Shares of Chegg (NYSE:CHGG) lost over 19% in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at $0.40, which beat analysts’ consensus estimate of $0.38 per share.
Sales decreased by 1.1% year-over-year, with revenue hitting $205.2 million. This beat analysts’ expectations of $202.1 million.
Chegg saw revenues from subscription services gain 4% on a year-over-year basis, ultimately coming in at $177.5 million. That represented 87% of Chegg’s total net revenue. That’s up from the fourth quarter of 2021’s figures, when it came in at 82%. Services revenue, meanwhile, came in at $200.7 million.
Looking forward, management now expects revenue for 2023 to be in the range of $745 million to $760 million. For reference, analysts were expecting $817.5 million in revenue.
Overall, Wall Street has a consensus price target of $31.43 on Chegg, implying 49.45% upside potential, as indicated by the graphic above.
