Chegg Q2 Earnings: Revenue, EPS Beat, But Soft Guidance Weighs On Shares
Portfolio Pulse from Adam Eckert
Chegg Inc (NYSE:CHGG) reported Q2 earnings with revenue and EPS beating estimates, but provided soft guidance for Q3. Revenue decreased 11% YoY to $163.1 million, and EPS was 28 cents, both beating expectations. However, Q3 revenue guidance of $133-$135 million and adjusted EBITDA of $19-$21 million weighed on shares, which fell 16.38% in after-hours trading.
August 05, 2024 | 8:56 pm
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Chegg reported Q2 earnings with revenue and EPS beating estimates, but provided soft guidance for Q3. Revenue decreased 11% YoY to $163.1 million, and EPS was 28 cents, both beating expectations. However, Q3 revenue guidance of $133-$135 million and adjusted EBITDA of $19-$21 million weighed on shares, which fell 16.38% in after-hours trading.
Despite beating Q2 revenue and EPS estimates, Chegg's soft guidance for Q3 has led to a significant drop in share price. The market is reacting negatively to the lower-than-expected future revenue and EBITDA projections.
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IMPORTANCE 90
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