Shares of Chegg (NYSE:CHGG) surged 31% in morning trading after turning in a first-quarter earnings report that easily beat analyst expectations. CEO Dan Rosensweig said the online education technology specialist even "performed ahead of our expectations and we are grateful to have helped so many students."
Online education is a major point of consideration for parents and students due to the cancellation of the balance of the academic school year because of the coronavirus. Without the one-on-one assistance students typically can receive from a teacher, the online tutoring in writing, math, and more that Chegg provides could see a surge in demand.
Revenue jumped 35% to $131.6 million, handily exceeding Wall Street's consensus forecast of $122.7 million, while adjusted earnings surged 40% year over year to $0.22 per share versus the $0.15 per share analysts were looking for.
Rosensweig says greater gains are still in the cards for the future. "Our belief is that, in every industry, a crisis often accelerates the inevitable and that is what we see happening in higher education."
There remains uncertainty about opening college campuses this fall, though a number of institutions have said the fall semester is on track.
CFO Andy Brown says Chegg is comfortable with providing second-quarter guidance, but questions about start dates, enrollment trends, and how much education will occur online make it "premature to update our guidance for the second half of the year."