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By Dhirendra Tripathi
Investing.com -- Chegg stock (NYSE:CHGG) stock surged more than 10% Tuesday after the online education services company gave a strong outlook after beating estimates in the fourth quarter.
The company is forecasting total net revenue of $840 million at center of its guidance range, a rise of 8.2%. That will follow the 20% jump in 2021 annual revenue that crossed $776 million as the pandemic kept demand for online teaching elevated. The stock is down to about a fourth of its value since the pandemic fueled its rise to a high of $115.21 a year ago.
Chegg closed the year with 7.8 million subscribers, up 18%, and aims to add new subjects and incorporate more personalization in the learning method to build on that base and deliver on its forecast.
To cater to needs of students that go beyond academics, it launched Chegg Life and plans to focus on personal finance, soft-skills, mental health and wellness under that plan.
Total net revenue in the fourth quarter rose a mere 1%, but at $207.5 million, it was still ahead of estimates. Adjusted net profit was $63.5 million. On per share basis, it came in at 38 cents and beat estimates.