Chegg Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Chegg, Inc. Reports Second Quarter 2024 Financial Results
Chegg, Inc. has released its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Year-over-Year Change | Quarter-over-Quarter Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Revenue | $163.1M | $174.4M | $182.9M | -10.8% | -6.5% | $159.98M |
| Earnings per Share (EPS) | ($4.33) | $0.14 | $0.21 | n/m | n/m | $0.22 |
Note: n/m - not meaningful
Interpretation : Chegg’s revenue for Q2 2024 of $163.1M surpassed the consensus estimate of $159.98M, yet it declined 10.8% year-over-year and 6.5% quarter-over-quarter. The negative EPS of ($4.33) is indicative of massive impairments affecting net income.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Year-over-Year Change |
|---|---|---|---|
| Subscription Services | $146.9M | $165.9M | -11.4% |
| Skills and Other | $16.2M | $17.0M | -4.7% |
Interpretation : Subscription Services revenue fell by 11.4%, driven by a decrease in the number of subscribers. Skills and Other revenue also saw a drop of 4.7%, influenced by lower revenues in Chegg Skills.
Dividends and Share Repurchase Program
Chegg did not announce any dividends. Regarding their share repurchase program, they had no cash repurchases during the three months ended June 30, 2024. They have $3.7M remaining under their current securities repurchase program, which will continue until further notice.
Forward Guidance
Chegg did not provide any forward guidance for the upcoming quarters.
Stock Price Movement
After the earnings release, Chegg's stock price declined by approximately 2.33%.
In summary, while Chegg exceeded revenue estimates for Q2 2024, the significant decrease in EPS and year-over-year decline in both key segments reflect ongoing financial challenges.
