CHGG Earnings Prediction
The chart below shows how CHGG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CHGG sees a +0.11% change in stock price 10 days leading up to the earnings, and a -15.24% change 10 days following the report. On the earnings day itself, the stock moves by -0.29%. This data can give you a slight idea of what to expect for the next quarter's release.
CHGG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
143.48M
-23.67%
5.04%
Gross Margin
68.61%
-9.28%
0.57%
Operating Margin
-8.05%
-213.86%
-55.05%
Net Margin
-4.27%
-183.07%
-97.26%
EPS
-0.06
-33.33%
-97.07%
No Data Available
CHGG Earnings Analysis
Chegg Inc Corporation (CHGG.N) Earnings Conference Call
Positive
Earnings Per Share Match: Chegg reported earnings in line with expectations, achieving an EPS of $0.17, which matched analyst forecasts.
AI-Driven Cost Reduction: The company has integrated AI and machine learning into its product offerings, significantly reducing content creation costs by over 70% while maintaining high quality.
Brand Marketing Success: Chegg's innovative brand marketing campaign led to year-over-year improvements in click-through and conversion rates, with a notable 16% increase in awareness among underclassmen on TikTok.
AI Q&A Experience Improvement: The AI-powered question-and-answer experience has been enhanced, resulting in a 66% increase in questions asked in 2024 compared to 2023, contributing to a 15-basis-point increase in subscriber retention.
Freemium Model Success: Busuu, Chegg's language learning service, transitioned to a freemium model, achieving a 31% increase in the first 30-day conversion rate to paying customers and a 9% year-over-year revenue growth for 2024.
Enterprise Revenue Surge: The enterprise segment of Busuu saw a 46% revenue increase in 2024, with new enterprise customers added, indicating strong demand for their services.
Innovative Product Development: Chegg's proactive approach to product development includes the launch of Solution Scout, which allows students to compare answers from multiple sources, addressing concerns about trust in generative AI.
Strong Financial Foundation: The company has a solid balance sheet with $528 million in cash and investments, providing a strong foundation for future initiatives.
Negative
Revenue Decline Analysis: Total revenue decreased by 24% year-over-year, indicating a significant decline in overall business performance.
Subscription Revenue Decline: Subscription services revenue fell by 23% year-over-year, reflecting a loss of subscribers and revenue generation.
Subscriber Decline Trend: The number of subscribers dropped by 21%, highlighting a concerning trend in customer retention and acquisition.
Revenue Decline in Skills Sector: Skills and other revenue decreased by 31% year-over-year, attributed to a market shift away from traditional boot camps to lower-cost programs.
Advertising Revenue Decline: Advertising revenue declined due to reduced traffic across the platform, impacting overall revenue streams.
Employee Severance Costs: The company incurred approximately $25 million in cash outlays related to employee severance from layoffs, indicating financial strain and restructuring challenges.
Q1 2025 Revenue Guidance: The guidance for Q1 2025 projects total revenue between $114 million and $116 million, which is lower than previous quarters, suggesting ongoing difficulties in revenue generation.
Q1 2025 Adjusted EBITDA Outlook: Adjusted EBITDA for Q1 2025 is expected to be between $13 million and $14 million, indicating reduced profitability compared to previous periods.
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CHGG Earning Call Sentiment
Chegg, Inc. (NYSE:CHGG) Q4 2024 Earnings Call Transcript
CHGG.N
1.28%Positive
The earnings call reveals significant challenges: a sharp decline in traffic and subscribers, a 24% revenue decrease, and a 21% drop in subscribers. Despite cost savings and AI integration, economic pressures, market shifts, and regulatory issues persist. The Q&A highlights management's lack of clarity on retention and pricing strategies. While share repurchases and partnerships are positive, the inability to meet 2025 goals and restructuring costs weigh heavily, resulting in a negative sentiment.
