Refile: BUZZ-Chegg falls on Q2 forecast below estimates

Chegg

30/04/2024 10:17

(Corrects reporting credit)
    ** Shares of ed-tech company Chegg  CHGG.N  fall ~11% to
$6.36 premarket
    ** Co on Monday forecast Q2 total net revenues of $159
mln-$161 mln vs consensus $166.7 mln per LSEG data
    ** CHGG reports Q1 loss of $1.4 mln vs $2.2 mln profit last
yr
    ** J.P.Morgan notes co's Q2 outlook is pressured by
continued Y/Y subscriber declines & ARPU pressures from pricing
tests; return to growth remains top priority
    ** Piper Sandler says Chegg faces challenges which could
strengthen with advances in genAI
    ** While co is looking to enhance its offering using genAI,
revaluation of CHGG's current monetization model is paramount -
Piper
    ** One analyst rates the stock "buy", nine "hold" and five
"sell" or lower; their median PT is $8 - LSEG data
    ** Up to last close, stock down ~37% YTD

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))