NYSE$CHGG
Chegg Inc · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Chegg reported a decrease in total net revenues and net loss for the fourth quarter of 2024, while adjusted EBITDA also saw a decline.
Chegg reported a challenging fourth quarter in 2024, with total net revenues decreasing by 24% year-over-year to $143.5 million and a net loss of $6.1 million. Despite these declines, the company surpassed its Q4 guidance for both revenue and adjusted EBITDA, which stood at $36.6 million.
- Total Net Revenues decreased by 24% year-over-year to $143.5 million.
- Subscription Services Revenues decreased by 23% year-over-year to $128.5 million.
- The company reported a Net Loss of $6.1 million.
- Adjusted EBITDA was $36.6 million, representing a margin of 25%.
Headline financials
Revenue & EPS history
Chegg · Revenue · Quarterly
$143M
Forward guidance
For the first quarter of 2025, Chegg expects total revenue between $114 million and $116 million, with Subscription Services revenue between $104 million and $106 million. Gross margin is projected to be in the range of 66% to 67%, and adjusted EBITDA between $13 million and $14 million.
Tailwinds
- Launching a strategic review process to explore alternatives to maximize shareholder value.
- Filing a complaint against Google LLC and Alphabet Inc. to address traffic retention issues.
- Strong and trusted brand with millions of global subscribers and a large market opportunity.
- Superior product for education, verticalized, personalized, and built on a deep understanding of modern students.
- Continued focus on stabilizing the business in 2025, with product and marketing initiatives.
Headwinds
- Industry challenges are causing a notable decline in traffic and subscriber acquisitions.
- Google's AI Overviews (AIO) are retaining traffic that historically came to Chegg, impacting acquisitions, revenue, and employees.
- Non-subscriber traffic plummeted to negative 49% in January 2025.
- The ongoing industry challenges are putting pressure on financial performance.
- The company will not be taking questions related to the strategic review process.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q4 2024
-0.7%
Avg return
Earnings day
-0.9%
Avg return
5 days after
+1.6%
Avg return
30 days after
56%
29 / 52 earnings
Positive
+36.7%
Q1 2020
Best reaction
-49.5%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -13.5% | -12.1% | -5.2% | |
| Q4 2025 | -10.7% | -25.3% | -24.0% | |
| Q3 2025 | +27.8% | +22.5% | +9.0% | |
| Q1 2025 | +6.7% | +30.4% | +127.5% | |
| Q4 2024 | -31.4% | -30.1% | -53.2% | |
| Q3 2024 | -15.1% | -7.5% | +20.4% | |
| Q2 2024 | -24.0% | -30.0% | -30.7% | |
| Q1 2024 | -27.2% | -26.2% | -48.3% | |
| Q4 2023 | -8.8% | -8.8% | -16.9% | |
| Q3 2023 | -11.2% | -1.5% | +20.3% | |
| Q2 2023 | -0.3% | -3.2% | -2.6% | |
| Q1 2023 | -49.5% | -43.6% | -50.1% | |
| Q4 2022 | -18.3% | -20.6% | -22.4% | |
| Q3 2022 | +19.4% | +20.0% | +37.2% | |
| Q2 2022 | +6.5% | -2.7% | -6.8% | |
| Q1 2022 | -29.6% | -24.6% | -24.3% | |
| Q4 2021 | +20.2% | +16.8% | +17.5% | |
| Q3 2021 | -46.0% | -48.5% | -53.8% | |
| Q2 2021 | +1.3% | -0.8% | -4.8% | |
| Q1 2021 | -7.9% | -5.7% | -15.5% | |
| Q4 2020 | +0.2% | +11.1% | -17.6% | |
| Q3 2020 | -11.1% | -15.4% | -16.4% | |
| Q2 2020 | +5.2% | +7.4% | -3.7% | |
| Q1 2020 | +36.7% | +49.0% | +44.9% | |
| Q4 2019 | -4.2% | -6.2% | -14.0% | |
| Q3 2019 | +9.1% | +10.7% | +24.5% | |
| Q2 2019 | +5.3% | +2.9% | -7.6% | |
| Q1 2019 | -11.1% | -6.9% | -9.9% | |
| Q4 2018 | +8.9% | +9.8% | +18.3% | |
| Q3 2018 | +10.6% | +12.3% | +14.3% | |
| Q2 2018 | +1.5% | -0.6% | +15.7% | |
| Q1 2018 | +2.4% | -0.0% | +21.6% | |
| Q4 2017 | +20.2% | +22.8% | +37.3% | |
| Q3 2017 | -5.9% | -10.6% | -9.6% | |
| Q2 2017 | +7.2% | -0.6% | +3.2% | |
| Q1 2017 | +30.9% | +27.5% | +33.2% | |
| Q4 2016 | +11.3% | +11.8% | +11.3% | |
| Q3 2016 | +1.9% | +18.7% | +19.5% | |
| Q2 2016 | +14.1% | +22.4% | +24.9% | |
| Q1 2016 | +0.0% | — | — | |
| Q4 2015 | -33.3% | — | — | |
| Q3 2015 | +13.5% | — | — | |
| Q2 2015 | +2.9% | — | — | |
| Q1 2015 | +17.9% | — | — | |
| Q4 2014 | +33.5% | — | — | |
| Q3 2013 | +2.7% | — | — | |
| Q3 2014 | -5.0% | — | — | |
| Q2 2013 | -0.4% | — | — | |
| Q2 2014 | +10.2% | — | — | |
| Q1 2013 | +4.4% | — | — | |
| Q1 2014 | +10.4% | — | — | |
| Q4 2013 | -17.4% | — | — | |
| Q4 2012 | — | — | — | |
| Q3 2012 | — | — | — |
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