of our university partners creating domain specific courses, which I think will be really great. One of our most popular, it started as a course from Vanderbilt University. It’s called, it was called Prompt Engineering with ChatGPT from Jules White from Vanderbilt. It’s one of our most popular courses in 2023. He followed a page out of Andrew Ng’s playbook and took a popular course and turned it into a four-course specialization. So now it is a Prompt Engineering specialization, which is more subscription based. And there’s a lot of people, it was, that course was written up in the Wall Street Journal basically saying, if you want to double or triple your income, become a Prompt Engineer.
And so a lot of people are coming in and taking it. I mean, it’s kind of the nature of what’s happening. I think there’s going to be a really interesting wave in 2024 that might be possible, which is not just about how might be, how might generally I create new jobs. I think there’s going to be a whole, how will my job be transformed? Like Ken is a CFO. He’s still going to be a CFO, I hope in 2024, but he’s going to do his job differently. And Michelle, our Chief Accounting Officer, is going to do her job differently. And Ken’s going to do his, and we’re all going to be doing our jobs differently. I think where this really starts getting interesting is not just which new jobs get created. It’s how do I need to retool for the new way I’m going to do my existing job?
That’s where I think you’re going to see, where we’re going to see some really interesting opportunities. And we’re gearing up our content engine to do, to perform in a certain way. And by the way, we’re using, we’ve got a lot of Generative AI tools that we’re working on to be able to enhance and upgrade existing content to be Generative AI ready and relevant.
Terry Tillman: Helpful color. I’ll leave it at that actually, thanks.
Jeff Maggioncalda: Sure.
Operator: Thank you. And your final question comes from the line of Ryan MacDonald with Needham. Ryan, your line is open.
Ryan MacDonald: All right. Congrats on a quarter. And thanks for taking my question. Jeff, in one of the earlier questions, I think it was Steven’s first one on, on sort of Coursera for Business and sort of the phases we’re in terms of generative AI adoption. You talked about sort of being in this phase two on the experimentation side. I think it’s interesting sort of the Gen AI Academy, new product launch you have associated with that. I’m curious, it seems like a really great product to be able to maybe capture some demand in this experimentation phase. Just curious what you’re seeing sort of in terms of initial interest and adoption on that. And does this create a sort of an upsell, cross-sell opportunity for Coursera in 2024 for where maybe we can start to see some of the recovery in those NRR metrics?
