(MENAFN - Baystreet.ca) Chegg, Inc. (NYSE:CHGG) rose Tuesday after the company reported better-than-expected Q1 sales results. The company also announced it raised FY21 sales guidance.
Total net revenues proved to be $198.4 million, an increase of 51% year-over-year. Net loss was $65.2 million which included a $78.2-million loss on early extinguishment of debt related to 2025 notes. Non-GAAP Net Income was $46.4 million. Adjusted EBITDA was $57.1 million
For the Full Year, total net revenues are projected in the range of $188 million to $190 million. Gross Margin is expected between 69% and 70%. Adjusted EBITDA are expected in the range of $72 million to $74 million.
CEO Dan Rosensweig declared, 'We continue to fire on all cylinders and our Q1 results reflect the popularity and importance of Chegg's services which experienced 64% subscriber growth, reaching a record 4.8 million subscribers in the quarter. To put that in perspective, it is almost one million more subscribers than we had in all of 2019.
"And our overall year-over-year revenue grew by 51%. These results and continued momentum give us the confidence to, once again, raise our full year guidance."
Chegg claims to be "A Smarter Way to Student®. We strive to improve educational outcomes by putting the student first. We support students on their journey from high school to college and into their career with tools designed to help them learn their course materials, succeed in their classes, save money on required materials, and learn the most in-demand skills. Our services are available online, anytime and anywhere."
CHGG shares gained 85 cents, or 1%, to $83.86.
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