Chegg's 2Q23 Financial Performance Surpasses Analyst's Estimates: Focus Shifts To Subscriber Trends
Portfolio Pulse from Shivani Kumaresan
Chegg Inc's 2Q23 revenue and EPS surpassed analyst's estimates, however, its subscriber counts were below expectations. The company announced a partnership with Scale AI to develop large language models for Chegg's personalized learning assistant. This is a shift from Chegg's prior strategy of leveraging GPT 4.0 for a new offering called CheggMate. The shares of Chegg are trading higher by 4.5%.
August 08, 2023 | 7:19 pm
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Chegg's 2Q23 financial performance exceeded estimates, but subscriber counts were lower than expected. The company's new partnership with Scale AI and shift in strategy could impact future growth.
Chegg's better-than-expected financial performance and the announcement of a strategic partnership with Scale AI have led to a positive market reaction, with shares trading higher. However, the lower-than-expected subscriber counts could be a concern for investors. The new partnership and strategy shift could potentially drive future growth, but uncertainties remain regarding student adoption of the new offering.
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