Chegg, Inc. · NYSE:CHGG
Chegg — Q2 2021 Earnings Presentation
25 slides from Chegg's earnings presentation, Aug 9, 2021
Slide 1: Q2-21 Investor Presentation
Q2-21 Investor Presentation Aug 9, 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 operating costs; changes in Chegg’s addressable market; regulatory changes, in particular concerning This presentation contains forward-looking statements made pursuant to the safe harbor provisions of privacy and marketing; any significant disruption
Slide 3: We put learners first.
We put learners first. We strive to improve the overall return on investment in education by helping learners learn more in less time and at a lower cost. Our mission is to help every learner achieve their best, in school and beyond. 3 Chegg Inc.Inc. Chegg © 2005 - 2021. © 2005 All All - 2021. Right
Slide 4: Investment Highlights
Investment Highlights Leading Direct-To-Student Connected Learning Platform Large Addressable Market in Early Stages of International Growth with Compelling Market Trends High Growth and High Margin Model Competitive Moat Given Brand, Reach, Data and Proprietary Content 4 Chegg Inc. © 2005 - 2021. A
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 2021 FORTUNE’S BEST Small and Medium Workplaces 57% 32% VOTED 2021 COMPARABLY’S BEST CHEGG SERVICES ADJUSTED EBITDA Y/Y REVENUE
Slide 6: Q2-21 Highlights
Q2 – 21 Highlights $198 million $84 million(1) Chegg Total Revenue Adjusted EBITDA 30% 43% Year-over-Year Growth Adjusted EBITDA Margin 4.9 million (2) Chegg Services subscribers 367 million(2) 31% Chegg Study Content Views Year-over-Year Growth (1) Adjusted EBITDA is a non-GAAP measure and a reconc
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) 40% OF RECENT GRADUATES ARE UNDEREMPLOYED (5) ~40% $30K DEBT OWED BY 2018 GRADUATES(4) ARE EMPLOYED(2) Ne
Slide 8: Chegg's Overwhelming Value is Critically Apparent
Chegg’s Overwhelming Value is Critically Apparent Today Globally Online On-demand Personalized Adaptive Affordable …and Backed by Human Help 8 Chegg CheggInc. Inc.©©2005 2005- -2021. 2021.All All Rights Rights Reserved. Reserved.
Slide 9: Large Global Academic Market Opportunity
Large Global Academic Market Opportunity 102 Million Total Students Can Benefit from 36M 48M US University(2) and High School English Language Students (3) Instruction for Medium - Tertiary Students Outside the US, CA, AU, UK(1) 18M CA, AU and UK Secondary and Tertiary 6.6 Million(5) Students(4) Che
Slide 10: Chegg's Integrated Platform of Connected Services
Chegg’s Integrated Platform of Connected Services Chegg Services Academic Skills Chegg Study Homework help learning service with a library of 66 Thinkful million step by step solutions (~60 million expert High quality on-line skills-based courses answered Q&As and ~6 million textbook solutions)* Che
Slide 11: Chegg's Approach to ESG: Our Six Pillars
Chegg’s Approach to ESG: Our Six Pillars Chegg’s mission is to help learners, which includes minimizing our environmental impact on their communities. Our approach to ESG is tied to our six pillars; detailing the areas where Chegg has the greatest impact for society and business success. We know tha
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: Chegg is Well-Known Among College Students
Chegg is Well-Known Among College Students Chegg scores highest in unaided awareness among college students(1) Amazon Quizlet 87% 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, we
Slide 14: 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 *= Hall & Partners Brand Tracker October 2019 (College n=1737). 14 May not sum to 100% due to rounding Chegg Inc. © 2005
Slide 15: 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 92% 94% 95% 96% 96% Say that Chegg helps Say they get better Say that they work more Say that Chegg helps Say that Chegg often them better understand grades when they u
Slide 16: We succeed when our learners succeed.
Learning to Earning with Skills We succeed when Thinkful Learner Outcomes our learners succeed. 81% (1) $17k (2) 35% (2) We’re always striving to Of employed graduates On average, employed Of employed graduates report being employed Thinkful grads report a received at least one improve our accountab
Slide 17: Rapid Growth of Chegg Services
Rapid Growth of Chegg Services Chegg Services Subscribers Chegg Services Revenue Annual Chegg Services Subscribers (in millions) Revenue Growth ($ in millions)* FY'16 1.5 Chegg Services FY’16 — FY’21 CAGR: 40% 67% y/y growth FY'17 2.2 for ‘20 FY'18 3.1 FY'19 3.9 FY'20 6.6 * Prior to FY 2017, Require
Slide 18: Chegg Services Drives Margin Expansion
Chegg Services Drives Margin Expansion Adjusted EBITDA 78% Annual Chegg Adj. EBITDA ($million) & Margin (%) 2016-2020 Chegg’s business model supports operating leverage CAGR • Proven history of expanding adjusted EBITDA margin while investing in future growth • Majority of subscribers are acquired t
Slide 19: We are increasing our organic guidance
We are increasing our organic guidance Business Outlook Q2 2021 Q3 2021 Full Year 2021 Results Guidance Guidance Total Net Revenues $198.5m $170m - $175m $805m - $815m Chegg Services Revenue $173.5m $142m - $147m $690m - $700m Gross Margin % 69.4% 60% - 61% 68% - 69% Adjusted EBITDA* $84.4m $43m - $
Slide 20: Appendix
Appendix 20 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 21: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 21 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 22: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA 22 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 23: Reconciliation of Forward-Looking Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Forward-Looking Net (Loss) Income to EBITDA and Adjusted EBITDA 23 Chegg Inc. © 2005 - 2021. All Rights Reserved.
Slide 24: Reconciliation of Required Materials Net Revenues to Non-GAAP
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 25: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow 25 Chegg Inc. © 2005 - 2021. All Rights Reserved.