Chegg (CHGG) 9 Aug 212021 Q2 Earnings call transcript

Greetings. Welcome to Chegg's Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please time, Tracey Ford. this I'll now to over conference the turn At Tracey, now you may begin.

our Dan CEO; Good also Investor on at afternoon. Officer. along routinely call. are media with investor.chegg.com. website, A conference second on and Relations A post quarter available We make Co-Chairperson Thank our website. you earnings presentation for center On encourage joining copy of this make our today's press Chief investor Andy our Brown, will and replay Chegg's our to resources. to on be call our XXXX information of Rosensweig, Financial important chegg.com/mediacenter. website and release, intend call on these use available you of announcements We website is

out and we future believe of as factors of update Securities with reasonable we the refer new the make no risks filings operating these annual result I you the consider Form today statements are forward-looking the to as the the forward-looking SEC. statements Commission materially forward-looking release we based you statements this from Before filed well in described XX, would in XXXX during this information we to in from the point materially caution including the with performance material subject and events, obligation risk Any to results Chegg's In assumptions to statements. statements. that like future other undertake We will that and as call, today's those cautionary begin, are financial to that to and differ of differ be regarding cause that language or included forward-looking on that make on important of to course on events. as These to we company. cause actual in a XX-K factors those could results uncertainties date. particular, earnings February forward-looking the actual report Exchange We could future statements

non-GAAP call, financial this During and GAAP measures. both we will present

results our earnings press website, non-GAAP the and can found Our investor be on GAAP reconciliations IR GAAP to release the deck slide investor.chegg.com. and found in

We also on also recommend is IR sheet, posted our data the which website. review you investor

the to Dan. Now turn I call will over

quarter everyone, you, earnings QX Tracey, is growth clear Thank are core and unquestionable. in a on-campus strong online, quarter, school a Chegg's had model, growth reaffirming Services We journey. the great revenue the adjusted growth EBITDA growth education hybrid of had led Chegg of to that year, value XX%, XXXX welcome, they entire We to value whether with students and or to Chegg this of students call. XX%. in learning, their particularly as in total XX% wherever is of Chegg by It

that expectations are we And confident growth over for million Our subscribers international we of exceed strong. initial our international X is will the year.

growing continue account new have experience in we campus, opportunities to facing world. big on expand, problem students allows reinvest remained focused our content, to As even to returned students and solving sharing the efforts as which to are around more student have the the us our reduce

reflect for guidance Our us the raise allows remainder and XXXX. our financial and results both adjusted our user once success, revenue EBITDA to of again which

accept care to our students, communities. them. operate must They maintain we to that that million learner. we and and a we build to our if in listen over on to last first, putting and believe how issues Chegg XX we long-term standard set the responsibility. we serves are we students this relationship that with invest decade, the sustainably, important support that focused now And to monthly. We we we Over employees the contribute have the student modern and the want

contribute right to continued and out integrity and programs on content are we content need allowing advancing they of and content dedication time a their build and employees, of academic new the Uversity, that include communities our values, believe improving wherever the reflections learners learning relationship clearly by dramatically to We learning they with and our business. protect initiatives, our are Recent will the of help to textbooks personalization, services services and improving adding our the to launch discovery courses. our by economy increasing platform, of also students build will the ecosystem. focus from access We redoubled is to student increase These will our contributing entirely our and search positively in learning are and new Honor of need and supporting the to high-quality increase content to have focus company be impact which students. outcomes of continue content length their and support environment, our outcomes Shield we journey, new on and content. discover positively an at most. the efforts fall, through mission they to we content greater success for that continuously examples aligning to students discovery it educator our add Chegg This on our our that

base. Study XX huge, give report sense get of Chegg using of master now solutions to TAM new in students, importantly, more say helps were we students every were million is by help subject grades. why of quality international them that And also over the XX course scale none. helps day is second survey our million daily. size, second using scaling them and Our our our to Chegg by over citations questions their is them that single and of Those subjects. Most step-by-step them serve quarter math have in to XX% were over asked QX. them very X our alone, Writing are than subscribers. product, you In we which we experts, million matter XXX The that growing questions asked viewed answered created asked Mathway, and student added our we quickly To and global of Chegg a their learn million offer solutions size, were in we XX% within almost and were material, XX% X better what times, and million

that we health, XX% also support We their builds believe this beloved why are an of impact metal helps of student Study reported kind their Chegg believe as with which confidence Chegg outcomes brand. stress and students we said Study that Chegg we student's is that proud real less done impacts of directly such get tangible These work and before them XX% the reflect exam. and incredibly have, a

they to pursuits, to continue focus learning from alternative them helping academic will to we continue support in As so to for, That why professional can global we compete content. their in earning. students looking academic in is are content also the continue gain know on skills-based to will we but in-demand in seeking students economy. just employers skills not the also pathways make that investments are move We

evolves, the the institutions hybrid are or making As online transition environments. rapidly to education difficult landscape

students’ for New content. educators share, the content, create to of to need increase Honor and efforts and including exam the in we periods, during these to greatest professors I need ability challenges Earlier and launched access mentioned supports online have areas: institutions emerged, this for get integrity. opportunities to around highlight Uversity. specified to access of content two protect their already content, to integrity Shield which high the compensated the that to we Honor year academic initiatives and want Chegg block the quality Shield,

schools working even more with high-quality access increase As and faculty our world. to goal online, content more move institutions by is around the to

to universities case get notes, create are course through studies, the from and guides, the work and and We to for Chegg enthusiasm guides, lecture like excited quizzes, very leading top Chegg, with about content practice have exams, educators content. their ability add great lab to compensated of to study

Uversity While who it say build I students. and for and community learning already more early, faculty even $XXX,XXX us still earned joined are to pleased valuable helping educator have that an library richer am is have

students, paying a internationally, our like which well-being, belief major Chegg’s and positive beyond mental the to financial serving donated physical that Equity and efforts are we to business institutions, to with employees, to of hunger. combined our heightened our the we and make help food to students of contributed we proud one XXXX. non-profits why prouder. are core with million faculty, we for we debt, debt nearly aligning Sustainable important our to program it’s have and our and contributions and insecurity themes community all and be which and, philanthropic health substantially U.S. program, a our couldn’t that that student U.N.’s end, education, including zero Development we effort designed focused in are addition business, supporting our employees’ reduce activities moving is the of, know a our impact To our support That and off existing Goals, loans with launched on that $X quality focused and towards of programs focus student programs pay good aligns have organizations on with employee’s off reimbursement health is particularly in world Education, in we I to and we invested have In

team, us leadership as be our improve has none ahead a in believe as for Fortune’s possible of phenomenal being are we best recognition and proud course, focused had getting our work year, named our outcomes. work to on the school well to quarter, incredible dedicated diversity, the this quarter teams, a employees for employees, Women Their bigger. and for resulted this awards would We millennials. without and places win we Comparably only one tremendous of Of were opportunities continued are our to great for who student in past mission:

I excited in And to Andy? over our are role increased it will industry. responsibility take turn our with on Andy. and to that We

and afternoon good Dan everyone. Thanks

the we of as high ongoing year. related extremely of expectations quarter. and for in revenue are and both the our the delivering despite both profitability. are happy continues performance second at substantially the metrics the pandemic, a revenue and The our level to We to with for guidance adjusted The remain underlying high-end such, raising beyond operate strong, team EBITDA uncertainties remainder

benefited from to Looking in To past grew revenue have this quarter the revenue at revenue as million and our Chegg than subscribers content, Services and total in to growing investments we product, years to driven million, during more quarter. have put $XXX in growth penetration. both global million doubled in X.X the XX% XX% in the QX technology two Chegg with subscribers perspective, by Services $XXX results,

led times focus accessed putting has can first, learner a on online, because platform positive three anytime. we EBITDA delivers increased just that offer once almost be are demand, as guidance outcomes XX% trusted place, laser-like leverage, ago. that focus what and significant to two achieved Our second-to-none that adjusted any growth in brand in we and with again continued years that our services This is $XX students to students, anywhere, year-over-year a has resulted with exceeded million,

invest Our to that maintain margin fact our believe we and given new growth us into leverage increase foreseeable will margins the future. which impressive high line expand to is of and resilience products continue infrastructure, features, scalability allow for the rate in new markets top to and and continue a we and products the increase

the learning Our – of next ed-tech, leverage channels, and Required among is We content logistics of scale our then relevant Materials new business used created will once QX, inherently much improve landscape. model our through also our unpaid acquired growth, we to believe the subscribers by the globe, of rare, we supports the believe but times combination a we is cost not a broader is transition operating many learners our our year. scale, are globally. across continued structure offer as initiated partner only and we high leverage completed textbook content and print during which technology margin once Also high majority

billion. investments $X.X balance Looking the and at with we sheet, the cash quarter ended of approximately

future During we which for price the convertible approximately redeemed remaining $XX as increases. XXXX debt reduces and notes the any our total dilution million, quarter, potential share our

campus, to more made EBITDA year, engagement to half we year. for revenue students adjusted and feel gone confident the reduce as Moving the increase account of to the the and with efforts we second have our sharing to remainder raise of guidance even back the

natural million $XXX between full For between with and gross XX%; be $XXX Services million Chegg we leverage an revenue XXXX EBITDA more XXX higher XX% XXXX, now $XXX model reflecting million, than scale. total as basis million, margin million; and between expected and million between year than margin adjusted the expect revenue our $XXX to to continue points of $XXX and demonstrating and $XXX in we

$XX between and between million XX%; between QX between Services XX% adjusted $XX excellent Looking confidence We of high for revenue of the specifically delivered $XXX gross with the at total million margin guidance revenue academic now new Chegg $XXX In million our giving and quarter. substantially as and the remainder we closing, QX above $XXX enter to EBITDA was we million; increase and year. and expect million, an us end to million. be expectations, XXXX $XXX

impressive We over our With your the to operator continue to reflects growth call to that importance the the of Services world. model turn for the around I’ll learners and believe margin Chegg’s questions. that,

[Operator Instructions].

Our first question Sheldon from Stephen Blair. the of William is with line

So Uversity. been X-part general to question so them One, how feed contribute getting there background. here and faculty content is just on guess, I far, with traction their

are breadth new how a just thinking comment what that the on the I else have on you that curious around you're to applicable subscription the on gave the and Chegg of about think available And impact far, areas expand so way earned will especially two, Uversity subject but seeing that? content your $XXX,XXX making students? you then more in platform, could that they've

This Yes. is Dan.

So out for -- educators the we we it yet. students first put the you marketplace. traction to for it. It's X-sided have a and launched We to the it launched Uversity haven't remember,

So that is demand professors from quite the $XXX,XXX suggests high.

that don't quality, misunderstanding scalable that wealthy of help I there's most are can come have high get. thrilled is they with a or the go families they This because or professors think talk how from that us particularly of availability to recognize schools overwhelming that the affordable, support that us tutoring. students need students don't wealthy many majority to

have And that, so supported us. always thousands of more than teachers,

So the actually contribute it. and them for for this to opportunity is first paid their content get

So they're static.

to same student exceeded The but number same So to high. we the been that students or advisers our of the X acknowledge no has demand way has always way. the objective has quite haven't The different no X been student. really yet launched the expectations, learns it subjects learn

require some Some require subjects tests, student practice it. where study require is, depending the the some guides, what on flash along cards, subject is

not categories we're for expand can to the accessed want already content that way categories we only so in, that And the but we're be in.

all very the early seeing far very, so of we're things of so at very, stage those And this.

do do always survey we goal of -- goal a And better. get the because directly better this from business having primary so obviously, content And this, master students professors. to perspective, will is help the the that material they've wanted when from and them,

a is have of this professors do students great want So to wanted marriage what what and to see.

expand The second number the categories thing of is in. it can we're

will or the expand thing it third we within services The the type have content is of category.

All not extraordinary we're increase seeing, that the or we're extraordinary that have done retention well, continue the but growth of only that will seeing. subscriber

positive So impact over time both. a it on have will

Silber Next Markets. with question the of from Jeff is BMO line Capital

going the impact and just if any students students the in is on are I it whether I'm Delta where terms doesn't be to know you've of past, that fall But variant that? really you're matter having remote. on-campus said curious much seeing in or what enrollment, are attending

vectors the doesn't now as if And the -- hybrid, is we campus. looked they're at long we've on what from and sorry, doesn't it months studying, matter doesn't we where It It they're of them all gone student as they're those is similarly. what matter is one have variant, studying doesn't remote. if done students if studying. we have matter that for performing doing it they're matter is and in it I'm on said doing Delta every

for which is able has to affected his was in a X proximity. it to because account was where that, that technological back had Andy one, areas: always we're solution premise then of has that because our sharing go put our as we prepared reducing working, the had students And remarks, So been pandemic to business domestically, campus. monitor

comfortable with it because went of really And large being we're So has percentage a sustainable effort students that back. been.

those But any And mindset anyway. to stages students not certainly and colleges and and those community so that and negative their those didn't deeply and were the the or coming suggest so also back back, from variant affects jobs, business And Mostly care doesn't attending the robust community important and as were our to at well. are their jobs it as lost they're almost coming also back, we affect enrollment a colleges. us. school as XXX,XXX early so are increased for are class, them affect economy And all. students health, about seeing their all them in Of is all because certainly things. mental It of are way. go they doesn't because long students of but very really we're Chegg,

is & line of The Company. the Needham question from with Ryan next MacDonald's

I'm platform? of university Dan, more there. out through going to this adjunct by you on or the going to how more faculty? for Uversity university just Are you're sort hear curious, structure are the pieces Just color processors love on finding that, building as bring focusing and the you to

nice Yes. Ryan. to fair question, hear from you, and Really

target? initially Harvard, from schools So did we we schools. of those We it it Stanford, state community popular And we colleges. colleges, professors -- from name we what kinds We Chegg. very popular very brand and also also did did from did initially it schools, subjects at for targeted large from

content all those on We our all us schools. participants advisory from have -- of to had had come come of uploaded kinds board And them. through we've from

in and of state recognition where would we where from minds the professors. our professor was was would validate from the should students brand is and really volume a which you content quality school see the where interest other students, would the large high of imagine schools of it So targeting be the initially, of the the

marketplace a created We've out, a does all those. see. can all of go have reach built a do great team who we we're which self-service seeing easily. video, explains it you So We

on it's we We early. up even lots of content but students of Remember, already. have absolutely people from endorsements super to sorts all haven't the from picking it colleges momentum, yet. It's exposed

So want Ryan? more? just to answer, this is I is first participate. -- professors wanting you Did the Or do part

excellent. Thank you that's Yes, very much.

Next of Northland from question Security. is line the Grondahl with Mike

on how your bundle update that's performing expectations? of the kind Any and against

some Andy The excellent. it. numerical Yes. been and put I'll around will bundle start, color has

International we We it So similar had U.S., expected, user helpful. are we was we And previous is percentage launched the entirely had excellent? originally define anticipated. was Study. that expected. it how than Chegg similarly people that regular performing earlier A not higher to behavior do which of than subscribers to taking is gotten just very

every of the take their increased, rates, always the everybody substantially is yet, as raises never was taken up is those has fact a ARPU year. that prices really that We're to That proud even our been just itself example one students another the So and up extraordinarily continued of and our when of fact has Chegg really positive. choices. it, we've expect else we plan. ARPU which ARPU reveals able what's in of increases this And every result once, our giving

larger year a next of year renews our the bundled and so percentage And will -- now after, subscribers. base will that be

grow. So to the continue will ARPU

So a that's the thrilled really has it. we we're with it launched surprise, why But been not results.

data that's any did Great. add it? have or Andy, you otherwise, to

I think bundle expectations. No, Mike. exceeded Yes, it. has nailed clearly Dan No. The our

itself increases we several for see have and starting always now And that a users. Study to mass that the You're continued we was Chegg goal increased in critical that of ARPU. Pack years, in our ARPU it reveal seeing it's

is all yes, So good.

Services faster the significant look we higher EBITDA not fortunate EBITDA I've work the growth, grow greatest I not XX% we manifest better. some have and revenue guidance at why, that's year, the we really Mike, now grow, the models it's continue rest And the only more mean, single Internet. the invest, the at was after of been if retention of which that at we the greater grow keeps at where experienced, It's This getting for I the can has XX%. the on investments. starting margin subscriber by we of to is just in and when Chegg phenomenal lower cost the quarter. acquisition, the this yield for you every itself the that have. Andy customer on way, look it you given And And make to to the one

of question next Our Baer line Josh with Stanley. from is the Morgan

maybe quick one. If I could ask Dan one

Chegg XX with you You that interact a basis. million monthly mentioned that -- students on

Just big then hoping we Writing us? down And Are freemium that? high then could and the subscribers? for far as Tools portion as Mathway you Chegg all Services break the thinking of and then maybe and products a that about representing school

that's Well, what we have. Yes.

can't that's So because the for is Study subscriber just free one paid Chegg use that Pack service. or they Chegg a Study

has use cost, things a So Chegg section big freemium free academic Mathway, majority the writing solving the on they part free Life, our need listed. our Money called appropriately of to and of to and think program, from Chegg the problems, support. users overwhelming started as also that with -- everything We're student ourselves which the then internships.com is it we see all I building ranging product the you for the was

Now health there's need other and skills support, things. life and mental skills the for financial it's particularly then

of couple substantial grow of students, over years our are free our audience pretty number unfortunately, are the needs the can growing. bring will of to we subscriber next because audience things that So and students that the both

right, seeing people coming they know well because they're do picking from of course, we're and cards, so of school. writing math And international up extraordinarily now we a for have Chegg. where that lot from, high which also product now flash you're it's But

So of I growing, one where lots place is the other. but to point seeing wouldn't great we're over the funnel places

to. just if that were And Great. the could on one you efficiency speaking I ask

top of to EBITDA. beat XXX% flow than more the line had revenue You

little as EBITDA far just leverage outperformance? on sources more some a color was for I the hoping as of bit So of

Yes. That's Josh. good question,

then we you at our a marketing gets times, it a STEM both So and our or globe. macro not just take the multiple get just significant right? you look leverage in the from it's at once with very level, domestic and points, area, it think standpoint, particularly used can it be used whether done If when students, a content also standpoint use about a across particularly and not content,

so business a part that created leveraged just as or our of of being we're originally that And was overseas. of leverage that, seeing lot content developed U.S.

And that this And think other other of when to about of students is side there. a of so of Internet have it's through you very our a -- sources, traffic. have more to the to huge unpaid little come We leverage where than companies, marketing, don't platform XX% that our they are unlike lot point our buy our that traffic. buy

leverage a And we see so lot that. of across

not and -- quarter. so And it's this just about

at we as go also model believe we look for future. increase. our our foreseeable the this we continue If call, you I EBITDA to couple increase, at the year, over margins take to a margin look see bps that as see of last we in we've done XXX And going years, we'll mean mentioned year-over-year in we're what beyond the leverage EBITDA earnings margin

isn't So inherent a just of right, in other inherent it's lot it our in model, where businesses.

Andy But That lowers it acquisition. for always has build of you company, the perfectly. company the Yes. software Clearly, bird. customer and Chegg, dream Chegg is done to like cost become I where think every a the out platform technology that. laid

But those referral, are the higher own things means name gives ideal you helpful. recognition, it to sure, and the all want world, you'd For customer, high Chegg does. in which

person. the same be it the You way consumer is want to your Chegg. for That's customer the and

the data, to relationship. payment want to own want a you'd You'd own

or able that of customer model and Chegg channel nobody can you get from be the all own And get own to a directly and then your up your distribution block want business you you to renegotiate if content, has. you the You and that or hold be -- have deal.

we And of of XX% own all content. so our

So we future actually our on nobody dependent for are success.

of bottom don't have And we're fix don't We so for of We to get student to to experts respond to because that and else a yet. can And look to the not do it. says, to have we the it to line? you to hundreds people at any flow, turn ratio the free ask fill time just have to have those better. But because have it to when we're I anybody it's able we're when content to And we think it's want. then listen thousands just just we let keeps wait How right that drop you not cash we don't go fee unique And model. able And who get the very investing. entire around, what don't really content question. out don't somebody you go getting it, to us.

are. model the -- is is. model what We a just It's this

Jefferies. of the Next line from Brent is question with Thill

theme achieve both And Are have at having sacrificing line, investments so you with at not just keep to actually the where without margins getting margin next now growth without hold of to stall close following on to XX% level kind the the you're growth. that Many of you can the margin. can asked that why great you make margin? line top indicating feel bottom the bigger and of

Yes, starving you mean, investment. not we are I just nailed it, Brent.

ever we we're investing fact, have than In more and before. more

from almost years it our XXXX, If a OpEx back over X we've what, X have been. I guess, you would just or go doubled ago,

significant mean So I we've developing investments talked are already both couple making developing new on we products, and technology, of about our so these, a Uversity forth.

yes, massive year, in both last leaned our investments. a are continue we middle business for investments particular, in those in particularly and international. of make so in the we domestic -- and We’ve absolutely lot, particularly And making to

the to allow said, believe high making now you're are for type enough a will truly just we've expansion it's got we absolutely fact the leverage matter we to like that we And of of for the that growth. think leverage that points I that I several and seeing margin are we investing that high the So future be to of we're come. growth But seeing. years investments us continue

think, And I here's grown and that the so couple margins years, last of increased. Chegg Brett, us and In has fairly years, for our question, the XXX% have last people have asked X so what's happened.

this is for than on That grow And at growth So to I rest rate Chegg of revenue you is growth that XX%. at rate. -- base larger. year, the rate expecting even our grow pre-COVID that can't higher the think XXX% Services we're for top

and we we're clearly But excited were always we We're and We're growth. best. holding communicate seeing we're it right be than anything had investing now, more starving So business, not additional choose I Andy in and think it. make and never said our about investments. back the and afraid results extraordinary we'll growth showing just ever should to we'll

I to on improvement, in think, margin wanted drill Impressive it. Yes. everyone the given the raise magnitude of

Just quick as follow-up. a

On is searching and mile of or for markers. the overall I metrics revenue to can the given detail other timing that business? the as international any there customers business, the we you've relates terms more get we're international on any out on in mile marker more But users. breaking it know all

but think will assume We're our not let going give we some metrics, me number. to be that going Obviously, breaking growing. we're I is, positive, really the exceed out so which to guess obviously, you we're is we're color, -- exceed best

renewal Study the take We're of for are what looking and both that growth, rates for? by sustainability countries looking not we're growth. rates in, of only We're countries Pack. high high looking we and in So for new

That, is the had a difference between the of its numbers than again, better so hard-pressed subscriber's growth. see originally margin because expected particularly you're our early So you'd international we to an holding profit behavior. is subscriber's why stage this so bundle behavior and a U.S. to is at up be outperforming, outperforming seeing

content they similar. subscribers. early very that subscribers access Chegg of country would changes as is similar. Their much other renewal it Their very color Their which international by take love countries. the be rates are U.S. as more rates that than very And similar. are utilization So

some but the countries science, the are countries more Some are very behavior more more subscriber they're are similar. STEM, in business, is countries some base actual positive once really and

The next with Anmuth JPMorgan. question line is of from the Doug

then from in that reference to talked hoping a you that more. could or bit you I is content on up have a of content? by increased a just user And it Was Dan, is about courses, discovery different Or as to Uversity the follow-up -- little shifting a building elaborate change that textbooks in experience? well. that

question we Yes. Uversity or that the a access. the content It's Actually that. just that experience. able of connected was user what we students will follow-up, on And necessarily one to we'll intimated pools to call because evolving great be take directly are isn't the that too.

One that of really get so you we million X opportunities so continue that that or grown XX to the a they've come area is depends you or solutions offer. in math of It writing has on everything grow as million Chegg one in. have rapidly, know door when company pieces the and many we've XX students don't to million rapidly in questions

they have. personalization you you'll want discover Chegg what be? which more want to And be more. about use greater My don't that Which, hear talking into retention. a as the case, and be? Yahoo! it, everything days, us lot with so some you what if and do And progresses, That which is Yahoo, is when to -- year experience. you to it how it then it a In think next to it know year we helps more the want back does they Well, make students this you how

bringing only The and things they to really second be we them even before we to is should thing need, they ask. should bringing be that it students

And that we'll more so and And and on how over the our start retention. it how that we on discover what other has? that all like a forms as but which big bigger. course Chegg is and do enjoy bigger next a that more more I of to have, with year, students growth really of subject or about already into as seeing currently there's and content other is, will more video talk and content getting year want of year they and And start And next user the helps that both students depending the does progresses lot don't are, you access we bigger who user depending areas thing of the really future. the that get have of go just Chegg is to

of it's super both those ROI an exciting. there's things, So on and

you on I And Okay. a you bit like X-parter. helpful. sharing just, guess, Great. talk kind you more terms of you much the different the but sharing? of bit XQ basis. have to -- do guess, year, at cadence for seasonal kind of That's the everything far sequential could now more, a little cadence to things, than base, in basis, you're feel right, hoping And 'XX, be a but XQ what this account the you kind think given the higher, views different comping a like of could I additions like school in if about of looking there. forward? to efforts it -- I was I But just little turn I looks been do similar account off then course, is times. how here get are of that more are a the the reducing bigger just type on the been trying it's a and degrees dial along back year know are of I just XQ obviously, on of subscribers, guess into been a has at look we subscribers Just sequential your feel a is

A have lot second of let the me part. talk first And me the to part, there about sort try unpack. Andy let

in suddenly, then and was closed changed gone. the seasonality, on open then So what for weeks, pop X sharing literally account they schools suddenly seasonality was and back

So we've lapped that.

model out of well news figure we're past terms those the That's things. able good So to believe I -- we're being that. in and

of rates higher with it's a of positive do account I in terms international of top on Chegg think growth been for would 'XX, mind lot do base. the really of have than our what's in they Services that our eliminating and higher that with growth lot a much And growth has to has are to rates, and In now a is sharing.

On that using but that fact come those many of It the so the them to account who not of wasn't to weird really was it it. explain to people is paying people where were were people was that question, where it hard to sharing caused scenarios and Chegg. COVID -- Chegg, for enough just this was one were it using

So were open, campus, cycle. that addresses our very we strong. specifically and really students IP schools I those back up don't do were in that What know went holding campus is on where efforts that are we that are that I know reviewed know that to we

in currently X all So to months But no one's back we've in perfect mind, going to this already for it based space. that of on campus seen this evidence ever gone be have students the is the our absolutely first sustainable, year. in that

for news or good if that Andy, don't all I add you want to really know it's us. So not. to

Yes.

Let me other just thing one add there, Doug.

absolutely And similar on right to XXXX. very the so you're seasonality, back in

addition we that this start the at think all So QX, quarters, I look the you organic when the in Mathway. prior growth, right? to thing it's had other X of

So when you subscribers at look we're in truly at it, this organic growth. X.X And is basically XXXX, at million. X.X mean, million I what, QX now and we're of

I you've So well we've more the now think of that relevant more lapping. it's double. XXXX do in seen than done are the kind But trends that back that

with from the Jason Markets. Celino is Our of KeyBanc line Capital question next

Andy. for question guidance-related one Maybe

year maybe the these Help us into it the it beat million]. of at or You're what confidence. It's Study Is international? trends in some the back-to-school it this point frame just much waiting maybe Maybe full quantify seeing guide you you seeing summer? gives until of it raise could break raising the by but some retention? Is Is it the Pack? you're trends? the year XQ down? here, it than versus services [$XX more confidence Is

Yes.

fact things the So to X the as students we'll we're like clarity is, and I call been of how some unknowns matter like are more account sharing reacting have obviously, last, but quarters, mean, around significantly it, over particularly X things getting there the or that.

-- the are me remind to look business, started you, So we subscription business. a we as let and at we

part from subscribers, existing are large So the our comes revenue very predictable. right? rates renewal those very very subscribers a are and predictable, So

we going robust of we and into confident guidance. at fall, the And able so provide to summer all into being as very in looked felt the data a the

with And so yes, felt we very it. comfortable

is the Alex of with Our next question Craig-Hallum. Fuhrman line from

moving little you're about sounds like away new organizing going you're your I certainly more if was the out. It bit can wondering have talk a around to content efforts towards you textbooks. more personalization rolling

about can that of And what today, oriented see talk your So at how content are of just looking going. you curious as I of students, textbook is more guess, towards many more kind if to? you where evolution referenced

Yes.

never a this to small very a very to because going don't It anything of student. up -- this more that later lot important screws a for do So we're a transformation talk out rolled I subscribers about has on U.S. because us. it's year we percent only been

very, do adjustments, business And then This good help thing similar what we what even things business we doing momentum and from, in it is roll to the which should in much amounts, about our so we done and be is did don't And out have the small benefit more more our students to will very it's do and there's will anything. so make we today. test it, than and it and we in we past. it other then we've with the then judicious. what We're bundle very, we

the exclusively. So textbook much historically, around pretty we've been oriented

become can You and we're textbooks help didn't that know content as we do from we like colleges. or institutions that learning now you. online important the institutions community textbook, less before, But serving as

evolves, content. Chegg curriculum always organize the how has As the just It's expectation, we you had and have it. all

So won't there's the go that around are from we not more looking demand course for students just around content itself. away the but organized because for overwhelming that, an textbook,

which the Holy the And at could so class if be chemistry, you And whatever. chemistry specific school, think your course, it is specific be could Grail. it about then

over time. that we will are And where so the Star to North evolution be from

the be get think, you the be of be which that it whether And format vaccine system, idea more I it government them is just it literally, to or population like think to of individual, things audio-based. help way are can big a important from see this is to learn, all we really it you, below be people, video-based, step-by-step world's you them arguments kinds have the XX% what's whether on whether an are yet about it I have whether that of student. number rather -- add global your services Chegg and that going to I'll we that over think whether be be be mean, remind text-based, her able solution, age dependent access to And market to all to content you teach the time vaccine people to can the understand around so the on the students this than school teach will subject. than the it, personalize the enormous. your class, I themselves in the not XX. how any is need scale, over or don't and your on going of of a is And any of or

it, So the needs as long for as we then to We have specific increasingly their direct guess. stay specific around they've don't exclusively of to focused go. courses organize they on the and been classes. And asking us student, where

so literally long a next starting, And much not It's so are a we to impact on us. except We've have significant just we for the for several in been time it's it's time. years. exciting yet, it for just to a going really investing think it there's just -- say

helpful. really That's

all it -- this questions big, it's on the really exciting. I is because appreciate we're

Our with from line is Brian Peterson of the Raymond James. final today question

year learned from ago. is to acquired success? seen I a on what are you What How Brian. how This that have going just view Jessica Mathway know you know for you just the -- business? about I -- you wanted have to forward? which want

I'm mind as would come heard we Would sure that as questions. clearly not it? I didn't just like. all repeating you of It through

Sorry.

have are Just Like going you and Chegg? a acquired been into you you forward from integrating wondering on about -- seeing What ago. really working business? year what what has learned you what Mathway you the well

even several how asset knew math a it. important or has question it for we founders the math extraordinary. next when XX And us don't you're Yes. our there, million years Even is we've know and know is, be math far built it, need about The math. I they're on mean, and that just exceeded as team best else music, gave I day say how the is global we expect to the think it it's remained to mean to questions I Well, within for the thrilled. sciences And a waited and the years. I except today X was out have medical, get taking as been I we you relevant. it expectations, you scale. tells will

math So matters. my hated. math is But universal, even particularly daughters though everybody,

And our make over our for knew look our profitable. what's learn? commerce efforts, retention And we those faster it didn't call that. so payment companies data, call exactly was learn math and happened. brand, has what that over where knew we them is technology, when we our learn we We reach, to didn't systems, where a that's our company, companies our the leveraged what more said great be did we -- stuff, We systems, grow our because we could math our CRM matters, and call all leverage that. realized Andy What -- acquire

free. is when We that has CPMs. do also acquired to we to Mathway we're offer Well, which system, monetize stuff our the have so that which company, we able the an viewability writing been of much use our also -- products, system system, applied why ad we writing increased which we and also increased to

haven't the particularly being been we faster And team than Mathway happen they've them in lot thought. sad so person open person met happened say I right Pennsylvania. met we so for They're to them for spectacular. what even the yet. would we in hoped And to that, outside credit And there a in we really haven't It's it. so doing team

companies when and and for that while, can Chegg a market So make done have have we been we fit, under-resourced great product that's know acquisitions. quickly, faster a profitable that that them have been best that them that we the grow around more and buys where with have relatively

session. over concludes question-and-answer turn for remarks. This management to closing will you. the floor Thank I our

And ends I had May. a year lot year. So look, remember, there's say. say the We middle school a in obviously of because school not it spectacular to

are low-cost, smaller. give every none going the grateful every across amazing getting be become in to the and little agnostic these that Chegg second Pennsylvania of we in for. is -- terms that that all things Canada up to unfortunately seems than country of or a subject pointed ROIs, acquired experience, invested be would as possible think. they're expect for need been where this the Andy are, seen of matters all And Pennsylvania, awards. the to content, We're expanding, part -- bigger high-quality they reason on students we incredible that college have up. had the seen we're very for to and grateful people not a have. enrollment as without see. integration, We've provide are although has of in we're the value user we ramping that technology, we companies And to students more voting which in lot incredible who, on-campus, you of students needs is is in have the The family. And turnover, their outside none support all we're So brand of second us we've The for teammates can is we're and Chegg But to year. better, of to new the we in be out, mission although expect none. we've next school have minds because

more only for relevant reduce The big, are modern is always the incredible. make which debt. the have now is mission starting to outcomes is them a we're understand value student to awesome what And Chegg on what TAM So we society economy, reduce it students to think investors their to understood, to to their is does. modern improve

numbers, see flexibility by yields, which freedom are greater invest growth is business growth in forward. to us that top knotted The reflects I margins higher of this the Our gives even that. and we the on design. This just what going think,

mission important And back The want is the to level get super more to us. high, energy and just just become so has to we work.

safe. to So call. I on thank joining for all you want us this Everybody, stay

next earnings and We same, will the we'll see the call. do on

So thanks.

conference. This today's concludes

for you at your time. Thank participation. your may You lines disconnect this