Shares of Chegg (CHGG -2.65%) jumped 14.4% on Tuesday after the education technology company announced impressive third-quarter results and raised its full-year outlook.
Quarterly net revenue climbed 27% year over year to $94.2 million, including a 28% increase in services revenue to $69.3 million. On the bottom line, that translated to non-GAAP (adjusted) net income of $23.8 million, or $0.18 per share, up from $0.07 per share a year ago. Analysts on average were expecting adjusted earnings of just $0.08 per share on revenue of $89.2 million.
"It's been an incredible year so far for Chegg, and we are delighted to report another great quarter," CEO Dan Rosensweig said. " ... Our strategy to provide direct-to-student services in their academic journey continues to deliver fantastic results, and we couldn't be more excited to expand into skills-based learning with the addition of Thinkful."
In early September, Chegg agreed to pay $80 million to acquire online tech boot-camp company Thinkful -- a move Rosensweig said at the time would enable Chegg to "continue to expand our offerings and make it easier for students to accelerate their path from learning to earning."
For the fourth quarter of 2019, Chegg told investors to expect revenue of $122 million to $124 million. As such, Chegg now expects 2019 revenue of $407 million to $409 million -- well above its previous guidance, provided in July, for a range of $398 million to $402 million.
Finally, Chegg said it anticipates full-year 2020 revenue of $520 million -- far above Wall Street's consensus estimates for roughly $492 million.
In the end, this was a straightforward quarterly beat and raise, punctuated by a compelling acquisition and an equally strong outlook for the coming year. Chegg stock is simply responding in kind.