Chegg Inc (NYSE:CHGG) stock rose in Tuesday’s early deals as the edu-tech firm’s chief executive Dan Rosensweig struck a bullish tone on its quarterly earnings call with investors.
The company is in a great position as the AI “hype gives way to facts”, because it has in the past six months worked to leverage artificial intelligence to completely reinvent ‘what it offers, how it offers it, and who it offers it to’, Rosensweig said in a statement.
“We believe Chegg is in a great position to build the most impactful, scalable, AI enabled, personal learning assistant, which will expand our opportunities to serve more students, in more ways, and at a lower cost per customer.
“The history of the internet has shown us that verticals win.”
Rosensweig added: “In the world of AI, Chegg has particularly valuable and proprietary assets for education and learning, including our student-first brand, a reputation for quality and accuracy, and our unique content and dataset.”
In its quarterly results, released after yesterday's close, Chegg reported $157.9 million in revenue, 4% lower than Wall Street forecasts of $152 million. Subscription services accounted for 89% of total revenue in the period.
It reported a $18.3 million loss for the quarter, equating to a loss of 16 cents per share. Adjusted EBITDA, meanwhile, was reported at $38.8 million.
Pitching guidance for the fourth quarter Chegg said it expects to report revenue of $185 million to $187 million.
Additionally, the company announced that chief financial officer Andy Brown would retire in early 2024.
“Chegg is in a great position to build the most impactful, scalable, AI-enabled, personal learning assistant, which will expand our opportunities to serve more students, in more ways, and at a lower cost per customer,” Rosensweig said.
“We are moving quickly and have already started to roll out our new simple user interface and unified asking experience, delivering faster and more relevant solutions.”
In New York, Chegg shares were up 4.6% at $8.87.