The move follows similar programs from Target and Amazon.
Chegg closes the book on 2013 with 20% growth
Online rental textbooks company Chegg Inc. posted a solid increase in overall revenue for 2013 to $256 million, but it was the digital services channel that grew the most.
Online rental textbooks company Chegg Inc. posted a solid increase in overall revenue for 2013, and nearly doubled sales in its digital services business.
For the year ended Dec. 31, Chegg, No. 103 in the 2013 Internet Retailer Top 500 reported:
- Total revenue increased 19.8% to $255.6 million from $213.3 million.
- The fastest-growing channel was digital, which includes various online learning services and programs. Digital sales increased year over year 86.2% to $52.5 million from $28.2 million.
- Net loss was $55.9 million compared with a net loss of $49.04 million in 2012.
“2013 was a banner year for Chegg, particularly in digital which grew to more than $52 million or 21% of our total business,” says CEO Dan Rosensweig. “It’s been an exciting year of innovation as we rolled out new student-first services that have been incredibly well-received, rewarding us with record revenue, reach, customers and engagement.”
For the fourth quarter:
- Total revenue increased 12.9% to $77.1 million from $68.3 million.
- Digital sales increased year over year 70.4% to $16.7 million from $9.8 million.
- Net loss was $5.4 million compared with net income of $8.1 million in the fourth quarter of 2012.
Going forward, as revenue from the textbook rental portion of Chegg trends downward along with textbook prices, Chegg will continue to grow its digital product offerings, Rosensweig told Wall Street analysts on the company’s year-end earnings call. “We expect the overall cost of running the textbook business to continue to decline allowing us to spend less, but not at the pace consistent with decline in textbook pricing,” he says. “We believe Chegg print textbooks will be around for many years, giving Chegg a treasure trove of data that expands our ability to launch new, higher-margin digital businesses faster.”
For the first quarter 2014, Chegg expects revenue to range from $70 million to $72 million and for the full year from $310 million to $320 million. Chegg began trading as a public company in August.