Chegg Stock Soars As Generative AI Enters The Spotlight: What's Going On?

Chegg, Inc. CHGG shares are trading higher in the after-hours market Monday on the heels of the company's second-quarter earnings report. Here's a summary of the results.

What To Know: Chegg reported quarterly earnings of 28 cents per share which was in line with the analyst consensus estimate, representing a 24.32% decrease over earnings of 37 cents per share from the same period last year.

The company reported quarterly sales of $182.90 million which beat the analyst consensus estimate of $176.19 million, representing a 6.07% decrease over sales of $194.72 million in the same period last year.

Subscription Services revenues decreased 5% year-over-year to $165.9 million, or 91% of total net revenues, compared to 90% in the second-quarter 2022. Subscription Services subscribers decreased 9% year-over-year to 4.8 million.

The company expects third-quarter total net revenues to be between $151 million and $153 million versus the $152.37 million estimate.

"Chegg outperformed guidance for both revenue and adjusted EBITDA in Q2 and saw year-over-year customer acquisition and retention rates improve during the quarter," said Dan Rosensweig, CEO and president of Chegg.

"We launched the beta version of our initial generative AI experience in May and feedback has been very positive. We believe we are in an unrivaled position to deliver a unique, personalized learning experience for students because we have the assets, the vision, and the balance sheet that no one else has."

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CHGG Price Action:  Shares of CHGG were up 27.1% at $12.74 in the after-hours session at the time of publication, according to Benzinga Pro.

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