Chegg beats Q4 estimates with all-time high retention rates | ZDNet

Chegg published fourth quarter financial results on Monday, beating market estimates with all-time high retention rates. The online learning platform had 7.8 million Chegg Services subscribers in the 2021 fiscal year, an increase of 18% year-over-year.

Chegg’s non-GAAP diluted net income per share came to 38 cents. Total net revenues were $207.5 million, an increase of 1% year-over-year. 

Analysts were expecting non-GAAP earnings of 31 shares on revenue of $195.2 million. 

“During these complicated times, the Chegg team continued to execute extremely well, with Chegg Study Pack take rates outperforming our expectations and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for Chegg Services,” CEO Dan Rosensweig said in a statement. “Students depend on Chegg as an important part of their learning journey and the momentum we experienced in the fourth quarter of 2021 is continuing into 2022.” 

Total net revenues include revenues from Chegg Services and Required Materials. Chegg Services primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Required Materials includes print textbooks and eTextbooks. 

Chegg Services Revenues in Q4 grew 6% year-over-year to $187.2 million, or 90% of total net revenues, compared to 86% in Q4 2020. 

For the full year 2021, Chegg brought in total net revenues of $776.3 million, an increase of 20% year-over-year. Chegg Services Revenues grew 29% year-over-year to $669.9 million, or 86% of total net revenues, compared to 81% in 2020. 

For the first quarter of 2022, Chegg is forecasting total net revenues in the range of $200 million to $205 million. For the full year, it expects total net revenues in the range of $830 million to $850 million.