Chegg reported second-quarter results that exceeded management's expectations on both revenue and EBITDA, driven by a sweeping restructuring into an AI-first organization with a leaner cost structure. The company is shifting its core mission from academic support to a comprehensive 'employability' platform, aiming to serve 20 million students from learning to earning. Non-GAAP operating expenses were nearly halved year-over-year, and free cash flow reached $9.5 million in the first half despite $14.4 million in one-time severance payments. Management guided for third-quarter total revenue between $43 million and $44 million and expects to fully repay its convertible debt in the quarter, while targeting a 60% reduction in full-year capital expenditures. Chegg plans a soft launch of its next-generation platform in the third quarter, integrating academic support, skilling, and language learning, and will leverage its 100-million Q&A database and the internships.com domain to drive the new strategy.
Chegg IncQ2 beat expectations, cost cuts, and debt repayment guidance
NVIDIA Corporation