Chegg projected sales of $38 million to $40 million for the final quarter after third-quarter revenue fell 40% from a year earlier, with weaker site traffic cutting into subscriptions.
The company posted $46.468 million in revenue for the quarter through Sept. 30. Academic Services contributed $30.026 million, down from $60.159 million in the corresponding quarter a year before. Chegg said diminished site traffic and subscriber numbers weighed on the segment, while wider use of free and paid generative AI services added pressure on traffic and subscriptions.
Chegg Skilling generated $16.442 million, 6% below its $17.583 million result a year earlier. Chegg Executive Chairman and CEO Dan Rosensweig said AI had “hit our business hard.”
Chegg posted a GAAP loss of $4.690 million, or 4 cents per share, versus a $17.471 million loss and 16 cents per share in the prior-year quarter. Its non-GAAP results showed a $5.734 million loss, or 5 cents per share. Adjusted EBITDA was $5.435 million, compared with $13.254 million a year ago.
At Sept. 30, cash, cash equivalents and investments totaled $43.604 million. Chegg said it had no convertible senior notes outstanding.
Chegg said more than 100,000 people had visited its Internships.com employability platform by Nov. 3; the company introduced it in September. College of Charleston, Salem College and Radford University each had pilot programs.
For the three months ending Dec. 31, Chegg projected a 46% to 48% gross margin and roughly $1 million in adjusted EBITDA.
