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Chegg targets double-digit growth for skilling business in 2026 as company restructures and expands B2B partnerships (NYSE:CHGG)
Seeking Alpha· 2026-02-09 23:55
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Chegg (CHGG) Reports Q4 Loss, Beats Revenue Estimates
ZACKS· 2026-02-09 23:35
Chegg (CHGG) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +90.91%. A quarter ago, it was expected that this an online learning platform would post a loss of $0.14 per share when it actually produced break-even earnings, delivering a surprise of +100%.Over the last four quarters, the co ...
Chegg(CHGG) - 2025 Q4 - Earnings Call Transcript
2026-02-09 22:32
Financial Data and Key Metrics Changes - In Q4 2025, Chegg delivered $18 million in revenue from its skilling business, indicating a strong start for double-digit growth in 2026 [6][12] - Academic services revenue was $55 million, with a focus on cash generation [13] - Non-GAAP operating expenses were reduced to $44.8 million, a 47% decrease year-over-year, reflecting successful restructuring efforts [13][14] - Adjusted EBITDA for Q4 was $13 million, representing an 18% margin [13] - Free Cash Flow in Q4 was -$15 million, primarily due to $12 million in severance payments related to restructuring [14] Business Line Data and Key Metrics Changes - Chegg Skilling is now the growth engine, while the legacy academic learning services are managed for free cash flow generation [5][6] - The legacy business, Chegg Study, continues to serve over a million students and is generating meaningful cash flow [6][11] - The company is testing pricing and packaging strategies to extend the operational runway of its legacy business [7][13] Market Data and Key Metrics Changes - The global demand for workforce skilling has reached $40 billion, presenting a significant opportunity for Chegg [8] - Chegg is expanding its course catalog in high-demand areas such as AI, language, and technical skills [8][9] Company Strategy and Development Direction - Chegg is focused on the $40 billion skilling market, aiming for double-digit revenue growth with strong margins and cash flow [5][10] - The company plans to strengthen its balance sheet by ending the year with zero debt and a meaningful cash balance [10][16] - New partnerships with companies like DHL and Woolf University are aimed at expanding Chegg's reach into global enterprise and academic markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new business structure and its potential for success, noting positive early signs [5][11] - The company is transitioning from a direct-to-consumer (D2C) model to a business-to-business (B2B) skills learning platform [11] - Management anticipates stronger performance in the second half of 2026, driven by continued investment and new distribution partners [16] Other Important Information - Chegg repurchased $9 million of its 2026 convertible notes at a discount, enhancing its capital structure [12] - The company received a delisting notice from the NYSE but has multiple avenues to regain compliance [15] Q&A Session Summary Question: Key drivers of skilling growth and core business performance - Management highlighted that the core business is now skilling, with strong retention rates and positive early results from pricing tests [19][20] Question: Opportunities from the Coursera/Udemy merger - Management sees potential partnerships with Coursera and Udemy rather than competition, focusing on content creation and distribution [28][30] Question: Demand for AI learning content - There is a growing demand for AI learning content across all employee levels, with Chegg expanding its course offerings to meet this need [32][33]
Chegg(CHGG) - 2025 Q4 - Earnings Call Transcript
2026-02-09 22:32
Chegg (NYSE:CHGG) Q4 2025 Earnings call February 09, 2026 04:30 PM ET Company ParticipantsBryan Smilek - VPDan Rosensweig - President and CEODavid Longo - CFOTracey Ford - VP of Investor RelationsConference Call ParticipantsRyan MacDonald - Senior AnalystOperatorGood evening and welcome to the Chegg, Inc. 4th Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator ass ...
Chegg(CHGG) - 2025 Q4 - Earnings Call Transcript
2026-02-09 22:30
Chegg (NYSE:CHGG) Q4 2025 Earnings call February 09, 2026 04:30 PM ET Speaker3Good evening and welcome to the Chegg, Inc. 4th Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press *0 on your telephone keypad. It is now my pleasure to introduce your host, Tracey Ford, Vice President of Investor Relations. Thank you. You may begin.Speaker5Good ...
Chegg Stock Drops After Q4 Report Shows Major YoY Revenue Decline - Chegg (NYSE:CHGG)
Benzinga· 2026-02-09 22:16
Chegg Inc. (NYSE:CHGG) shares sank in Monday's extended trading after the company released its fourth-quarter earnings report.   Here's a look at the key figures from the quarter. CHGG stock is moving. Watch the price action here.The Details: Chegg reported quarterly losses of one cent per share, which beat the consensus estimate for losses of 10 cents.Quarterly revenue came in at $72.66 million, which beat the Street estimate of $71 million and was down from $143.48 million from the same period last year.C ...
Chegg Stock Drops After Q4 Report Shows Major YoY Revenue Decline
Benzinga· 2026-02-09 22:16
Chegg Inc. (NYSE:CHGG) shares sank in Monday's extended trading after the company released its fourth-quarter earnings report.   Here's a look at the key figures from the quarter. CHGG stock is moving. Watch the price action here.The Details: Chegg reported quarterly losses of one cent per share, which beat the consensus estimate for losses of 10 cents.Quarterly revenue came in at $72.66 million, which beat the Street estimate of $71 million and was down from $143.48 million from the same period last year.C ...
Chegg(CHGG) - 2025 Q4 - Earnings Call Presentation
2026-02-09 21:30
Q4-25 Investor Presentation February 9, 2026 © 2024 Chegg, Inc. / All Rights Reserved Safe Harbor Statement Forward-Looking Statements This investor presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, without limitation, our restructuring plans, including their size, the amount and timing of the charges we will incur in connection with them and the amount and timing of cost savings; our expectati ...
Chegg(CHGG) - 2025 Q4 - Annual Results
2026-02-09 21:06
Chegg Reports 2025 Fourth Quarter and Full Year Financial Results EXHIBIT 99.01 SAN FRANCISCO, Calif., February 9, 2026 /BUSINESS WIRE/ -- Chegg, Inc. (NYSE:CHGG), a global learning company, today reported financial results for the quarter and year ended December 31, 2025. "We are reinventing Chegg around the $40 billion skilling market, which we believe can drive double-digit growth with strong margins and cash flow in the years to come," said Dan Rosensweig, CEO & Executive Chairman of Chegg, Inc. "We've ...
Chegg Appoints Karine Allouche as General Manager, Language Learning, Worldwide and Skills Integration, Europe
Businesswire· 2026-02-09 14:05
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 ...