Slide 1: Q1-22 Investor Presentation
Q1-22 Investor Presentation May 2, 2022 © 2022 Chegg, Inc. / All Rights Reserved
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements students; Chegg’s ability to build and expand its services offerings; Chegg’s ability to develop new This presentation contains forward-looking statements made pursuant to the safe harbor provisions of products and services on a cost-effective basis a
Slide 3: We put learners first.
We put learners first. Our mission is to improve learning and learning outcomes by putting students first, in school and beyond. We strive to improve the overall return on investment in education by helping learners learn more in less time and at a lower cost. © 2022 Chegg, Inc. / All Rights Reserve
Slide 4: Investment Highlights
Title Here Investment Highlights Sub Header 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 © 2022 Chegg, Inc. / A
Slide 5: Chegg at a Glance: 2021
Chegg at a Glance: 2021(1) 7.8 Million 29% 1.5 Million ~30 Million CHEGG SERVICES CHEGG SERVICES REVENUE INTERNATIONAL CHEGG CHEGG PLATFORM AVERAGE SUBSCRIBERS Y/Y GROWTH SERVICES SUBSCRIBERS MONTHLY UNIQUE VISITORS VOTED FORTUNE’S BEST 18% 34% 11% Small and Medium Workplaces3 CHEGG SERVICES ADJUSTE
Slide 6: Long-Term Strategic Focus
Long-Term Strategic Focus Grow Subscribers Extend Relationships Expand Content Demonstrate value to new Serve lifelong learners Add relevant content that learners around the world throughout their learning expands breadth and depth of journey how we help learners Grow Profitably Drive Outcomes Help
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: Today's Learners Face More Pressure Than Ever
Today’s Learners Face More Pressure Than Ever It’s Harder to Be a They’re Faced with They Aren’t Prepared for Student Mounting Costs the Workplace 23% 38% Over 25 years old(1) Don’t graduate (2) 41% Of recent graduates are ~46% $30K underemployed (4) Debt owed by 2019 Are employed (1) graduates (3)
Slide 9: Chegg's Overwhelming Value and Unique Competitive Advantages
Chegg’s Overwhelming Value and Unique Competitive Advantages Online On-demand Personalized Adaptive Affordable Backed by Expert Human Help © 2022 Chegg, Inc. / All Rights Reserved 9
Slide 10: Large Global Academic Market Opportunity
Large Global Academic Market Opportunity 18M CA, AU and UK Secondary and Tertiary Students(4) 100M Total students 48M 34M English Language US University(2) and High Instruction for Medium School Students(3) - Tertiary Students Outside the US, CA, AU, UK(1) 7.8M5 6.2M U.S. 1.5M International Chegg Se
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 market
Slide 12: Required Materials Transition
Required Materials Transition In April 2022, we entered into a partnership with an independent book reseller. This partnership allows us to transition out of our textbook library and fulfillment logistics responsibilities while continuing to offer print and eTextbooks to students. GT partnership1 Re
Slide 13: Chegg's Integrated Platform of Connected Services
Chegg’s Integrated Platform of Connected Services Chegg Services Academic Skills Chegg Study Pack Thinkful Chegg Study Integrated academic High quality on-line skills-based courses in Homework help learning service with a library of 79 support platform areas such as Data Science, Data Analytics, mil
Slide 14: Learn with Chegg
Learn with Chegg Enhanced Platform Delivering a Personalized Learning Experience What’s New? Immersive personalization for individualized learning experience Allows students to easily and intuitively discover relevant content Deeper integration of different content formats and learning tools Draws o
Slide 15: 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 Quizlet 84% KhanAcademy Amazon Grammarly Of college students have heard of a CourseHero Chegg service(1) Google YouTube Photomath Q: What companies, websites, and resources can you think of that provi
Slide 16: Chegg Serves Students of Diverse Backgrounds
Chegg Serves Students of Diverse Backgrounds 27% First generation 20% Family income <$20k 55% Minorities 62% Female 23% Over 25 years old 11% Work full-time / 35% work part-time Source: Chegg Consumer Insights, Jan 2022 Quarterly Marketing Tracker: Chegg Services users in the past 3 months (College
Slide 17: Chegg Services are Used by Students Across Several Fields of Study
Chegg Services are Used by Students Across Several Fields of Study Primary Field of Study for Chegg Services Subscribers* 33% Business 52% STEM 15% Humanities, Social Studies, and Other *US Chegg Study and Chegg Study Pack Customer survey. Base: Q4’20-Q1’21 U.S. College students Chegg subscribers n=
Slide 18: Chegg Delivers Positive Learner Outcomes
Chegg Delivers Positive Learner Outcomes Learn & Better Grades More Efficient Help When You Understand Need It 92% 94% 93% 94% Say that Chegg helps Say they get better Say that they work Say that Chegg helps them better grades when they use more efficiently when them figure it out if understand the
Slide 19: Chegg's Approach to ESG: Our Six Pillars
Chegg’s Approach to ESG: Our Six Pillars Public We foster an environment We help learners succeed by Recognition centered on respect, where providing the type of help they diversity and inclusion are Focus on need, when they need it, in the celebrated, and employees can Help Learners format they wan
Slide 20: Rapid Growth of Chegg Services
Rapid Growth of Chegg Services Chegg Services Subscribers Chegg Services Revenue Annual Chegg Services Subscribers (in millions) Chegg Services Revenue Growth ($ in millions) $725 FY'16 1.5 33% $670 Chegg Services FY'17 2.2 FY16 – FY22 39% CAGR $521 Chegg Services FY'18 3.1 Subscribers FY16 – FY21 C
Slide 21: Chegg Services Drives Margin Expansion
Chegg Services Drives Margin Expansion Chegg’s business model supports operating Adjusted EBITDA leverage Chegg Adj. EBITDA ($million) & Margin (%) $266 Proven history of expanding adjusted EBITDA 49% $228 margin while investing in future growth $207 Adj. EBITDA FY16 – FY22 Majority of subscribers a
Slide 22: Business Outlook
Business Outlook Q1 2022 Results Q2 2022 Guidance Full Year 2022 Guidance Total Net Revenues $202m $188m - $192m $740m- $770m Chegg Services $185m $183m - $187m $710m - $740m Revenue Gross Margin % 73% 76%-77% 73%-74% Adjusted EBTIDA* $62m $66m - $68m $220m - $235m CapEx $31m $120m-$130m 50%-60% of
Slide 23: Appendix
Appendix © 2022 Chegg, Inc. / All Rights Reserved
Slide 24: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA © 2022 Chegg, Inc. / All Rights Reserved 24
Slide 25: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA © 2022 Chegg, Inc. / All Rights Reserved 25
Slide 26: Reconciliation of Forward-Looking Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Forward-Looking Net Income (Loss) to EBITDA and Adjusted EBITDA © 2022 Chegg, Inc. / All Rights Reserved 26
Slide 27: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow © 2022 Chegg, Inc. / All Rights Reserved 27