Chegg (NYSE:CHGG) exceeded expectations for its second-quarter revenues and outlined its intentions to further expand into generative artificial intelligence. This move is aimed at directly competing with ChatGPT in the AI space. Chegg’s stock surged by over 20% pre-market today.
Chegg’s adjusted EPS stood at $0.28, coupled with a revenue of $182.9 million. These figures outperformed Street predictions of $0.29 EPS and $176.5 million in revenue. Notably, the company observed improvements in year-over-year customer acquisition and retention rates in the quarter, a trend that followed the launch of its initial generative AI experience in May.
Looking ahead to Q3, the company anticipates revenue between $151 million and $153 million, compared to the Street estimate of $152.4 million.