Market Overview

Recap: Chegg Q3 Earnings

Share:

Shares of Chegg (NYSE:CHGG) moved lower by 4.60% in after-market trading after the company reported Q3 results.

Quarterly Results

Earnings per share decreased 5.56% over the past year to $0.17, which beat the estimate of $0.10.

Revenue of $154,018,000 higher by 63.59% year over year, which beat the estimate of $143,680,000.

Looking Ahead

Chegg Sees Q4 Sales $188M-$190M vs $183.21M Est., Chegg Services Revenue $162M-$164M; Sees FY20 Sales $626M-$628M vs $611.64M Est., Chegg Services Revenue $507M-$509M, Sees FY21 Sales ~$775M vs $757.99M Est.

  • Total Net Revenues in the range of $188 million to $190 million
  • Chegg Services Revenues in the range of $162 million to $164 million
  • Gross Margin between 72% and 73%
  • Adjusted EBITDA in the range of $82 million to $84 million

Full Year 2020

  • Total Net Revenues in the range of $626 million to $628 million
  • Chegg Services Revenues in the range of $507 million to $509 million
  • Gross Margin between 68% and 69%
  • Adjusted EBITDA in the range of $201 million to $203 million

Full Year 2021

  • Total Net Revenues of approximately $775 million
  • Chegg Services Revenues of approximately $655 million
  • Gross Margin of approximately 70%
  • Adjusted EBITDA of approximately $260 million

Conference Call Details

Date: Oct 26, 2020

Time: 04:30 PM

ET Webcast URL: http://public.viavid.com/player/index.php?id=141778

Technicals

Company's 52-week high was at $89.82

Company's 52-week low was at $25.89

Price action over last quarter: Up 2.69%

Company Description

Chegg Inc is an American educational services company that specializes in textbook rentals, course assistance, and online tutoring. The company focuses on high school and college level students who are able to rent textbooks for various courses and return them to the company after completion. Rentals are typically transacted at a low cost relative to the purchase of textbooks at full price. The company offers over 25,000 textbook titles for students to rent and historically has had over 1 million students use its services. Chegg also provides course and professor reviews, standardized test preparation, career preparation, and study materials on its website. Textbook rentals provide the majority of the company's revenue followed by online educational services.

 

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Posted-In: Earnings