Chegg published fourth quarter financial results on Monday, beating market estimates with all-time high retention rates. The online learning platform had a record 7.8 million Chegg Services subscribers in the 2021 fiscal year, an increase of 18% year-over-year.
"When we reported in early November, there was a great deal of uncertainty around the back-to-the-school season and the continuing impact of COVID-19," CEO Dan Rosensweig said in remarks prepared the earnings conference call. "Fortunately, while enrollments were lower, we saw that schoolwork did eventually pick-up. So the need for Chegg increased throughout the quarter, helping us exit the year on a higher note."
Chegg's non-GAAP diluted net income per share came to 38 cents. Total net revenues were $207.5 million, an increase of 1% year-over-year.
Analysts were expecting non-GAAP earnings of 31 shares on revenue of $195.2 million.
"During these complicated times, the Chegg team continued to execute extremely well, with Chegg Study Pack take rates outperforming our expectations and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for Chegg Services," Rosensweig said in a statement. "Students depend on Chegg as an important part of their learning journey, and the momentum we experienced in the fourth quarter of 2021 is continuing into 2022."
Total net revenues include revenues from Chegg Services and Required Materials. Chegg Services primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway, and Thinkful. Required Materials includes print textbooks and e-textbooks.
Chegg Services Revenues in Q4 grew 6% year-over-year to $187.2 million, or 90% of total net revenues, compared to 86% in Q4 2020.
For the full year 2021, Chegg brought in total net revenues of $776.3 million, an increase of 20% year-over-year. Chegg Services Revenues grew 29% year-over-year to $669.9 million, or 86% of total net revenues, compared to 81% in 2020.
For the first quarter of 2022, Chegg is forecasting total net revenues in the range of $200 million to $205 million. For the full year, it expects total net revenues in the range of $830 million to $850 million.