Slide 1: Q4-21 Investor Presentation
Q4-21 Investor Presentation Feb 7, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strate
Slide 3: We put learners first
We put learners fi Our mission is to improve learning ane learning outcomes by putting students firs school and beyond. We strive to improve the overall return o investment in education by helping canes ‘ learn more in less time and at a lower cost. \ Zs “oe a 7 ’) {in A lls eee . 4 Chegg
Slide 4: Leading Direct-To-Student Connected Learning Platform
Leading Direct-To-Student Connected Learning Platform Large Addressable Markets in Early Stages of International Growth with Compelling Market Trends High Margin Model Competitive Moat Given Brand, Reach, Data and Proprietary Content
Slide 5: Chegg at a Glance: 2021
Chegg at a Glance: 2021) 7.8 Million CHEGG SERVICES SUBSCRIBERS 18% CHEGG SERVICES SUBSCRIBERS Y/Y GROWTH 1. All amounts sho Chegg 2. Adjusted EBITD, yr FY21 and are ba: GAAP financial mi 29% CHEGG SERVICES REVENUE Y/¥'GROWTH 34% ADJUSTED EBITDA MARGIN® mpany internal d di 1.5 Million INTERNATIONAL
Slide 6: Long-Term Strategic Focus
Long-Term Strategic Focus Grow Subscribers Demonstrate value to new learners around the world Grow Profitably Maintain focus on profitable growth, investing in scalable tools, technology, and content Chegg Extend Relationships Serve lifelong learners throughout their learning journey Drive Outcomes
Slide 7: 2022 Priorities
2022 Priorities Content Expand and improve quality and depth of content, subjects covered, discovery, and personalization of user experience International Invest in international expansion, including through platform, pricing, and content localization efforts, as well as through Busuu, which serves
Slide 8: It's Harder to Be a Student
It’s Harder to Bea They’re Faced with They Aren’t Prepared for Student Mounting Costs the Workplace 28% 38% Over 25 years old Don’t graduate ®) 4 % Of recent graduates are ~40% $30 K underemployed ©) Debt owed by 2019 a Are employed graduates “) 1. Source: Hall & Partners Annual Brand Tracker, Octob
Slide 9: Chegg's Overwhelming Value and Unique Competitive Advantages
Chegg’s Overwhelming Value and Unique Competitive Advantages Online x On-demand ( ~ Personalized; _ *
Slide 10: Large Global Academic Market Opportunity
Large Global Academic Market Opportunity 18M CA, AU and UK Secondary and Tertiary Students 100M Total students 48M English Language Instruction for Medium 34M US University?) and High School Students) - Tertiary Students eee seen eee meee eeeemeeeeee Outside the US, CA, AU, UK") 5 6.2M U.S. 7. 8 M 1
Slide 11: Busuu Adds Significant Addressable Market Opportunity
Busuu Adds Significant Addressable Market Opportunity Busuu is an online language learning platform that offers self-paced lessons, live classes with expert tutors, and the ability to learn and practice with members of the vast Busuu language learning community. ° $17B Digital lanaguage learner mark
Slide 12: Chegg's Integrated Platform of Connected Services
Chegg’s Integrated Platform of Connected Services Chegg Services Academic Skills cheeasted Chegg Study Pack Thinkful && egg Study : Integrated academic \ \ High quality on-line skills-based courses in Homework help learning service with a library of 75 support platform areas such as Data Science, Da
Slide 13: Learn with Chegg
Learn with Chegg Enhanced Platform Delivering a Personalized Learning Experience “It’s a one-stop shop!” What’s New? Immersive personalization for individualized learning experience Allows students to easily and intuitively discover relevant content Deeper integration of different content formats an
Slide 14: Chegg is Well-Known Among U.S. College Students
Chegg is Well-Known Among U.S. College Students Unaided Brand Awareness Aided Brand Awareness Chegg [I Quizlet | KhanAcademy a 1) Amazon SSN 4 % Grammarly | |__| _- Of college students have heard of a CourseHero . Chegg service Google YouTube Photomath | @: What companies, websites, and resources ca
Slide 15: Student demographics
29% First generation 26% Family income <$25k 53% Minorities 58% Female 28% Over 25 years old 17% Work full-time / 30% work part-time Source: Hall & Partners Annual Brand Tracker, October 2020. Chegg Platform users (College n=1200), and Chegg Platform is composed of the overall Chegg brand, Chegg-bra
Slide 16: Chegg Services are Used by Students Across Several Fields of Study
Chegg Services are Used by Students Across Several Fields of Study Primary Field of Study for Chegg Services Subscribers* 33% Business Humanities, Social Studies, and Other Chega. “US Chega Study and Chegg Study Pack Customer survey. Base: @4'20-G1'21 US, College students Chegg subscribers n=1904 GQ
Slide 17: Chegg Delivers Positive Learner Outcomes
Chegg Delivers Positive Learner Outcomes Learn & Better Grades More Efficient Help When You Help Figuring It Understand Need It Out Say that Chegg helps Say they get better Say that they work Say that Chegg helps Say that Chegg often them better understand the concepts they are studying in school. A
Slide 18: Chegg's Approach to ESG: Our Six Pillars
Chegg’s Approach to ESG: Our Six Pillars We foster an environment centered on respect, where diversity and inclusion are celebrated, and employees can develop and advance their careers. =~ We help learners succeed by providing the type of help they need, when they need it, in the format they want to
Slide 19: FY'16 FY'17 FY'18
FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 (E)
Slide 20: Chegg Services Drives Margin Expansion
Chegg Services Drives Margin Expansion Chegg’s business model supports operating leverage Adjusted EBITDA Chegg Adj. EBITDA (Smillion) & Margin (%) Proven history of expanding adjusted EBITDA margin while investing in future growth Majority of subscribers are acquired through unpaid channels Create
Slide 21: Business Outlook
Business Outlook Total Net Revenues Chegg Services Revenue Gross Margin % Adjusted EBTIDA* CapEx Free Cash Flow* Q4 2021 Results $207m $187m 74% $78m $26m $39m Q1 2022 Guidance $200m - $205m $183m - $188m 71%-72% $56m - $58m Full Year 2022 Guidance $830m- $850m $770m - $790m 70%-72% $260m - $270m $1
Slide 22: Business Outlook: 2022 Revenue and Adjusted EBITDA Seasonality
Business Outlook: 2022 Revenue and Adjusted EBITDA Seasonality 1Q22 2Q22 3Q22 4Q22 Total Revenue ~24% ~25% ~23% ~28% Adjusted EBTIDA* ~22% ~29% ~17% ~32% *Non-GAAP financial measure Note: 2022 quarterly contribution percentages are based on FY'22 Adjusted EBITDA business outlook We have not reconcil
Slide 23: Appendix
Slide 24: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA CHEGG, INC. RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (in thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2021 2020 2021 2020 Net income (loss) $ 24306 $ 26,043 $ (1,458) $ (6,22
Slide 25: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA CHEGG, INC. RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) (unaudited) Year Ended December 31, 2020 2019, 2018, 2017 2016 Net loss $ (6221) $ (9,605) $ (14,888) $ (20,283) $ (42,245) Interest expense, net 66,297 44,851
Slide 26: Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA Chegg CHEGG, INC. RECONCILIATION OF FORWARD-LOOKING NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) (unaudited) Three Months Year Ending Ending March December 31, 31, 2022 2022 Net loss $ (6,600) $ — (5,300) Interest expe
Slide 27: Reconciliation of Required Materials Net Revenues to Non-GAAP
CHEGG, INC. RECONCILIATION OF REQUIRED MATERIALS NET REVENUES TO NON-GAAP REQUIRED MATERIALS NET REVENUES (in thousands, except percentages) (unaudited) ` Year Ended December 31, 2016 2015 2014 2013 2012 Required Materials net revenues $ 124,755 $ 207,088 $ 236,717 $ 213,746 $ 188,530 Adjustment as
Slide 28: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow CHEGG, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (in thousands) (unaudited) Three Months Ended December . Years Ended December 31, 2021 2020 2021 2020 Net cash provided by operating