Chegg (CHGG) reports earnings tomorrow: what to expect

What happened

Chegg, an online study and academic-help platform, is scheduled to report earnings Tuesday morning. Last quarter, revenue was $51.85 million, down 50.7% year over year, though it exceeded analysts’ expectations. Its next-quarter revenue and EBITDA guidance both fell significantly short of analyst expectations.

Confirmed

Global impact / market context

The upcoming results will show whether Chegg’s steep revenue decline is continuing and whether its outlook has changed. Lower revenue can reduce cash coming into the business, while weaker EBITDA guidance—a forecast of earnings before interest, taxes, depreciation and amortization—can point to pressure on operating performance.

Analyst inference

Analysts expect this quarter’s revenue to fall 44% year over year, close to the 43.1% decline in the same quarter last year; their estimates were generally unchanged over the past 30 days. Peer results are mixed: Coursera grew revenue, while Netflix met expectations.

Confirmed

What to watch

1. Check reported revenue against the expected 44% year-over-year decline; a smaller or larger fall would indicate whether Chegg’s recent contraction is easing or worsening. Analyst inference
2. Compare the company’s new revenue and EBITDA outlook with analysts’ expectations, since weaker guidance could signal continued pressure on sales and operating performance. Analyst inference
3. Look for commentary explaining revenue trends and business conditions; the article says analysts generally kept estimates unchanged, but does not provide Chegg’s upcoming results. Analyst inference

Evidence

• stockstory.org