Online study and academic support platform Chegg (NYSE:CHGG) will announce its results this Monday afternoon. Here’s what you need to know.
Chegg beat analysts’ expectations by 3.8% last quarter, reporting revenue of $105.1 million, down 35.6% year over year. It was a slower quarter for the company, with a decline in user numbers and a significant miss on analysts’ estimates of service subscribers. It reported 2.62 million users, down 39.9% year-over-year.
Is Chegg a buy or sell that makes a profit? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts expect Chegg’s revenue to decline 44.2% year-over-year to $76.28 million, a further deceleration from the 13.5% decline in the same quarter last year. The adjusted loss is expected to be -$0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the past 30 days, suggesting they expect the company to stay the course before reporting profits. Chegg has only missed Wall Street revenue estimates once in the past two years, beating expectations by an average of 2.3%.
Looking at Chegg’s peers in the consumer subscription segment, some have already released their third-quarter results, giving us an idea of what we can expect. Roku reported 14% year-over-year revenue growth, meeting analyst expectations, and Duolingo reported revenue up 41.1%, beating estimates of 4.3%. Roku rose 6.2% following the results while Duolingo fell 25.9%.
Read our full analysis of Roku’s results here and Duolingo’s results here.
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