Chegg Inc. (CHGG) shares tumbled in extended trading Monday after the education technology company reported fourth-quarter results that showed a dramatic year-over-year revenue decline, even as it beat expectations on the bottom line.
The Numbers: Chegg posted a quarterly loss of one cent per share, which came in better than the consensus estimate calling for a 10-cent loss.
Revenue hit $72.66 million, topping the Street estimate of $71 million but plunging from $143.48 million in the same period last year.
Fourth-Quarter Highlights:
- Chegg Skilling Revenues reached $17.7 million, up 11% year-over-year
- Non-GAAP Gross Margin came in at 60%
- Non-GAAP Net Loss was $700,000
- Adjusted EBITDA totaled $12.9 million
"We are reinventing Chegg around the $40 billion skilling market, which we believe can drive double-digit growth with strong margins and cash flow in the years to come," said Dan Rosensweig, CEO of Chegg.
"We've organized the company into two focused businesses: Chegg Skilling as our growth engine and our legacy Academic Services, which generates free cash flow that strengthens our balance sheet and positions us to end 2026 debt-free with a substantial cash balance," Rosensweig added.
Stock Movement: Chegg stock dropped 8% to 69 cents in Monday's extended trading.
