Chegg (CHGG) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2023/08/06 7:26 am EDT

Online study and academic help platform Chegg (NYSE:CHGG) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Chegg reported revenues of $187.6 million, down 7.24% year on year, beating analyst revenue expectations by 1.31%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 5.1 million users, down 5.56% year on year.

Is Chegg buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Chegg's revenue to decline 9.35% year on year to $176.5 million, a further deceleration on the 1.89% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Chegg Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Chegg's peers in the consumer internet segment, only PlayStudios has so far reported results, delivering top-line growth of 13.8% year on year, and beating analyst estimates by 0.68%. The stock was down 2.81% on the results. Read our full analysis of PlayStudios's earnings results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 4.52% over the last month. Chegg is up 18% during the same time, and is heading into the earnings with analyst price target of $13.1, compared to share price of $10.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.