By Dhirendra Tripathi
Investing.com – Chegg stock (NYSE:CHGG) rose 6.5% Tuesday as the online education services provider revised its forecast for the year after its second-quarter performance exceeded estimates.
The company’s management now sees total net revenue in the range of $805 million to $815 million compared to the $790 million to $800 million range it forecast in May.
Adjusted earnings before interest, taxes, depreciation and amortization is seen between $295 million and $300 million, up from the $275 million-$280 million forecast earlier.
The company closed the quarter with 4.9 million services subscribers overall, growing 30% from a year ago.
CEO & President Dan Rosensweig said he is confident the company will exceed its initial expectation of over 1 million international subscribers for the year.
Total net revenue rose 30% year-on-year to $198.5 million in June quarter as the direct-to-student learning platform reaped the opportunities arising out of the pandemic. Analysts expected the revenue to be $189.96 million.
According to the company, majority of its subscribers are acquired through unpaid channels, its content is created once and then used many times by learners across the globe. Much of the learning content it offers is relevant globally.
Adjusted earnings per diluted share of 43 cents topped the estimated 37 cents.