Chegg (NYSE: CHGG) reported better-than-expected third quarter financial results on Monday during extended trading hours, which sent shares higher by 16% on Tuesday morning.
For the quarter, Chegg reported earnings of USD 0.18 per share on revenue of USD 94.2 Million. FactSet analysts projected earnings of USD 0.08 per share on revenue of USD 89.3 Million.
Chegg witnessed its revenues increase by 27% year-over-year, primarily driven its Chegg Services growth. The segment reported that revenue increased by 28% year-over-year to USD 69.3 Million, accounting for 74% of total revenues.
The number of Chegg Services subscribers increased by 29% year-over-year to 2.2 million. Meanwhile, total Chegg Study content views totaled 138 million at the end of the quarter.
“It’s been an incredible year so far for Chegg and we are delighted to report another great quarter. We delivered 27% year over year total revenue growth, driven by 2.2 million Chegg Services subscribers in Q3 2019,” said Dan Rosensweig, Chief Executive Officer of Chegg, Inc., “Our strategy to provide direct to student services in their academic journey continues to deliver fantastic results and we couldn’t be more excited to expand into skills-based learning with the addition of Thinkful.”
For the fourth quarter, Chegg is forecasting total revenue in the range of USD 122 Million to USD 124 Million. Chegg Services Revenue is expected to fall in between USD 107 Million to USD 108 Million.
And as for the remainder of the year, Chegg is projecting revenues in the range of USD 407 Million to USD 409 Million, while Chegg Services revenue is expected to be between USD 332 Million to USD 333 Million.
Following the stronger-than-expected earnings, Chegg shares are now up 20.7% this year.