{"id":7972,"date":"2023-11-01T08:05:02","date_gmt":"2023-11-01T08:05:02","guid":{"rendered":"https:\/\/infundpros.com\/markets\/stocks\/chegg-nysechgg-q3-beats-on-revenue-but-stock-drops\/"},"modified":"2023-11-01T08:05:03","modified_gmt":"2023-11-01T08:05:03","slug":"chegg-nysechgg-q3-beats-on-revenue-but-stock-drops","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=7972","title":{"rendered":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops"},"content":{"rendered":"<div>\n<div id=\"imgCarousel\" class=\"imgCarousel\">\n<p><span class=\"text\">Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops<\/span><br \/>\n<i class=\"imgGrad\"><\/i>\n<\/div>\n<p>Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts&#8217; expectations in Q3 FY2023, with revenue down 4.18% year on year to $157.9 million. The company also expects next quarter&#8217;s revenue to be around $186 million, in line with analysts&#8217; estimates. Turning to EPS, Chegg made a GAAP loss of $0.16 per share, down from its profit of $1.23 per share in the same quarter last year.<\/p>\n<p>Is now the time to buy Chegg? Find out by reading the original article on StockStory.<\/p>\n<p>Chegg (CHGG) Q3 FY2023 Highlights:<\/p>\n<ul>\n<li><strong>Revenue:<\/strong> $157.9 million vs analyst estimates of $152.1 million (3.76% beat)<\/li>\n<li><strong>EPS (non-GAAP):<\/strong> $0.18 vs analyst estimates of $0.17 (3.38% beat)<\/li>\n<li><strong>Revenue Guidance for Q4 2023<\/strong> is $186 million at the midpoint, roughly in line with what analysts were expecting<\/li>\n<li><strong>Free Cash Flow<\/strong> of $9.37 million, down 83.2% from the previous quarter<\/li>\n<li><strong>Gross Margin (GAAP):<\/strong> 47.1%, down from 72.6% in the same quarter last year (71.3% excluding a one-time content and related assets charge of $38.2 million)<\/li>\n<li><strong>Services Subscribers:<\/strong> 4.4 million, down 400 thousand year on year<\/li>\n<\/ul>\n<p>\u201cChegg is in a great position to build the most impactful, scalable, AI-enabled, personal learning assistant, which will expand our opportunities to serve more students, in more ways, and at a lower cost per customer,\u201d said Dan Rosensweig, CEO &amp; President of Chegg, Inc. (NYSE:)<\/p>\n<p>Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.<\/p>\n<p>Consumer SubscriptionConsumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.<\/p>\n<p>Sales GrowthChegg&#8217;s revenue growth over the last three years has been unremarkable, averaging 11.2% annually. This quarter, Chegg beat analysts&#8217; estimates but reported a year on year revenue decline of 4.18%.<\/p>\n<p>Chegg is expecting next quarter&#8217;s revenue to decline 9.35% year on year to $186 million, a further deceleration of the 1.1% year-on-year decrease it recorded in the same quarter last year. Before the earnings results were announced, Wall Street analysts covering the company were projecting revenue to decline -3.25% over the next 12 months.<\/p>\n<p>Usage Growth As a subscription-based app, Chegg generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.<\/p>\n<p>Over the last two years, Chegg&#8217;s users, a key performance metric for the company, grew 2.46% annually to 4.4 million. This is one of the lowest rates of growth in the consumer internet sector.<\/p>\n<p>Unfortunately, Chegg&#8217;s users decreased by 400 thousand in Q3, a 8.33% drop since last year.<\/p>\n<p>Key Takeaways from Chegg&#8217;s Q3 Results<br \/>\nWith a market capitalization of $977.9 million, Chegg is among smaller companies, but its $261.3 million cash balance and positive free cash flow over the last 12 months give us confidence that it has the resources needed to pursue a high-growth business strategy.<\/p>\n<p>It was great to see Chegg beat analysts&#8217; revenue and adjusted EBITDA expectations this quarter. Guidance for next quarter for revenue and adjusted EBITDA were also in line to slightly above. Those really stood out as a positives in these results. On the other hand, its user base fell and its revenue growth was quite weak. Overall, this was a mixed quarter for Chegg. The company is down 9.58% on the results and currently trades at $8.02 per share.<\/p>\n<p><i>The author has no position in any of the stocks mentioned in this report.<\/i><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.investing.com\/news\/stock-market-news\/chegg-nysechgg-q3-beats-on-revenue-but-stock-drops-3214471\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts&#8217;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":{"0":"post-7972","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stocks"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros<\/title>\n<meta name=\"description\" content=\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts&#039;\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=7972\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts&#039;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=7972\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T08:05:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-01T08:05:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/LYNXMPEB2C0AG_L.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=7972#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=7972\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops\",\"datePublished\":\"2023-11-01T08:05:02+00:00\",\"dateModified\":\"2023-11-01T08:05:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=7972\"},\"wordCount\":604,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Stocks\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=7972#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=7972\",\"url\":\"https:\/\/infundpros.com\/?p=7972\",\"name\":\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-11-01T08:05:02+00:00\",\"dateModified\":\"2023-11-01T08:05:03+00:00\",\"description\":\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts'\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=7972#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=7972\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=7972#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros","description":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts'","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=7972","og_locale":"en_US","og_type":"article","og_title":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros","og_description":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts'","og_url":"https:\/\/infundpros.com\/?p=7972","og_site_name":"inFundPros","article_published_time":"2023-11-01T08:05:02+00:00","article_modified_time":"2023-11-01T08:05:03+00:00","og_image":[{"width":800,"height":533,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/LYNXMPEB2C0AG_L.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=7972#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=7972"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops","datePublished":"2023-11-01T08:05:02+00:00","dateModified":"2023-11-01T08:05:03+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=7972"},"wordCount":604,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Stocks"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=7972#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=7972","url":"https:\/\/infundpros.com\/?p=7972","name":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-11-01T08:05:02+00:00","dateModified":"2023-11-01T08:05:03+00:00","description":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops Online study and academic help platform Chegg (NYSE:CHGG) reported results ahead of analysts'","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=7972#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=7972"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=7972#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Chegg (NYSE:CHGG) Q3: Beats On Revenue But Stock Drops"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/7972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7972"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/7972\/revisions"}],"predecessor-version":[{"id":7973,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/7972\/revisions\/7973"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/3701"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}