Chegg Cuts Revenue Guidance as Enrollments Fall; Shares Slump
Investing.com
Published Nov 01, 2021 04:29PM ET
Updated Nov 01, 2021 04:43PM ET
By Yasin Ebrahim
Investing.com - Chegg (NYSE:CHGG) on Monday slashed its guidance on full-year revenue and reported mixed results for the third-quarter, warning of "significantly" fewer enrollments this semester.
Chegg stock fell 21% in afterhours trading following the earnings report.
The company reported EPS of 20 cents on revenue of $171.9 million, compared with estimates for 18 cents on revenue of $173.9 million.
"A combination of variants, increased employment opportunities and compensation, along with fatigue, have all led to significantly fewer enrollments than expected this semester. And those students who have enrolled are taking fewer and less rigorous classes and are receiving less graded assignments," said CEO Dan Rosensweig.
The company forecasts full-year revenue in the range of $762 million to $764 million, down from $805 million to $815 million previously, and well below estimates for $812.5 million.
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