By Chegg, the education technology company, is gearing up to announce its second-quarter results on Monday after the market closes. Here’s a breakdown of what you need to know:
Revenue
According to FactSet, Chegg is expected to report revenue of $176.5 million for the second quarter. This figure represents a decline from $194.7 million in the same period last year.
Adjusted Earnings
FactSet predicts that Chegg will post adjusted earnings of 29 cents per share for the quarter.
Net Income
In contrast to the prior-year period, Chegg is expected to report a loss of $4.7 million in net income. Last year, they recorded a net income of $7.5 million.
What to Watch
Retention Rates
It will be interesting to observe how Chegg’s retention rates have performed in the latest quarter, considering the growing integration of ChatGPT and other AI-powered tools in the mainstream. While ChatGPT previously affected the company’s new customer growth rate, Chegg reported consistently strong retention rates.
CheggMate
Chegg responded to the advancements in AI by launching CheggMate. In May, they announced that CheggMate would leverage the power of ChatGPT, along with their proprietary data and subject matter experts. Keep an eye out for updates on the progress of this offering and any additional details that the company may disclose.
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