Chegg (NYSE:CHGG) shares dropped sharply Tuesday following its earnings report . The company gave first-quarter and full-year revenue guidance that was below analyst expectations, according to Refinitiv. Chegg noted subscriber growth challenges and concerns related to the health of the broader economy.
Total Net Revenues were $205.2 million, a decrease of 1% year-over-year
Net Income was $1.9 million. Non-GAAP Net Income was $58.8 million. Adjusted EBITDA was $74.0 million. Chegg Services subscribers number five million, an increase of 8% year-over-year.
“The last several years have been very challenging for everyone; however, the best, most innovative companies, like Chegg, come out of difficult times and are able to improve their market position,” said CEO Dan Rosensweig. “We are very excited about the next chapter for Chegg; we believe there is significant growth ahead for our business and are energized by the scale of the opportunity in front of us.”
Chegg’s revenue product lines are changing to Subscription Services, and Skills and Other to better represent how we view the business and allow investors to better monitor and evaluate trends in our business. Subscription Services includes revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings. Skills and Other includes revenues from Thinkful, Advertising, and any other revenues not included in Subscription Services. Chegg Services includes revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, Busuu and Thinkful offerings.
CHGG shares stumbled $4.39, or 20.9%, to $16.64.
