Chegg Q2 revenue, EPS beat expectations, year view higher, shares rise

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Tiernan Ray

By

Tiernan Ray

| August 9, 2021 — 20:30 GMT (21:30 BST)

| Topic: E-Commerce

Online learning materials vendor Chegg this afternoon reported Q2 revenue and profit that topped Wall Street’s expectations, and an outlook for the year’s revenue that was higher as well. 

The report sent Chegg shares up 3% in late trading. 

CEO Dan Rosensweig remarked, “It is clear, wherever students are learning, whether online, in the classroom, or in a hybrid model, the value of Chegg is unquestionable.”

Added Rosensweig, “Chegg had a great Q2 with total revenue growth of 30%, driven by 38% growth in Chegg Services revenue with Chegg Services subscribers growing to 4.9 million in the quarter. 

“Our international growth also continues to be strong, and we are confident we will exceed our initial expectation of over one million international subscribers for the year.”

Revenue in the three months ended in June rose 30%, year over year, to $198.5 million, yielding a net profit of 43 cents a share.

Analysts had been modeling $190 million and 37 cents per share.

The company’s services revenue rose by 38%, to $173.5 million, making up 87% of revenue, which was an increase from the 82% it constituted in the year-earlier period.

For the current quarter, the company sees revenue of $170 million to $175 million, versus consensus for $173 million.

Chegg said it expects to record Ebitda of $43 million to $45 million. That is ahead of consensus for $39 million, per FactSet.

For the full year, the company sees revenue in a range of $805 million to $815 million, versus consensus of $799 million. 

The company expects full-year Ebitda of $295 million to $300 million, ahead of the FactSet consensus for $279 million.

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Tiernan Ray

By

Tiernan Ray

| August 9, 2021 — 20:30 GMT (21:30 BST)

| Topic: E-Commerce