SAN FRANCISCO May 1 Chegg Inc, an
Internet company that rents textbooks and provides other
services to students, on Thursday reported a wider loss for the
first quarter, but revenue topped Wall Street expectations.
Revenue increased 22 percent to $74.4 million, compared to
$61 million in the year-ago period. Analysts polled by Thomson
Reuters I/B/E/S were looking for revenue of $70.9 million.
The company said non-digital revenue grew 66 percent
year-on-year in the quarter, while print revenue grew 13
With Chegg's school textbook rental business facing
competition from Amazon.com Inc, the company is
expanding into other services aimed at high school and college
students. In April, Chegg acquired Campus Special, which
provides students with coupons for food and other items, for $17
Chief Executive Dan Rosensweig said the company was looking
at opportunities to provide students with test preparation
services, potentially by developing home-grown products as well
as through acquisitions.
"It wouldn't surprise me if you saw us doing things both
organically and non-organically," Rosensweig said in an
interview with Reuters.
The company forecast revenue in the current quarter would
range between $61 million and $65 million. Analysts were looking
for $65 million.
Chegg reported a net loss in the first quarter of $25.8
million, or 31 cents per share, compared to a loss of $17.8
million, or $1.48 per share, in the year-ago period. The number
of shares outstanding rose more than six-fold in the latest
quarter from a year earlier.
Excluding stock compensation costs and other costs, Chegg
said it had a loss of 22 cents a share.
Shares of Chegg rose by 9 cents to $5.56 in after-hours
trading on Thursday.
(Reporting by Alexei Oreskovic; Editing by Leslie Adler)