Chegg Inc (CHGG) stock started the new week with negativity and lost 8.10% in the normal trading session on Monday, May 3, 2021, and closed at $83.01 per share. But in the after-hours session, CHGG share turned around and gain7.77% to close at $89.46 per share.CHGG shares have soared 95.96% over the last 12 months, and they went down 13.50% in the past week. Over the past three months, the stock has lost 13.36%, while over the past six months, it has added 10.92%.
Let’s see is there any reason behind its gains in the after-market session or not?
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Financial results announcement
On May 3, 2021, Chegg Inc. released its financial results for the three months ended March 31, 2021.
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Q1 2021 Financial highlights
- Chegg reported revenue of $198.4 million for Q1 2021 which is an increase of 51% year-over-year
- It suffered a net loss of $65.2 million in the reported quarter.
- Non-GAAP Net Income was $46.4 million
- Chegg reported an adjusted EBITDA of $57.1 million for Q1 2021.
Q2 financial outlook
- Chegg is expecting total net revenues in the range of $188 million to $190 million for the next quarter.
- The company is looking to achieve a gross margin between 69% and 70% in Q2 2021.
- Adjusted EBITDA in the range of $72 million to $74 million is expected in Q2 2021.
FY-2021financial outlook
- Chegg is expecting total net revenues in the range of $790 million to $800 million for FY 2021.
- The company set the gross Margin target to be between 68% and 69% for FY 2021.
- Adjusted EBITDA in the range of $275 million to $280 million is expected for the 2021 financial year.
New Chief Strategy Officer
On April 7, 2021, Chegg appointed Lauren Glotzeras the new Chief Strategy Officer, effective April 12th, 2021.
Lauren Glotzeris former Executive Vice President of Television Strategy & Operations at Sony Pictures Entertainment (SPE).
Closing public offering of common stock
On February 23, 2021, Chegg closed its public offering of 11,274,600 shares of its common stock at a public offering price of $102.00 per share
Chegg sold 10,974,600 shares of its common stock in the offering and Dan Rosensweig, President, Chief Executive Officer, and Co-Chairperson of the Board sold 300,000 shares of common stock in the offering.
FY 2020 financial results
On February 9, 2021, Chegg released its financial results for the three and twelve months ended December 31, 2020.
- FY 2020 total net revenues were $644.3 million.
- Chegg suffered a net loss of $6.2 million in FY 2020.
- Non-GAAP Net Income was $180.2 million in FY 2020.
- Adjusted EBITDA was $207.1 million for the reported year
Conclusion
The Q1 financial results were the reason behind its flip on Monday. The company reported exceptional revenue growth which moved its stock from negative mode towards positivity on Monday.