Chegg (CHGG) 10-Q7 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-36180
Entity Registrant Name	CHEGG, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3237489
Entity Address, Address Line One	3990 Freedom Circle
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	408
Local Phone Number	855-5700
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	CHGG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,321,288
Entity Central Index Key	0001364954
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 175,368	$ 473,677
Short-term investments	209,686	583,973
Accounts receivable, net of allowance of $224 and $394 at June 30, 2023 and December 31, 2022, respectively	20,670	23,515
Prepaid expenses	18,620	28,481
Other current assets	22,372	34,754
Total current assets	446,716	1,144,400
Long-term investments	422,758	216,233
Property and equipment, net	198,318	204,383
Goodwill	629,564	615,093
Intangible assets, net	67,630	78,333
Right of use assets	28,267	18,838
Deferred tax assets	146,790	167,524
Other assets	28,492	20,612
Total assets	1,968,535	2,465,416
Current liabilities
Accounts payable	12,954	12,367
Deferred revenue	53,200	56,273
Accrued liabilities	76,657	70,234
Total current liabilities	142,811	138,874
Long-term liabilities
Convertible senior notes, net	767,043	1,188,593
Long-term operating lease liabilities	21,253	13,375
Other long-term liabilities	2,427	7,985
Total long-term liabilities	790,723	1,209,953
Total liabilities	933,534	1,348,827
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value per share: 400,000,000 shares authorized; 115,177,618 and 126,473,827 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	115	126
Additional paid-in capital	1,121,820	1,244,504
Accumulated other comprehensive loss	(43,179)	(57,488)
Accumulated deficit	(43,755)	(70,553)
Total stockholders' equity	1,035,001	1,116,589
Total liabilities and stockholders' equity	$ 1,968,535	$ 2,465,416

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable, current	$ 224	$ 394
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	115,177,618	126,473,827
Common stock, shares outstanding (in shares)	115,177,618	126,473,827

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net revenues	$ 182,853	$ 194,721	$ 370,454	$ 396,965
Cost of revenues	47,412	45,684	96,562	100,769
Gross profit	135,441	149,037	273,892	296,196
Operating expenses:
Research and development	52,872	52,480	99,779	104,895
Sales and marketing	30,956	35,279	67,973	77,777
General and administrative	70,309	53,935	129,282	100,805
Total operating expenses	154,137	141,694	297,034	283,477
(Loss) income from operations	(18,696)	7,343	(23,142)	12,719
Interest expense, net and other income, net:
Interest expense, net	(1,114)	(1,616)	(2,382)	(3,213)
Other income, net	64,103	1,809	76,179	7,989
Total interest expense, net and other income, net	62,989	193	73,797	4,776
Income before provision for income taxes	44,293	7,536	50,655	17,495
Provision for income taxes	(19,681)	(60)	(23,857)	(4,277)
Net income	$ 24,612	$ 7,476	$ 26,798	$ 13,218
Net income (loss) per share
Basic (in dollars per share)	$ 0.21	$ 0.06	$ 0.22	$ 0.10
Diluted (in dollars per share)	$ (0.11)	$ 0.06	$ (0.08)	$ 0.10
Weighted average shares used to compute net income (loss) per share
Basic (in shares)	117,977	126,272	120,828	129,201
Diluted (in shares)	132,944	149,574	137,416	129,934

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 24,612	$ 7,476	$ 26,798	$ 13,218
Other comprehensive income (loss)
Change in net unrealized loss on investments, net of tax	(4,420)	(2,333)	(608)	(15,250)
Change in foreign currency translation adjustments, net of tax	6,579	(29,613)	14,917	(48,284)
Other comprehensive income (loss)	2,159	(31,946)	14,309	(63,534)
Total comprehensive income (loss)	$ 26,771	$ (24,470)	$ 41,107	$ (50,316)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		136,952,000
Beginning balance at Dec. 31, 2021	$ 1,106,917	$ 137	$ 1,449,305	$ (5,334)	$ (337,191)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)		(11,562,000)
Repurchases of common stock	(300,450)	$ (12)	(300,438)
Issuance of common stock upon exercise of stock options and ESPP (in shares)		319,000
Issuance of common stock upon exercise of stock options and ESPP	4,557		4,557
Net share settlement of equity awards (in shares)		635,000
Net share settlement of equity awards	10,220	$ (1)	10,221
Share-based compensation expense	68,303		68,303
Other comprehensive income (loss)	(63,534)			(63,534)
Net income	13,218				13,218
Ending balance (in shares) at Jun. 30, 2022		126,344,000
Ending balance at Jun. 30, 2022	818,791	$ 126	1,211,506	(68,868)	(323,973)
Beginning balance (in shares) at Dec. 31, 2021		136,952,000
Beginning balance at Dec. 31, 2021	$ 1,106,917	$ 137	1,449,305	(5,334)	(337,191)
Ending balance (in shares) at Dec. 31, 2022	126,473,827	126,474,000
Ending balance at Dec. 31, 2022	$ 1,116,589	$ 126	1,244,504	(57,488)	(70,553)
Beginning balance (in shares) at Mar. 31, 2022		126,682,000
Beginning balance at Mar. 31, 2022	808,521	$ 127	1,176,765	(36,922)	(331,449)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)		(837,000)
Repurchases of common stock	0	$ (1)	1
Issuance of common stock upon exercise of stock options and ESPP (in shares)		265,000
Issuance of common stock upon exercise of stock options and ESPP	4,102		4,102
Net share settlement of equity awards (in shares)		234,000
Net share settlement of equity awards	2,754		2,754
Share-based compensation expense	33,392		33,392
Other comprehensive income (loss)	(31,946)			(31,946)
Net income	7,476				7,476
Ending balance (in shares) at Jun. 30, 2022		126,344,000
Ending balance at Jun. 30, 2022	$ 818,791	$ 126	1,211,506	(68,868)	(323,973)
Beginning balance (in shares) at Dec. 31, 2022	126,473,827	126,474,000
Beginning balance at Dec. 31, 2022	$ 1,116,589	$ 126	1,244,504	(57,488)	(70,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)		(13,008,000)
Repurchases of common stock	(186,368)	$ (13)	(186,355)
Issuance of common stock upon exercise of stock options and ESPP (in shares)		376,000
Issuance of common stock upon exercise of stock options and ESPP	3,079		3,079
Net share settlement of equity awards (in shares)		1,336,000
Net share settlement of equity awards	11,066	$ (2)	11,068
Share-based compensation expense	71,363		71,363
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes	297		297
Other comprehensive income (loss)	14,309			14,309
Net income	$ 26,798				26,798
Ending balance (in shares) at Jun. 30, 2023	115,177,618	115,178,000
Ending balance at Jun. 30, 2023	$ 1,035,001	$ 115	1,121,820	(43,179)	(43,755)
Beginning balance (in shares) at Mar. 31, 2023		119,628,000
Beginning balance at Mar. 31, 2023	1,006,759	$ 120	1,120,344	(45,338)	(68,367)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)		(5,408,000)
Repurchases of common stock	(35,057)	$ (6)	(35,051)
Issuance of common stock upon exercise of stock options and ESPP (in shares)		358,000
Issuance of common stock upon exercise of stock options and ESPP	2,935		2,935
Net share settlement of equity awards (in shares)		600,000
Net share settlement of equity awards	3,331	$ 1	3,332
Share-based compensation expense	36,627		36,627
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes	297		297
Other comprehensive income (loss)	2,159			2,159
Net income	$ 24,612				24,612
Ending balance (in shares) at Jun. 30, 2023	115,177,618	115,178,000
Ending balance at Jun. 30, 2023	$ 1,035,001	$ 115	$ 1,121,820	$ (43,179)	$ (43,755)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 26,798	$ 13,218
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	69,666	64,171
Other depreciation and amortization expense	52,027	41,921
Deferred income taxes	20,142	(303)
Gain on early extinguishment of debt	(53,777)	0
Restructuring charges	5,704	0
Loss contingency	7,000	0
Operating lease expense, net	3,009	3,242
Amortization of debt issuance costs	1,988	2,779
Loss from write-off of property and equipment	450	2,767
Gain on foreign currency remeasurement of purchase consideration	0	(4,628)
Print textbook depreciation expense	0	1,610
Impairment on lease related assets	0	3,411
Gain on textbook library, net	0	(4,967)
Other non-cash items	(1,083)	470
Change in assets and liabilities, net of effect of acquisition of business:
Accounts receivable	3,081	3,227
Prepaid expenses and other current assets	15,082	28,768
Other assets	5,470	13,058
Accounts payable	(671)	(5,246)
Deferred revenue	(3,634)	4,256
Accrued liabilities	(7,140)	(21,034)
Other liabilities	(8,205)	(2,965)
Net cash provided by operating activities	135,907	143,755
Cash flows from investing activities
Purchases of property and equipment	(33,864)	(57,286)
Purchases of textbooks	0	(3,815)
Proceeds from disposition of textbooks	9,787	2,494
Purchases of investments	(552,409)	(356,553)
Maturities of investments	476,862	522,466
Proceeds from sale of investments	238,681	0
Purchase of strategic equity investment	(9,604)	0
Acquisition of business, net of cash acquired	0	(401,125)
Net cash provided by (used in) investing activities	129,453	(293,819)
Cash flows from financing activities
Proceeds from common stock issued under stock plans, net	3,081	4,558
Payment of taxes related to the net share settlement of equity awards	(11,068)	(10,221)
Repurchases of common stock	(186,368)	(300,450)
Repayment of convertible senior notes	(369,761)	0
Proceeds from exercise of convertible senior notes capped call	300	0
Net cash used in financing activities	(563,819)	(306,113)
Effect of exchange rate changes	197	4,628
Net decrease in cash, cash equivalents and restricted cash	(298,262)	(451,549)
Cash, cash equivalents and restricted cash, beginning of period	475,854	855,893
Cash, cash equivalents and restricted cash, end of period	177,592	404,344
Supplemental cash flow data:
Interest	517	437
Income taxes, net of refunds	6,171	3,915
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	4,909	3,869
Right of use assets obtained in exchange for lease obligations:
Operating leases	12,407	3,244
Non-cash investing and financing activities:
Accrued purchases of long-lived assets	4,518	4,057
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	175,368	402,089
Restricted cash included in other current assets	60	64
Restricted cash included in other assets	2,164	2,191
Total cash, cash equivalents and restricted cash	$ 177,592	$ 404,344

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
Background and Basis of Presentation	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Company and Background Chegg, Inc. (“we,” “us,” “our,” “Company” or “Chegg”), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Millions of people all around the world Learn with Chegg. Our mission is to improve learning and learning outcomes by putting students first. We support life-long learners starting with their academic journey and extending into their careers. The Chegg platform provides products and services to support learners to help them better understand their academic course materials, and also provides personal and professional development skills training, to help them achieve their learning goals. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the Annual Report on Form 10-K) filed with the SEC. Except for our policies on strategic investments, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K. Strategic Investments Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations. Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any. Strategic investments are included in other assets on our condensed consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. There have been no material changes in our use of estimates during the six months ended June 30, 2023 as compared to the use of estimates disclosed in Part II, Item 8 “Consolidated Financial Statements and Supplementary Data” contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Reclassification of Prior Period Presentation In order to conform with current period presentation, $0.3 million of deferred tax assets during the six months ended June 30, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results. Leases During the six months ended June 30, 2023, we extended our existing lease agreement related to our corporate headquarters in Santa Clara and reassessed lease terms related to office spaces internationally in India, resulting in the recording of $12.4 million of right of use assets in exchange for lease liabilities. The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of June 30, 2023, are as follows (in thousands): June 30, 2023 Remaining six months of 2023 $ 4,356 2024 7,886 2025 6,622 2026 5,932 2027 5,515 Thereafter 1,902 Total future minimum lease payments 32,213 Less imputed interest (3,896) Total lease liabilities $ 28,317 Condensed Consolidated Statements of Operations Details Other income, net consists of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Gain on early extinguishment of debt $ 53,777 $ — 53,777 $ — Interest income $ 10,658 $ 2,032 21,921 $ 3,509 Gain on foreign currency remeasurement of purchase consideration — — — $ 4,628 Other (332) (223) 481 (148) Total other income, net $ 64,103 $ 1,809 $ 76,179 $ 7,989 Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted There were no accounting pronouncements issued during the six months ended June 30, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements.

Revenues

Revenues	6 Months Ended
Revenues	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Revenue Recognition Revenues are recognized when control of the goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time, with certain revenues being recognized at a point in time. We have changed our revenue disaggregation to Subscription Services and Skills and Other to better reflect the nature and timing of revenue and cash flows. Subscription Services includes revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings. Skills and Other includes revenues from our Skills, advertising services, print textbooks and eTextbooks offerings. We no longer present our Required Materials product line separately as we no longer recognize significant revenue from our print textbook and eTextbooks offerings. The following tables set forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2023 2022 $ % Subscription Services $ 165,855 $ 175,424 $ (9,569) (5) % Skills and Other 16,998 19,297 (2,299) (12) Total net revenues $ 182,853 $ 194,721 $ (11,868) (6) Six Months Ended Change 2023 2022 $ % Subscription Services $ 334,295 $ 348,461 $ (14,166) (4) % Skills and Other 36,159 48,504 (12,345) (25) Total net revenues $ 370,454 $ 396,965 $ (26,511) (7) During the three and six months ended June 30, 2023, we recognized revenues of $41.1 million and $47.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and six months ended June 30, 2022, we recognized revenues of $42.2 million and $32.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. Contract Balances The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change June 30, December 31, 2022 $ % Accounts receivable, net $ 20,670 $ 23,515 $ (2,845) (12) % Contract assets 10,693 11,946 (1,253) (10) Deferred revenue 53,200 56,273 (3,073) (5) During the six months ended June 30, 2023 our accounts receivable, net balance decreased by $2.8 million, or 12%, primarily due to timing of billings and seasonality of our business. During the six months ended June 30, 2023, our contract assets balance decreased by $1.3 million, or 10%, primarily due to our Thinkful service. During the six months ended June 30, 2023, our deferred revenue balance decreased by $3.1 million, or 5%, primarily due to timing of bookings and seasonality of our business.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
Net Income (Loss) Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Net income per share, basic $ 0.21 $ 0.06 $ 0.22 $ 0.10 Diluted Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Convertible senior notes activity, net of tax (1) (39,398) 1,212 (38,446) — Net (loss) income, diluted $ (14,786) $ 8,688 $ (11,648) $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Shares related to stock plan activity — 427 — 733 Shares related to convertible senior notes 14,967 22,875 16,588 — Weighted average shares used to compute net (loss) income per share, diluted 132,944 149,574 137,416 129,934 Net (loss) income per share, diluted $ (0.11) $ 0.06 $ (0.08) $ 0.10 (1) Includes the gain on early extinguishment and interest expense on our notes, net of tax. For further information, see Note 5, “Convertible Senior Notes.” The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares related to stock plan activity 9,982 8,041 7,661 3,645 Shares related to convertible senior notes — — — 22,875 Total common stock equivalents 9,982 8,041 7,661 26,520

Cash and Cash Equivalents, Inve

Cash and Cash Equivalents, Investments and Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents, Investments and Fair Value Measurements	Cash and Cash Equivalents, Investments and Fair Value Measurements The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2023 and December 31, 2022 (in thousands except for fair value levels): June 30, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 38,597 $ — $ — $ 38,597 Money market funds Level 1 136,771 — — 136,771 Total cash and cash equivalents $ 175,368 $ — $ — $ 175,368 Short-term investments: Corporate debt securities Level 2 $ 106,429 $ — $ (805) $ 105,624 U.S. treasury securities Level 1 30,063 — (32) 30,031 Agency bonds Level 2 74,496 — (465) 74,031 Total short-term investments $ 210,988 $ — $ (1,302) $ 209,686 Long-term investments: Corporate debt securities Level 2 $ 195,372 $ 10 $ (1,736) $ 193,646 U.S. treasury securities Level 1 98,946 — (1,168) 97,778 Agency bonds Level 2 133,017 — (1,683) 131,334 Total long-term investments $ 427,335 $ 10 $ (4,587) $ 422,758 December 31, 2022 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 33,532 $ — $ — $ 33,532 Money market funds Level 1 440,145 — — 440,145 Total cash and cash equivalents $ 473,677 $ — $ — $ 473,677 Short-term investments: Commercial paper Level 2 $ 11,744 $ — $ (29) $ 11,715 Corporate debt securities Level 2 491,459 — (4,130) 487,329 U.S. treasury securities Level 1 85,271 — (342) 84,929 Total short-term investments $ 588,474 $ — $ (4,501) $ 583,973 Long-term investments: Corporate debt securities Level 2 $ 125,735 $ 158 $ (909) $ 124,984 U.S. treasury securities Level 1 30,633 122 — 30,755 Agency bonds Level 2 60,635 — (141) 60,494 Total long-term investments $ 217,003 $ 280 $ (1,050) $ 216,233 As of June 30, 2023, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2023 and 2022, our realized gains and losses on investments were not significant. The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 210,988 $ 209,686 Due after one year through three years 427,335 422,758 Investments not due at a single maturity date 136,771 136,771 Total $ 775,094 $ 769,215 Investments not due at a single maturity date in the preceding table consisted of money market funds. Strategic Investments In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. During the three months ended June 30, 2023, we funded $9.6 million of our investment commitment. As part of the conditions for entering into the investment, we are contractually required to provide additional investment commitments. As of June 30, 2023, we have unfunded investment commitments of $5.4 million, which can be issued at any time within five years of the commencement of the partnership, which occurred in February 2023. In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment charges during the three and six months ended June 30, 2023, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three and six months ended June 30, 2023. Financial Instruments Not Recorded at Fair Value on a Recurring Basis We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of June 30, 2023 and December 31, 2022 was $312.7 million and $385.0 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2023 and December 31, 2022 was $318.5 million and $640.5 million, respectively. For further information on the notes, refer to Note 5, “Convertible Senior Notes.”

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
Convertible Senior Notes	Jun. 30, 2023
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). The aggregate principal amount of the 2026 notes includes $100 million from the initial purchasers fully exercising their option to purchase additional notes. In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total principal amount of $800 million. The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The total net proceeds from the notes are as follows (in thousands): 2026 Notes 2025 Notes Principal amount $ 1,000,000 $ 800,000 Less initial purchasers’ discount (15,000) (18,998) Less other issuance costs (904) (822) Net proceeds $ 984,096 $ 780,180 The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as Trustee (the indentures). The 2026 notes bear no interest and will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Each $1,000 principal amount of the 2026 notes will initially be convertible into 9.2978 shares of our common stock. This is equivalent to an initial conversion price of approximately $107.55 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Prior to the close of business on the business day immediately preceding June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes, the notes are convertible at the option of holders only upon satisfaction of the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 for the 2026 notes and June 30, 2019 for the 2025 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day; • during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events described in the indentures. On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election. If we undergo a fundamental change, as defined in the indentures, prior to the respective maturity dates, subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events, described in the indentures, occur prior to the respective maturity dates, we will also increase the conversion rate for a holder who elects to convert their notes in connection with such specified corporate events. In May 2023, in connection with our securities repurchase program, we extinguished $85.8 million and $341.1 million aggregate principal amount of the 2026 notes and 2025 notes, respectively, in privately-negotiated transactions for a total consideration of $368.6 million, which was paid to the holders in cash. We also incurred approximately $1.2 million in fees resulting in a total reacquisition price of $369.8 million. The carrying amount of the extinguished notes was $423.5 million resulting in a $53.8 million gain on early extinguishment of debt. We elected to reacquire and not cancel the extinguished 2026 notes and the 2025 notes were canceled with the trustee. Additionally, we terminated 2025 notes capped call transactions underlying 6,615,161 shares of our common stock and received aggregate cash proceeds of $0.3 million. As of June 30, 2023, we had 9,297,800 and 6,961,352 shares remaining underlying the 2026 notes and 2025 notes, respectively. During the three months ended June 30, 2023, the conditions allowing holders of the 2026 notes and 2025 notes to convert were not met and therefore the 2026 notes and 2025 notes are not convertible the following quarter. The net carrying amount of the notes is as follows (in thousands): June 30, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 414,198 $ 358,914 $ 500,000 $ 699,979 Unamortized issuance costs (3,466) (2,603) (4,837) (6,549) Net carrying amount $ 410,732 $ 356,311 $ 495,163 $ 693,430 The following table sets forth the total interest expense recognized related to the notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 310 657 635 1,307 Total 2026 notes interest expense $ 310 $ 657 $ 635 $ 1,307 2025 notes: Contractual interest expense $ 182 $ 219 $ 398 $ 434 Amortization of issuance costs 621 740 1,353 1,472 Total 2025 notes interest expense $ 803 $ 959 $ 1,751 $ 1,906 Capped Call Transactions Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of June 30, 2023, cover 9,297,800 and 6,961,352 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We may from time to time be subject to certain legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, patents, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, demands, disputes, investigations, or requests for information. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters. On March 1, 2023, Plaintiff Shiva Stein, derivatively on behalf of Chegg, filed a stockholder derivative complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0244-NAC) asserting breach of fiduciary duty, unjust enrichment, and waste of corporate asset claims against members of Chegg’s Board and certain Chegg officers. The matter is stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On February 14, 2023, Plaintiff Brian Stansell, individually and on behalf of other similarly situated stockholders of Chegg, filed a putative class action complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0180) on behalf of all Chegg stockholders who were eligible to vote at Chegg's 2022 Annual Stockholders' Meeting, asserting breach of fiduciary duty claims against the members of Chegg's Board. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 27, 2022, Plaintiff Sheri Moyer, individually and on behalf of all others similarly situated, filed a putative consumer class action in the United States District Court for the Northern District of California (Case No. 22-cv-09123) on behalf of all purchasers of a Chegg product or service as part of an automatic renewal plan or continuous service offer within the past four years. On July 25, 2023, the Company received an order granting its motion to compel arbitration, and the case will be stayed pending arbitration. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 22, 2022, JPMorgan Chase Bank, N.A. (JPMC) asserted a demand for repayment by the Company of certain investment proceeds received by the Company in its capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). JPMC seeks such repayment pursuant to certain provisions in the existing Support Agreement between JPMC and the Company that was entered into in connection with JPMC's acquisition of Frank. JPMC has alleged fraud on the part of certain former Frank executives regarding the quantity and quality of its customer accounts. The Company is not at fault however is pursuing a settlement agreement with JPMC. As of June 30, 2023, a loss is probable and reasonably estimable, therefore we have recognized an estimated loss contingency accrual of $7.0 million within general and administrative expense on our condensed consolidated statements of operations. On November 9, 2022, Plaintiff Joshua Keller, individually and on behalf of all others similarly situated, filed a putative class action in the United States District Court for the Northern District of California (Case No. 22-cv-06986) on behalf of individuals whose data was allegedly impacted by past data breaches. The Company disputes these claims and intends to vigorously defend itself in this matter. On March 30, 2022, Joseph Robinson, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws and breaches of fiduciary duties. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Choi, below, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On January 12, 2022, Rak Joon Choi, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Robinson, above, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a purported securities fraud class action on behalf of all purchasers of Chegg common stock between May 5, 2020 and November 1, 2021, inclusive, against Chegg and certain of its current and former officers in the United States District Court for the Northern District of California (Case No. 5:21-cv-09953), alleging that Chegg and several of its officers made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On September 7, 2022, KBC Asset Management and The Pompano Beach Police & Firefighters Retirement System were appointed as lead plaintiff in the case. On December 8, 2022, Plaintiff filed his Amended Complaint and seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. The Company disputes these claims and intends to vigorously defend itself in this matter. On September 13, 2021, Pearson Education, Inc. (Pearson) filed a complaint captioned Pearson Education, Inc. v. Chegg, Inc. (Pearson Complaint) in the United States District Court for the District of New Jersey against the Company (Case 2:21-cv-16866), alleging infringement of Pearson’s registered copyrights and exclusive rights under copyright in violation of the United States Copyright Act. Pearson is seeking injunctive relief, monetary damages, costs, and attorneys’ fees. The Company filed its answer to the Pearson Complaint on November 19, 2021. Pearson’s June 29, 2022 Motion for Leave to File Amended Complaint seeking to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning as a plaintiff was denied. Pearson filed an Amended Complaint on May 10, 2023, and the Company filed an amended answer on June 7, 2023. The Company disputes these claims and intends to vigorously defend itself in this matter. On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) regarding certain alleged deceptive or unfair acts or practices related to consumer privacy and/or data security. On October 31, 2022, the FTC published the parties’ agreed-upon consent order regarding Chegg’s privacy and data security practices. On January 27, 2023, the FTC finalized its order ("Final Order") requiring Chegg to implement a comprehensive information security program, limit the data the Company can collect and retain, offer users multi factor authentication to secure their accounts, and allow users to request access to and delete their data. No monetary penalties or fines were included in the Final Order.

Guarantees and Indemnifications

Guarantees and Indemnifications	6 Months Ended
Guarantees and Indemnifications	Jun. 30, 2023
Guarantees And Indemnifications [Abstract]
Guarantees and Indemnifications	Guarantees and Indemnifications We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited. We believe the fair value of these indemnification agreements is immaterial. We have not recorded any liabilities for these agreements as of June 30, 2023.

Common Stock

Common Stock	6 Months Ended
Common Stock	Jun. 30, 2023
Equity [Abstract]
Common Stock	Common Stock We are authorized to issue 400 million shares of our common stock, with a par value per share of $0.001. As of June 30, 2023, we have reserved the following shares of our common stock for future issuance: June 30, 2023 Outstanding stock options 257,542 Outstanding RSUs and PSUs 11,162,669 Shares available for grant under the 2023 Equity Incentive Plan 12,070,617 Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan 4,000,000 Total common shares reserved for future issuance 27,490,828 Stock Plans 2023 Equity Incentive Plan On April 7, 2023, our Board of Directors adopted our 2023 Equity Incentive Plan (the “2023 EIP”), which was subsequently approved by our stockholders and became effective on June 7, 2023, replacing our 2013 Equity Incentive Plan (the “2013 Plan”). On the effective date of the 2023 EIP, 12,000,000 shares of our common stock were reserved for issuance under the 2023 EIP. On June 6, 2023, the date on which the 2013 Plan expired, all remaining shares available for grant under the 2013 Plan were cancelled, and we will not make any additional grants under the 2013 Plan. In addition, any shares subject to awards, including shares subject to awards granted under the 2013 Plan that were outstanding on June 7, 2023, that are cancelled, forfeited, repurchased, expire by their terms without shares being issued, are used to pay the exercise price of an option or stock appreciation right or withheld to satisfy the tax withholding obligations related to any award, will be returned to the pool of shares available for grant and issuance under the 2023 Plan. As of June 30, 2023, there were 12,070,617 shares available for grant under the 2023 EIP. The 2023 EIP permits the granting of incentive stock options, non-qualified stock options, RSUs, restricted stock awards, stock bonus awards, stock appreciation rights and performance awards. The 2023 EIP terminates on April 7, 2033. Amended and Restated 2013 Employee Stock Purchase Plan On April 7, 2023, our Board of Directors adopted our Amended and Restated 2013 Employee Stock Purchase Plan (the “A&R ESPP”), which was subsequently approved by our stockholders and became effective on June 7, 2023. The A&R ESPP permits eligible employees to purchase shares of our common stock by accumulating funds through periodic payroll deductions.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stockholders' Equity	Stockholders' Equity Share Repurchases In June 2023, we repurchased 3,433,157 shares of our common stock in open market transactions for $34.5 million. In February 2023, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2023 ASR). We accounted for the 2023 ASR as two separate transactions, a repurchase of our common stock and an equity-linked contract indexed to our common stock that met certain accounting criteria for classification in stockholders' equity. Upon execution, we paid a fixed amount of $150.0 million and received an initial delivery of 7,599,747 shares of our common stock, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $150.0 million, which was based on the share price of our common stock on the date of execution. The 2023 ASR, along with $1.9 million in associated costs, primarily consisting of an estimated 1% excise tax, were recorded as a reduction to additional paid in capital on our condensed consolidated statements of stockholders’ equity. The 2023 ASR settled during the three months ended June 30, 2023 and we received an additional delivery of 1,974,762 shares of our common stock, which were retired immediately. The 2023 ASR resulted in a total repurchase of 9,574,509 shares of our common stock at a volume-weighted-average price, less an agreed upon discount, of $15.67 per share. We were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement. In February 2022 and December 2021, we entered into ASR agreements with financial institutions. During the year ended December 31, 2022, we received a total of 11,562,475 shares of our common stock from these ASR agreements, which were retired immediately. Additionally, during the year ended December 31, 2022, we repurchased 1,146,803 shares of our common stock in open market transactions. Securities Repurchase Program In June 2022, our board of directors approved a $1.0 billion increase to our existing securities repurchase program authorizing the repurchase of up to $2.0 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. As of December 31, 2022, we had $642.6 million remaining under the securities repurchase program. During the six months ended June 30, 2023, we repurchased shares of our common stock for $184.5 million and a portion of our notes for $368.6 million. As of June 30, 2023, we had $89.4 million remaining under the securities repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors. Share-based Compensation Expense Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of revenues $ 560 $ 669 $ 1,087 $ 1,292 Research and development 11,968 10,006 22,882 21,782 Sales and marketing 2,182 4,019 4,681 8,405 General and administrative 21,210 16,393 41,016 32,692 Total share-based compensation expense $ 35,920 $ 31,087 $ 69,666 $ 64,171 During the three and six months ended June 30, 2023, we capitalized share-based compensation expense of $0.7 million and $1.7 million, respectively. During the three and six months ended June 30, 2022, we capitalized share-based compensation expense of $2.3 million and $4.1 million, respectively. As of June 30, 2023, total unrecognized share-based compensation expense was approximately $204.8 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 2.1 years. Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2022 9,155,680 $ 36.03 Granted 5,269,726 15.68 Released (2,080,263) 36.20 Forfeited (1,182,474) 30.53 Balance at June 30, 2023 11,162,669 26.98

Restructuring

Restructuring	6 Months Ended
Restructuring	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring	RestructuringIn June 2023, we announced a reduction in workforce to better position the Company to execute against its AI strategy and to create long-term, sustainable value for its students and investors. This resulted in a management approved restructuring plan that impacted approximately 90 employees primarily in the United States. During the three months ended June 30, 2023, we recorded restructuring charges of $5.7 million related to one-time employee termination benefits classified on our condensed consolidated statements of operations based on the employees' job function. As of June 30, 2023, $2.0 million in payments have been made and the $3.7 million liability is included within accrued liabilities on our condensed consolidated balance sheets. The total cost of the restructuring plan has been recorded and we expect it to be completed by the end of fiscal 2023. We expect cost savings from the restructuring plan to be reinvested in future growth opportunities.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 24,612	$ 7,476	$ 26,798	$ 13,218

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended June 30, 2023, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act ("Rule 10b5-1 Plan"), were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of Securities to be Purchased/Sold Andrew Brown (1) Chief Financial Officer Adoption May 19, 2023 June 28, 2024 28,241
Name	Andrew Brown
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Adoption Date	May 19, 2023
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Aggregate Available	28,241,000	28,241,000

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	6 Months Ended
Background and Basis of Presentation (Policies)	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the Annual Report on Form 10-K) filed with the SEC.
Strategic Investments	Strategic Investments Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations. Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and
Reclassification of Prior Period Presentation	Reclassification of Prior Period Presentation In order to conform with current period presentation, $0.3 million of deferred tax assets during the six months ended June 30, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted There were no accounting pronouncements issued during the six months ended June 30, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements.

Background and Basis of Prese_3

Background and Basis of Presentation (Tables)	6 Months Ended
Background and Basis of Presentation (Tables)	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Maturities of Operating Lease Liabilities	The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of June 30, 2023, are as follows (in thousands): June 30, 2023 Remaining six months of 2023 $ 4,356 2024 7,886 2025 6,622 2026 5,932 2027 5,515 Thereafter 1,902 Total future minimum lease payments 32,213 Less imputed interest (3,896) Total lease liabilities $ 28,317
Schedule of Other Income Net	Other income, net consists of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Gain on early extinguishment of debt $ 53,777 $ — 53,777 $ — Interest income $ 10,658 $ 2,032 21,921 $ 3,509 Gain on foreign currency remeasurement of purchase consideration — — — $ 4,628 Other (332) (223) 481 (148) Total other income, net $ 64,103 $ 1,809 $ 76,179 $ 7,989

Revenues (Tables)

Revenues (Tables)	6 Months Ended
Revenues (Tables)	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables set forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2023 2022 $ % Subscription Services $ 165,855 $ 175,424 $ (9,569) (5) % Skills and Other 16,998 19,297 (2,299) (12) Total net revenues $ 182,853 $ 194,721 $ (11,868) (6) Six Months Ended Change 2023 2022 $ % Subscription Services $ 334,295 $ 348,461 $ (14,166) (4) % Skills and Other 36,159 48,504 (12,345) (25) Total net revenues $ 370,454 $ 396,965 $ (26,511) (7)
Schedule of Accounts Receivable	The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change June 30, December 31, 2022 $ % Accounts receivable, net $ 20,670 $ 23,515 $ (2,845) (12) % Contract assets 10,693 11,946 (1,253) (10) Deferred revenue 53,200 56,273 (3,073) (5)

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
Net Income (Loss) Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Net income per share, basic $ 0.21 $ 0.06 $ 0.22 $ 0.10 Diluted Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Convertible senior notes activity, net of tax (1) (39,398) 1,212 (38,446) — Net (loss) income, diluted $ (14,786) $ 8,688 $ (11,648) $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Shares related to stock plan activity — 427 — 733 Shares related to convertible senior notes 14,967 22,875 16,588 — Weighted average shares used to compute net (loss) income per share, diluted 132,944 149,574 137,416 129,934 Net (loss) income per share, diluted $ (0.11) $ 0.06 $ (0.08) $ 0.10
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares related to stock plan activity 9,982 8,041 7,661 3,645 Shares related to convertible senior notes — — — 22,875 Total common stock equivalents 9,982 8,041 7,661 26,520

Cash and Cash Equivalents, In_2

Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Investments	The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2023 and December 31, 2022 (in thousands except for fair value levels): June 30, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 38,597 $ — $ — $ 38,597 Money market funds Level 1 136,771 — — 136,771 Total cash and cash equivalents $ 175,368 $ — $ — $ 175,368 Short-term investments: Corporate debt securities Level 2 $ 106,429 $ — $ (805) $ 105,624 U.S. treasury securities Level 1 30,063 — (32) 30,031 Agency bonds Level 2 74,496 — (465) 74,031 Total short-term investments $ 210,988 $ — $ (1,302) $ 209,686 Long-term investments: Corporate debt securities Level 2 $ 195,372 $ 10 $ (1,736) $ 193,646 U.S. treasury securities Level 1 98,946 — (1,168) 97,778 Agency bonds Level 2 133,017 — (1,683) 131,334 Total long-term investments $ 427,335 $ 10 $ (4,587) $ 422,758 December 31, 2022 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 33,532 $ — $ — $ 33,532 Money market funds Level 1 440,145 — — 440,145 Total cash and cash equivalents $ 473,677 $ — $ — $ 473,677 Short-term investments: Commercial paper Level 2 $ 11,744 $ — $ (29) $ 11,715 Corporate debt securities Level 2 491,459 — (4,130) 487,329 U.S. treasury securities Level 1 85,271 — (342) 84,929 Total short-term investments $ 588,474 $ — $ (4,501) $ 583,973 Long-term investments: Corporate debt securities Level 2 $ 125,735 $ 158 $ (909) $ 124,984 U.S. treasury securities Level 1 30,633 122 — 30,755 Agency bonds Level 2 60,635 — (141) 60,494 Total long-term investments $ 217,003 $ 280 $ (1,050) $ 216,233
Schedule of Available-for-sale Securities Reconciliation	The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 210,988 $ 209,686 Due after one year through three years 427,335 422,758 Investments not due at a single maturity date 136,771 136,771 Total $ 775,094 $ 769,215

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
Convertible Senior Notes (Tables)	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The total net proceeds from the notes are as follows (in thousands): 2026 Notes 2025 Notes Principal amount $ 1,000,000 $ 800,000 Less initial purchasers’ discount (15,000) (18,998) Less other issuance costs (904) (822) Net proceeds $ 984,096 $ 780,180
Schedule of Debt	The net carrying amount of the notes is as follows (in thousands): June 30, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 414,198 $ 358,914 $ 500,000 $ 699,979 Unamortized issuance costs (3,466) (2,603) (4,837) (6,549) Net carrying amount $ 410,732 $ 356,311 $ 495,163 $ 693,430
Schedule Of Interest Expense Recognized	The following table sets forth the total interest expense recognized related to the notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 310 657 635 1,307 Total 2026 notes interest expense $ 310 $ 657 $ 635 $ 1,307 2025 notes: Contractual interest expense $ 182 $ 219 $ 398 $ 434 Amortization of issuance costs 621 740 1,353 1,472 Total 2025 notes interest expense $ 803 $ 959 $ 1,751 $ 1,906

Common Stock (Tables)

Common Stock (Tables)	6 Months Ended
Common Stock (Tables)	Jun. 30, 2023
Equity [Abstract]
Schedule Of Common Stock Reserved For Future Issuance	As of June 30, 2023, we have reserved the following shares of our common stock for future issuance: June 30, 2023 Outstanding stock options 257,542 Outstanding RSUs and PSUs 11,162,669 Shares available for grant under the 2023 Equity Incentive Plan 12,070,617 Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan 4,000,000 Total common shares reserved for future issuance 27,490,828

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees	Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of revenues $ 560 $ 669 $ 1,087 $ 1,292 Research and development 11,968 10,006 22,882 21,782 Sales and marketing 2,182 4,019 4,681 8,405 General and administrative 21,210 16,393 41,016 32,692 Total share-based compensation expense $ 35,920 $ 31,087 $ 69,666 $ 64,171
Schedule of Restricted Stock Unit Activity	Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2022 9,155,680 $ 36.03 Granted 5,269,726 15.68 Released (2,080,263) 36.20 Forfeited (1,182,474) 30.53 Balance at June 30, 2023 11,162,669 26.98

Background and Basis of Prese_4

Background and Basis of Presentation - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Deferred income taxes	$ 20,142	$ (303)
Operating leases	$ 12,407	3,244
Revision of Prior Period, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Deferred income taxes		$ (300)

Background and Basis of Prese_5

Background and Basis of Presentation - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining six months of 2023	$ 4,356
2024	7,886
2025	6,622
2026	5,932
2027	5,515
Thereafter	1,902
Total future minimum lease payments	32,213
Less imputed interest	(3,896)
Total lease liabilities	$ 28,317

Background and Basis of Prese_6

Background and Basis of Presentation - Other Income Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain on early extinguishment of debt	$ 53,777	$ 0	$ 53,777	$ 0
Interest income	10,658	2,032	21,921	3,509
Gain on foreign currency remeasurement of purchase consideration	0	0	0	4,628
Other	(332)	(223)	481	(148)
Total other income, net	$ 64,103	$ 1,809	$ 76,179	$ 7,989

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total net revenues	$ 182,853	$ 194,721	$ 370,454	$ 396,965
Change, Total net revenues	$ (11,868)		$ (26,511)
Change, Total net revenues, percent	(6.00%)		(7.00%)
Subscription Services
Disaggregation of Revenue [Line Items]
Total net revenues	$ 165,855	175,424	$ 334,295	348,461
Change, Total net revenues	$ (9,569)		$ (14,166)
Change, Total net revenues, percent	(5.00%)		(4.00%)
Skills and Other
Disaggregation of Revenue [Line Items]
Total net revenues	$ 16,998	$ 19,297	$ 36,159	$ 48,504
Change, Total net revenues	$ (2,299)		$ (12,345)
Change, Total net revenues, percent	(12.00%)		(25.00%)

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenues - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, revenue recognized	$ 41,100	$ 42,200	$ 47,900	$ 32,900
Decrease in accounts receivable, net			$ (2,845)
Decrease in accounts receivable, net, percent			(12.00%)
Decrease in contract assets			$ 1,253
Decrease in contract assets, percent			10%
Increase in deferred revenue			$ (3,073)
Increase in deferred revenue, percent			(5.00%)

Revenues - Contract Balances (D

Revenues - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 20,670	$ 23,515
Change, accounts receivable, net	$ (2,845)
Change, accounts receivable, net, percent	(12.00%)
Contract assets	$ 10,693	11,946
Change, Contract assets	$ (1,253)
Change, Contract assets, percent	(10.00%)
Deferred revenue	$ 53,200	$ 56,273
Change, deferred revenue	$ (3,073)
Change, deferred revenue, percent	(5.00%)

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income	$ 24,612	$ 7,476	$ 26,798	$ 13,218
Convertible senior notes activity, net of tax	(39,398)	1,212	(38,446)	0
Net (loss) income, diluted	$ (14,786)	$ 8,688	$ (11,648)	$ 13,218
Denominator:
Weighted average shares used to compute net income per share, basic (in shares)	117,977	126,272	120,828	129,201
Net income per share, basic (in dollars per share)	$ 0.21	$ 0.06	$ 0.22	$ 0.10
Weighted average shares used to compute net (loss) income per share, diluted (in shares)	132,944	149,574	137,416	129,934
Net (loss) income per share, diluted (in dollars per share)	$ (0.11)	$ 0.06	$ (0.08)	$ 0.10
Shares related to stock plan activity
Denominator:
Incremental common shares attributable to dilutive effect (in shares)	0	427	0	733
Shares related to convertible senior notes
Denominator:
Incremental common shares attributable to dilutive effect (in shares)	14,967	22,875	16,588	0

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Shares Excluded From Computation Of Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents (in shares)	9,982	8,041	7,661	26,520
Shares related to stock plan activity
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents (in shares)	9,982	8,041	7,661	3,645
Shares related to convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents (in shares)	0	0	0	22,875

Cash and Cash Equivalents, In_3

Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	$ 775,094
Fair Value	769,215
Cash and cash equivalents:
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost		$ 473,677
Unrealized Gain		0
Unrealized Loss		0
Fair Value		473,677
Cash and cash equivalents: \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	175,368
Unrealized Gain	0
Unrealized Loss	0
Fair Value	175,368
Cash and cash equivalents: \| Cash
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	38,597	33,532
Unrealized Gain	0	0
Unrealized Loss	0	0
Fair Value	38,597	33,532
Cash and cash equivalents: \| Money market funds \| Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	136,771	440,145
Unrealized Gain	0	0
Unrealized Loss	0	0
Fair Value	136,771	440,145
Short-term investments:
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost		588,474
Unrealized Gain		0
Unrealized Loss		(4,501)
Fair Value		583,973
Short-term investments: \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	210,988
Unrealized Gain	0
Unrealized Loss	(1,302)
Fair Value	209,686
Short-term investments: \| Commercial paper \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost		11,744
Unrealized Gain		0
Unrealized Loss		(29)
Fair Value		11,715
Short-term investments: \| Corporate debt securities \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	106,429	491,459
Unrealized Gain	0	0
Unrealized Loss	(805)	(4,130)
Fair Value	105,624	487,329
Short-term investments: \| U.S. treasury securities \| Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	30,063	85,271
Unrealized Gain	0	0
Unrealized Loss	(32)	(342)
Fair Value	30,031	84,929
Short-term investments: \| Agency bonds \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	74,496
Unrealized Gain	0
Unrealized Loss	(465)
Fair Value	74,031
Long-term investments:
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost		217,003
Unrealized Gain		280
Unrealized Loss		(1,050)
Fair Value		216,233
Long-term investments: \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	427,335
Unrealized Gain	10
Unrealized Loss	(4,587)
Fair Value	422,758
Long-term investments: \| Corporate debt securities \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	195,372	125,735
Unrealized Gain	10	158
Unrealized Loss	(1,736)	(909)
Fair Value	193,646	124,984
Long-term investments: \| U.S. treasury securities \| Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	98,946	30,633
Unrealized Gain	0	122
Unrealized Loss	(1,168)	0
Fair Value	97,778	30,755
Long-term investments: \| Agency bonds \| Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	133,017	60,635
Unrealized Gain	0	0
Unrealized Loss	(1,683)	(141)
Fair Value	$ 131,334	$ 60,494

Cash and Cash Equivalents, In_4

Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Adjusted Cost
Due within one year	$ 210,988
Due after one year through three years	427,335
Investments not due at a single maturity date	136,771
Adjusted Cost	775,094
Fair Value
Due within one year	209,686
Due after one year through three years	422,758
Investments not due at a single maturity date	136,771
Fair Value	$ 769,215

Cash and Cash Equivalents, In_5

Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	May 31, 2023	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Jul. 31, 2022
Schedule of Investments [Line Items]
Funded capital calls			$ 9,604	$ 0
Sound Ventures AI Fund, LP
Schedule of Investments [Line Items]
Commitment to invest	$ 15,000
Invests in artificial intelligence companies, ownership percentage	6%
Funded capital calls		$ 9,600
Unfunded investment		$ 5,400	$ 5,400
Unfunded commitment, length of period to issue			5 years
Knack Technologies, Inc
Schedule of Investments [Line Items]
Investment without readily determinable fair value					$ 6,000

Cash and Cash Equivalents, In_6

Cash and Cash Equivalents, Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Senior Notes due 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	$ 312.7	$ 385
Senior Notes due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	$ 318.5	$ 640.5

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended		6 Months Ended
	May 31, 2023 USD ($)	Aug. 31, 2020 USD ($) $ / shares	Apr. 30, 2019 USD ($) $ / shares	Apr. 30, 2018	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) day $ / shares shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Repayments of convertible senior notes							$ 369,761	$ 0
Gain on early extinguishment of debt					$ 53,777	$ 0	53,777	0
Proceeds from exercise and termination of convertible senior notes capped call					297		$ 300	$ 0
Senior Notes \| Sale Price Is Greater Or Equal 130%
Debt Instrument [Line Items]
Threshold trading days \| day							20
Threshold consecutive trading days \| day							30
Threshold percentage of stock price trigger							130%
Senior Notes \| Trading Price Per $1,000 Principal Amount Less Than 98%
Debt Instrument [Line Items]
Threshold trading days \| day							5
Threshold consecutive trading days \| day							10
Senior Notes \| Trading Price Per $1,000 Principal Amount Less Than 98% \| Maximum
Debt Instrument [Line Items]
Threshold percentage of stock price trigger							98%
Senior Notes \| Fundamental Change Scenario
Debt Instrument [Line Items]
Threshold percentage of stock price trigger				100%
Senior Notes due 2026 \| Senior Notes
Debt Instrument [Line Items]
Face value		$ 1,000,000			$ 414,198		$ 414,198		$ 500,000
Interest rate, stated percentage		0%
Proceeds from issuance of debt		$ 1,000,000
Conversion ratio		0.0092978
Conversion price (in dollars per share) \| $ / shares		$ 107.55
Repurchased face amount	$ 85,800
Net proceeds		$ 984,096
Senior Notes due 2026 \| Senior Notes \| Capped Call
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares					$ 156.44		$ 156.44
Debt instrument, convertible (in shares) \| shares					9,297,800		9,297,800
Net proceeds		103,400
0% Convertible Senior Notes Due 2026, Additional Notes \| Senior Notes
Debt Instrument [Line Items]
Face value		$ 100,000
Senior Notes due 2025 \| Senior Notes
Debt Instrument [Line Items]
Face value			$ 100,000		$ 358,914		$ 358,914		$ 699,979	$ 700,000
Interest rate, stated percentage										0.125%
Proceeds from issuance of debt			$ 800,000
Conversion ratio			0.0193956
Conversion price (in dollars per share) \| $ / shares			$ 51.56
Repurchased face amount	341,100
Net proceeds			$ 780,180
Senior Notes due 2025 \| Senior Notes \| Capped Call
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares					$ 79.32		$ 79.32
Debt instrument, convertible (in shares) \| shares					6,961,352		6,961,352
Net proceeds			$ 97,200
Senior Notes due 2025 \| Senior Notes \| Terminated Capped Call
Debt Instrument [Line Items]
Debt instrument, convertible (in shares) \| shares					6,615,161		6,615,161
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 \| Senior Notes
Debt Instrument [Line Items]
Repayments of convertible senior notes	368,600
Extinguishment incurred	1,200
Debt instrument, reacquisition price of debt	369,800
Debt extinguished	423,500
Gain on early extinguishment of debt	$ 53,800

Convertible Senior Notes - Long

Convertible Senior Notes - Long-term Debt Instruments (Details) - Senior Notes - USD ($) $ in Thousands	1 Months Ended
	Aug. 31, 2020	Apr. 30, 2019
Senior Notes due 2026
Debt Instrument [Line Items]
Principal amount	$ 1,000,000
Less initial purchasers’ discount	(15,000)
Less other issuance costs	(904)
Net proceeds	$ 984,096
Senior Notes due 2025
Debt Instrument [Line Items]
Principal amount		$ 800,000
Less initial purchasers’ discount		(18,998)
Less other issuance costs		(822)
Net proceeds		$ 780,180

Convertible Senior Notes - Net

Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Aug. 31, 2020	Apr. 30, 2019	Mar. 31, 2019
Senior Notes due 2026
Debt Instrument [Line Items]
Principal	$ 414,198	$ 500,000	$ 1,000,000
Unamortized issuance costs	(3,466)	(4,837)
Senior Notes due 2026 \| Carrying Amount \| Fair Value, Measurements, Nonrecurring
Debt Instrument [Line Items]
Net carrying amount	410,732	495,163
Senior Notes due 2025
Debt Instrument [Line Items]
Principal	358,914	699,979		$ 100,000	$ 700,000
Unamortized issuance costs	(2,603)	(6,549)
Senior Notes due 2025 \| Carrying Amount \| Fair Value, Measurements, Nonrecurring
Debt Instrument [Line Items]
Net carrying amount	$ 356,311	$ 693,430

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Senior Notes due 2026
Debt Instrument [Line Items]
Contractual interest expense	$ 0	$ 0	$ 0	$ 0
Amortization of issuance costs	310	657	635	1,307
Total interest expense	310	657	635	1,307
Senior Notes due 2025
Debt Instrument [Line Items]
Contractual interest expense	182	219	398	434
Amortization of issuance costs	621	740	1,353	1,472
Total interest expense	$ 803	$ 959	$ 1,751	$ 1,906

Convertible Senior Notes - Capp

Convertible Senior Notes - Capped Call Transactions (Details) - Senior Notes - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Aug. 31, 2020	Apr. 30, 2019	Jun. 30, 2023
Senior Notes due 2026
Debt Instrument [Line Items]
Net proceeds	$ 984,096
Conversion price (in dollars per share)	$ 107.55
Senior Notes due 2025
Debt Instrument [Line Items]
Net proceeds		$ 780,180
Conversion price (in dollars per share)		$ 51.56
Capped Call \| Senior Notes due 2026
Debt Instrument [Line Items]
Net proceeds	$ 103,400
Debt instrument, convertible (in shares)			9,297,800
Conversion price (in dollars per share)			$ 156.44
Capped Call \| Senior Notes due 2025
Debt Instrument [Line Items]
Net proceeds		$ 97,200
Debt instrument, convertible (in shares)			6,961,352
Conversion price (in dollars per share)			$ 79.32

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual	$ 7

Common Stock - Narrative (Detai

Common Stock - Narrative (Details) - $ / shares	Jun. 07, 2023	Jun. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Common stock, shares authorized (in shares)		400,000,000	400,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Total common shares reserved for future issuance (in shares)		27,490,828
2023 Equity Incentive Plan
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	12,000,000
Shares available for grant under the 2023 EIP (in shares)		12,070,617
2013 Employee Stock Purchase Plan
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)		4,000,000
Employee discount on applicable offering period	15%
Shares reserved	4,000,000

Common Stock - Schedule of Comm

Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares	Jun. 30, 2023	Jun. 07, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Outstanding stock options (in shares)	257,542
Total common shares reserved for future issuance (in shares)	27,490,828
2023 Equity Incentive Plan
Class of Stock [Line Items]
Shares available for grant under the 2023 EIP (in shares)	12,070,617
Total common shares reserved for future issuance (in shares)		12,000,000
2013 Employee Stock Purchase Plan
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	4,000,000
RSUs and PSUs
Class of Stock [Line Items]
Outstanding RSUs and PSUs (in shares)	11,162,669		9,155,680

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase (Details) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) shares	Feb. 28, 2023 USD ($) transaction shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchases of common stock			$ 35,057	$ 0	$ 186,368	$ 300,450
Purchase price					$ 186,368	$ 300,450
Open Market Transactions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchases of common stock (in shares) \| shares	3,433,157						1,146,803
Repurchases of common stock	$ 34,500
2023 ASR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchases of common stock (in shares) \| shares					9,574,509
Number of transactions \| transaction		2
Purchase price		$ 150,000
Stock repurchased and retired during period, shares (in shares) \| shares		7,599,747	1,974,762
Stock repurchased and retired during period, percentage		80%
Associated costs		$ 1,900
Stock repurchased of excise tax percentage		1%
Stock repurchased and retired during the period, weighted-average price (in dollars per share) \| $ / shares					$ 15.67
Accelerated Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased and retired during period, shares (in shares) \| shares							11,562,475

Stockholders' Equity - Securiti

Stockholders' Equity - Securities Repurchase Program (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	May 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchases of common stock			$ 35,057	$ 0	$ 186,368	$ 300,450
Repayments of convertible senior notes					369,761	0
Securities Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, increase of authorized amount		$ 1,000,000
Stock repurchase program, authorized amount		$ 2,000,000		$ 2,000,000		$ 2,000,000
Remaining under repurchase program			$ 89,400		89,400		$ 642,600
Repurchases of common stock					$ 184,500
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 \| Senior Notes
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repayments of convertible senior notes	$ 368,600
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 \| Senior Notes \| Securities Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repayments of convertible senior notes	$ 368,600

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 35,920	$ 31,087	$ 69,666	$ 64,171
Cost of revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	560	669	1,087	1,292
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	11,968	10,006	22,882	21,782
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,182	4,019	4,681	8,405
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 21,210	$ 16,393	$ 41,016	$ 32,692

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense capitalized	$ 0.7	$ 2.3	$ 1.7	$ 4.1
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to restricted stock units	$ 204.8		$ 204.8
Weighted-average vesting period			2 years 1 month 6 days

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares Outstanding
Beginning balance (in shares) \| shares	9,155,680
Granted (in shares) \| shares	5,269,726
Released (in shares) \| shares	(2,080,263)
Forfeited (in shares) \| shares	(1,182,474)
Ending balance (in shares) \| shares	11,162,669
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 36.03
Granted (in dollars per share) \| $ / shares	15.68
Released (in dollars per share) \| $ / shares	36.20
Forfeited (in dollars per share) \| $ / shares	30.53
Ending balance (in dollars per share) \| $ / shares	$ 26.98

Restructuring (Details)

Restructuring (Details) $ in Millions	1 Months Ended	3 Months Ended
Restructuring (Details) $ in Millions	Jun. 30, 2023 USD ($) full_time_employee	Jun. 30, 2023 USD ($)
Restructuring and Related Activities [Abstract]
Number of positions impacted \| full_time_employee	90
Restructuring charges		$ 5.7
Payments for restructuring	$ 2
Restructuring liability	$ 3.7	$ 3.7