Shares of Chegg Inc. edged higher on Monday extended trading after the company’s fourth-quarter results topped analysts’ expectations.
The American educational technology company surged 7.08% or 1.93 points to $29.20 per share. It followed its gain of 3.65% or 0.96 points to $27.27 in the regular hours.
It now stands with a market capitalization of $3.95 billion, with outstanding shares of 144.91 million.
Accordingly, Chegg diluted net income per share posted at $0.38, outpacing the market estimate of $0.31.
Then, its total net revenue increased 1.00% year-over-year to $207.50 million. It came in significantly higher than the analysts’ consensus of $195.00 million.
Subsequently, its Chegg Services revenue elevated 6.00% year-over-year to $187.20 million. It represented 90.00% of total sales, compared to 86.00% in the same period of 2020.
For the full year of 2021, its total revenue strengthened 20.00% to $776.30 million from the same period last year. In addition, its net income edged up to $24.30 million.
Correspondingly, Services gained 29.00% year-over-year to $669.90 million in 2021. The segment holds 86.00% of total net revenue, compared to 81.00% from the prior year.
Still, Chegg stock price trades 12.37% or 3.85 points lower year-to-date. From the past year, the company is down 73.26% or 74.73.
Chegg Posts All-Time High Subscribers
Moreover, Chegg reported a record of 7.80 million Services subscribers in the fiscal year. This all-time high retention rate climbed 18.00% year-over-year.
For the last three quarters, the platform had 4.60 million subscribers, an annual increase of 5.00%.
The firm operates as a subscription business pivoted mainly towards college students. Users pay between $15.00 and $20.00 per month to access the platform.
In line with this upbeat result, Chegg released positive first-quarter guidance. The company forecasted a total net revenue within the range of $200.00 million to $205.00 million.
It anticipated a total net revenue between $830.00 million to $850.00 million for the full year.
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