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Chegg Cuts Revenue Guidance as Enrollments Fall; Shares Slump -Breaking

by Mike Robinson

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© Reuters.

By Yasin Ebrahim

Chegg (NYSE 🙂 Investing.com on Monday reduced its guidance for full-year revenues and reported mixed results in the third quarter. It warned of “significantly” fewer enrollments this year.  

Chegg stock dropped 21% after hours trading on the news. 

The company posted EPS figures of 20 cents for revenue $171.9 million. This compares to estimates of 18 cents for revenue $173.9 millions. 

A combination of variants and increased opportunities for employment, compensation, as well as fatigue have resulted in significantly lower enrollments this semester. And those students who have enrolled are taking fewer and less rigorous classes and are receiving less graded assignments,” said  CEO Dan Rosensweig.

Full-year revenues are expected to range from $762 million up to $764 millions, as opposed to $805 million and $815 million in previous years. This is well below the $812.5 million estimate.

 

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