Here are 1-3 brief analogies for Chegg (CHGG):

• Netflix for academic help and study tools.
• Stack Overflow for college students' homework questions.
• Amazon Prime for college students' academic needs.

• Chegg Study Pack: A digital academic support platform offering a subscription service with expert Q&A, step-by-step textbook solutions, practice problems, flashcards, and writing and math problem-solving tools.
• Chegg Tutors: An online tutoring service that connects students with live, on-demand subject matter experts for personalized academic assistance.

For Chegg (symbol: CHGG), the company primarily sells its educational services directly to individuals rather than to other businesses (B2C model).

Its major customers can be categorized as follows:

1. College and University Students: This is Chegg's core demographic. Undergraduate and, to a lesser extent, graduate students extensively use Chegg for a wide array of academic support, including textbook rentals, online homework help, step-by-step solutions, study materials, and live tutoring across various subjects.

2. High School Students (Advanced Courses): Students enrolled in advanced high school programs, such as Advanced Placement (AP), International Baccalaureate (IB), or dual enrollment courses, frequently leverage Chegg's resources for help with complex assignments, test preparation, and deeper understanding of college-level material.

3. Students Seeking Specialized Subject Support: While overlapping with the above, a significant portion of Chegg's user base consists of students specifically looking for in-depth assistance in challenging fields like Science, Technology, Engineering, and Mathematics (STEM). Chegg tailors much of its content and expert solutions to these demanding subjects, attracting students who require specialized help beyond general academic support.

Nathan Schultz

David Longo

Dan Rosensweig

Chuck Geiger

Debra Thompson

One clear emerging threat to Chegg (CHGG) is the rapid advancement and widespread adoption of generative artificial intelligence (AI), particularly large language models (LLMs) like ChatGPT, Google Gemini, and Anthropic Claude.

These AI technologies directly compete with Chegg's core subscription services, such as Chegg Study (for step-by-step solutions and expert Q&A), Chegg Writing (for grammar and plagiarism checking), and Chegg Math Solver. LLMs are increasingly capable of providing accurate answers to homework problems, generating essays, explaining complex concepts, and assisting with various academic tasks, often at no cost or a lower cost than Chegg's subscriptions.

Evidence for this threat is robust:

• Chegg itself acknowledged the significant impact of generative AI during its Q1 2023 earnings call, stating that the launch of ChatGPT in particular had "an impact on our new customer additions since March." This resulted in a substantial slowdown in subscriber growth.
• Following this admission, Chegg's stock price experienced a sharp decline (e.g., a nearly 50% drop on May 2, 2023), indicating the market's clear perception of this as a material threat.
• Chegg's strategic response, including its initiative to integrate AI into its own offerings through "CheggMate" powered by OpenAI, further underscores its recognition of AI as a disruptive force that necessitates a fundamental adaptation of its business model.
• The continuous development and accessibility of these powerful AI tools are shifting how students seek academic help, directly challenging Chegg's value proposition.

Addressable Markets for Chegg's Main Products and Services:

Chegg (CHGG) is focusing on several key drivers to spur future revenue growth over the next 2-3 years, primarily through a strategic pivot towards a skills-focused, business-to-business model and leveraging AI innovation.

1. Growth in Busuu (Language Learning): Chegg's language learning platform, Busuu, is expected to be a significant growth engine. The business-to-consumer (B2C) segment is benefiting from AI-driven product enhancements like Speaking Practice, which is improving customer acquisition and retention. The business-to-business (B2B) segment of Busuu has demonstrated strong double-digit revenue growth, including a 29% year-over-year increase in Q1 2025 and a 39% year-over-year increase in Q2 2025. Busuu is projected to generate approximately $48 million in revenue in 2025 and achieve adjusted EBITDA positivity by the first quarter of 2026.
2. Expansion of Chegg Skills (Workplace Readiness and Upskilling): The Chegg Skills offering is positioned for substantial growth, focusing on skill-building for the modern workforce, including foundational digital and AI training. Chegg anticipates 2025 to be a "breakout year" for Skills, with expectations for positive double-digit revenue growth in 2026. This expansion includes new pilot programs in India and growing partnerships with organizations like Guild, EdifyOnline, and Noodle to provide AI programs and professional upskilling.
3. Content Licensing and Institutional Partnerships: Chegg is diversifying its revenue streams through content licensing agreements and direct institutional contracts. In Q1 2025, the company reported $4 million in revenue from licensing its question-and-answer content to AI companies, with an additional $7 million expected in Q2 2025. The business-to-institution program also expanded from five to 15 pilot programs in Q1 2025, with a target of 40 by year-end.
4. AI-Powered Product Enhancements and "Reinvention" of Chegg Study: To address the impact of generative AI, Chegg is transforming its core Chegg Study product into a personalized learning assistant powered by AI. Recent introductions include "Solution Scout," which enables students to compare solutions from multiple language models alongside Chegg's proprietary content, and an AI-powered "Create" feature for generating customized practice tests. These innovations aim to enhance learning engagement, provide personalized experiences, and ultimately retain and attract users to the platform.

Share Repurchases

• In 2023, Chegg executed stock repurchases that reduced shares outstanding by 19% compared to 2022, and repurchased $597 million of outstanding convertible notes at a $92 million discount to par.
• In November 2024, the Board of Directors approved a $300 million increase to its existing securities repurchase program, resulting in $303.7 million remaining available under the program.
• In March 2025, Chegg entered into agreements to repurchase approximately $56.6 million of its outstanding 0% Convertible Senior Notes due in 2026, leaving $157.7 million available for future transactions under its securities repurchase program.

Share Issuance

• Between December 31, 2024, and June 30, 2025, Chegg issued approximately 2.9 million shares, with 107,821,415 shares issued and outstanding as of June 30, 2025.
• In October 2025, CEO Dan Rosensweig was granted 1,650,000 RSUs with time-based vesting and up to 3,850,000 performance-based RSUs tied to stock-price hurdles over 36 months.

Outbound Investments

• In November 2021, Chegg acquired Busuu, a mobile platform for language learning, for $436 million.
• In June 2020, Chegg acquired the math solver Mathway for approximately $100 million in an all-cash transaction, with potential additional payments of up to $15 million.
• Chegg is strategically investing in its Busuu and Skills divisions, focusing on professional language learning, workplace readiness, and AI-related skills courses, which are expected to generate approximately $70 million in revenue in 2025.

Capital Expenditures

• Capital expenditures were $81 million in 2020 and were expected to be in the range of $90 million to $100 million in 2021, primarily for content development.
• Capital expenditures have significantly decreased, falling 60% year-over-year to $7 million in Q2 2025, largely due to leveraging AI to reduce content and software development costs.
• Chegg anticipates full-year 2025 capital expenditures of approximately $30 million, with a targeted further reduction of approximately 50% in 2026, as the company focuses on AI-powered product offerings like Chegg Study and Busuu.