Slide 1: Q4-20 Investor Presentation
Q4-20 Investor Presentation February 8, 2021 Confidential Material / © 2021 Chegg, Inc. / All Rights Reserved 1 Chegg Inc. © 2005 - 2021. All Rights Reserved. Confidential Material / © 2021 Chegg, Inc. / All Rights Reserved
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 and expand its services offerings; Chegg’s ability to develop new products and services on a cost- the Private Securities Litigation Reform Act of 199
Slide 3: Leading direct-to-student learning platform to improve outcomes
Leading direct-to-student learning platform to improve outcomes 3 Chegg Inc.Inc. Chegg © 2005 - 2021. © 2005 All All - 2021. Rights Reserved. Rights Reserved.
Slide 4: Investment Highlights
Investment Highlights Leading Direct-To-Student Connected Learning Platform Large Addressable Market with Compelling Market Trends High Growth and High Margin Model Competitive Moat Given Brand, Reach, Data and Proprietary Content 4 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 5: Chegg at a Glance
Chegg at a Glance (1) 6.6 Million 67% ~19 Million CHEGG SERVICES CHEGG SERVICES SUBSCRIBERS CHEGG PLATFORM UNIQUE VISITORS IN AN SUBSCRIBERS Y/Y GROWTH AVERAGE MONTH VOTED FORTUNE’S BEST Small and Medium Workplaces 57% 32% Workplaces in Technology Workplaces in the Bay Area CHEGG SERVICES ADJUSTED E
Slide 6: Q4 – Highlights
Q4 – 20 Highlights (*) • 4.4 million Chegg Services subscribers, up 74% y/y • Chegg total revenue of $206 million, up 64% y/y • 476 million Chegg Study content views 6 * = Based on Company internal data Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 7: Today's Learners Face More Pressure Than Ever
Today’s Learners Face More Pressure Than Ever It’s Harder to Be a Student They’re Faced with Mounting Costs They Aren’t Prepared for the Workplace 25 37% AVERAGE STUDENT AGE(1) DON’T GRADUATE(3) 41% OF RECENT GRADUATES ARE UNDEREMPLOYED (5) ~40% $30K DEBT OWED BY 2018 GRADUATES(4) ARE EMPLOYED(2) Ne
Slide 8: Large Global Market Opportunity
Large Global Market Opportunity Market Opportunity 102 Million Total Students Can Benefit from 36M 48M US University(1) and High School English Language Students (2) Instruction as a Medium - Tertiary Students Outside the US, CA, AU, UK(5) 18M CA, AU and UK Secondary and Tertiary 6.6 Million(4) Stud
Slide 9: Today Globally, Chegg's Overwhelming Value is Critically Apparent
Today Globally, Chegg’s Overwhelming Value is Critically Apparent Online On-demand Personalized Adaptive Affordable …and Backed by Human Help 9 Chegg CheggInc. Inc.©©2005 2005- -2021. 2021.All All Rights Rights Reserved. Reserved.
Slide 10: Chegg is Well-Known Among College Students
Chegg is Well-Known Among College Students Chegg scores highest in unaided awareness among college students(1) 87% Amazon Quizlet OF COLLEGE STUDENTS HAVE HEARD OF A CHEGG SERVICE (1) Khan Academy Google 1. H&P Annual Survey, October 2019 (College n=1737). Based on the question: “What companies, web
Slide 11: 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* 19% STEM Business 21% 61% Humanities/Social Studies/Other 11 * = Hall & Partners Brand Tracker October 2019 (College n=1737). Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 12: Chegg Serves Students of Diverse Backgrounds
Chegg Serves Students of Diverse Backgrounds* 33% First generation 34% Family income < $25k 32% Minorities 58% Female 28% Over 25 years old 11% Work full-time / 33% work part-time 12 * = Hall & Partners Brand Tracker October 2019 (College n=1737). Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 13: Integrated Platform of Connected Services
Integrated Platform of Connected Services Chegg Services Academic Skills Chegg Study Homework help learning service with a library 53 Thinkful million pieces of content (~47 million expert High quality on-line skills-based courses answered Q&As and ~6 million textbook solutions)* Chegg Study Pack •
Slide 14: Chegg is Delivering Strong Outcomes for Students
Chegg is Delivering Strong Outcomes for Students 92% 90% Chegg Study helps me Chegg Study helps me better get better grades(1) understand my schoolwork(1) 85% Thinkful placement rate(2) 1 = Source: H&P Blind Customer Survey, October 2019. Bases (College Chegg Study product payers who paid for servic
Slide 15: Rapid Growth of Chegg Services
Rapid Growth of Chegg Services Chegg Services Subscribers Chegg Services Revenue Annual Chegg Services Subscribers (in millions) Revenue Growth ($ in millions)* FY'16 1.5 Chegg Services FY’16 — FY’21 CAGR: 39% FY'17 2.2 67% y/y growth for ‘20 FY'18 3.1 FY'19 3.9 FY'20 6.6 * = Prior to FY 2017, Requi
Slide 16: Business Outlook
We are increasing our organic guidance Business Outlook Q4 2020 Q1 2021 Full Year 2021 Results Guidance Guidance Total Net Revenues $205.7m $182m - $185m $780m - $790m Chegg Services Revenue $176.0m $152m - $155m $665m - $675m Gross Margin % 72% 65% - 66% 68% - 69% Adjusted EBITDA* $87.9m $48m - $50
Slide 17: Business Outlook: 2021 Revenue and Adjusted EBITDA Seasonality
Business Outlook: 2021 Revenue and Adjusted EBITDA Seasonality Total Revenue and Adjusted EBITDA Quarterly Contribution Q1-21 Q2-21 Q3-21 Q4-21 Total Revenue ~23.5% ~24.5% ~21.5% ~30.5% Adjusted EBITDA * ~18% ~27% ~13% ~42% • Non-GAAP financial measure Note: 2021 quarterly contribution percentages a
Slide 18: Appendix
Appendix 18 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 19: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 19 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 20: Reconciliation of Forward-Looking Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Forward-Looking Net Income to EBITDA and Adjusted EBITDA * Interest expense, net guidance for the year ending December 31, 2021 represents the impact of the early adoption of Accounting Standards Update (ASU) 2020-06, Accounting for Convertible Instruments and Contracts in an Entit
Slide 21: Reconciliation of Required Materials Net Revenues to Non-GAAP Required Materials Net Revenues
Reconciliation of Required Materials Net Revenues to Non-GAAP Required Materials Net Revenues 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 Re
Slide 22: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow 22 Chegg Inc. © 2005 - 2021. All Rights Reserved.