Coursera Inc

Expense Reduction Initiative

On October 24, 2024, the Company announced a commitment to reduce overall expenses, focus efforts, and prioritize future investments in key initiatives that are expected to drive long-term, sustainable growth. We expect this initiative to generate at least $30 million in annualized structural cost savings, creating capacity for targeted investments, as well as incremental profitability. In connection with this effort, we plan to reduce our global workforce by approximately 10% to better align our cost structure and personnel needs with our business objectives, growth opportunities, and operational priorities. Expense reduction efforts will begin in the fourth quarter of 2024 and are expected to be primarily completed by March 31, 2025.

As a result of this initiative, we expect to recognize incremental expenses of $7 million to $9 million, primarily within operating expenses and mainly consisting of personnel expenses, such as employee severance and benefits costs, all of which will result in future cash expenditures. We also expect the reversal of stock-based compensation expense of $2 million to $3 million related to the forfeiture of unvested restricted stock units (“RSUs”) and stock options. As a result of the foregoing, the net effect on operating expenses is estimated to be $5 million to $7 million. The charges that we expect to incur and the timing of related cash expenditures are subject to a number of assumptions, and actual expenses and timing may differ materially from these estimates.

Rule 10b5-1 Trading Arrangements

During the three months ended September 30, 2024, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act)adopted, modified, orterminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K.