Online-Learning Firm Chegg Slides 31% with Students Ramping Up
Online-learning firm Chegg (NYSE:CHGG) experienced a sharp decline in its stocks after the company warned that ChatGPT was having a financial impact on its results. The company noticed a significant increase in student interest in ChatGPT starting from March. However, Chegg (CHGG) now believes that it is negatively affecting the new customer growth rate.
Despite this, Chegg CEO Dan Rosensweig said that the company is adopting artificial intelligence technology to keep up with the rapid changes and is prioritizing its investments to align with the new opportunity.
Chegg's Q1 total revenue dropped 7% YoY to $188M, and the subscription services revenues went down by 3%. In contrast, revenue expected for Q2 is around $175M to $178M compared to the $194M consensus. As a result, the shares of Chegg (CHGG) fell 30.55% in post-market trading.
