Shares of Chegg (NYSE:CHGG) jumped 8.8% after the company reported impressive second-quarter earnings results. The learning platform specialist also boosted its full-year guidance.
Revenue in the second quarter rose 32% to $74.2 million, which translated into non-GAAP net income of $15.5 million, or $0.12 per share, once it reached the bottom line. Both figures beat analyst expectations, which called for $70.2 million in sales and an adjusted profit of $0.08 per share.
Chegg services subscribers soared 45% to 1.7 million, helping services revenue increase 38% to $61.8 million. Chegg services now represent 83% of revenue.
"We had a great Q2; achieving 32% total revenue growth, driven by 38% year-over-year Chegg Services revenue growth and subscriber growth of 45%," CEO Dan Rosensweig said in a statement. "We expanded our services, introduced the Chegg Math Solver subscription and, through the acquisition of StudyBlue, added flashcards, one of the most popular learning tools used by students around the world. We enter the fall semester with significant momentum, giving us confidence to once again raise our guidance for the year."
In terms of guidance, third-quarter revenue is expected in the range of $68 million to $69 million, which should include Chegg services revenue of $52 million to $53.5 million. Chegg is raising its full-year guidance, and now expects 2018 revenue to be in the range of $306 million to $311 million, up from the guidance provided in April that forecast full-year revenue of $300 million to $305 million. The updated outlook also includes higher expectations for Chegg services revenue, gross margin, and adjusted EBITDA.