Chegg sees Q4 revenue $141M-$143M, consensus $161.46M

Sees Q4 Subscription Services revenues in the range of $126M-$128M; Gross Margin between 67% and 68%; Adjusted EBITDA in the range of $32M-$34M. David Longo, CFO Chegg (CHGG), said: “While our business outlook has significantly softened versus our prior expectations, and these numbers are not where we want them to be, like many companies in the ed-tech space, we are dealing with the challenges of a dynamically changing AI landscape. We are working to expand our best-in-class verticalized experience for students focused on improving their outcomes, however, it will take time to adjust to the new opportunity and see the benefits in our business results. In the meantime, we are committed to maintaining transparency about the industry and our business trends.”