On February 07, Chegg Inc. (CHGG) declared its financial results for Q4 and fiscal 2021 along with future guidance. Consequently, the stock advanced further after hours.
The anticipation of the earnings release had already caused investors to flock towards the stock in the regular session. The regular session saw a hefty volume of 9.44 million, at which CHGG gained 3.65%. The stock closed the regular session at $27.27 on Monday. Following the earnings release, CHGG added a further 7.08% at $29.20 in the after-hours session.
The student learning platform operator, Chegg Inc. was founded in 2005. Currently, its 144.95 million outstanding shares trade at a market capitalization of $3.81 billion. CHGG stock has lost 11.17% year to date while it went down by 73.26% last year.
CHGG’s Q4 2021
In the fourth quarter of 2021, the company’s total net revenues went up by just 1% YOY to $207.5 million.
Moreover, CHGG had a non-GAAP net income of $63.5 million and services subscribers of 4.6 million in Q4 2021. Therefore, the services subscribers grew by 5% YOY.
Full Year 2021
For the full year 2021, the company’s total net revenues increase by 20% YOY to $776.3 million.
Furthermore, the non-GAAP net income was $215.4 million, and services subscribers were 7.8 million in fiscal 2021. Thus, the services subscribers represent 18% growth YOY.
CHGG’s 2022 Financial Guidance
For Q1 2022, CHGG expects total net revenues between $200 and $205 million with a gross margin of 71% to 72%. Further, the expected adjusted EBITDA is between $56 and $58 million.
Additionally, for fiscal 2022, the company expects total net revenues to be between $830 and $850 million with a gross margin of 70% to 72%. And the expected adjusted EBITDA is between $260 and $270 million.
“Learn with Chegg” Platform
On January 12, the company announced its new enhanced platform called “Learn with Chegg”. The new phase in its industry-leading platform took over two years under development to create a highly sophisticated and personalized experience. This enhanced platform will provide a highly individualized learning experience based on needs. Under this platform, CHGG’s students will not only be able to organize their study support by specific concepts, courses, classes, etc., but also learn in a way that best suits them.
Conclusion
On Monday, CHGG declared its 2021 earnings which did not disappoint. The quarterly release topped both its earnings and revenue estimates, hence, impressing the investors. Subsequently, the stock added a good value after hours on the financial results of the company.
