Chegg(US:CHGG)2021-08-09 23:25Financial Data and Key Metrics Changes - Total revenue grew by 30% in Q2 2021, reaching $198 million, driven by a 38% increase in Chegg Services revenue to $174 million [22][27] - Adjusted EBITDA increased by 52% year-over-year to $84 million, nearly three times the amount achieved two years ago [23][27] - The company ended the quarter with cash and investments of approximately $2.5 billion, having redeemed $91 million in convertible notes, reducing total debt [25] Business Line Data and Key Metrics Changes - Chegg Services subscribers grew to 4.9 million in Q2 2021, with both revenue and subscribers more than doubling over the past two years [22][27] - The company added 7 million new solutions in Q2, with over 37% of questions asked by international subscribers [13] - The average revenue per user (ARPU) has substantially increased due to the successful launch of the bundle [46][49] Market Data and Key Metrics Changes - International growth is strong, with expectations to exceed 1 million international subscribers for the year [8][27] - The company is seeing similar behavior patterns between international and U.S. subscribers, indicating strong engagement across markets [68] Company Strategy and Development Direction - Chegg is focused on reducing account sharing and enhancing the student experience through new content and services [9][12] - The company is investing in both academic and professional skills-based content to help students transition from learning to earning [16] - Initiatives like Honor Shield and Uversity aim to protect academic integrity and expand content offerings [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding initial revenue and adjusted EBITDA guidance for the remainder of 2021 due to strong performance and engagement [21][26] - The company is optimistic about the upcoming academic year, with expectations of continued growth and improved margins [27][29] - Management noted that the Delta variant has not negatively impacted business, as student engagement remains strong regardless of study location [39] Other Important Information - Chegg serves over 30 million students monthly, emphasizing the importance of sustainability and community contributions [10][19] - The company has invested nearly $1 million towards paying off employees' student debt through its Equity for Education program [19] Q&A Session Summary Question: What is the traction of Uversity with faculty? - Management indicated strong demand from professors, with $700,000 earned so far, and noted that the platform has not yet been launched to students [30][31] Question: How is the Delta variant affecting fall enrollment? - Management stated that the variant does not negatively impact business, as students are performing similarly regardless of study mode [37][39] Question: How is the bundle performing against expectations? - Management reported that the bundle has exceeded expectations, with higher adoption rates and increased ARPU [46][48] Question: Can you provide more details on international business metrics? - Management refrained from breaking out specific metrics but confirmed that international subscribers exhibit similar behaviors to U.S. subscribers [66][68] Question: What are the new personalization efforts being implemented? - Management explained that the company is evolving the user experience to focus on course-specific content rather than just textbooks [71][89] Question: What has been learned from the Mathway acquisition? - Management expressed satisfaction with the acquisition, noting that it has exceeded expectations and integrated well with Chegg's existing systems [92][96]