Shares of Chegg tumbled after the education-technology company said it swung to a net loss in the second quarter, dragged down by dwindling subscribers.
After the bell, the stock fell 19.79% to $2.35. Shares ended Monday's regular session down 2.3%, at $2.93, putting them down 74% since the beginning of the year.
The Santa Clara, Calif., company posted a net loss of $616.8 million, or $6.01 a share, compared to a profit of $24.6 million, or 11 cents a share, a year earlier. Stripping out an impairment charge, adjusted per-share earnings were 24 cents, just beating the 23 cents that analysts polled by FactSet forecast.
Subscription-services revenue fell 11% to $146.8 million, as Chegg's number of subscribers decreased 9% to 4.4 million.
For the third quarter, Chegg said it expects total net revenue between $133 million and $135 million, driven by the company's increased artificial-intelligence integration and the upcoming back-to-school season. Analysts expect third-quarter revenue of $143.0 million, according to FactSet.
