Chegg Stock

Chegg, Inc. (Chegg) provides 24/7 on-demand support, and the company’s personalized learning assistant leverages the power of artificial intelligence (‘AI’), more than a hundred million pieces of proprietary content, as well as a decade of learning insights.

The company’s platform also helps learners build essential life and job skills to accelerate their path from learning to earning, and the company works with companies to offer learning programs for their employees. The company’s business strategy to create the leading direct-to-student learning platform for students to help them improve their outcomes.

The company is combining the power of generative AI and human capabilities to provide a personalized learning assistant to be included in the company’s Chegg Study offering. The company’s new experience is trained on its proprietary content and unique data sets, allowing the company to offer a high quality, high value personalized learning journey that can anticipate students' needs, adapt to their strengths and weaknesses, provide personal learning plans, and suggest interactive tools to optimize and reinforce the learning process. Students can engage with a simple conversational user interface, personalized learning, and more in-depth content. As the new experience evolves, the company plans to have the ability to transform its content automatically into innovative study tools, such as practice tests, assessments, study guides and flash cards, as well as connect the company’s learning community, enabling real-time sharing among community members. The company intends to build personalized coaching and analytics so students can assess and compare their progress with others, while also extending beyond academic support to help navigate real-time challenges and learn core job skills.

The company’s service and product offerings fall into two categories: Subscription Services, which encompasses the company’s Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings that can be accessed internationally through the company’s websites and on mobile devices, and Skills and Other, which encompasses the company’s Chegg Skills, advertising services, print textbooks and eTextbooks offerings. In 2023, 7.7 million students subscribed to the company’s Subscription Services.

Subscription Services

Chegg Study. Chegg Study subscribers have access to personalized, step-by-step learning support powered by AI, computational engines, and subject matter experts. Subscribers engage with the company’s conversational experience that delivers the right support, at the right time. Chegg Study also includes a collection of free perks where available, including services students care about in and out of the classroom, such as Tinder Gold and DashPass Student.

Chegg Study Pack. Chegg Study Pack is a premium subscription bundle that includes all of the benefits of Chegg Study, as well as Chegg Writing and Chegg Math (both described further below).

Chegg Writing. The company’s Chegg Writing subscription service consists of a suite of essential tools, including plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation. Subscribers can also have a writing professional proofread papers for personalized feedback. Chegg Writing also includes the popular website properties EasyBib, Citation Machine, BibMe, and CiteThisForMe.

Chegg Math. The company’s Chegg Math offerings, including Mathway, provide students with a computational engine to help them understand and solve math problems. They can work through difficult math problems with the help of a step-by-step math problem solver and calculator for instant guided instructional explanations that break things down in a range of math topics.

Busuu. Subscribers to Busuu have access to a premium learning language platform that offers comprehensive support through self-paced lessons, live classes with expert tutors and a huge community of members to practice alongside. A team of leading experts have developed an online learning pedagogy to bring students from novice to advanced speakers in a fast-paced, enjoyable environment. The Busuu offering offers comprehensive courses, taught by highly qualified teachers in 14 languages.

Skills and Other

Chegg Skills. Chegg Skills seeks to ensure that companies have the right talent, with the right skills, at the right time by aligning employer needs with learner outcomes. The company offers programs designed to train learners on the latest technical skills, such as AI, coding, data analytics, and cybersecurity. The company’s programs are available directly through the company’s website, through partners that connect employers with top learning providers, and directly to large employers. The company expects to expand its skills-based learning service with durable skills programs, which cover competencies, such as emotional intelligence, mindset, emerging leadership and decision making, increasing the likelihood of success in the modern workplace.

Advertising Services. The company works with leading brands and programmatic partners to deliver advertising across the company’s platforms.

Other. The company provides other educational offerings to help students with their coursework.

Technology and Platform Integration

Technology is at the core of the company’s learning platform. The company leverages the latest in distributed systems, machine learning, data analytics, and generative AI to increase efficiency and scale in the company’s business. The key elements of the company’s technology platform are:

AI

The company’s technology, which includes computational engines, machine learning, decision tools, proprietary generative AI capabilities, allow the company to build an industry-leading personalized learning assistant without compromising quality and safety. The company is building large language models specific to academic subjects and use cases that cater to learner needs. The company’s AI capabilities allow the company to leverage its data and expertise to optimize the learning experience effectively and efficiently.

Proprietary Data

The company has over a hundred million pieces of proprietary learning content powering the company’s personalized learning assistant. The company is leveraging this data for its large language models and has built proprietary algorithms to optimize the quality and accuracy of the company’s content. The company’s unique dataset enables personalized learning and powers new capabilities to enhance the learning experience.

Personalization

As learners engage with the company’s platform, the conversational experience generates valuable data that the company can, in turn, use to further personalize the learning experience. The company combines this data with other public information about learners and their schools to tailor the company’s offerings and predict student needs.

Search

Search is a very efficient platform for Chegg, as learners increasingly turn online for academic support. The company’s business model benefits from more students asking more questions, as the company indexs those questions in to search and other platforms, to drive even more customers.

Shared Infrastructure

The company leverages shared infrastructure to allow the company to efficiently build products across the company’s learning platform. This infrastructure resides at major cloud-hosting providers globally. The company’s architecture consists primarily of front-end applications, backend services, operational databases, and reporting subsystems. The company uses industry standard logging and monitoring tools to ensure uptime. The architecture is also designed to allow for expansion into new international markets.

Information Security

The company’s learning platform includes encryption, antivirus, firewall, intrusion prevention, and patch-management technologies to help protect the company’s systems distributed across cloud-hosting providers and the company’s offices. The company’s existing products and services undergo periodic security assessments. New features are developed according to the company’s secure software development lifecycle process. The company also monitors for anomalies relating to authentication, data transfers, system, and user behavior, as well as cloud configuration changes.

Programmatic Advertising

The company’s programmatic advertising technology includes a combination of a deep understanding of programmatic purchasing trends with data analytics, engineering, and machine learning. The result is an online advertising platform that continuously maximizes the value of the digital impressions the company serves.

Sales and Marketing

Students

The company’s direct-to-consumer marketing strategy focuses on brand and performance marketing. The company uses brand marketing and performance marketing to increase awareness of the Chegg brand and its services and drive traffic to the company’s site. The company uses several major direct marketing channels to reach students, including social media. The strength of the company’s content flywheel drives significant organic traffic to Chegg, and the company has a full funnel approach to building brand awareness and consideration. The company’s lifecycle marketing focuses on increasing activation, engagement and retention. The company utilizes three types of customer relationship management campaigns: onboarding programs to drive activation and retention, personalized cross-sell campaigns to deepen engagement, and promotional campaigns to drive sales and interests.

Student Advocacy

The company is committed to providing a high level of customer service to the company’s students and to fulfilling the company’s brand promise of putting students first. The company trusts its students, understand the critical role its products and services have in their learning journey, and strive to resolve all problems quickly and thoroughly. The company’s student advocacy team can be reached directly through phone, email, and online chat during business hours. The company also proactively monitors social media to identify and solve problems before the company is otherwise informed of their existence. The company endeavors to respond to students’ concerns within five minutes.

Competition

For Chegg Study, the company’s competitors primarily include platforms that provide study materials and online instructional systems, such as Course Hero, Quizlet, Khan Academy, and Brainly.

For Chegg Writing, the company primarily faces competition from other citation generating and grammar and plagiarism services, such as Grammarly. For Chegg Math, the company faces competition from other equation solver services, such as Photomath, Gauthmath, and Symbolab. For Busuu, the company’s competitors primarily include language learning platforms, such as Duolingo and Babbel. For Skills, the company faces competition from other online learning platforms and online ‘skills accelerator’ courses both in the direct-to-consumer category, including General Assembly, Galvanize, Inc., Flatiron School, Codecademy, DataCamp, and Lambda, Inc., as well as white-label and co-branded providers who compete for adult learners through third party institutions, including 2U, Inc., Simplilearn, and Kenzie Academy.

Intellectual Property

The company owns the registered U.S. trademarks Chegg, Chegg.com, Chegg Study, EasyBib, the Chegg ‘C’ logo, and Busuu, among others, as well as a variety of service marks. The company also has a number of pending trademark applications in the United States and unregistered marks that the company uses to promote its brand.

Government Regulation

Numerous laws and regulatory schemes have been adopted at the national and state level in the United States, and internationally, that have a direct impact on the company’s business and operations. For example: The CAN-SPAM Act of 2003 (CAN-SPAM); The U.S. Federal Trade Commission (FTC); The Telephone Consumer Protection Act of 1991 (TCPA); The Credit Card Accountability Responsibility and Disclosure Act of 2009, or CARD Act, and similar laws and regulations; The Family Educational Rights and Privacy Act (FERPA); The Children’s Online Privacy Protection Act (COPPA); California’s Privacy Rights for California Minors in the Digital World Act (Eraser Bill); The California Reader Privacy Act; The Digital Millennium Copyright Act (DMCA); The Communications Decency Act; The California Consumer Privacy Act (CCPA); The Nevada Online Privacy Law; The California Privacy Rights Act (CPRA), Virginia Consumer Data Protection Act (CDPA) and Colorado Privacy Act (CPA); The General Data Protection Regulation (GDPR); The United Kingdom’s Data Protection Act 2018 (Data Protection Act) and UK General Data Protection Regulation (‘UK GDPR’); The Skills and Post-16 Education Act 2022; and The Tertiary Education Quality and Standards Agency Act 2011, or TEQSA Act.

Israel’s Basic Law: Human Dignity and Liberty, 5752 1992 (IBL HDL), the Protection of Privacy Law, 5741-1981 and the regulations promulgated thereunder (collectively, the PPL), and the guidelines of the Israel Privacy Authority (IPA Guidelines) apply to the company’s activities in Israel.

Seasonality

Revenues from Subscription Services are primarily recognized ratably over the subscription term, which has generally resulted in the company’s highest revenues and profitability in the fourth quarter (year ended December 2023) as it reflects more days of the academic year.

History

Chegg, Inc. was founded in 2005. The company was incorporated as a Delaware corporation in 2005.