Chegg Q2 revenue falls 51%
Chegg Q2 revenue falls 51%
Overview
Global learning platform's Q2 revenue fell 51% yr/yr, but exceeded company expectations
Adjusted EBITDA was positive, reflecting disciplined expense management and AI-driven efficiencies
Company repurchased $1.7 mln in shares during Q2, with $120.7 mln remaining authorized
Outlook
Chegg sees Q3 total net revenues between $43 mln and $44 mln
Company expects Q3 gross margin in the range of 48% to 49%
Chegg expects Q3 adjusted EBITDA between $1 mln and $2 mln
Result Drivers
EXPENSE REDUCTION - Co nearly halved non-GAAP operating expenses yr/yr, citing disciplined management and AI-driven productivity gains
SKILLING BUSINESS - Chegg Skilling revenues rose 2% yr/yr, with new distribution partnerships expected to contribute more meaningfully later this year
ACADEMIC SERVICES RETENTION - Co said Chegg Study monthly retention remained strong, reinforcing its long-term cash-generating potential
Company press release: ID:nBw1MQb2Ba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $51.85 mln | $49.50 mln (1 Analyst) |
Q2 Adjusted Loss Per Share | Beat | $0.02 | $0.05 (1 Analyst) |
Q2 Loss Per Share |
| $0.03 |
|
Q2 Adjusted Net Loss |
| $2.50 mln |
|
Q2 Net Loss |
| $2.95 mln |
|
Q2 Adjusted EBITDA |
| $9.10 mln |
|
Q2 Gross Profit |
| $28.28 mln |
|
Q2 Income from operations |
| -$3.18 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the professional information services peer group is "buy."
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)