By Denny Jacob
Chegg, the education technology company, has reported a higher net income for the second quarter, despite a decline in revenue. Here are the key details:
Revenue
Chegg’s revenue for the second quarter ended June 30 was $182.9 million, slightly down from $194.7 million in the same period last year. Analysts had expected revenue to be around $176.5 million, but it exceeded expectations.
Adjusted Earnings
The Santa Clara-based company recorded adjusted earnings of 28 cents per share, compared to 37 cents per share in the previous year. Analysts had predicted adjusted earnings to be 29 cents per share.
Net Income
Chegg’s net income for the quarter was $24.6 million, a significant increase from $7.5 million in the prior-year period. This surpassed analysts’ expectations, who had predicted a loss of $4.7 million.
What We Watched
Commentary
According to Chief Executive Dan Rosensweig, the beta version of Chegg’s initial generative AI experience was launched in May and has received positive feedback.
Outlook
Chegg has forecasted its revenue to be in the range of $151 million to $153 million for the third quarter.
