Chegg(US:CHGG)2023-08-06 16:00Revenue Performance - Subscription Services revenues decreased by $9.6 million, or 5%, and $14.2 million, or 4%, during the three and six months ended June 30, 2023, respectively, compared to the same periods in 2022[104] - For the three months ended June 30, 2023, net revenues were $182.9 million, a decrease of 6% from $194.7 million in the same period of 2022[122] - Skills and Other revenues decreased by 12% to $17.0 million in Q2 2023, primarily due to lower revenues from print textbooks and eTextbooks[131] - Subscription Services accounted for 91% and 90% of net revenues during the three and six months ended June 30, 2023, respectively, compared to 90% and 88% during the same periods in 2022[104] - Subscription Services revenues accounted for 91% of net revenues in Q2 2023, compared to 90% in Q2 2022[124] Operating Expenses - Total operating expenses increased by $12.4 million, or 9%, during the three months ended June 30, 2023, compared to the same period in 2022[108] - Total operating expenses increased by 30% to $21.2 million in Q2 2023, driven by higher employee-related expenses and restructuring charges[137] - General and administrative expenses as a percentage of net revenues rose to 38% in Q2 2023, up from 28% in Q2 2022[137] Research and Development - Research and development expenses increased by $0.4 million, or 1%, during the three months ended June 30, 2023, with R&D expenses as a percentage of net revenues at 29%[109] - Research and development expenses increased to $11.97 million in Q2 2023, compared to $10.01 million in Q2 2022[119] Cash Flow and Financing - Net cash provided by operating activities for the six months ended June 30, 2023, was $135.9 million, down from $143.8 million in the same period of 2022[147] - Net cash used in investing activities for the six months ended June 30, 2022, was $293.8 million, primarily due to business acquisition of $401.1 million and investments of $356.6 million[148] - Net cash used in financing activities for the six months ended June 30, 2023, was $563.8 million, mainly for repayment of notes totaling $369.8 million and stock repurchases of $186.4 million[149] Shareholder Actions - The company repurchased 3,433,157 shares of common stock for $34.5 million in June 2023[117] - The company has reserved 12,000,000 shares for issuance under the 2023 Equity Incentive Plan, effective June 7, 2023[115] - As of June 30, 2023, the company had $89.4 million remaining under its $2.0 billion securities repurchase program[142] Subscriber Metrics - The company experienced a 9% and 5% decrease in subscribers during the three months ended June 30, 2023, and March 31, 2023, respectively, compared to the same periods in 2022[104] Profitability Outlook - The company anticipates that investments in artificial intelligence will help sustain profitability and remain cash-flow positive in the long term[97] Restructuring and Charges - The company recorded restructuring charges of $5.7 million in Q2 2023, impacting approximately 90 employees, with expected completion by the end of fiscal 2023[119] Market Risk and Controls - There were no material changes in market risk during the six months ended June 30, 2023, compared to the previous disclosures[174] - The company conducted an evaluation of the effectiveness of its disclosure controls and procedures as of the end of the reporting period[175]