The student-first connected learning platform, Chegg, is falling after hours.
Revenues of $205.2 million were down slightly YoY, while earnings per share of $0.01 were well below the $0.15 in the prior year’s quarter. Lower enrollment, a strong labor market, and inflation hampered last year’s results. However, the company says subscriber growth troughed in mid-2022 and should trend well into 2023. ◀️
With that said, the company’s guidance left a lot to be desired. Its first-quarter revenue guidance of $184 to $186 million was well below the $200.3 million expected. And full-year revenue of $745 to $760 million fell short of the $817.5 million consensus estimate.
Chegg has declined significantly from its pandemic-era growth like other subscription tech and consumer-focused companies. That struggle continued after hours, with $CHGG shares falling another 22%. 📉