EXCLUSIVE: How Chegg Is Capitalizing On The Accelerating Trend Toward Online Education

EXCLUSIVE: How Chegg Is Capitalizing On The Accelerating Trend Toward Online Education

As kids begin heading back to school, Chegg Inc CHGG is looking to build on another strong quarter.

The company announced better-than-expected second-quarter financial results on Aug. 9, reporting a top and bottom-line beat.

Andrew Brown, CFO of Chegg, appeared on Benzinga's YouTube show "Power Hour" for an exclusive interview Friday.

As mask mandates become more prevalent amid COVID-19 variant concerns, investors might want to know how Chegg will be impacted. 

Regardless of whether students are learning on-campus or off-campus, they still need help, Brown told Benzinga.

When students need assistance in school, they often turn to Chegg. "We help kids get unstuck when they're stuck in their education process," he said.

Chegg is an educational services company that specializes in course assistance and online tutoring.

The noticeable change that has occurred as a result of the pandemic, is an acceleration of the trend toward online education, Brown said. "All of our services are online."

Two-thirds of students prefer to have the option to learn online, the Chegg CFO noted. 

Second-Quarter Results: For the second quarter, Chegg reported adjusted earnings of 43 cents per share, which beat the estimate of 37 cents per share. The company reported quarterly revenue of $198.48 million, which beat the estimate of $189.94 million. Chegg also raised its guidance.

"The beauty of our business model is it's primarily subscription," Brown said. Subscriptions are predictable which gave Chegg the confidence to raise its guidance, he explained.

"We have that type of visibility that a lot of other businesses may not have."

Looking into the future, Brown expects Chegg to grow at the same pace or higher than the growth rate it maintained before the pandemic.

Brown went on to talk about solving its account sharing issues, international acceleration, contributing content from professors and more.

See the full interview here:

CHGG Price Action: Chegg has traded as high as $115.21 and as low as $62.84 over a 52-week period.

At last check Friday, the stock was up 0.67% at $81.21.

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