Y/Y Change Q/Q Change Estimate vs Actual

4Q19 4Q20 % Change 3Q20 4Q20 % Change 4Q20E 4Q20 % Change

Chegg Services 107,318 175,970 64.0% 118895 175970 48.0% 163,129 175,970 7.9%
Required Materials 18,186 29,751 63.6% 35,123 29,751 -15.3% 25,915 29,751 14.8%
Total revenue 125,504 205,721 63.9% 154,018 205,721 33.6% 189,044 205,721 8.8%

Cost of Revenue
Revenue 26,034 56,827 118.3% 62,108 56,827 -8.5% 51,987 56,827 9.3%
Total Cost of Revenues 26,034 56,827 118.3% 62,108 56,827 -8.5% 51,987 56,827 9.3%
Gross Profit 99,470 148,894 49.7% 91,910 148,894 62.0% 137,057 148,894 8.6%
Gross Margins 79.3% 72.4% 59.7% 72.4% 72.5% 72.4%

Operating Expenses
R&D 32,220 38,405 19.2% 35,608 38,405 7.9% 32,137 38,405 19.5%
Sales & marketing 14,260 18,740 31.4% 22,194 18,740 -15.6% 17,014 18,740 10.1%
G&A 18,350 17,885 -2.5% 30,381 17,885 -41.1% 18,526 17,885 -3.5%
Total Operating Expenses 58,863 70,556 19.9% 78,830 70,556 -10.5% 67,678 70,556 4.3%

Non- GAAP Operating Income (Loss) 40,607 78,338 92.9% 23,080 78,338 239.4% 69,379 78,338 12.9%
Non-GAAP Operating Margins 32.4% 38.1% 15.0% 38.1% 36.7% 38.1%

GAAP & Non-cash charges 23,521 29,120 23.8% 40,882 29,120 -28.8% 29,500 29,120 -1.3%

GAAP Operating Income 17,086 49,218 188.1% (17,802) 49,218 -376.5% 39,879 49,218 23.4%
GAAP Operating Margins 13.6% 23.9% -11.6% 23.9% 21.1% 23.9%

Interest & Other Income (Expense) (8,065) (20,690) 156.5% (18,272) (20,690) 13.2% (20,000) (20,690) 3.5%

Adjusted EBITDA 46,996 87,865 87.0% 31,926 87,865 175.2% 83,179 87,865 5.6%
EBITDA Margins 37.4% 42.7% 20.7% 42.7% 44.0% 42.7%

Non-GAAP Income before Taxes 32,542 57,648 77.1% 4,808 57,648 1099.0% 49,379 57,648 16.7%
Income Tax 802 2,485 209.9% 1,066 2,485 133.1% 1,100 2,485 125.9%
Non-GAAP Net Income 44,828 77,797 73.5% 24,075 77,797 223.1% 48,279 77,797 61.1%

GAAP Income before Taxes 9,021 28,528 216.2% (36,074) 28,528 -179.1% 19,879 28,528 43.5%
Income Tax 802 2,485 209.9% 1,066 2,485 133.1% 1,100 2,485 125.9%
GAAP Net Income 8,219 26,043 216.9% (37,140) 26,043 -170.1% 18,779 26,043 38.7%

Non- GAAP EPS $ 0.35 $ 0.55 58.6% $ 0.17 $ 0.55 218.3% $ 0.35 $ 0.55 59.4%
GAAP EPS $ 0.07 $ 0.18 $ (0.27) $ 0.18 $ 0.13 $ 0.18

Basic Shares Outstanding 121,151 128,955 126,194 128,955 126,894 128,955

Diluted Shares Outstanding 129,150 141,297 139,183 141,297 139,783 141,297
Y/Y Growth 36.8% 33.8% 29.8% 27.9% 31.4% 30.8% 33.3% 56.9% 71.6% 64.0% 56.9% 52.0% 31.4% 19.9% 19.0% 28.6%
Q/Q Growth -7.8% 6.7% -13.7% 54.9% -6.5% 25.6% -5.6% 48.0% 0.0% -13.3% 8.6% -14.0% 47.0%

Y/Y Growth -3.3% 7.0% 9.6% 24.0% 29.7% 17.3% 41.2% 99.2% 41.4% 63.6% 56.4% -1.0% -4.0% -14.0% -6.0% -6.6%
Q/Q Growth 57.8% -38.7% 83.3% -26.8% 71.7% -13.5% 30.1% -15.3% 3.9% -16.2% 16.5% -7.4%

Y/Y Growth 25.9% 26.6% 26.5% 26.8% 31.2% 28.0% 35.1% 63.0% 63.6% 63.9% 56.8% 39.4% 25.2% 12.1% 15.4% 21.8%
Q/Q Growth 1.8% -3.6% 0.3% 33.3% 4.8% 16.3% 0.7% 33.6% -10.8% 4.4% -9.8% 37.4%

Gross Margins 75.2% 76.2% 78.2% 76.6% 79.3% 77.7% 67.9% 71.7% 59.7% 72.4% 68.3% 65.5% 72.5% 61.0% 73.0% 68.5%

Gross Margin 75.2% 76.2% 78.2% 76.6% 79.3% 77.7% 67.9% 71.7% 59.7% 72.4% 68.3% 65.5% 72.5% 61.0% 73.0% 68.5%

% of Revenue 30.3% 28.5% 28.6% 32.6% 25.7% 28.6% 24.7% 21.4% 23.1% 18.7% 21.6% 22.0% 19.5% 22.5% 16.0% 19.7%

% of Revenue 15.0% 17.4% 10.7% 15.9% 11.4% 13.7% 13.7% 8.7% 14.4% 9.1% 11.2% 12.6% 8.5% 11.0% 7.5% 9.7%

% of Revenue 15.5% 15.9% 15.1% 15.5% 14.6% 15.2% 13.0% 14.4% 19.7% 8.7% 13.6% 10.0% 13.0% 14.0% 7.5% 10.9%

% of Revenue

% of Revenue

Non-GAAP Operating Margin 20.9% 19.4% 27.3% 18.2% 32.4% 24.9% 19.0% 31.3% 15.0% 38.1% 27.1% 21.0% 31.5% 13.5% 42.0% 28.2%

GAAP Operating Margin -1.9% -1.1% 7.3% -5.4% 13.6% 4.3% 2.5% 14.4% -11.6% 23.9% 8.8% 3.7% 14.6% -7.1% 26.3% 10.8%

EBITDA Margins 25.9% 24.5% 33.1% 24.5% 37.4% 30.4% 24.2% 36.3% 20.7% 42.7% 32.1% 26.7% 37.7% 20.3% 47.0% 34.1%

Tax Rate % 2.4% 3.9% 3.4% 5.5% 2.5% 3.4% 3.2% 3.4% 22.2% 4.3% 4.6% 3.9% 2.5% 6.8% 1.7% 2.8%

Non-GAAP Net Margin 18.2% 20.1% 31.8% 25.3% 35.7% 28.7% 22.0% 32.3% 15.6% 37.8% 28.0% 20.1% 30.1% 11.9% 40.9% 27.0%

Tax Rate % -10.6% -17.0% -40.3% -5.7% 8.9% -37.8% -10.1% 10.8% -3.0% 8.7% -622.5% 22.6% 5.6% -11.2% 2.8% 7.6%

GAAP Net Margin -4.6% -4.4% -2.2% -12.2% 6.5% -2.3% -4.3% 6.9% -24.1% 12.7% -1.0% 2.8% 13.2% -8.6% 25.2% 9.6%

Y/Y Growth % 64.4% 44.6% 85.5% 167.9% 37% 95.5% 46.9% 59.6% -5.3% 59% 44.1% 16.8% 9.6% -16.9% 22% 12.6%

Y/Y Growth % -31.8% 56.8% -45.7% -20.4% 59.4% -31.3% 18.1% -563.2% 179.2% 171.7% -42.4% -182.6% 123.7% -61.1% 125.0% -1212.3%