Chegg Inc (NYSE:CHGG) is trading higher Tuesday morning after the company announced better-than-expected fourth-quarter financial results and issued guidance above estimates.
Chegg reported quarterly revenue of $207.5 million, which beat the $195.2 million estimate. The company reported quarterly earnings of 38 cents per share, which beat the estimate for 31 cents per share.
"Students depend on Chegg as an important part of their learning journey and the momentum we experienced in the fourth quarter of 2021 is continuing into 2022," said CEO Dan Rosensweig.
Chegg expects first-quarter revenue to be between $200 million and $205 million versus the $198.1-million estimate. The company expects adjusted EBITDA to be in the range of $56 million to $58 million.
Total net revenues include revenues from Chegg Services and Required Materials. Chegg Services primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Required Materials includes print textbooks and eTextbooks.
Following Chegg's financial results, Piper Sandler analyst Arvind Ramnani maintained Chegg with an Overweight rating and raised the price target from $43 to $44.
Rosensweig continued, "During these complicated times, the Chegg team continued to execute extremely well, with Chegg Study Pack take rates outperforming our expectations and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for Chegg Services."
Chegg has traded as low as $23.23 and as high as $115.21 over a 52-week period. The shares opened Tuesday up $2.07, or 7.6%, to $29.34.
