CHEGG Reports Q2 FY2023 Earnings Results on August 1, 2023
August 10, 2023
🌥️Earnings Overview
On August 1, 2023, CHEGG ($NYSE:CHGG) reported its earnings results for the second quarter of FY2023, which ended on June 30 2023. Revenue surged 16.8% year over year to USD 2413.1 million, and net income soared 446.9% to USD 175.0 million from the previous year’s figure of 32.1 million.
Share Price
On Tuesday, August 1, 2023, CHEGG reported their fiscal second quarter earnings results, and their stock subsequently opened at $10.1. During the day, the stock rose 2.1% from its closing price of $10.1 the day before to reach a closing price of $10.3. The stock also traded at a higher volume than usual, as investors reacted positively to the news. While the overall financial performance for the company was solid for the quarter, investors seemed to be particularly encouraged by CHEGG’s guidance and outlook for the coming months. The company predicted a strong uptick in revenue from their online tutoring services as well as their ebook rental business.
CHEGG also set aside funds for potential acquisitions and investments, signaling that they may be looking to add additional services to their portfolio in the near future. Overall, the markets reacted favorably to CHEGG’s earnings report, and with the stock price up by 2.1% from its previous close, it appears that investor confidence is still strong in CHEGG’s future prospects. As the company continues to grow and adapt to changing market conditions, investors will be watching closely to see how CHEGG responds and performs in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chegg. More…
| Total Revenues | Net Income | Net Margin |
| 740.39 | 280.22 | 26.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chegg. More…
| Operations | Investing | Financing |
| 247.89 | 528.16 | -1k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chegg. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.97k | 933.53 | 8.99 |
Key Ratios Snapshot
Some of the financial key ratios for Chegg are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.7% | -20.6% | 19.2% |
| FCF Margin | ROE | ROA |
| 22.7% | 8.7% | 4.5% |
Analysis
At GoodWhale, we have conducted an analysis of CHEGG‘s fundamentals. Based on our Risk Rating system, we have determined that CHEGG is a high risk investment, both in terms of financial and business aspects. In our analysis, we have detected two risk warnings in the income sheet and balance sheet for CHEGG. If you’re interested in learning more about CHEGG’s financial and business risks, please visit goodwhale.com and register to view our full analysis. More…
Peers
Chegg Inc is an American education technology company based in Santa Clara, California. The company offers digital and physical textbook rentals, online tutoring, and other student services. Chegg is one of the largest online textbook rental companies in the United States. The company has been criticized for its business model, which has been likened to textbook flipping, and for its environmental impact.
Chegg’s competitors include: CognaEducacao SA, Perdoceo Education Corp, Wah Fu Education Group Ltd.
– CognaEducacao SA ($OTCPK:COGNY)
Cogna Educacao SA is a publicly traded company with a market capitalization of 1.07 billion as of 2022. The company operates in the education sector and provides educational services and products in Brazil and internationally. The company has a return on equity of 2.54%.
– Perdoceo Education Corp ($NASDAQ:PRDO)
Perdoceo Education Corporation is a provider of higher education operating primarily through its two universities, Colorado Technical University and American InterContinental University. The company offers bachelor’s and master’s degrees in a variety of disciplines, including business, computer science, engineering, nursing, and more. Perdoceo Education Corporation is headquartered in Colorado Springs, Colorado.
– Wah Fu Education Group Ltd ($NASDAQ:WAFU)
Wah Fu Education Group Ltd. is a provider of educational services in Mainland China. The Company operates its business through four segments. The Pre-school Education segment offers educational programs and services for children aged three to six. The K-12 Education segment provides educational programs and services for students aged six to 18. The Adult and Other Education segment offers educational programs and services for adults. The International Education segment provides international education programs and services. The Company operates a number of schools, including Wah Fu Kindergarten, Wah Fu Bilingual School, Wah Fu International School and others.
Summary
CHEGG reported strong financial results for the second quarter of FY2023. Total revenue increased by 16.8% year over year to USD 2413.1 million, and net income increased by 446.9% to USD 175.0 million. This illustrates the success of CHEGG’s strategic initiatives and demonstrates the company’s positive momentum, which may appeal to investors. The second quarter’s results are also likely to impact investor sentiment, creating a more attractive investing environment for those looking to put their money into CHEGG.
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