As enterprise continues to surge amid the coronavirus pandemic, Chegg CEO Dan Rosensweig advised CNBC Tuesday that the training platform is concentrated on international growth this 12 months.
Last 12 months, the Santa Clara, California-based firm started investing overseas to increase the variety of college students subscribing to the service and administration tasks international subscribers to reach six figures by the tip of 2021.
“Over the course of the year, we’re going to crest over 1 million subscribers outside the United States across 190 different countries,” Rosensweig stated in a “Mad Money” interview with Jim Cramer.
Among these international locations, Chegg, which began out as a textbook supplier in 2005, at present has a big presence in Canada, Australia and the United Kingdom. The firm experiences seeing sturdy progress in the Middle East and Asia, although it has no plans to increase to China, the world’s second-largest financial system.
Chegg has not disclosed the variety of non-U.S. customers it serves, however Rosensweig stated its on-line program is required across the globe as schools, lots of which closed or decreased campus entry in the face of a worldwide well being disaster final 12 months, search out methods to serve college students remotely.
The firm started mulling international growth in 2019 and forecasts that the international market presents an even bigger alternative than what’s obtainable in the U.S. Some of its investments in its international providers embrace language translation know-how.
While Chegg doesn’t at present disclose international income, the corporate reported 67% subscriber progress in 2020, reaching 6.6 million customers. Total revenues, that are damaged down into the corporate’s Chegg Services and Required Materials divisions, have been up 57% year-over-year to $644.3 million. Revenue progress is up from the lower than 30% progress fee the corporate posted in the 2 years prior.
“What we do is something that every student around the world clearly needs, and we’re proud of what we’re doing,” Rosensweig stated. “It’s exciting to see this level of growth.”
Based on the momentum Chegg has seen in the final quarter of 2020 and the opening quarter of 2021, the corporate raised its steerage for the present 12 months, powered by each the home and international companies.
Chegg expects complete revenues this 12 months to come in between $780 million and $790 million, which might characterize almost 23% year-over-year progress on the excessive finish.
“This is the wave of the future,” Rosensweig stated. “Either institutions understand it, invest in it and reevaluate what they teach, how they teach it, how they monitor students and how they assess them, or they’re going to lose completely.”
Shares of Chegg gained 0.34% in Tuesday’s session, claiming an all-time closing excessive of $102.35. The inventory is up 13% 12 months to date.
Chegg greater than doubled its market cap in 2020 and is at present valued by the market at $13.18 billion.