v3.25.2
Segment and Geographic Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information
As disclosed in Note 1, our CODM is our CEO. Under our new CEO’s leadership, we have simplified our business model to better reflect our focus on serving adult learners at every stage. This includes a broad set of offerings that span from standalone courses to university degrees. As a part of this strategy, degrees has been incorporated into our Consumer segment as another product category that supports our learners. These changes aim to ensure that our investments effectively serve a broad audience of learners.
Beginning in fiscal year 2025, due to the simplification of our business model and the change in how our CODM assesses performance and allocates resources, we have identified two reporting segments: Consumer and Enterprise. This is also consistent with how we disaggregate revenue. The segment reporting change does not impact our Enterprise segment or consolidated results. We have recast all prior-period segment information to align with our current segment presentation.
Our CODM primarily measures each segment’s performance based on revenue and gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment content costs within cost of revenue. These costs are considered significant segment expenses that are regularly reviewed by our CODM. Other costs of revenue, including platform operation and maintenance costs, amortization of internal-use software and intangible assets, and stock-based compensation expense, are managed on an enterprise-wide basis and not reported by segment. In addition, we do not report operating expenses, other income (expense), net, or income tax expense (benefit) by segment because our CODM reviews this financial information on a consolidated basis.
Our CODM does not use segment-level asset information to assess performance or allocate resources. Therefore, we do not track our long-lived assets by segment. The geographic identification of these assets is provided below.
Financial information for each reportable segment was as follows:
Three Months Ended June 30,
20252024
ConsumerEnterpriseConsolidatedConsumerEnterpriseConsolidated
Revenue$122.8 $64.3 $187.1 $111.6 $58.7 $170.3 
Segment content costs47.5 19.5 67.0 45.0 18.8 63.8 
Segment gross profit$75.3 $44.8 $120.1 $66.6 $39.9 $106.5 
Segment gross profit margin61.3 %69.7 %64.2 %59.7 %68.0 %62.5 %
Other costs of revenue:
Platform operation and maintenance costs9.6 9.8 
Amortization of internal-use software4.7 4.6 
Amortization of intangible assets2.5 1.2 
Stock-based compensation expense0.6 0.7 
Cost of revenue$84.4 $80.1 
Gross profit$102.7 $90.2 
Gross profit margin54.9 %53.0 %
Six Months Ended June 30,
20252024
ConsumerEnterpriseConsolidatedConsumerEnterpriseConsolidated
Revenue$240.4 $126.0 $366.4 $223.2 $116.2 $339.4 
Segment content costs92.7 38.0 130.7 90.0 37.2 127.2 
Segment gross profit$147.7 $88.0 $235.7 $133.2 $79.0 $212.2 
Segment gross profit margin61.4 %69.8 %64.3 %59.7 %68.0 %62.5 %
Other costs of revenue:
Platform operation and maintenance costs19.8 19.4 
Amortization of internal-use software9.4 9.4 
Amortization of intangible assets4.6 2.3 
Stock-based compensation expense1.3 1.4 
Cost of revenue$165.8 $159.7 
Gross profit$200.6 $179.7 
Gross profit margin54.7 %52.9 %
Geographic Information
Revenue
The following table summarizes the revenue by region based on the billing address of our customers:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
United States$96.3 $91.2 $189.3 $183.6 
Europe, Middle East, and Africa45.1 40.2 88.5 79.3 
Asia Pacific26.5 21.4 51.3 42.5 
Other19.2 17.5 37.3 34.0 
Total$187.1 $170.3 $366.4 $339.4 
No single country other than the United States represented 10% or more of our total revenue during the three and six months ended June 30, 2025 and 2024.
Long-lived Assets
The following table presents our long-lived assets, consisting of property, equipment, and software, net of depreciation and amortization, and operating lease right-of-use assets, by geographic region:
June 30, 2025December 31, 2024
United States$42.1 $39.0 
Rest of World1.5 0.9 
Total$43.6 $39.9