Chegg, Inc. faces a crisis due to AI, with revenues down 24% YOY. The online tutoring platform has promising AI tools, but generative AI and Google AIO are reducing the need for Chegg's subscription services, impacting traffic and revenue. Chegg's financials are deteriorating, with a significant decline in subscribers and revenue, and potential cash burn if the trend continues.
On Tuesday, the S&P 500 and Nasdaq Composite indexes dropped significantly after February's consumer confidence data was lower than expected, registering at 98.3 instead of the predicted 103.0, and down from 105.3 in January. This marked the largest decline since August. Meanwhile, U.S. government bonds increased in value, and the dollar lost strength.
Chegg is in crisis mode. The online education platform says its website traffic has plummeted since Google launched its AI-powered Overviews tool.
Chegg, Inc. (NYSE:CHGG ) Q4 2024 Earnings Conference Call February 24, 2025 4:30 PM ET Company Participants Tracey Ford - Investor Relations Nathan Schultz - President and Chief Executive Officer David Longo - Chief Financial Officer Conference Call Participants Eric Sheridan - Goldman Sachs Ryan MacDonald - Needham & Company Bryan Smilek - JPMorgan Josh Baer - Morgan Stanley Jessica Wang - Raymond James Brent Thill - Jefferies Devin Au - KeyBanc Capital Markets Operator Greetings, and welcome to the Chegg, Inc. Fourth Quarter 2024 Earnings Conference Call. At this time all participants' are in a listen-only mode.
The headline numbers for Chegg (CHGG) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Chegg (CHGG 9.09%), a provider of educational technology and services, released its Q4 2024 earnings on Feb. 24, 2025. The report highlights a period of transition, with revenue slightly beating analyst expectations but falling short of last year's results.
Chegg (CHGG) came out with quarterly earnings of $0.17 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.36 per share a year ago.
Edtech company Chegg has sued Google claiming that the tech giant's AI summaries of search results have hurt Chegg's traffic and revenue.
Chegg on Monday filed suit in federal district court against Google, claiming that AI summaries of search results have hurt the online education company's traffic and revenue. Chegg has engaged Goldman Sachs to consider strategic options, including acquisitions and going private.
SANTA CLARA, Calif.--(BUSINESS WIRE)--Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, today reported financial results for the quarter and year ended December 31, 2024. "We made two important and connected decisions to maximize the future of our business and shareholder value. We are launching a strategic review process and filed a complaint against Google, which has unjustly retained traffic that has historically come to Chegg, impacting our acquisitions, revenu.