Why Chegg Shares Are Falling

Chegg Inc CHGG shares are trading lower by 21.54% to $16.50 during Monday's after-hours session after the company reported fourth-quarter financial results and issued first-quarter and FY23 guidance.

What Happened: Chegg reported quarterly earnings of 40 cents per share which beat the analyst consensus estimate of 38 cents. The company also reported quarterly sales of $205.20 million which beat the analyst consensus estimate of $202.06 million by 1.6%.

This is a 1.1% decrease over sales of $207.47 million in the same period last year.

See Also: What's Going On With Bed Bath & Beyond Shares Exploding Higher?

Chegg saw first-quarter total net revenues in the range of $184 million-$186 million, versus the analyst consensus estimate of $199.85 million. Chegg also had FY23 total net revenue in the range of $745 million-$760 million, versus the analyst consensus estimate of $817.49 million.

What Else? "The last several years have been very challenging for everyone; however, the best, most innovative companies, like Chegg, come out of difficult times and are able to improve their market position," said Dan Rosensweig, CEO and president of Chegg.

"We are very excited about the next chapter for Chegg; we believe there is significant growth ahead for our business and are energized by the scale of the opportunity in front of us," Rosensweig stated.

According to data from Benzinga Pro, CHGG has a 52-week high of $37.64 and a 52-week low of $15.66.

Photo: fizkes via Shutterstock