By Sam Boughedda
Investing.com — Chegg Inc (NYSE:CHGG) shares rallied after-hours Monday following its fourth-quarter earnings report which saw it beat analyst earnings and revenue expectations.
Chegg shares are up over 10% after hours, adding to the 3.65% gain in the regular session.
Chegg announced earnings per share of $0.38 on revenue of $207.47 million. Analysts polled by Investing.com anticipated EPS of $0.34 on revenue of $195.2 million.
The education technology company's fourth-quarter total net revenues increased 1% year-over-year, with Chegg Services revenues up 6% year-over-year to $187.2 million, representing 90% of total net revenues, compared to 86% in Q4 2020.
Chegg Services subscribers were 4.6 million, an increase of 5% year-over-year.
Looking ahead, the Santa Clara, California-based business expects total Q1 net revenues between $200 million to $205 million in the first quarter, with Chegg Services revenues between $183 million to $188 million.
For the full year, 2022 total net revenues are expected to be between $830 million and $850 million, with Chegg Services revenues in the range of $770 million to $790 million. In his comments, Dan Rosensweig, chief executive and president of Chegg, said momentum seen in Q4 continued into 2022.
“During these complicated times, the Chegg team continued to execute extremely well, with Chegg Study Pack take rates outperforming our expectations and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for Chegg Services,” commented Rosensweig.