Chegg Inc. (NASDAQ: (CHGG) stock gained by 5.59% at last close whereas the CHGG stock plunged by 29.09% in the after-hours trading session. Chegg helps millions of people to learn. They provide tools to help students master their course materials as they progress from high school to college and into their careers. The services are accessible online, at any time, and from any location.
CHGG stock’ Financial Results
Chegg announced its financial outcomes for the third quarter of 2021. The highlights are stated below:
- The company has generated a revenue of $171.9 million for the third quarter of 2021, this is a rise of 12% y-o-y.
- The net income for the third quarter of 2021 was $6.7 million.
- CHGG has calculated its Non-GAAP net income as $33.9 million for the third quarter of 2021.
- The Adjusted EBTIDA for the third quarter of 2021 was $46.4 million.
Dan Rosensweig, CEO & President of Chegg, commented,
They’ve seen incredible growth over the last year and a half, and in the middle of a successful year, they had a solid third quarter, expanding Chegg Services revenue by 23% year over year. Furthermore, it became evident to them in late September that the education business is facing a momentary slowdown, which they believe is a direct outcome of the COVID-19 outbreak. Given these tendencies, their staff maintains a high level of performance. Chegg is in a fantastic position to emerge from this stronger than ever and seize the opportunities that lie ahead.
Future Expectations
- For the fourth quarter of 2021, Chegg expects its revenue to be around $194 million to $196 million while for the full year 2021 revenue would be somewhere between $762 million to $764 million.
- The gross margin for the fourth quarter and full-year is estimated to be around 70% to 71% and 65% to 66% respectively.
- CHGG expects is adjusted EBTIDA to be between $67 million to $69 million for the fourth quarter of 2021 and for the full year of 2021 the adjusted EBTIDA will be between $255 million to $257 million.
