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Fast-Growing Chegg Aims for High Marks with Students

Fast-Growing Chegg Aims for High Marks with Students

January 18, 2012

Aayush Phumbhra, co-founder of Chegg

Photo courtesy of the company

Newly arrived from his native India, Aayush Phumbhra was nearly broke as he began his graduate studies at Iowa State University a decade ago. He needed to save money and became an avid user of Cheggpost.com, which had been started that year by three fellow students to buy and sell textbooks and Iowa State merchandise.

"I realized (this concept) had the potential to disrupt the textbook market," says Phumbhra, 33, who teamed with the Cheggpost founders and helped take the concept national under the name "Chegg" (a combination of "chicken" and "egg") in December 2007. "Textbook prices have drastically outpaced the rate of inflation and are a huge pain point for college students. There was so much room to innovate and make a difference in the lives of students."

That difference is reflected both in price and flexibility at Chegg.com. which offers more than four million books in various formats. Take David Myers' Psychology, for example. Required reading for many introductory psychology classes, the book sells new on Chegg for $146.95. Students also can rent it for a semester for $40.49, get it in eTextbook format for $74.99, or buy a used copy starting at $85.49. Later, they can sell their copy back to Chegg if it's in "very good or better" condition.

A little more than four years after it went national, Chegg has become one of the fastest growing post-millennium e-commerce startups. Students on about 7,000 U.S.-based campuses shop for books at Chegg.com, and its other services are available to anyone who can access the site. In addition to Phumbhra, the senior management team includes former Yahoo COO Dan Rosensweig, whom the company hired away from Activision in 2009.

Growth Spurt: Chegg, based in Santa Clara, Calif. employs 350 people and has seen revenue surge the last few years, from an estimated $10 million in 2008 to $25 million in 2009 to $130 million in 2010, according to a variety of Internet sources. (Chegg doesn’t release numbers but did not dispute the widely circulated estimates.) "Chegg disrupted an industry and helped students save money when the economy was going downhill fast," Phumbhra says. "Timing and word of mouth helped grow our business." Chegg has raised more than $220 million in venture capital from such companies as Hong Kong-based Ace limited and Silicon Valley investment giant Kleiner Perkins Caufield & Byers.

Why it's Worth Watching: What sets Chegg apart from competitors like CampusBookRentals and eCampus is its expansion beyond textbooks and the college market. The company went on a buying spree in 2011, adding CourseRank, a site for sharing information about classes and professors; Cramster, a social site for homework help; Notehall, where students trade class notes; Zinch, a link between high school students and college recruiters; and Student of Fortune, a site where students can pose questions or post tutorials on a variety of subjects. Student of Fortune already has more than 300,000 users.

Why it Matters: The way young people from the millennial generation learn and connect is changing rapidly, and Chegg hopes to become the company they think of first when they need educational assistance. "We offer students help with selecting the right colleges, getting scholarships, picking courses and getting homework help," says Phumbhra, who earned his MBA in accounting and marketing from Iowa State in 2004. Giving back is also part of the company’s DNA, and Chegg knows that social responsibility matters to its millennial audience. As part of its Chegg for Good program, for example, the company plants a tree every time a book is rented. To date, five million trees have been planted around the world.

Looking Ahead: While Chegg's rise has been meteoric, it still reaches just 30 percent of the U.S. college market. That means there's plenty of room for growth, but competition is stiff, particularly in the e-textbook arena. There are Inkling textbooks for the iPad. Amazon has gotten into the act with digital textbooks for the Kindle. And students can shop on the websites of Barnes & Noble and other bookstore chains like TIS. Chegg also is feeling the heat from co-founder and former executive Osman Rashid, whose digital textbook company Kno raised $80 million in venture capital in 2009 and 2010. Kno’s users can access books from a tablet or PC and connect to each other through Facebook. Despite the competition, Phumbhra remains optimistic and committed to his mission. “Chegg is focused on its north star, the student," he says. "Chegg will keep growing if we continue to save students time, save them money and help them get smarter."

Tip to Stay Ahead of the Curve: Phumbhra suggests paying close attention to comments on your Facebook and Twitter pages to improve the business and make customers happy. "From the very beginning, Chegg focused on customer feedback to create an experience that was far superior to anyone else in the textbook industry," he says. "As a result, we have a tremendous net promoter score, which is a tool that measures the loyalty of a company's customer relationships, and glowing reviews from our customers."

Lisa Girard is a freelance writer who covers topics as diverse as golf fashion, health and beauty, the hardware industry and small business interests. She also has been S.

Chegg (CHGG) Tops Q4 Earnings Estimates, Misses on Revenue

YahooFinance Chegg (CHGG) Tops Q4 Earnings Estimates, Misses on Revenue

Chegg Inc CHGG just released their fourth quarter fiscal 2015 earnings results, posting earnings of $0.07 per share and revenue of $68.2 million.

Currently, CHGG has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.

1. Beat earnings estimates. The company posted $0.07 per share. surpassing our Zacks Consensus Estimate of $-0.03. This number excludes $0.03 from non-recurring items.

2. Missed revenue estimates. The company saw revenue figures of $68.2 million. missing our estimate of $73 million and reflecting a decrease of 19% compared to Q4 2014.

3. Reported GAAP net income of $3.6 million and non-GAAP net income of $13.2 million.

4. "We continue to see strong growth in Chegg Services, particularly Chegg Study, where our investments in product quality led to record subscribers, renewals and engagement," said Dan Rosensweig, Chairman and CEO of Chegg. "Driven by our higher margin Chegg Services, we also delivered our first full year of non-GAAP profitability, and we are beginning to see the leverage in our student-centric business model."

5. CHGG was down $1.16, or 21.72%, to $4.18 as of 4:59 PM ET in after hours trading shortly after its earnings report was released.

Here’s a graph that looks at Chegg’s quarterly net income and profit margin:

Chegg, Inc. provides a social education platform. The Company rents and sells print textbooks; and provides eTextbooks, supplemental materials, homework help, textbook buyback, courses, and college admissions and scholarship services, as well as offers enrollment marketing and brand advertising services. Chegg, Inc. is headquartered in Santa Clara, California.

Check back later for our full analysis onChegg’s fourthquarter earnings report!

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Chegg homework help refund

Chegg homework help refund

Chegg provides a variety of good intros for argumentative essays services, both online and offline, designed to improve the Back propagation neural network thesis overall academic experience and help users. 13 verified coupons for Chegg.com for October 2016. Rent textbooks and get 7-day free instant eTextbook access while you wait Account Registration & Termination. chegg homework help refund MyLab & Mastering is the write an essay my family world's leading collection of online homework, tutorial, and. Western Kentucky University is an extremely safe campus. Customer persuasive essays about bullying service lies just to appease you Engage students effectively with immersive content, tools, and experiences. Save up to 90% on textbooks. Save Big in the Sale at Chegg. Save with offers on Chegg Study, Textbooks, Book Rentals & more Complete list of chegg homework help refund all Chegg Coupon for November 2016 guaranteed! Read romeo and juliet essay with passage consumer reviews of Chegg thesis statement practice esl on SiteJabber Do not use their buy back program, it is a scam. Connect with an online tutor instantly or get step-by-step Textbook Solutions for your hard classes. As always, save up to 90% on textbook rentals Textbook rentals from Chegg.com. Essay exams law school

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