Chegg Inc (CHGG) Q3 2023 Earnings: A Detailed Review
Chegg Inc (NYSE:CHGG) reported a decrease in total net revenues and subscription services revenues year-over-year.
The company's net loss was $18.3 million for Q3 2023.
Chegg Inc (NYSE:CHGG) is investing in AI to enhance its services and expand its customer base.
The company's CFO, Andy Brown, is set to retire in early 2024.
On October 30, 2023, Chegg Inc (NYSE:CHGG), a leading student-first connected learning platform, released its financial results for the third quarter of 2023. Despite a decrease in total net revenues and subscription services revenues, the company remains optimistic about its future growth, particularly with its ongoing investments in artificial intelligence (AI).
Financial Highlights
Chegg Inc (NYSE:CHGG) reported total net revenues of $157.9 million, a decrease of 4% year-over-year. Subscription services revenues, which make up 89% of total net revenues, also decreased by 4% year-over-year to $139.9 million. The company's net loss was $18.3 million. However, non-GAAP net income was reported at $23.2 million, and adjusted EBITDA was $38.8 million.
Investing in AI
Despite the decrease in revenues, Chegg Inc (NYSE:CHGG) remains optimistic about its future growth. The company has begun to roll out the first phase of its new AI-powered user experience. CEO & President Dan Rosensweig stated,
Chegg is in a great position to build the most impactful, scalable, AI-enabled, personal learning assistant, which will expand our opportunities to serve more students, in more ways, and at a lower cost per customer."
Leadership Transition
During the earnings call, it was announced that CFO Andy Brown will retire in early 2024. Brown has been with the company for 12 years and has been instrumental in its transition from a physical textbook rental business to a global, online learning platform.
Looking Ahead
For the fourth quarter of 2023, Chegg Inc (NYSE:CHGG) expects total net revenues in the range of $185 million to $187 million, subscription services revenues in the range of $164 million to $166 million, and adjusted EBITDA in the range of $62 million to $64 million.
The company is confident in its ability to leverage AI to expand its offerings and its total addressable market, ultimately returning to growth while maintaining strong profitability.
Explore the complete 8-K earnings release (here) from Chegg Inc for further details.
This article first appeared on GuruFocus.
