Chegg Q1 Loss Widens

(RTTNews) - Chegg, Inc. (CHGG), Monday reported first-quarter net loss of $17.5 million or $0.17 per share, compared to $1.4 million or $0.01 per share last year.

Adjusted net loss was $6.7 million or $0.06 per share compared to net income of $29.6 million or $0.26 per share last year.

Net revenues were $121.4 million, a decrease of 30% year-over-year from $174.4 million last year.

"In Q1, we exceeded our revenue and adjusted EBITDA expectations, delivered $16 million of free cash flow and continued to diversify our revenue streams. We are encouraged by the conversations in our strategic alternatives process and the value these organizations see in our business," said Nathan Schultz, Chief Executive Officer & President of Chegg, Inc. "Despite these promising developments, we believe the trends impacting our business will worsen before they get better. We are taking steps to further align costs with our outlook, including an additional restructuring of our business."

Looking forward to the second quarter, the company expects net revenues of $100 million to $102 million, subscription services revenues of $85 million to $87 million and gross margin between 64% and 65%.