Chegg Q2 Revenue Plunges 51% as AI Competition Bites
CHGG has more than doubled off its 52-week low of $0.45.
Summary
Chegg's Q2 revenue cratered 51% year-over-year to $51.85M, though it narrowly beat the lone analyst estimate. The company managed to stay EBITDA-positive at $9.1M through aggressive cost cuts, but the top-line collapse underscores the existential threat from AI tools. This follows a 48% revenue decline in Q1 and a NYSE delisting notice in July — the stock is trading around $1. Q3 guidance of $43M-$44M in revenue and $1M-$2M in adjusted EBITDA suggests the bleeding continues. The $1.7M in share buybacks is cosmetic against a $115M market cap and $120.7M remaining authorization.
At the time of this announcement, CHGG was trading at $1.00 on NYSE in the Technology sector, with a market capitalization of approximately $115.3M. The 52-week trading range was $0.45 to $1.90. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.