Online study and academic help platform Chegg (NYSE: CHGG) will be announcing earnings results this Monday afternoon. Here’s what you need to know.
Chegg beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $105.1 million, down 35.6% year on year. It was a slower quarter for the company, with a decline in its users and a significant miss of analysts’ number of services subscribers estimates. It reported 2.62 million users, down 39.9% year on year.
Is Chegg a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Chegg’s revenue to decline 44.2% year on year to $76.28 million, a further deceleration from the 13.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chegg has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.
Looking at Chegg’s peers in the consumer subscription segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Roku delivered year-on-year revenue growth of 14%, meeting analysts’ expectations, and Duolingo reported revenues up 41.1%, topping estimates by 4.3%. Roku traded up 6.2% following the results while Duolingo was down 25.9%.
Read our full analysis of Roku’s results here and Duolingo’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the consumer subscription stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Chegg is down 28.7% during the same time.
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