(Chegg) Shares of Chegg Inc. fell more than 36% in premarket on Tuesday. Online-education company projected lower earnings in the second quarter and FY22.
In its first quarter 2022 earning’s’ report, Chegg’s net revenues rose 2% from the prior year to $202.2 million. The company said that its revenue in the second quarter will be lower at $188 million to $192 million, lower than estimates of $210.6 million.
For FY22, Chegg’s revenue will range between $740 million to $770 million, which is lower than the company’s own previous guidance of between $830 million and $850 million.
Company also projected a lower EBITDA of between $66 million and $68 million in the second quarter and $220 million to $235 million in FY22. The quarterly guidance was higher than reported EBITDA of $62.2 million, but missed estimates of $77.4 million. FY22 EBITDA missed the company’s own guidance of between $260 million and $270 million.
The company said its gross margin will range between 76% to 77% in the second quarter and between 73% and 74% in FY22. The full-year estimate surpassed the company’s own guidance of between 70% to 72%.
In the concluded quarter, Chegg said it netted a net income of $5.7 million from a subscriber base of 5.4 million, representing a growth of 12%.
CHGG: NYSE is down -36.75%
