Online study and academic help platform Chegg (NYSE:CHGG) will be reporting results this Monday after market close. Here’s what investors should know.
Chegg beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $77.74 million, down 43.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Is Chegg a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Chegg’s revenue to decline 50.5% year on year to $71 million, a further deceleration from the 23.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chegg has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2% on average.
Looking at Chegg’s peers in the consumer subscription segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 2.7%, and Udemy reported a revenue decline of 3%, in line with consensus estimates. Coursera traded down 1.2% following the results while Udemy’s stock price was unchanged.
Read our full analysis of Coursera’s results here and Udemy’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. Investors in consumer subscription stocks have been spared in this environment as share prices are down 16.6% on average over the last month. Chegg is down 16.4% during the same time.
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