24/7 Market News Snapshot 24 February, 2025 – CHEGG, INC. (NYSE:CHGG)
DENVER, Colo., 24 February, 2025 (247marketnews.com) – (NYSE:CHGG) are discussed in this article.
Chegg, Inc. (CHGG) is currently experiencing significant volatility in its stock price, opening at $1.47 and trading down to $1.147, marking a notable decline of 19.79% from the previous closing figure of $1.43. The trading activity has seen a substantial volume of 7.06 million shares, indicating heightened selling pressure that may be attributed to broader market trends or company-specific developments. Investors are advised to monitor critical support and resistance levels; a drop below $1.10 could lead to further losses, whereas a move above $1.30 might suggest a potential recovery as market conditions evolve.
Amidst this financial backdrop, Chegg has also released its fourth quarter and full-year results for 2024, revealing a 24% decrease in total revenues, which amounted to $143.5 million. This downturn has been largely driven by sector challenges rather than a lack of demand for its services. Subscription services contributed $128.5 million to revenues, reflecting a year-over-year decrease of 23%. Despite these challenges, Chegg maintained a robust gross margin of 68% and generated an adjusted EBITDA of $36.6 million.
In a strategic move to enhance shareholder value, CEO Nathan Schultz announced the initiation of a strategic review process and legal action against Google, citing impacts on Chegg’s traffic and revenue. Looking ahead, Chegg anticipates first-quarter 2025 revenues to range between $114 million and $116 million, while subscription service revenue is expected to fall between $104 million and $106 million.
To adapt to the changing educational landscape, Chegg is integrating advanced AI capabilities across its platforms, aiming to bolster user experience and operational efficiencies. With millions of active subscribers worldwide, Chegg remains committed to innovation and delivering high-quality educational resources, focusing on enhancing product value and diversifying its revenue streams to meet the evolving needs of students.