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Wednesday, Aug 14
Online textbook rental leader Chegg files for $150M IPO
- Chegg, the leader in the growing online textbook rental space, has filed for a $150M IPO under the symbol CHGG. (S-1)
- Chegg posted 1H revenue of $116.9M (+26% Y/Y), and a net loss of $21.2M. In 2012, the company had revenue of $213.3M, and a net loss of $43M.
- GSV Capital (GSVC +1.1%), which has been flying high thanks to Twitter IPO hopes and rising valuations for fast-growing Internet stocks, owns a Chegg stake estimated to be worth $14M at the end of Q2 (5.6% of the firm's NAV).
- Chegg has become a thorn in the side of Barnes & Noble (BKS -0.1%), whose college textbook business remains a cash-cow even as its standard retail and Nook ops fare poorly.
- The rise of e-book rental services could pose a threat to the company. Amazon and (more recently) Google have launched e-book rental services for textbooks. Apple, which has put much effort into growing the iPad's education market sales, doesn't offer a rental option yet for iBooks.