For the first quarter, the company expects total revenues in the range of $122-125 million and gross margin in the range of 67-68%. The consensus estimates revenue of $120.55 million.
For the full year 2020, the company lifted its revenue outlook to the range of $522-527 million from the previous estimate of $520 million. The consensus estimates revenue of $520.25 million. The gross margin is now predicted to be 71-72% and capital expenditures are now anticipated to be $105-115 million for the full year.
For the fourth quarter, the number of Chegg Services subscribers increased by 32% year-over-year to 2.5 million and there were 271 million of the total Chegg Study content view.
The company continues to set financial goals for creating overwhelming value for academic and professional learners. Chegg continues to invest in opportunities that leverage the strength of its brand and customer base providing opportunities for meaningful growth in the future.
Chegg ended the year 2019 with cash and investments of $1.1 billion, more than double the balance it had at the end of 2018. This is the result of proceeds from the convertible debt offering it completed in Q2 and improved operating cash flows. Free cash flow for 2019 came in at the higher end of its expectations at $71 million.