Slide 1: Q1 2014 Earnings Call
Q1 2014 Earnings Call May 1st, 2014 Confidential Material – Chegg Inc. © 2005 - 2013. All Rights Reserved.
Slide 2: Safe Harbor
SAFE HARBOR This presentation is for informational purposes only and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Chegg, Inc. ("we," "us" or "our") securities will only be made in accordance with the Securities act of 1933, as amended, and
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) Q1’14 Q1’13 YOY Total Revenue $74.4 $61.0 22% Print $56.6 $50.3 13% Digital $17.8 $10.7 66% Digital % of Revenue 24% 18% 6 pts.
Slide 5: Gross Profit & Expense ($M) (Non-GAAP)
Gross Profit & Expense ($M) (Non-GAAP) Q1’14 Q1’13 YOY Gross Profit $9.1 $11.7 ($2.6) GM% 12.2% 19.2% (7.0) pts. Digital Gross Profit $9.7 $5.6 $4.1 Digital GM% 54.6% 52.4% 2.2 pts. Operating Expense* $28.8 $24.5 $4.3 Gain on Liquidation of ($1.7) ($2.3) ($0.6) Textbooks Opex before gain/loss on 38.
Slide 6: Q1'14 Profitability ($M) (Non-GAAP)
Q1’14 Profitability ($M) (Non-GAAP) Q1’14 Q1’13 Total Revenue $74.4 $61.0 Print $56.6 $50.3 Digital $17.8 $10.7 Gross Profit $9.1 $11.7 Operating Expenses $27.1 $22.2 Loss from operations ($18.0) ($10.5) Book Depreciation $20.1 $16.5 Adj. EBITDA ($16.6) ($9.1)
Slide 7: Q2'14 Outlook ($M) (Non-GAAP)
Q2’14 Outlook ($M) (Non-GAAP) Low End High End Total Revenue $61 $65 Digital % Mix 30% 31% Gross Margin % approximately 36% Adj. EBITDA ($2.0) $2.0
Slide 8: FY14 Outlook ($M)
FY14 Outlook ($M) Low End High End Total Revenue $310 $320 Non-Print % Mix 28% 30% Gross Margin % 27% 29% Adj. EBITDA ($10) ($15) Free Cash Flow ($5) $5
Slide 9: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation