Chegg President and CEO Dan Rosensweig is stepping down from his post effective June 1, handing over the top job to current Chief Operating Officer Nathan Schultz.
Chegg has been pivoting away from renting textbooks.
The company announced the move Monday afternoon in connection with its quarterly earnings report, which included lighter-than-expected guidance as the provider of online homework-help services shifts to a more AI-centric model.
Chegg shares are 6% lower in late trading Monday at $6.74.
Rosensweig becomes executive chairman of the board of the online educational services company. “As we are seeing encouraging signs of how our new AI-enabled platform will serve more students, in more ways, it’s the right time for Nathan to step in and lead, and I could not be more excited about Chegg’s future,” Rosensweig said.
For the March quarter, Chegg posted revenue of $174.4 million, down 7% from a year earlier and just a hair above the $174 million midpoint of the company’s forecast range. The Wall Street consensus estimate had been $174.1 million. Subscription services revenue of $154.1 million was down 9% and a little short of the midpoint of the guidance range at $156 million.
Adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, was $46.7 million, above the company’s forecast of $44 million. Adjusted profit of 27 cents a share was two cents above the consensus as tracked by FactSet.
For the June quarter, Chegg projects revenue of $159 million to $161 million, well below the Street at $174.1 million, with subscription revenue of between $144 million and $146 million, below the Street consensus at $155.8 million, and adjusted Ebitda of between $38 million and $40 million, falling short of consensus at $46.5 million.
