Chegg Inc

Latest Results (06.01.2025):

Revenue Decline

Chegg Inc. reported total net revenues of $136.6 million for the third quarter of 2024, marking a 13% decrease compared to the same period in the previous year. This decline reflects the challenges posed by recent technological shifts and the adoption of generative AI by students, which have impacted the company's traditional revenue streams.

Subscription Services

In the third quarter of 2024, Chegg Inc.'s subscription services generated revenues of $119.8 million, representing a 14% decrease year-over-year. The company continues to face headwinds from the increasing use of AI-driven educational tools, which have affected the demand for its subscription-based offerings.

Net Loss and Adjusted EBITDA

Chegg Inc. reported a net loss of $212.6 million for the third quarter of 2024. However, on a non-GAAP basis, the company achieved a net income of $9.8 million and an adjusted EBITDA of $22.3 million, indicating some resilience in its financial performance despite the challenging environment.

Subscriber Base

The number of subscription services subscribers for Chegg Inc. stood at 3.8 million in the third quarter of 2024, a decrease of 13% compared to the previous year. This decline highlights the impact of competitive pressures from generative AI solutions on Chegg's subscriber growth.

Business Outlook

Looking ahead to the fourth quarter of 2024, Chegg Inc. anticipates total net revenues to be in the range of $141 million to $143 million, with subscription services revenues expected between $126 million and $128 million. The company projects a gross margin between 67% and 68% and adjusted EBITDA in the range of $32 million to $34 million, as it continues to navigate the evolving educational landscape.