Chegg Inc, a U.S. education services provider, saw its market valuation drop by nearly $1 billion on Tuesday after issuing a warning about the rising popularity of ChatGPT, a viral chatbot. Its CEO, Dan Rosensweig, indicated that ChatGPT has had an impact on the company’s new customer growth rate. Chegg initially planned to launch AI-powered CheggMate, a tailored-study aide, but it is uncertain if this could help counter the slowdown in their core business. It has suspended its full-year outlook due to the uncertainty of the impact and suggested total revenue could be between $175 million to $178 million. This figure falls short of Wall Street expectations of $186.3 million.
Chegg is one of the leading education technology companies that helps students learn more effectively. It provides online learning resources, as well as digital and physical course materials. It has also provided tools such as Chegg Study, Chegg Tutors, Chegg Writing, and Chegg Math, all of which are designed to make studying easier. In addition, they provide scholarships, course reviews, and a vast library of eBooks and textbooks.
Dan Rosensweig is the CEO of Chegg. He began his career in the music industry, but later shifted to the software business. He is well-known for leading Yahoo for three years and for his involvement in successful brands such as Activision Blizzard and WebFreer. He has been the CEO of Chegg since 2012, and has led innovation through the new productlaunches. In 2021, he was listed in Fortune Magazine’s Business Person Of The Year List. His focus has been on how to best help students with their online learning requirements.
