Key PointsChegg is a leading online education platform providing expert answers, study guides, homework solutions, tutoring and textbook rentals for students.CheggMate AI hasn’t been able to slow the deceleration in Subscription service revenues and members, but the company will continue its multi-year integration.Chegg beat Q1 2024 EPS by a penny but lowered its top and bottom line estimates for Q2 2024.5 stocks we like better than CheggDespite the viral spread of artificial intelligence (AI) applications ...

Chegg (NYSE:CHGG) stock is falling on Tuesday following the release of the online education company’s earnings report for the first quarter of 2024.That’s despite it reporting adjusted earnings per share of 26 cents alongside revenue of $174.35 million. Both of these are better than Wall Street’s estimates of 25 cents per share and $174.1 million in revenue.Unfortunately, both Chegg’s adjusted EPS and revenue are down year-over-year. The company’s EPS for Q1 2023 was 27 cents while its revenue was $187.6 mi ...

James Tahaney loads textbooks on to a pallet in preparation for shipping at the Chegg warehouse in Shepherdsville, Kentucky, on April 29, 2010."We question the ability of CHGG to return to durable growth as free AI tools become an attractive alternative to a paid CHGG sub," analyst Brent Thill wrote in a note Tuesday.As a result, Jefferies downgraded the stock to underperform from hold and lowered its price target to $4 from $7, suggesting 2% downside from Monday's close.Chegg, which announced a new CEO, sa ...

For the quarter ended March 2024, Chegg (CHGG) reported revenue of $174.35 million, down 7.1% over the same period last year. EPS came in at $0.26, compared to $0.27 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $174.05 million, representing a surprise of +0.17%. The company delivered an EPS surprise of +8.33%, with the consensus EPS estimate being $0.24.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Chegg, Inc. (NYSE:CHGG) Q1 2024 Earnings Conference Call April 29, 2024 4:30 PM ET Company Participants Tracey Ford - Vice President, Investor Relations & ESG Dan Rosensweig - Co-Chairperson & Chief Executive Officer Nathan Schultz - Incoming President & Chief Executive Officer David Longo - Chief Financial Officer Conference Call Participants Bryan Smilek - JPMorgan Eric Sheridan - Goldman Sachs Ryan MacDonald - Needham & Company Josh Baer - Morgan Stanley Brent Thill - Jefferies Devin Au - KeyBanc Capital ...

Q1 2024 Highlights - Global learners asked 9 million questions, a significant increase from 3.9 million a year ago[2] - AI content creation drove a return to non-subscriber traffic growth for Chegg Study in the U S[2] - Nathan Schultz is being promoted to Chegg's President & CEO, effective June 15[13] Financial Performance - Q1 2024 Subscription Services Revenue was $154 million, compared to $174 million in Q1 2023[91] - Total Revenue for Q1 2024 was $168 million, down from $188 million in Q1 2023[91] - Adjusted EBITDA for Q1 2024 was $56 million, representing 31% of revenue[126] - Free Cash Flow for Q1 2024 was $25 million[105] Strategic Initiatives - Chegg is rolling out AI services and focusing on skills growth[5] - The company is building a proprietary AI stack for personalized learning outcomes[33] - Chegg is testing pricing and packaging in the U S and marketing its new product experience[29] - Chegg is focused on prudent expense management to align with current revenue trends[11]

Revenue Performance - Net revenues for Q1 2024 were $174.4 million, a 7% decrease compared to $187.6 million in Q1 2023[113][121] - Subscription Services revenue decreased by 9% to $154.1 million in Q1 2024 from $168.4 million in Q1 2023[121] - Skills and Other revenue increased by 6% to $20.3 million in Q1 2024 from $19.2 million in Q1 2023[121] Cost and Expense Management - Cost of revenues decreased by 5% to $46.5 million in Q1 2024 from $49.2 million in Q1 2023[122] - Research and development expenses decreased by 5% to $45.3 million in Q1 2024 from $47.8 million in Q1 2023[173] Tax and Contingency - Provision for income taxes increased by 117% to $9.1 million in Q1 2024 from $4.2 million in Q1 2023[161][174] - The company recognized an estimated loss contingency accrual of $7.0 million related to the JPMC dispute in 2023[99] Cash Flow Activities - Net cash provided by operating activities decreased by 27% to $53.2 million in Q1 2024 from $73.0 million in Q1 2023[164] - Net cash used in investing activities decreased by 62% to $40.5 million in Q1 2024 from $106.5 million in Q1 2023[175] Share Repurchase - The company repurchased 26.5 million shares of common stock in 2023, including 13.5 million shares from the November 2023 ASR[105]

Investors interested in Internet - Software stocks are likely familiar with Chegg (CHGG) and Informatica Inc. (INFA) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies wi ...

Investors are always looking for stocks that are poised to beat at earnings season and Chegg, Inc. (CHGG) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Cheggis seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of ...

The market expects Chegg (CHGG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April ...