Stock Monitor: Universal Technical Institute Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 05, 2017 / Active-Investors free earnings report on Chegg, Inc. (NYSE: CHGG) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=CHGG. The Company posted its financial results on October 30, 2017, for the third quarter fiscal 2017. The online textbook rental Company's adjusted revenue increased 12.8% on a y-o-y basis. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Universal Technical Institute, Inc. (NYSE: UTI), which also belongs to the Services sector as the Company Chegg. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Chegg most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

For three months ended September 30, 2017, Chegg's total net revenues decreased 12.2% to $62.64 million from $71.34 million in Q3 FY16. For the reported quarter, the Company's adjusted total net revenue increased 12.8% to $62.64 million from $55.52 million in Q3 FY16. The Company's total net revenue surpassed analysts' expectations of $57.6 million.

For the reported quarter, the Company's service revenue increased 33% to $39 million on a y-o-y basis. During Q3 FY17, the Company's services subscribers increased 37% to 1.2 million on a y-o-y basis and the Company's content views increased 63% to 74 million on a y-o-y basis.

During Q3 FY17, Chegg's gross profit increased 23.4% to $40.28 million from $32.64 million in the same period last year. For the reported quarter, the Company's gross margin increased 1850 basis points to 64.3% of revenue from 45.8% of revenue in Q3 FY16.

During Q3 FY17, Chegg's EBITDA was negative $5.69 million compared to negative $9.86 million in the same period last year. For the reported quarter, the Company's adjusted EBITDA was $5.70 million compared to $212,000 in Q3 FY16.

During Q3 FY17, Chegg's operating loss was $11.16 million compared to operating loss of $15.33 million in the same period last year. During Q3 FY17, the Company's operating income was $1.87 million compared to operating loss of $2.32 million in the same period last year.

For the reported quarter, Chegg's net loss was $11.52 million compared to net loss of $16.06 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS was negative $0.11 compared to negative $0.17 in the same period last year. For the reported quarter, the Company's adjusted net income was $1.51 million compared to adjusted net loss of $3.05 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS was positive $0.01 compared to negative $0.03 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.00.

Balance Sheet

As on September 30, 2017, Chegg's cash and cash equivalents increased 58.1% to $122.23 million from $77.33 million on December 31, 2016.

For the reported quarter, the Company's net accounts receivables decreased 5.8% to $9.84 million from $10.45 million in the fourth quarter of 2016. For the reported quarter, the Company's accounts payables decreased 59.3% to $2.11 million from $5.18 million in Q4 FY16.

In the first nine months of 2017, the Company's cash provided by operating activities decreased 4.2% to $29.45 million from $30.73 million in the same period last year.

Outlook

For Q4 FY17, the Company expects total net revenue to be in the band of $70 million to $71 million and adjusted EBITDA to be in the range of $19 million to $20 million.

For FY17, the Company expects total net revenue to be in the range of $251 million to $252 million and adjusted EBITDA to be in the range of $44 million to $45 million.

Stock Performance Snapshot

December 04, 2017 - At Monday's closing bell, Chegg's stock dropped 9.33%, ending the trading session at $14.00.

Volume traded for the day: 1.38 million shares, which was above the 3-month average volume of 982.65 thousand shares.

Stock performance in the last six-month ? up 12.45%; past twelve-month period ? up 82.05%; and year-to-date ? up 89.70%

After yesterday's close, Chegg's market cap was at $1.49 billion.

The stock is part of the Services sector, categorized under the Education & Training Services industry. This sector was up 0.8% at the end of the session.

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