2024 Q1 - Quarterly Results

EXHIBIT99.01 CheggReports2024FirstQuarterEarnings AnnouncesNathanSchultzasincomingCEO,DanRosensweigtobecomeExecutiveChairman SANTACLARA,Calif.,April29,2024/BUSINESSWIRE/--Chegg,Inc.(NYSE:CHGG),theleadingstudent-firstconnectedlearningplatform,todayreportedfinancialresultsforthethreemonthsendedMarch31,2024. “NathanhasbeencoretoChegg’ssuccessfromourearliestdaysasatextbookrentalcompany,toleveragingAItodaytocreateatrulypersonalizedlearningassistant,”saidDanRosensweig,CEO&PresidentofChegg,Inc.“AsweareseeingencouragingsignsofhowournewAIenabledplatformwillservemorestudents,inmoreways,it’stherighttimeforNathantostepinandlead,andIcouldnotbemoreexcitedaboutChegg’sfuture.” “WehadaveryproductivefirstquarterandsuccessfullyrolledoutthefirstofmanyAIenabledexperiencesthatwillstrengthenourproduct-marketfitin2024andbeyond,”saidNathanSchultz,incomingCEO&President.“Theinvestmentswearemakinginournewproductaredesignedtoincreaseourvaluetostudents,enhancetheirlearningexperience,andexpandtheaudienceswecanserve.Wearealsoworkingtoalignourexpensebaserelativetocurrentrevenuetrends,withthegoalof30%orgreaterAdjustedEBITDAmarginfor2025.” FirstQuarter2024Highlights •TotalNetRevenuesof$174.4million,adecreaseof7%year-over-year •SubscriptionServicesRevenuesof$154.1million,adecreaseof9%year-over-year •GrossMarginof73% •Non-GAAPGrossMarginof75% •NetLosswas$1.4million •Non-GAAPNetIncomewas$29.6million •AdjustedEBITDAwas$46.7million •4.7millionSubscriptionServicessubscribers,adecreaseof8%year-over-year TotalnetrevenuesincluderevenuesfromSubscriptionServicesandSkillsandOther.SubscriptionServicesincludesrevenuesfromourCheggStudyPack,CheggStudy,CheggWriting,CheggMath,andBusuuofferings.SkillsandOtherincludesrevenuesfromCheggSkills,Advertising,andanyotherrevenuesnotincludedinSubscriptionServices. Formoreinformationaboutnon-GAAPnetincome,non-GAAPgrossmarginandadjustedEBITDA,andareconciliationofnon-GAAPnetincometonet(loss)income,grossmargintonon-GAAPgrossmarginandadjustedEBITDAtonet(loss)income,seethesectionsofthispressreleasetitled,“UseofNon-GAAPMeasures,”“ReconciliationofNet(Loss)IncometoEBITDAandAdjustedEBITDA,”and“ReconciliationofGAAPtoNon-GAAPFinancialMeasures.” BusinessOutlook SecondQuarter2024 •TotalNetRevenuesintherangeof$159millionto$161million •SubscriptionServicesRevenuesintherangeof$144millionto$146million •GrossMarginbetween70%and71% •AdjustedEBITDAintherangeof$38millionto$40million Formoreinformationabouttheuseofforward-lookingnon-GAAPmeasures,areconciliationofforward-lookingnetincometoEBITDAandadjustedEBITDAforthesecondquarter2024,seethebelowsectionsofthepressreleasetitled“UseofNon-GAAPMeasures,”and“ReconciliationofForward-LookingNetIncometoEBITDAandAdjustedEBITDA.” AnupdatedinvestorpresentationandaninvestordatasheetcanbefoundonChegg’sInvestorRelationswebsitehttps://investor.chegg.com. PreparedRemarks-DanRosensweig,CEO&PresidentChegg,Inc. Thankyou,TraceyandwelcomeeveryonetoChegg’sQ12024earningscall.It’satrulyexcitingdayforCheggasIamthrilledtoannouncethatNathanSchultzisbeingpromotedtoChegg’sPresident&CEO,effectiveJune1st.TheboardandIhavebeenfocusedonsuccessionplanningforthelastseveralyearstoputChegginthebestpositiontocontinuetodrivethefutureofeducation.Nathanhasspentthelast16yearshelpingbuildCheggintotheleadingglobalonlinelearningplatformthatitistoday.FromourearliestdaysasatextbookrentalcompanytoleveragingAItoday,Nathanhasbeenatthecoreofoursuccess.Nathanhasalwaysledwithastudent-firstmindsetandapassionforinnovatinghow,when,andwherepeoplelearn.IwillbesteppingintotheroleofExecutiveChairmanandworkingwithNathanandtheboardduringthisnextexcitingphaseofthecompany.Overthelastfewyears,NathanhasworkedtobolsterourcurrentleadershipteambyaddinganewChiefMarketingOfficer,anewSVPofBusinessOperations,andanewChiefProductOfficertoworkalongsideChuckGeiger,ourChiefTechnologyAdvisor.TheboardandIareexcitedaboutthismanagementteamandthefutureofthebusinessunderNathan’sleadership. WeseetheproliferationofAI,andourabilitytouniquelyharnessitspotentialineducation,asatransformativemomentforChegg.We’veembracedAIandhavecompletelyrebuiltouruserexperienceandservices,rollingoutamulti-yearproduct-ledgrowthplantoemergefromthepost-covidperiodandreturntorevenueandprofitgrowth.Thetransitionwilltaketime,butwearealreadyseeingencouragingsignsofhowournewAIenabledplatformwillservemorestudents,inmoreways,thaneverbefore.ThismakesthistherighttimeforNathantostepintothisnewroleandwritethenextchapteroftheCheggstory.So,withthat,IwillturnitovertoNathan.CongratulationsNathan. PreparedRemarks-NathanSchultz,IncomingCEO&PresidentChegg,Inc. Thankyou,Dan.Iwanttotakeamomenttoacknowledgethetremendousimpactyouhavehadoverthelast14years,bothonCheggandonme,personally.Iamgratefulforyourleadership,yourwisdom,andyourcounselaswere-foundedthecompanysomanyyearsago,expandingthevisionforhowCheggcouldservelearnersaroundtheworld.FromprinttextbookstoourIPO,fromhomeworkhelptobecomingafullydigitallearningplatform,youhavehelpedsteerusthroughsomanycriticaltransitionsandwewouldnotbewherewearetodaywithoutyou.Andwherewear