Shares of Chegg (NYSE:CHGG) popped as much as 10% to hit all-time highs today after the company reported fourth-quarter earnings that topped analyst expectations. As of 11:40 a.m. EST, the stock had given up all of those gains and was down 1% amid broader market volatility.
Revenue in the fourth quarter jumped 64% to $205.7 million, easily crushing the consensus estimate of $153.9 million. That resulted in adjusted net income of $77.8 million, or $0.55 per share, while analysts were modeling for just $0.41 per share in adjusted profits. The learning technology company said that the total number of Chegg Services subscribers increased 74% to 4.4 million, and Chegg Services revenue represented 86% of total sales.
"We are incredibly grateful that, even in the midst of the many challenges of the past year, we outperformed all expectations and were able to continue to support students, in record numbers, around the world," CEO Dan Rosensweig said in a statement. "The transition to online and hybrid learning is inevitable and, with the accelerated trends that we are seeing, we have the confidence to raise our guidance for 2021."
Chegg boosted its guidance for 2021 and now expects revenue to be in the range of $780 million to $790 million, up from a prior forecast of $775 million. Wall Street is currently looking for $780.2 million in revenue for 2021. Chegg Services revenue this year should be $665 million to $675 million, and adjusted EBITDA is expected to be $265 million to $270 million.