As the children begin to return to school, Chegg Inc (NYSE: CHGG) looks to build on another strong quarter.
The company reported better-than-expected second quarter financial results on August 9, reporting higher and lower pace.
Andrew Brown, Chief Financial Officer of Chegg, appeared on Benzinga’s YouTube show “Power Hour” for an exclusive interview on Friday.
As mask warrants become more prevalent amid concerns over COVID-19 variants, investors may want to know how Chegg will be impacted.
Whether students are learning on campus or off campus, they always need help, Brown told Benzinga.
When students need help at school, they often turn to Chegg. “We help children unstuck when they are stuck in their education process,” he said.
Chegg is an educational services company specializing in online course assistance and tutoring.
The notable change that has occurred in the wake of the pandemic is an acceleration in the trend towards online education, Brown said. “All of our services are online.”
Two-thirds of students prefer the opportunity to learn online, noted Chegg’s chief financial officer.
Second Quarter Results: For the second quarter, Chegg reported adjusted earnings of 43 cents per share, beating the estimate of 37 cents per share. The company reported quarterly revenue of $ 198.48 million, which exceeds the estimate of $ 189.94 million. Chegg also raised his forecast.
“The beauty of our business model is that it is primarily subscription based,” said Brown. Subscriptions are predictable, which has given Chegg the confidence to increase his forecast, he explained.
“We have that kind of visibility that a lot of other companies may not have.”
Looking to the future, Brown expects Chegg to grow at the same rate or higher than the growth rate he maintained before the pandemic.
Brown went on to talk about solving his account sharing issues, international acceleration, contributing faculty content and more.
See the full interview here:
CHGG price action: Chegg traded at $ 115.21 and $ 62.84 over a 52 week period.
As of the last check on Friday, the stock was up 0.67% to $ 81.21.
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