Chegg Q3 revenue falls as legacy business declines
CHGG•Chegg's third-quarter revenue fell 40% year over year to $46.47 million as its traditional homework-help business declined. The company reported a $5.7 million adjusted net loss, eliminated all debt and forecast fourth-quarter revenue of $38 million to $40 million.
1. Quarterly results
Chegg said third-quarter revenue fell 40% year over year to $46.47 million, while its adjusted net loss was $5.7 million. Adjusted EBITDA was $5.4 million, and net loss was $4.69 million. The company attributed the revenue decline to continued weakness in its traditional homework-help business.
2. Debt and outlook
Chegg eliminated all debt and ended the quarter with $43.6 million in cash. For the fourth quarter, it expects revenue of $38 million to $40 million, gross margin of 46% to 48% and adjusted EBITDA of approximately $1 million.
3. Business initiatives
The company said cost management initiatives and using AI to streamline operations reduced operating expenses. It also launched an employability platform on Internships.com and reported early signs of student and institutional interest.
