U.S. Markets open in 8 hrs 48 mins

Free Post Earnings Research Report: Chegg’s Quarterly Earnings Increased 50.0%; Surpassed Estimates

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:

www.active-investors.com/registration-sg

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:

www.active-investors.com/registration-sg/?symbol=TEDU

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:

www.active-investors.com/registration-sg/?symbol=CHGG

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.

Cash Matters

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.

Outlook

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.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors