Why Chegg Stock Is Surging After Hours

Chegg Inc CHGG shares are trading higher in Thursday's after-hours session after the company reported better-than-expected financial results.

Chegg said second-quarter revenue decreased 2% year-over-year to $194.7 million, which beat average analyst estimates of $189.51 million, according to data from Benzinga Pro.

The educational services company reported a quarterly adjusted earnings of 37 cents per share, which beat average analyst estimates of 33 cents per share.

"We are executing very well on our services strategy, resulting in record high take-rates for our Chegg Study Pack. This bodes very well for future increases in ARPU and the lifetime value of our growing customer base," said Dan Rosensweig, president, and CEO of Chegg.

Chegg said it expects third-quarter revenue to be between $156 million and $160 million versus the estimate of $162.46 million. The company expects full-year revenue to be between $745 million and $770 million versus the estimate of $761.86 million.

See Also: Cloudflare Registers 54% Revenue Growth In Q2, Guides Q3 & FY22 Revenues Above Expectations

CHGG Price Action: Chegg has traded between $37.64 and $15.66 over a 52-week period.

The stock was up 8.94% in after-hours at $23.53 at press time.

Photo: Hermann Traub from Pixabay.