Chegg, the online student learning platform, reported Q1 earnings on Monday with revenue rising 35% to $131.6 million, exceeding consensus forecast of $122.7 million, while adjusted EPS rose 40% year over year to $0.22

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by InterestingNews1

The CEO sees opportunity in the current crisis issuing an upbeat statement saying “Our belief is that, in every industry, a crisis often accelerates the inevitable and that is what we see happening in higher education.”

But Chegg was growing fast before the crisis (19% annual revenue growth for past three years) and the recent result only represents a moderate acceleration.

Priced on 14x current year estimates the stock is not cheap for the market leader. But Chegg has a market share of just 7% in English speaking countries suggesting there is plenty of room for growth of a highly scalable business. That means profit growth could exceed rapid revenue growth.

This is not a recommendation to buy or sell. Stocks are not suitable for everybody. Please do your own research.

 

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.

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