Chegg Shares Dive 34% After Cutting 2Q, 2022 Revenue Guidance
Tiger Newspress2022-05-03
Chegg Inc(CHGG) shares dove 34.71% to $16.31 in premarket trading after the company lowered its future revenue outlook, citing issues related to enrollment, the economy and inflation.
The company, which operates a learning platform for students, guided for revenue to range between $188 million and $192 million in the second quarter as well as revenue in the range of $740 million and $770 million for full year 2022. Analysts polled by FactSet expected revenue of $210.6 million in the second quarter and revenue of $843.4 million for full year 2022.
Chief Executive Dan Rosensweig said in prepared remarks that while it expects trends to be temporary, the company is reducing its guidance to better reflect the current market conditions.
Chegg on Monday also posted its first-quarter earnings. The company swung to a profit of $5.7 million, or 4 cents a share, for the quarter ended March 31, compared to a loss of $65.2 million, or a loss of 49 cents a share, in the year-ago period. Adjusted earnings were 32 cents a share. Analysts polled by FactSet expected 24 cents a share.
Revenue rose 2% to $202.2 million from $198.4 million. Analysts polled by FactSet expected $203 million.
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