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Chegg Q4 2024 Earnings Report
Chegg reported a decrease in total net revenues and net loss for the fourth quarter of 2024, while adjusted EBITDA also saw a decline.
Key Takeaways
Chegg reported a challenging fourth quarter in 2024, with total net revenues decreasing by 24% year-over-year to $143.5 million and a net loss of $6.1 million. Despite these declines, the company surpassed its Q4 guidance for both revenue and adjusted EBITDA, which stood at $36.6 million.
Total Net Revenues decreased by 24% year-over-year to $143.5 million.
Subscription Services Revenues decreased by 23% year-over-year to $128.5 million.
The company reported a Net Loss of $6.1 million.
Adjusted EBITDA was $36.6 million, representing a margin of 25%.
Revenue by Segment
Forward Guidance
For the first quarter of 2025, Chegg expects total revenue between $114 million and $116 million, with Subscription Services revenue between $104 million and $106 million. Gross margin is projected to be in the range of 66% to 67%, and adjusted EBITDA between $13 million and $14 million.
Positive Outlook
- Launching a strategic review process to explore alternatives to maximize shareholder value.
- Filing a complaint against Google LLC and Alphabet Inc. to address traffic retention issues.
- Strong and trusted brand with millions of global subscribers and a large market opportunity.
- Superior product for education, verticalized, personalized, and built on a deep understanding of modern students.
- Continued focus on stabilizing the business in 2025, with product and marketing initiatives.
Challenges Ahead
- Industry challenges are causing a notable decline in traffic and subscriber acquisitions.
- Google's AI Overviews (AIO) are retaining traffic that historically came to Chegg, impacting acquisitions, revenue, and employees.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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