Online study and academic help platform Chegg (NYSE:CHGG) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
Chegg beat analysts’ revenue expectations last quarter, reporting revenues of $63.26 million, down 47.9% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Chegg a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Chegg’s revenue to decline 52.9% year on year, a further deceleration from the 35.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Chegg has a history of exceeding Wall Street’s expectations.
Looking at Chegg’s peers in the consumer subscription segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 59.6%, beating analysts’ expectations by 1.7%, and Match Group reported a revenue decline of 1.2%, in line with consensus estimates. Coursera traded down 14.7% following the results.
Read our full analysis of Coursera’s results here and Match Group’s results here.
Investors in the consumer subscription segment have had steady hands going into earnings, with share prices flat over the last month. Chegg is up 5.1% during the same time.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.