Why Chegg Stock Is Tumbling After Hours

Chegg Inc CHGG shares are falling in Monday's after-hours session after the company reported a decline in subscription services subscribers and issued guidance below analyst estimates.

• Q1 Revenue: $187.6 million beats estimates of $185.18 million
• Q1 EPS: 27 cents beats estimates of 26 cents

Revenues fell 7% year-over-year. Subscription services revenues were down 3%. Subscription services subscribers decreased 5% year-over-year to 5.1 million. 

"As artificial intelligence technology continues to evolve at a rapid pace, we are embracing it aggressively and prioritizing our investments to meet this opportunity," said Dan Rosensweig, president and CEO of Chegg.

From Last Month: Chegg Launches CheggMate AI Companion, Built With GPT-4

Chegg said it expects second-quarter revenue to be in a range of $175 million to $178 million versus estimates of $193.64 million. The company sees subscription services revenues between $159 million and $162 million versus $168.4 million in the first quarter. 

Chegg will discuss these results on a conference call with investors and analysts at 4:30 p.m. ET.

CHGG Price Action: Chegg shares were down 31.3% after hours at $12.09 at the time of writing, according to Benzinga Pro.

Photo: weisanjiang from Pixabay.