Chegg says its revenue jumped 57% in fiscal 2020

Written by: Wajeeh Khan
February 9, 2021
  • Chegg says its revenue jumped 57% in fiscal 2020 amidst the COVID-19 crisis.
  • The education technology company raised its guidance for fiscal 2021.
  • Chegg reports 13.07 pence of earnings per share in the fiscal fourth quarter.

Chegg Inc. (NYSE: CHGG) said on Monday that its financial performance remained robust in the fiscal fourth quarter of 2020 amidst the ongoing Coronavirus pandemic that has so far infected more than 27 million people in the United States and caused a little under half a million deaths. The company also raised its guidance for the current financial year on Monday.

Chegg shares jumped a little under 5% in extended trading on Monday. Including the price action, the stock is now trading at £77.61 per share after recovering from a low of £20.12 per share in March 2020 when the impact of the COVID-19 crisis was at its peak. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

Chegg’s guidance for fiscal 2021

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For fiscal 2021, Chegg now forecasts its revenue to fall in the range of £566.32 million to £573.58 million. It expects up to £196.03 million of full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation).

The education technology company said that its revenue in the recently concluded year printed at £467.79 million that represents a 57% growth on a year over year basis. Its adjusted EBITDA in fiscal 2020 came in at £150.36 million.

The company attributed its hawkish annual financial performance to the strong momentum in Q4 and robust growth in subscribers in the fiscal first quarter. According to Chegg:

“We expect continued growth in the United States and increased contribution internationally where we expect to surpass one million subscribers in 2021.”

In separate news from the U.S., the video game holding company, Take-Two Interactive also reported its financial results for the fiscal third quarter on Monday, after the bell.

Chegg’s financial performance in fiscal Q4

For the fiscal fourth quarter, the Santa Clara-based company reported 13.07 pence of earnings per share. In comparison, its per-share earnings were capped at a much lower 4.36 pence in the same quarter last year.

Chegg posted £149.35 million of net revenue in the recent quarter versus the year-ago figure of £91.12 million.

Chegg performed largely upbeat in the stock market last year with an annual gain of close to 140%. At the time of writing, the NYSE-listed company has a market cap of £9.54 billion.