Chegg Inc. (NYSE: CHGG) reported a 54% jump in earnings for the fourth quarter of 2019 helped by the leverage from its subscription services. The results exceeded analysts’ expectations. Further, the company guided first-quarter revenue above the consensus estimates and raised revenue outlook for the full year 2020.
Net income soared by 54% to $8.22 million or $0.06 per share. Adjusted earnings climbed by 40% to $0.35 per share. Revenue jumped by 31% to $125.5 million. Analysts had expected EPS of $0.29 on revenue of $122.97 million for the fourth quarter.
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.
Most Popular
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q2 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported its second quarter 2024 earnings results today. Net sales increased 4.9% year-over-year to $5 billion. Organic sales increased 9%. Net income attributable to Colgate-Palmolive Company was $731
Key takeaways from Visa’s Q3 2024 earnings report
Credit card behemoth Visa, Inc. (NYSE: V) this week reported mixed results for the June quarter, with earnings matching expectations and sales slightly missing the view. Both numbers grew in
Southwest Airlines (LUV): A look at the airline’s performance in Q2 2024
Shares of Southwest Airlines Co. (NYSE: LUV) were up over 6% on Thursday after the company beat earnings estimates for the second quarter of 2024. The stock has gained 4%
