Chegg, Inc. · NYSE:CHGG

Chegg — 20th Annual Needham Growth Conference 2018

17 slides from Chegg's conference presentation, Jan 18, 2018

  1. Slide 1: Andy Brown, CFO

    Andy Brown, CFO January 18, 2018

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements made pursuant to the safe harbor provisions ability to build and expand its services offerings; Chegg’s ability to develop new products and of the Private Securities Litigation Reform Act of 1995.

  3. Slide 3: Agenda

    Agenda • Who We Are • Why We Matter • Our Results 3

  4. Slide 4: Leading student-first connected learning platform to improve student outcomes

    Leading student-first connected learning platform to improve student outcomes Chegg Inc. © 2005 - 2017. All Rights Reserved.

  5. Slide 5: A proprietary student learning platform

    A proprietary student learning platform OUR CORE SERVICES CHEGG SERVICES SUBSCRIBER GROWTH Learning Services: FY 2012 300K Chegg Study FY 2013 500K Chegg Writing Tools Chegg Tutors FY 2014 700K FY 2015 1,000K Required Materials: FY 2016 *Projected 1,500K Print Textbooks & eTextbooks 5

  6. Slide 6: Chegg Solves Today's Students' Problems

    Chegg Solves Today’s Students’ Problems Online On-demand Personalized Adaptive Affordable …and Backed by Human Help Chegg Inc. © 2005 - 2017. All Rights Reserved.

  7. Slide 7: A proprietary student learning platform

    A proprietary student learning platform CHEGG SERVICES SUBSCRIBERS CHEGG STUDY CONTENT NEW CITATIONS IN Q3-17 Q3-17 PAGES CONSUMED IN Q3-17 EXPERT Q&As Q3-17 ISBNs Q3-17 AVERAGE TUTORING MINUTES PER STUDENT Q3-17 7

  8. Slide 8: Chegg is nearly universally known

    Chegg is nearly universally known PERCENT UNAIDED AWARENESS (COLLEGE)1 AMAZON 26% CHEGG 21% OF THOSE WHO USE CHEGG, PLAN TO GOOGLE 9% RECOMMEND US1 QUIZLET 6% KHAN ACADEMY 6% BARNES & NOBLE 6% WIKIPEDIA 3% KAPLAN TEST PREP 3% OF STUDENTS HAVE HEARD OF A CHEGG SERVICE1 8 1Hall and Partners Survey, Oc

  9. Slide 9: Education is a massive industry

    Education is a massive industry % $ % ARE STUDENTS1 TRILLION2 OF THE US GDP3 1National Center for Education Statistics and US Census Bureau, 2015 2https://www.federalreserve.gov/releases/g19/Current/#fn11b 9 3www.data.worldbank.org/indication/NY.GD.MKTP.CD?location +US

  10. Slide 10: Revenue transition to a services platform

    Revenue transition to a services platform Millions 1 10 1 Represents the midpoint of guidance issued on 10.30.17

  11. Slide 11: Interconnected platform drives profit growth

    Interconnected platform drives profit growth Gross Margin % Adjusted EBITDA Margin %(1) >65.0% 17.7% 52.9% 8.2% 37.0% 31.5% 30.8% 1.8% -1.6% -4.2% 2013 2014 2015 2016 2017 (2) 2013 2014 2015 2016 2017 (3) 1. See Appendix for reconciliation to GAAP 2. Based on guidance provided on 10/30/17 3. Based o

  12. Slide 12: We are increasing our organic guidance

    We are increasing our organic guidance Business Outlook: Full Year 2018 Total Revenue ~$295m Chegg Services Revenue ~$240m Year over Year Growth >30% Adjusted EBITDA* ~$74m Adjusted EBITDA Margin 25% * Non-GAAP financial measure. 12 Guidance issued on 10.30.17. 12 Reconciliation of 1) forward lookin

  13. Slide 13: Q&A

    Q&A 13 Confidential Material – Chegg Inc. © 2005 – 2017. All Rights Reserved.

  14. Slide 14: Appendix

    Appendix 14 Confidential Material – Chegg Inc. © 2005 - 2017. All Rights Reserved.

  15. Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures CHEGG, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages and per share amounts) (unaudited) ` Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Total net revenues $ 62,

  16. Slide 16: Reconciliation of Forward Looking Net Income (Loss) to EBITDA and Adjusted EBITDA

    Reconciliation of Forward Looking Net Income (Loss) to EBITDA and Adjusted EBITDA CHEGG, INC. RECONCILIATION OF FORWARD LOOKING NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (in thousands) (unaudited) Three Months Year Ended Year Ended Ended December December 31, December 31, 31, 2017 2017 2018 *

  17. Slide 17: 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

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