SAN FRANCISCO--(BUSINESS WIRE)--Chegg, Inc. (NYSE: CHGG), a global learning company, today announced that Karine Allouche will join Busuu, Chegg's language learning business, as General Manager of Language Learning, Worldwide, and Skills Integration, Europe, effective February 9, 2026. Prior to her role at Coursera, Karine was the Vice President of Cloud and Data Services at NetApp, a data infrastructure company, where she grew significant cloud ARR growth through new GTM models with hyperscaler partners. E ...

Core Viewpoint - The article discusses the recent sell-off in global software stocks, termed "SaaSpocalypse," triggered by the launch of Anthropic's Claude Cowork, which poses a significant challenge to traditional SaaS business models by offering high-level results at lower costs [5][10]. Group 1: Market Reaction - On February 4, major software companies experienced significant stock declines, with Thomson Reuters dropping 15.8%, LegalZoom nearly 20%, and Salesforce and Workday also seeing notable decreases [5]. - The S&P 500 Software and Services Index fell nearly 13% over five trading days, marking a 26% drop from its October peak [5]. - The sell-off is compared to a previous market panic caused by DeepSeek, highlighting the similarities in market reactions to disruptive AI technologies [7][10]. Group 2: Comparison of Two Market Panics - The panic caused by Cowork is expected to be more prolonged than that of DeepSeek, as Cowork represents a novel AI application, while DeepSeek was a cheaper alternative to existing models [10]. - The market's response to both events shows a pattern of overreaction, with analysts suggesting that the fears may be exaggerated [9][10]. - Cowork's impact has spread beyond the U.S. to global markets, affecting stocks in London, Tokyo, and India, indicating a broader concern within the tech industry [11]. Group 3: SaaS Pricing Models and Challenges - Traditional SaaS pricing models are under pressure, with many companies shifting from fixed pricing to usage-based models due to increased efficiency and cost-cutting measures [14][15]. - The average SaaS company in the PricingSaaS 500 index has experienced 3.6 pricing changes per year, with a significant increase in companies adopting usage-based pricing [15]. - Companies like Salesforce have struggled with pricing strategies, leading to a transition from fixed pricing to more flexible models to accommodate rising operational costs [15][17]. Group 4: Emergence of AI-Native Startups - AI-native startups are gaining traction, with their revenue growth rates significantly outpacing traditional SaaS companies, highlighting a shift in enterprise spending towards these new players [18]. - For instance, companies like Harvey and Glean have achieved valuations of $5 billion and $7.25 billion, respectively, indicating strong investor interest in AI-driven solutions [18]. - The article notes that AI-native companies are expected to capture over half of enterprise AI spending, reflecting a fundamental change in the software landscape [18]. Group 5: Vibe Coding and Its Implications - The rise of Vibe Coding could lead enterprises to create their own tools rather than relying on third-party SaaS products, potentially disrupting traditional software markets [20][21]. - If Vibe Coding matures, it may enable employees to develop solutions quickly, reducing reliance on complex software development processes [21]. - The article suggests that traditional software companies may face a "three-step path to extinction" if they fail to adapt to these emerging trends [22].

- Chegg's upcoming Q4 earnings are anticipated with an EPS of -$0.11 and revenue of $71 million, amidst declining subscribers and increased competition.- The company previously exceeded expectations in the last quarter but is currently under revenue pressure with a 43% drop over the past year.- Chegg's financial challenges include a negative P/E ratio of -0.97 and a debt-to-equity ratio of 0.57, indicating potential issues with profitability and debt management.Chegg, Inc. (NYSE:CHGG) is a company known for ...

Core Insights - Chegg, Inc. (CHGG) is set to report its fourth-quarter 2025 results on February 9, with expectations of significant declines in both revenue and earnings per share compared to the previous year [1][3]. Financial Performance - In the last reported quarter, Chegg's adjusted earnings per share (EPS) exceeded the Zacks Consensus Estimate by 100%, while net revenues surpassed the estimate by 1.8%. However, year-over-year, the top line fell by 43% [1]. - The Zacks Consensus Estimate for the upcoming fourth-quarter adjusted loss per share is unchanged at 11 cents, reflecting a 164.7% decline from the adjusted EPS of 17 cents reported in the same quarter last year [3]. - The estimated net revenues for the fourth quarter are projected at $71.3 million, indicating a 50.3% decrease from $143.5 million reported in the year-ago quarter [3]. Revenue Breakdown - The decline in revenue is attributed to reduced contributions from Subscription Services, which accounted for 88.9% of third-quarter 2025 net revenues, and Skills and Other segments, which contributed 11.1% [4]. - For the upcoming quarter, revenues from Subscription Services are estimated at $64 million, down from $129 million, while revenues from Skills and Other are expected to be $7.47 million, down from $14.94 million [6]. Subscriber Metrics - Chegg anticipates a significant drop in its subscriber base, with estimates pegged at 1,855, representing a 48.5% year-over-year decline from 3,600 [6]. Margin Expectations - The company's gross margin is expected to range between 57% and 58%, a decrease from 68% reported in the previous year [8]. - Adjusted EBITDA is anticipated to be between $10 million and $11 million, significantly down from $36.6 million reported in the year-ago quarter [8]. Strategic Focus - Chegg is focusing on AI integration and transitioning towards advanced professional upskilling, although it faces challenges from declining subscriber numbers and competition from AI tools [8]. - The company is undergoing restructuring, which is likely to incur additional expenses, further impacting the bottom line despite efforts to control costs [7][8].

Key Takeaways Chegg will allow select courses to count toward undergraduate and postgraduate degrees awarded by Woolf.Chegg's programs enter Woolf's academic framework and face independent review to meet accredited standards.CHGG gains appeal as Woolf degrees use EHEA standards and ECTS credits recognized in 60 countries.Chegg, Inc. (CHGG) is expanding its learning platform through a new partnership with Woolf to connect skill-based training with accredited degrees. The company announced that select program ...

Key Takeaways Chegg's Q3 free cash flow turned negative largely due to one-time settlement and restructuring costs.Legacy subscription revenues are sliding as AI tools and search changes weigh on demand.Chegg's skilling pivot and discounted valuation may restore cash flow if execution stays on track.Chegg, Inc. (CHGG) reported negative free cash flow in the third quarter of 2025, which raised concerns about its financial trajectory. However, a closer look suggests the shortfall may be more transitional than ...

"Chegg Skills has always focused on building skills that unlock real career mobility,†said Colin Coggins, GM and Senior Vice President of Chegg Skills. SANTA CLARA, Calif.--(BUSINESS WIRE)--Chegg, Inc. (NYSE: CHGG), a global learning company, today announced that Chegg Skills, its workforce upskilling and reskilling business, has entered a strategic partnership with Woolf, a globally accredited collegiate higher-education institution, to create new pathways that connect industry-relevant skills with undergr ...

Key Takeaways Chegg is pivoting to skilling and AI learning, but legacy traffic declines cloud turnaround timing.Duolingo shows strong user engagement and MAX expansion, though monetization growth is moderating.CHGG trades at a discount with rebound potential, while DUOL commands a premium amid execution risks.The market's inclination toward digital learning, particularly AI-based alternatives, is favoring the edtech market and the firms operating within it, such as Chegg, Inc. (CHGG) and Duolingo, Inc. (DU ...

Core Insights - Chegg, Inc. (CHGG) is transitioning its business model to a business-to-business (B2B) approach to mitigate the uncertainty in student-driven online traffic [1][4] - The core academic business is facing challenges due to the rise of generative Artificial Intelligence and changes in online search behavior, leading to a decline in traditional study platform usage [2][3] Financial Performance - In Q3 2025, total revenues fell by 42% year over year, primarily due to decreased traffic in legacy academic services and lower advertising revenues [3] - The core academic segment experienced a revenue drop of over 40% year over year, with legacy traffic declining nearly 50% [3] Strategic Shift - The company is prioritizing its B2B skilling operations, which focus on enterprise partnerships and offer better revenue visibility and lower sensitivity to traffic fluctuations [4][8] - This strategic pivot aims to stabilize performance amid the evolving digital education landscape [4] Competitive Landscape - Chegg operates in a competitive EdTech market alongside companies like Duolingo, Inc. and Udemy, Inc., which have established strong positions in language learning and professional skill development, respectively [5][6] Stock Performance - CHGG shares have decreased by 38.9% over the past six months, underperforming compared to the Zacks Internet-Software industry, the Zacks Computer and Technology sector, and the S&P 500 index [7][8] - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.33, indicating a discount compared to industry peers [10] Earnings Estimates - The earnings per share estimate for 2026 remains unchanged at 18 cents, with an expected growth of 228.6% [12] - Current earnings estimates for Q4 2025 and Q1 2026 are projected at -0.19 and 0.09, respectively, with a forecast of -0.14 for the current year and 0.18 for the next year [13]

Core Viewpoint - Chegg, Inc. is set to release its earnings results for the fourth quarter and full fiscal year of 2025 on February 9, 2026, after market close [1] Financial Results Announcement - The earnings results will cover the period ending December 31, 2025 [1] - A conference call to discuss the financial results will take place at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1]