chegg presentation
TRANSCRIPT
THE STUDENT HUB
BEGINNING
WHY CHEGG?
BUSINESS MODEL
Get matched to schools
Get matched to scholarships
Research & schedule courses
Rent or buy [e] textbooks
Connect toclassmates
Learn from textbook solutions
Access 24/7study help
PRE-COLLEGE COLLEGE LIFE POST COLLEGE
Get matched to internships
Discover Careers
STUDENT SERVICES
HOW IS CHEGG’S TRANSITION TO DIGITAL REVENUE ALLOWING
IT TO NETWORK FOR STUDENTS?
900+ EMPLOYEES IN 8 OFFICES
BEST PLACE TO WORK 2015
CHEGG FOR GOOD PROGRAM
WHO THEY ARE
#1 RECOMMENDATION FROM A FRIEND
MARKETING
- CONCURRENT PLATFORM USERS - SIMULTANEOUS ACTIONS - HANDHELD DEVICES - VIRTUAL + REAL
SEGMENTATION
12
SEGMENTATION
13
STRATEGIES
PARTNERSHIPS
CHEGG PLAY
TRACTION
HOW THEY MAKE MONEY
- Problem: textbook acquisitions
- Result: Increase in loss from operations and net loss from 2008-2013
- Solution: 2014 shift towards digital revenues
PROBLEMATIC OPERATIONS DATA
- Focus on new digital era Increase in digital revenues Decrease in print revenues
- Acquisition of Ingram
- Growing culture overall and within teams
- Patient, but aggressive approach
NEW BUSINESS APPROACH
Net and cost of revenues are broken down into three parts: 1) Rentals 2) Services 3) Sales
Total gross margin in 2014: 30.7% ○ Rentals: 19.7% ○ Services: 64.4% ○ Sales: 4.9%
Total Operating Expenses (in thousands): $158,983 ○ Technology and Development: $49,386 ○ Sales and Marketing: $72,315 ○ General and Administrative: $41,837
KEY ASPECTS OF 2014 BALANCE SHEET
• Substantial net loss in Q4 2014
• Substantial net loss in Q1 2015
• Extremely high operations costs relative to revenues
• Approximately 20% less cash than total liabilities
RPROBLEMS
Mixed results:
○ IPO: Nov 2013 $150 Million share price of $9.13 ○ Stock price on May 9, 2014: $5.21 ○ Current stock price: $8.30 ○ 52 week range: $5.53-$8.85 ○ 1 year estimate: $11.25
SPERFORMANCE
CHEGG’S OUTLOOK 2015
2015 REVENUE SEASONALITY
25
NEW TEXTBOOK MODEL
• PREMIUM MEMBERSHIPS • SIMILAR TO LINKEDIN MODEL
• PACKAGE DEALS • ACQUISITIONS • GLOBAL SCALE
• WILL BE MORE FEASIBLE WITH DIGITAL GROWTH
OTHER POTENTIAL OPPORTUNITIES FOR
GROWTH
28
SAVE SAVE GET
29THANK YOU
Nice quote about their potential relevance and how they are helping students :))))QUESTIONS
& ANSWERS