Slide 1: Q3 2014 Earnings Call
Q3 2014 Earnings Call! November 3rd, 2014! Confidential Material – Chegg Inc. © 2005 - 2013. All Rights Reserved.! !
Slide 2: Safe Harbor
SAFE HARBOR! 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, which include, without limitation those regarding Chegg's Q4 2014 financial outlook and Chegg’s expect
Slide 3: The leading connected learning platform
The leading connected learning platform! Confidential Material – Chegg Inc. © 2005 - 2013. All Rights Reserved.! ! 3!
Slide 4: Revenue ($M)
Revenue ($M) ! Q3’14 Q3’13 YOY Total Revenue $81.5 $61.6 32% Print $55.3 $48.6 14% Digital $26.2 $13.0 102% Digital % of Revenue 32% 21% 11 pts.
Slide 5: Gross Profit & Expense ($M) (Non-GAAP)
Gross Profit & Expense ($M) (Non-GAAP)! Q3’14 Q3’13 YOY Gross Profit $13.4 $3.3 $10.1 GM% 16% 5% 11 pts. Digital Gross Profit $16.0 $6.2 $9.8 Digital GM% 61% 48% 13pts. Operating Expenses $31.8 $23.3 $8.5 (Gain) Loss on Liquidation of ($2.0) ($2.4) ($0.4) Textbooks Opex as a % of Revenue 38.9% 37.9%
Slide 6: Q3'14 Profitability ($M) (Non-GAAP)
Q3’14 Profitability ($M) (Non-GAAP)! Q3’14 Q3’13 Total Revenue $81.5 $61.6 Print $55.3 $48.6 Digital $26.2 $13.0 Gross Profit $13.4 $3.3 Operating Expenses $31.8 $23.3 Operating Income $(18.3) $(20.1) Book Depreciation $16.1 $14.5 Adj. EBITDA $(16.8) $(18.6)
Slide 7: Q4'14 Outlook ($M) (Non-GAAP)
Q4’14 Outlook ($M) (Non-GAAP)! Low End High End Total Revenue $82 $87 Digital Revenue $27 $30 Gross Margin % 47% Adj. EBITDA w/o Book Dep. $12 $15 12
Slide 8: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation !