Chegg Reports Q1 Earnings Beat, Subscribers Up 35% YoY

Chegg CHGG reported quarterly earnings of 22 cents per share on Monday, which beat the analyst consensus estimate of 15 cents by 46.67%. The company reported quarterly sales of $131.6 million, which beat the analyst consensus estimate of $122.730 million by 7.23%.

Chegg provides digital and physical textbook rentals, online tutoring and other student services. First-quarter subscribers were at 2.9 million, up 35% year-on-year.

"In these difficult times Chegg performed ahead of our expectations and we are grateful to have helped so many students." said CEO Dan Rosensweig. "Our belief is that, in every industry, a crisis often accelerates the inevitable and that is what we see happening in higher education."

"While we are comfortable providing guidance for Q2, there are many unknowns, such as school start dates, enrollment trends, and whether schools will be taught on-campus, online or both," said CFO Andy Brown. "As such, it is difficult to predict how much, if any of Chegg's first half momentum will continue, therefore we believe it is premature to update our guidance for the second half of the year."

The company shares were trading up 10% at $48.22 in Monday’s after-hours session. The stock has a 52-week high of $48.22 and a 52-week low of $25.89.