Chegg Inc. Reports 2024 Financial Results Amid Strategic Shifts

Chegg Inc ( (CHGG) ) has released its Q4 earnings. Here is a breakdown of the information Chegg Inc presented to its investors.

Chegg Inc., a leading student-first connected learning platform, provides personalized educational support through its AI-powered services and extensive network of subject matter experts. The company recently released its financial results for the fourth quarter and full year of 2024, highlighting significant challenges and strategic initiatives. Chegg reported a 24% year-over-year decrease in total net revenues for the fourth quarter, amounting to $143.5 million, and a net loss of $6.1 million. For the full year, total net revenues decreased by 14% to $617.6 million, with a substantial net loss of $837.1 million. Despite these setbacks, Chegg’s non-GAAP net income was $19.0 million for the quarter and $85.0 million for the year, indicating some resilience in its core operations.

Key financial metrics revealed a decline in subscription services revenue by 23% year-over-year for the fourth quarter and a 21% decrease in subscribers. The company also initiated a strategic review process to explore alternatives, including potential acquisition or remaining a standalone entity, and filed a complaint against Google LLC and Alphabet Inc. for retaining traffic that historically benefited Chegg. The complaint alleges unfair competition practices by Google, impacting Chegg’s revenue and workforce.

Chegg has made strides in integrating AI and machine learning into its offerings, enhancing its product stack to deliver a more personalized learning experience. The company has also launched innovative marketing campaigns to boost brand awareness and conversion rates, particularly among younger audiences. Additionally, Chegg’s language learning service, Busuu, has transitioned to a freemium model, resulting in increased conversion rates and revenue growth.

Looking ahead, Chegg aims to stabilize its business in 2025 by focusing on brand awareness, product expansion, and diversifying revenue streams through business-to-institution programs. The company remains committed to providing comprehensive student success platforms and adapting to the evolving educational landscape. With a strong brand and a large subscriber base, Chegg anticipates that 2025 will be a pivotal year for its growth and stability.