Online textbook retailer Chegg has reported a net loss of $6.2 million for 2020, compared to a net loss of $9.6 million reported for 2019.
However, net revenue for the year was $664.3 million, up from $410.9 million reported for 2019 – a 57% year-on-year increase.
The Santa Clara, California-based company also reported results for the fourth quarter of 2020. Net income for the quarter was $26 million, up from net income of $8.2 million reported for Q4 2019. Revenue for the period was $205.7 million, up from $125.5 million reported for the fourth quarter of 2019.
Chegg also announced an adjusted 55 cents per share which exceeded analysts’ expectations, leading to an uptick in the company’s share price. In pre-market trading, Chegg climbed nearly 5%.
Chegg chief executive Dan Rosensweig said: “We believe this massive shift to learning online, accelerated by the pandemic, is an irreversible trend and is actually more student-centric. With increased access to digital learning and support, more learners can learn more subjects, on any device, anywhere and anytime, with incredibly high-quality content and tools. Whenever there is a major platform disruption, there are new leaders that redefine the category and, as the largest direct-to-student online learning platform, Chegg’s products and services are increasingly critical to students’ success. Our results reflect the growing importance of Chegg’s learning support services to millions of students around the world. In 2020 we saw year-over-year annual subscriber growth of 67%, representing over 6.6 million subscribers, and total revenue growth of 57%. The trends towards online learning are continuing and, as a result, it gives us the confidence to raise our guidance in 2021.”
Date published: 9 February 2021