Chegg (NYSE:CHGG) had a rough day on the markets, with its stock price sliding 31% after the company warned that its financial results were taking a hit because of student usage of its ChatGPT artificial intelligence technology.
Beginning in March, Chegg had noticed a massive surge of student usage for ChatGPT and believed that this had a negative effect on the rate of new customers. In response to this, Chegg CEO Dan Rosensweig has announced that the company is dedicating its efforts and resources to embracing the technology to maximize its usage.
Unfortunately, the pandemic had an effect on Chegg’s Q1 results, with total revenue falling 7% year-over-year and subscription service revenue declining 3%. Chegg’s guidance for the second quarter is for revenues of between $175M to $178M, which is much lower than the consensus of $194M.
Chegg is an American education technology company based in Santa Clara, California. It offers online tutoring, homework help, and textbook rental services. It is also known for its popular online platform, which includes a wide range of topics such as study guides, practice tests, and online courses.
Dan Rosensweig is the CEO of Chegg and has been since 2020. He is an experienced executive in the technology and media industries, having previously held positions with companies such as AOL, Yahoo, and Activision. He also has expertise in areas such as marketing, sales, product development, and business operations. Rosensweig is a firm believer in the innovative power of technology and its potential to benefit students and help them succeed.
