Chegg saw it on the New York Stock Exchange on February 13, 2025.
Danielle Devries | CNBC
Seg On Monday, lawsuit was filed in federal district court GoogleAI summary of the search results claims to have hurt online education companies’ traffic and revenue.
Former CEO Dan Rosensweig said students who helped mutually with Openai’s Chatgpt assistant are cutting Chegg’s, a legal move that has been nearly two years. New customer growth.
Chegg is worth less than $200 million, and the stock is trading slightly above $1 per share in after-hours trading on Monday. Chegg hired Goldman Sachs and will look at strategic options, including acquisitions and private choices, President and CEO Nathan Schultz told analysts on Monday’s earnings call .
Chegg reported a net loss of $6.1 million in the fourth quarter, down 24% year-on-year. statement. Analysts who voted for LSEG are expected to earn $142.1 million. Management asked for first-quarter revenues between $114 million and $116 million, but analysts targeted $138.1 million. The stock fell 18% in expansion trading.
Schultz said Google forced companies like Chegg to “provide our proprietary content to include in Google’s search capabilities”, adding that search companies leverage their monopoly powers to get the economy of Chegg content without spending money. Benefit. “
Despite the lawsuit, Chegg still has its own AI strategy. It has attracted Yuan Schultz said the open source llama, as well as the model of private humans and Mistral. Chegg also works with Google to see it as a competitor OpenAI. The company reported 3.6 million students received subscriptions in the fourth quarter, down 21%. Subscriptions include access to AI-driven learning help.
The company said October.
Chegg, the company said in the filing: “Depending on the recommendations of Google’s monopoly search engines, this is part of the revenue it is committed to producing much of its original online content. ”
Federal judge in August rule That Google Have a monopoly in the search market. The ruling was filed in 2020 by the Department of Justice Landmark casesclaiming that Google controls the general search market by creating strong barriers to entry and maintaining its dominance feedback loop.
Google did not immediately respond to a request for comment.
