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Investing.com -- U.S. edtech firm Chegg (NYSE:CHGG) forecasted second-quarter revenue that missed analyst expectations, while its first-quarter sales came in ahead of estimates.
The company posted Q1 loss per share of $0.06, missing analyst expectations for breakeven results. Revenue for the quarter stood at $121.4 million, exceeding the $114.6 million expected by analysts.
Subscription services generated $107.6 million in revenue.
Chegg’s gross margin for the period was 56%.
“In Q1, we exceeded our revenue and adjusted EBITDA expectations, delivered $16 million of free cash flow and continued to diversify our revenue streams. We are encouraged by the conversations in our strategic alternatives process and the value these organizations see in our business,” said Nathan Schultz, CEO & President of Chegg.
“Despite these promising developments, we believe the trends impacting our business will worsen before they get better. We are taking steps to further align costs with our outlook, including an additional restructuring of our business.”
For the second quarter of 2025, Chegg expects revenue between $100 million and $102 million, below the $110.5 million consensus.
Adjusted EBITDA is projected in the range of $16 million to $17 million, in line with the $16 million estimate. Subscription services revenue is forecast between $85 million and $87 million.