Chegg Inc CHGG reported third-quarter financial results Monday after the close. Here's a look at the key metrics from the quarter.
What Happened: Chegg said third-quarter revenue decreased 4% year-over-year to $157.9 million, which beat the consensus estimate of $152.67 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 18 cents per share, which beat analyst estimates of 17 cents per share.
Subscription services revenues decreased 4% year-over-year to $139.9 million. Subscription services subscribers fell 8% year-over-year to 4.4 million.
Gross margin came in at 47%, driven lower by a one-time content and related assets charge. Adjusted gross margin was 74%.
Chegg noted that it has started rolling out the first phase of its new AI-powered user experience.
"Chegg is in a great position to build the most impactful, scalable, AI-enabled, personal learning assistant, which will expand our opportunities to serve more students, in more ways, and at a lower cost per customer," said Dan Rosensweig, president and CEO of Chegg.
"We are moving quickly and have already started to roll out our new simple user interface and unified asking experience, delivering faster and more relevant solutions."
Chegg said it expects fourth-quarter revenue to be in the range of $185 million to $187 million versus estimates of $186.34 million. Subscription services revenues are expected to be between $164 million and $166 million.
Gross margin is expected to be between 73% and 74% in the fourth quarter. The company anticipates fourth-quarter adjusted EBITDA of $62 million to $64 million.
A conference call to discuss these results kicked off at 4:30 p.m. ET.
CHGG Price Action: Chegg shares were down approximately 64% year-to-date heading in the print. The stock was bouncing around after hours, but it was down 8.58% at $8.05 at the time of publication, according to Benzinga Pro.
Photo: weisanjiang from Pixabay.
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