Buying The Story At Chegg
Vince Martin • 11 Comments
Vince Martin • 11 Comments
Chegg's Story Looks A Little Stronger
Chegg: Fleshing Out The Short Thesis
Jeremy Raper • 21 Comments
Jeremy Raper • 21 Comments
Chegg Will Soon Be In Amazon's Rear-View Mirror
Howie Man • 19 Comments
Howie Man • 19 Comments
Mon, May 2, 4:31 PM
- After initially trading higher post-earnings, Chegg (NYSE:CHGG) is down 2.8% after hours in spite of beating Q1 estimates (moreso on revenue than EPS) and guiding for 2016 revenue of $239M-$257M, favorable at a $248M midpoint to a $241.2M consensus. Q2 revenue guidance of $48M-$50M is in-line with a $50.1M consensus.
- Textbook rental revenue fell 61% Y/Y in Q1 to $14.6M, thanks in large part to Chegg's early-2015 deal to hand off its print textbook ops to book distributor Ingram Content. But services revenue (online learning services) rose 25% to $39.4M. Content sales revenue fell 20% to $12.7M. Chegg services subscribers totaled 750K in Q1, with the Chegg Study service seeing a 79% renewal rate.
- Thanks to a mix shift away from textbooks, non-GAAP gross margin rose to 41.6% from 25.9% a year ago. Q2 GM guidance is at 56%-58% (seasonality), and full-year guidance at 48%-50%. Full-year adjusted EBITDA guidance has been slightly upped to $13M-$22M from $10M-$20M.
- Non-GAAP operating expenses rose by $2.3M Y/Y to $30.2M. Chegg ended Q1 with $61.5M in cash, and $26.8M in deferred revenue, and no debt.
- Chegg's Q1 results, earnings release
Fri, Feb. 26, 11:39 AM
- Chegg (CHGG +5%) CEO Dan Rosensweig discloses he bought 48,842 shares yesterday at $4.09. CFO Andrew J. Brown discloses he bought 30K shares yesterday at $4.16. (source: InsiderInsights.com)
- Both purchases come after Chegg plunged on Tuesday following mixed Q4 results and soft guidance. Shares recovered some of their losses on Wednesday after Rosensweig appeared on Jim Cramer's Mad Money.
Wed, Feb. 24, 10:34 AM
- Chegg (CHGG +14.6%) CEO Dan Rosensweig appeared on yesterday evening's episode of Mad Money, shortly after his company's shares fell 35% in the wake of mixed Q4 results and soft Q1/2016 guidance.
- Not surprisingly, Rosensweig talked up Chegg's efforts to transition from an online textbook rental provider to a broader digital learning services firm -2015 digital revenue was $140M (46% of 2015 revenue). He also downplayed recent accounting changes, arguing they're tied to revenue recognition rules and don't ultimately affect Chegg's bottom line.
- Shares are still down 25% from Monday's close. They trade for 1.5x the midpoint of a 2016 pro forma revenue guidance range of $170M-$185M, after backing out $86M in cash.
Wed, Feb. 24, 9:21 AM
Tue, Feb. 23, 12:46 PM
Tue, Feb. 23, 9:17 AM
Mon, Feb. 22, 5:45 PM
Nov. 19, 2015, 11:35 AM| Nov. 19, 2015, 11:35 AM
Nov. 3, 2015, 12:26 PM
- Though beating Q3 estimates, Chegg (NYSE:CHGG) is guiding for Q4 revenue of $68M-$74M, below a $76.9M consensus. The company attributes the outlook to book distribution partner Ingram fulfilling more books than expected in Q3, and a higher mix of book purchases in Q3 vs. rentals.
- Digital revenue rose 45% Y/Y in Q3 to $38.2M, and was 47% of total revenue. Print textbook sale/rental revenue (affected by the Ingram deal) fell 22% to $43.1M.
- Non-GAAP gross margin, boosted by the mix shift towards digital, rose to 27.5% from 16.4% a year ago. GM is expected to be in a 56%-58% range in Q4, which will have a higher digital mix due to seasonality. Operating expenses fell 3% to $32.9M. Chegg ended Q3 with $105M in cash, and no debt.
- Q3 results, PR
Aug. 3, 2015, 5:37 PM
Aug. 3, 2015, 4:43 PM
- While Chegg's (NYSE:CHGG) Q2 GAAP EPS was -$0.12 (based on a net loss of $10.1M), non-GAAP net income was $1M. The (non-GAAP) EPS consensus was $0.00.
- Overshadowing Chegg's Q2 beat: The company expects Q3 revenue of $74M-$80M (below an $81.8M consensus), and has cut its full-year revenue guidance by $5M to $295M-$310M (below a $310.3M consensus).
- Full-year free cash flow guidance is now at $15M-$20M vs. a prior $15M-$25M. Digital revenue guidance is now at $137M-$145M vs. a prior $135M-$145M. Thanks to a stronger digital mix, gross margin guidance has been hiked by 2% to 36%-38%.
- Digital revenue rose 62% Y/Y in Q2 to $30.2M, while print revenue (affected by the Ingram deal) fell 20% to $36.8M. 200K new customers were added vs. 500K in Q1, and 700K digital subscribers were on Chegg's platform vs. 750K in Q1.
- Shares have fallen to $8.00 AH.
- Q2 results, PR
Jul. 9, 2015, 12:16 PM
- Barrington Research has launched coverage on Chegg (NYSE:CHGG) with an Outperform rating and $16 target (over 2x current levels).
- The online textbook rental/learning services provider is up 14% YTD. Shares currently go for 2.1x a 2016 sales consensus of $283.4M, after backing out $79M in cash/short-term investments.
May 7, 2015, 3:36 PM
- Tech companies rallying after posting calendar Q1 reports include online textbook rental/learning services provider Chegg (CHGG +14.6%), salvage auction site Liquidity Services (LQDT +10.3%), optical component maker Emcore (EMKR +6.7%), and health site owner WebMD (WBMD +6.7%).
- Companies declining following earnings include cloud fleet management software vendor Fleetmatics (FLTX -6.8%), seismic hardware provider Ion Geophysical (IO -11.8%), and online stock photo marketplace Shutterstock (SSTK -4.7%).
- Chegg beat Q1 estimates on the back of an 89% Y/Y increase in digital revenue (now 39% of total revenue. Q2 revenue guidance of $61M-$65M and full-year guidance of $300M-$315M is respectively favorable to consensus estimates of $62.2M and $304.3M at the midpoints.
- Beaten-down Liquidity beat FQ2 estimates while reporting a 16.6% Y/Y drop in GMV to $189.4M. FQ3 guidance is for GMV of $175M-$200M and EPS of $0.05-$0.10 (below an $0.11 consensus).
- Emcore beat FQ2 estimates and is guiding for FQ3 broadband fiber division revenue of $19M-$21M, above an $18.5M consensus.
- WebMD beat Q1 estimates on the back of 21% Y/Y increases in monthly unique users (210M) and page views (4.25B). Q2 revenue guidance of $145M-$148M is below a $151.9M consensus, but full-year revenue guidance of $615M-$635M has been reiterated.
- Fleetmatics beat Q1 estimates, but also guided for Q2 revenue of $67.9M-$68.7M and EPS of $0.24-$0.26, below a consensus of $69.5M and $0.30. Full-year guidance is for revenue of $281M-$283M and EPS of $1.26-$1.30 vs. a consensus of $288.8M and $1.29.
- Ion, hit hard by declining oil exploration work, missed Q1 estimates while reporting 79%, 49%, and 12% Y/Y drops in Solutions, Systems, and Software revenue. The company expects "an increase in exploration spending over the back half of the year, albeit at lower than historical levels."
- Shutterstock beat Q1 estimates, but also forecast Q2 revenue of $104M-$106M (below a $106.1M consensus). 2015 revenue guidance of $436M-$444M is in-line with a $439.5M consensus.
- Previously covered: Alibaba, Qorvo, SunEdison, MeetMe, Priceline, Teradata, Activision, Gogo, Atmel, Varonis, Zynga
May 7, 2015, 12:49 PM
May 6, 2015, 4:14 PM
- Chegg (NYSE:CHGG): Q1 EPS of -$0.34 may not be comparable to consensus of -$0.07.
- Revenue of $84.87M (+14.1% Y/Y) beats by $6.7M.
- Shares +6.06%.
Mar. 11, 2015, 3:08 PM
- A day after equity markets tumbled (with many high-beta names especially hard-hit), major tech gainers are outnumbering major decliners, though the Nasdaq is nearly flat.
- Today's notable tech gainers include RF backhaul hardware vendors DragonWave (DRWI +15.6%) and Aviat (AVNW +8%), LED lighting provider Revolution Lighting (RVLT +5.4%) online textbook rental/learning services provider Chegg (CHGG +3.8%), auto site TrueCar (TRUE +5.3%), loan-shopping site owner Lendingtree (TREE +6.9%), telecom equipment vendor Calix (CALX +2.7%), TV/set-top SoC provider Sigma Designs (SIGM +4.9%), and VoIP hardware/software provider Mitel (MITL +3.8%).
- Notable decliners include supercomputer maker SGI (SGI -2.9%), 3D printing software vendor Materialise (MTLS -5.5%), security hardware/software provider KEYW Holding (KEYW -2.9%), and Chinese online game developer Changyou (CYOU -2.9%).
- DragonWave and Aviat are reversing yesterday's big losses. Materialise is making fresh 52-week lows a week after posting mixed Q4 results; KEYW is also seeing new 52-week lows. Revolution's gains continue a volatile post-earnings ride: Shares soared last week after the company posted its Q4 results, but gradually gave back their gains.
- Previously covered: SanDisk, Intel, EMC, SunEdison, Resonant, Immersion, Logitech, VeriFone, Mobileye, Dangdang, InvenSense
Chegg, Inc. provides student-first connected learning platform, empowering students to take control of their education to save time, save money and get smarter. The company offers an array of required and non-required scholastic materials including millions of textbooks in any format, access to... More
Industry: Education & Training Services
Country: United States
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