Chegg, a US-based online learning service, was warned of the potential harm of artificial intelligence (AI) chatbots in April. A week later, its stock plummeted by more than 37 per cent, the biggest ever impact on the edtech sector.
Dan Rosensweig, CEO and President of Chegg, commented in the first quarter of 2023 that the revenue had declined by 7 per cent year-on-year to $187.6 million, with the number of subscribers dropping 5 per cent to 5.1 million. The news caused ripples in the education sector, with Pearson’s shares in London taking an 8.7 per cent nosedive the next day.
Rosensweig comments that “generative AI would impact society and business at a rate faster than people are used to”. This prompted Chegg to launch the CheggMate service, in association with OpenAI’s GPT-4 and capitalizing on Chegg’s proprietary data, 150,000+ experts and it’s 10 years of experience, to retain customers.
Subscription services revenues declined 3 per cent year-on-year to $168.4 in Q1 of 2023.
Chegg is a leading platform for digital and physical one-on-one study help, tutoring services, and more, in addition to providing a stockpile of e-books for people of different educational backgrounds. The goal of Chegg is to empower students to reach their academic success by providing them access to online and offline tutoring help and online library access.
Dan Rosensweig is one of the top global executives in the technology industry. He has held CEO positions at Yahoo, Guitar Hero and now Chegg, receiving numerous awards such as the NASDAQ Entrepreneur of the year and numerous ‘Top Executive’ and ‘Top CEO’ awards. Under his leadership, Chegg has established itself as a leader and innovator in education technology, providing better learning outcomes across college and university students.
