Market Updates
Chegg Inc Sharply Lowers Annual Revenue Guidance
Scott Peters
02 May, 2022
New York City
Chegg Inc reported first quarter 2022 revenues increased 1.9% to $202,1 million and swung to net income of $5.7 million compared to a loss of $65.2 million.
Diluted earnings per share in the quarter was 4 cents compared to 49 cents loss a year ago.
After adjusting for stock-based compensation and other items, adjusted earnings per share rose to 32 cents from 28 cents a year ago and above the average estimate of 24 cents set by analysts according to FactSet.
Chegg Services revenue growth in the quarter plunged to 13.8% from 61.8 % in the year ago.
The company ended the quarter with 5.4 million Chegg services subscribers, an increase of 12% from a year ago.
The total subscriber count included 0.6 million subscribers of the newly acquired language services provider Busuu for $422 million.
Guidance and Outlook
The company guided second quarter revenues between $188 million and $192 million and gross margin between 73% and 74%.
The company also estimated adjusted EBITDA between $66 million and $68 million.
For the full-year 2022, the company estimated revenues between $740 million and $770 million compared to the previous estimated range of $830 million to $850 million.
Gross margin to hover in the range of 73% to 74%.
Adjusted EBITDA to fall between $220 million and $235 million or 30% adjusted EBITDA margin.
The company also anticipates capital expenditure in the year between $120 million and $130 million.
Annual Returns
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Earnings
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