Stock Monitor: Tarena Intl. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 19, 2018 / Active-Investors.com has just released a free earnings report on Chegg, Inc. (NYSE: CHGG). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CHGG. On February 12, 2018, Chegg reported financial results for the fourth quarter and full year ended December 31, 2017. In full year 2017, the Company met all its financial targets, made key investments in existing and future services, expanded its offerings organically and through acquisition, and strengthened its balance sheet with a very well received follow-on offering. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Tarena International, Inc. (NASDAQ: TEDU), which also belongs to the Services sector as the Company Chegg. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Chegg most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
Chegg's total revenues for the fourth quarter of 2017 (Q4 FY17) reached $73.51 million, an increase of 16.57% from $63.06 million in Q4 FY16. Chegg's services subscribers increased 47% to 1.4 million y-o-y and Chegg Study content views advanced 79% to 169 million y-o-y in Q4 FY17. The reported revenue number exceeded analysts' consensus estimates of $70.5 million.
During Q4 FY17, Chegg's total cost of revenues was $19.38 million compared to $20.57 million in Q4 FY16, reflecting a decrease of 5.79%. The Company's gross profit advanced 27.40% to $54.13 million in the reported quarter from $42.49 million in the year-ago same quarter.
Chegg's operating expenses hiked 17.35% to $51.12 million in Q4 FY17 from $43.56 million in Q4 FY16. The Company had an income from operations of $3.01 million in the reported quarter compared to a loss from operations of $1.07 million in the previous year's corresponding quarter.
Chegg generated a net income of $3.66 million in Q4 FY17 compared to a net loss of $1.49 million in Q4 FY16. Diluted income per common share was $0.03 in the quarter under review from net loss per share of $0.02 in the same period last year. Reported earnings included share-based compensation expense, amortization of intangible assets, restructuring charges, and acquisition-related compensation costs. The Company's adjusted diluted income per share for Q4 FY17, excluding non-recurring and non-core items, was $0.15, an increase of 50% from $0.10 in Q4 FY16. Chegg's adjusted diluted income for the reported quarter was higher than analysts' consensus estimates of $0.13 per share.
For the year ending December 31, 2017, Chegg's total revenues were $255.07 million, an increase of 0.38% from $254.1 million in FY16, driven by the leverage of its all-digital model. The Company achieved record 2.2 million service subscribers in 2017, an increase of 45% y-o-y. Similarly, Chegg Study content views advanced 69% to 440 million y-o-y in FY17. The Company's gross profit advanced 30.04% to $174.89 million in the year under review. Chegg reported a loss of $20.28 million in FY17 compared to $42.25 million in FY16. The Company had a diluted net loss per share of $0.2 in the reported year compared to net loss per share of $0.47 in the previous year. Adjusted diluted income per share for FY17, excluding special items was $0.28, up 211.11% from $0.09 in FY16.
Chegg had cash and cash equivalents of $126.46 million as on December 31, 2017, 63.53% higher than $77.33 million as on December 31, 2016, due to the proceeds from the successful offering in Q3 and improved cash flows from its all-digital model. The Company's long-term liabilities as on December 31, 2017, were $55.87 million compared to $68.71 million as on December 31, 2016.
For the twelve months ending December 31, 2017, Chegg's net cash flow from operating activities was $51.15 million, an increment of 105.1% from $24.94 million in FY16. The Company issued common stock worth $23.66 million under stock plans in FY17 compared to $2.10 million in FY16.
For the first quarter of 2018 (Q1 FY18), Chegg expects total net revenues to be in the range of $73 million to $75 million. Of this, Services Revenues are expected to be between $54 million and $55.5 million. The Company anticipates a gross margin of 71%-73% and adjusted EBITDA in the range of $14 million to $16 million in Q1 FY18.
For full year 2018, Chegg expects net revenues to be in the range of $295 million to $300 million. Of this, Services Revenues are expected to be between $240 million and $243 million. The Company expects a gross margin of 72%-74% and adjusted EBITDA in the range of $74 million to $76 million in FY18. Chegg expects to incur $30 million to $35 million in capital expenditures in FY18.
Stock Performance Snapshot
March 16, 2018 - At Friday's closing bell, Chegg's stock dropped 2.12%, ending the trading session at $21.28.
Volume traded for the day: 1.75 million shares, which was above the 3-month average volume of 1.15 million shares.
Stock performance in the last month – up 12.06%; previous three-month period – up 34.77%; past twelve-month period – up 162.07%; and year-to-date – up 30.39%
After last Friday's close, Chegg's market cap was at $2.39 billion.
The stock is part of the Services sector, categorized under the Education & Training Services industry. This sector was up 0.3% at the end of the session.
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