Please ensure Javascript is enabled for purposes of website accessibility

Chegg’s Market Debut Is Not Nearly As Well-Received As Chegg’s Actual Business

So textbook rental company Chegg went public today. And here's sort of what happened… Chegg priced their IPO at $12.50 a share, which exceeded expectations.

Here's what you really need to know though:

Chegg said it earned $22.7 million in adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, for the nine months that ended Sept. 30, a metric that excludes certain costs like stock-based compensation. That is up nearly fourfold from results in the period a year earlier.

Using generally accepted accounting principles, the company’s loss narrowed 12 percent, to $50.4 million.

We initially were paying attention to Chegg because as the "Netflix for textbooks" for the last 8 or so years, a lot of you are probably already familiar with what they've got going.

Of course everyone was like "Chegg is going public in Twitter's shadow" blah blah as if just because they both come from the Internet, and they are going public, they must somehow have something to do with one another. NOT.

Here's what Chegg's first day looked like up until this post, and I'm going to turn this image on its side to better capture what a dick today was to CHGG:

Anyone else see it?

Anyway, basically they got hammered and tanked toward the end of the day.

As of this moment, CHGG is "up" at $9.8199 with a little bit left in the trading day today. Go ahead and start screaming "TECH BUBBLE" at any point now.

That's the problem with putting a value on tech — how many of you benefitted from Chegg's business model? But how does Chegg turn that into profit? Guess we'll see.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

man playing chess with a robot

PwC Chair Basically Threatens AI Will Replace You If You Don’t Come Into the Office

For two years now, PwC UK chairman Kevin Ellis has been trying to get people back into the office. In 2021, he said he wanted to “create a buzz around returning to the office,” luring his people back with the promise of human contact we were all starved for in 2020. Launched a year after […]

sketch of a robot among business people to signify AI replacing workers

PwC Chief Products & Technology Officer Says Not to Worry, They Don’t Want to Replace You With AI

A couple days ago, NYT published a piece asking an important question: Who will protect the workers losing their jobs to AI? The article references a May 16 senate subcommittee hearing chaired by Senator Richard Blumenthal at which OpenAI’s Sam Altman is told Mr. Blumenthal’s greatest nightmare is AI causing massive job loss. ‚ÄúThere will […]