Coursera, Chegg stocks fall after weaker guidance for both edtech companies

By Claudia Assis

Chegg announces Nathan Schultz as its new CEO

Shares of Coursera Inc. and Chegg Inc. fell in the after-hours session Monday after both education-tech companies guided for weaker current quarters, and Chegg also announced a CEO change.

Coursera (COUR) reported better-than-expected adjusted quarterly earnings, but revenue was below expectations and guidance was also weaker than expected. The stock dropped 11% in the extended session.

Coursera lost $21.3 million, or 14 cents a share, in the first quarter, compared with a loss of $32.4 million, or 22 cents a share, a year ago.

Adjusted for one-time items, the company earned 7 cents a share, above FactSet consensus of a penny a share.

The massive open online-course provider's revenue rose 15% to $169.1 million, up from $147.6 million a year ago. But that was slightly below FactSet consensus of revenue of $170.4 million.

Coursera guided for second-quarter revenue between $162 million and $166 million, and 2024 revenue between $695 million and $705 million.

That compares with expectations of second-quarter revenue of $178 million and this year's annual revenue of $737 million, according to FactSet.

Chegg (CHGG), which provides student services such as homework help and textbook rentals, saw subscribers drop 8%. The company also provided weaker guidance for its current quarter, and the stock dropped 6.6% in the after-hours session.

Chegg appointed Nathan Schultz its next chief executive, effective June 1.

Schultz, a 16-year Chegg veteran who served as the company's COO, will succeed Dan Rosensweig, who is stepping down as CEO after 14 years. Rosensweig will become executive chairman, Chegg said.

Chegg lost $1.4 million, or 1 cent, in the first quarter, contrasting with earnings of $2.19 million, or 2 cents a share, in the year-ago period.

Adjusted for one-time items, Chegg earned 26 cents, a penny above FactSet consensus.

Chegg's revenue fell 7% to $174.4 million, from $187.6 million a year ago, meeting the FactSet consensus.

Chegg guided for second-quarter revenue in a range of $159 million to $161 million, which compares with FactSet expectations of $174 million.

-Claudia Assis

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04-29-24 2205ET

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