Sunday, July 30, 2017 6:16:07 PM
"The momentum we saw in Q1 continued into Q2, as we exceeded our expectations on both revenue and profitability. As engagement with Chegg Services expands, we have increased confidence to raise our guidance for the full year," said Dan Rosensweig, Chairman and CEO of Chegg, Inc. "We believe that Chegg is becoming the largest direct-to-student platform in the country, with students increasingly dependent on Chegg to master their subjects, pass their classes, and graduate. In the first half of this year students viewed almost 200 million pieces of Chegg Study content, created over 290 million new citations, and were tutored in over 180 different subjects."
Q2 2017 Highlights:
•Total Net Revenues of $56.3 million, an increase of 6% year-over-year
•Total Net Revenues to Non-GAAP Total Net Revenues growth increased 38% year-over-year *
•Chegg Services Revenues grew 50% year-over-year to $44.7 million, or 79% of total net revenues, compared to 56% in Q2 2016
•Net Loss was $6.0 million
•Non-GAAP Net Income was $6.0 million
•Adjusted EBITDA was $10.1 million
•1.2 million: number of Chegg Services subscribers
•98 million: total Chegg Study content views
Our total net revenues are comprised of two revenue streams: (1) Chegg Services revenues, which includes Chegg Study, Chegg Tutors, our Writing Tools service, Enrollment Marketing, Brand Partnership, Internships, and Test Prep; and (2) Required Materials revenues, which includes commission revenues from Ingram Content Group (Ingram) and textbook publishers, and the rental and sale of eTextbooks.
* Chegg presents non-GAAP total net revenues as if the transition of textbook inventory investment and textbook logistics and fulfillment functions for Chegg's print textbook business to Ingram was complete and the revenues from print textbook business were entirely commission-based. Chegg completed its transition to Ingram in November 2016 and to provide a more meaningful comparison of Chegg's total net revenues for the second quarter of 2017, Chegg has presented the year-over-year percentage against non-GAAP total net revenues for the same period in 2016.
For more information about non-GAAP total net revenues, non-GAAP net income, and adjusted EBITDA, and a reconciliation of non-GAAP total net revenues to total net revenues, non-GAAP net income to net loss, and adjusted EBITDA to net loss, see the sections of the press release titled "Use of Non-GAAP Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures."
Business Outlook:
Third Quarter 2017
•Total Net Revenues in the range of $56 million to $58 million
•Chegg Services Revenues in the range of $37 million to $39 million
•Gross Margin between 60% and 62%
•Adjusted EBITDA in the range of $3 million to $4 million
Full Year 2017
•Total Net Revenues in the range of $241 million to $243 million
•Chegg Services Revenues in the range of $180 million to $182 million
•Gross Margin greater than 65%
•Adjusted EBITDA in the range of $41 million to $42 million
•Capital Expenditures in the range of $20 million to $25 million
•Free Cash Flow in the range of $18 million to $22 million
Recent CHGG News
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- Chegg Reports 2024 First Quarter Earnings • Business Wire • 04/29/2024 08:05:00 PM
- U.S. Futures Rise in Pre-Market Trading Amid Key Federal Reserve Meeting and Earnings Week Ahead • IH Market News • 04/29/2024 11:12:54 AM
- Chegg Reports New Hire Equity Grants Under NYSE Rule 303A.08 • Business Wire • 04/17/2024 08:05:00 PM
- Chegg to Announce First Quarter 2024 Financial Results • Business Wire • 04/04/2024 08:05:00 PM
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- Chegg Reports New Hire Equity Grant Under NYSE Rule 303A.08 • Business Wire • 03/14/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 11:46:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/05/2024 09:28:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 10:37:38 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/20/2024 09:01:53 PM
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- Form 8-K - Current report • Edgar (US Regulatory) • 02/05/2024 09:08:54 PM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 12:58:21 AM
- Chegg to Announce Fourth Quarter and Full Year 2023 Financial Results • Business Wire • 01/11/2024 09:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/14/2023 10:11:03 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/13/2023 09:26:34 PM
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