EXHIBIT 99.

01

Chegg Reports 2023 Fourth Quarter and Full Year Financial Results
Chegg announces appointment of new Chief Financial Officer, David Longo, effective February 21, 2024

SANTA CLARA, Calif., February 5, 2024 /BUSINESS WIRE/ -- Chegg, Inc. (NYSE:CHGG), the leading student-first
connected learning platform, today reported financial results for the three and twelve months ended December 31, 2023.

“It’s an exciting time at Chegg and I am proud of the team, and how they have navigated through last year, as we completely
reinvented the company by leveraging the advancements in artificial intelligence,” said Dan Rosensweig, CEO and President of
Chegg, Inc. “The process of embedding AI into every facet of Chegg’s platform is ongoing and iterative, as we build a truly
personalized learning assistant.”

Q4 2023 Highlights:

• Total Net Revenues of $188.0 million, a decrease of 8% year-over-year

• Subscription Services Revenues of $166.3 million, or 88% of total net revenues, a decrease of 6% year-over-year
• Gross Margin of 76%
• Non-GAAP Gross Margin of 78%
• Net Income was $9.7 million
• Non-GAAP Net Income was $42.7 million
• Adjusted EBITDA was $66.2 million
• 4.6 million Subscription Services subscribers, a decrease of 9% year-over-year

Full Year 2023 Highlights:

• Total Net Revenues of $716.3 million, a decrease of 7% year-over-year

• Subscription Services Revenues of $640.5 million, or 89% of total net revenues, a decrease of 5% year-over-year
• Gross Margin of 68% driven lower by a one-time content and related assets charge of $38.2 million
• Non-GAAP Gross Margin of 76%
• Net Income was $18.2 million
• Non-GAAP Net Income was $141.8 million
• Adjusted EBITDA was $222.4 million
• 7.7 million Subscription Services subscribers, a decrease of 6% year-over-year

Total net revenues include revenues from Subscription Services and Skills and Other. Subscription Services includes revenues
from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings. Skills and Other includes
revenues from Chegg Skills, Advertising, and any other revenues not included in Subscription Services.

For more information about non-GAAP net income and adjusted EBITDA, and a reconciliation of non-GAAP net income to net
income, and adjusted EBITDA to net income, see the sections of this press release titled “Use of Non-GAAP Measures,”
“Reconciliation of Net Income to EBITDA and Adjusted EBITDA,” and “Reconciliation of GAAP to Non-GAAP Financial
Measures.”

Business Outlook:

First Quarter 2024

• Total Net Revenues in the range of $173 million to $175 million

• Subscription Services Revenues in the range of $155 million to $157 million
• Gross Margin between 73% and 74%
• Adjusted EBITDA in the range of $43 million to $45 million
For more information about the use of forward-looking non-GAAP measures, a reconciliation of forward-looking net loss to
EBITDA and adjusted EBITDA for the first quarter 2024, see the below sections of the press release titled “Use of Non-GAAP
Measures,” and “Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA.”

An updated investor presentation and an investor data sheet can be found on Chegg’s Investor Relations website http://
investor.chegg.com.

Prepared Remarks - Dan Rosensweig, CEO Chegg, Inc.

Thank you, Tracey, and welcome everyone to our 2023 Q4 earnings call. To start, I am pleased to announce the appointment of
David Longo as our new Chief Financial Officer, effective February 21st, as Andy announced on the last call that he will be
retiring. David has been our Chief Accounting Officer and Corporate Controller since coming to Chegg in 2021 and we look
forward to his continued leadership in this new role. He is joining us on this call today, so welcome, David.

Now, back to the business at hand. Chegg had a good quarter and exceeded our expectations. The last few years we have seen
real challenges as we navigate the post-COVID world. Despite those challenges, it’s actually an exciting time at Chegg and I
am proud of the team, and how they are navigating the complete reinvention of our company, leveraging the advancements in
artificial intelligence and making it core to everything we do. In less than a year, we redesigned our entire user experience,
developed our own large language models, launched automated answering, built proprietary algorithms to optimize the quality
and accuracy of our exclusive content, and we began to compete more aggressively for new customers around the world. While
early, our packaging, pricing, and product strategy are yielding encouraging results for both students and our business.

The process of embedding AI into every facet of Chegg’s platform is ongoing and iterative as we build a truly personalized
learning assistant; a service that anticipates the students’ needs, adapts to their strengths and weaknesses, and supports them
academically, professionally, and personally. There are numerous ways we intend to aggressively market our new product
experience because the data tells us that, once a student tries us, they love us. Internationally, we focused our biggest effort on
testing promotional pricing to convert the millions of students who have entered the funnel but did not yet subscribe.
Additionally, we are building sharing into our service to increase word of mouth, expanding our presence on TikTok, and
enhancing our SEO with increased questions from automated answers. Our business model benefits from more students asking
more questions - as we index those questions in to search and other platforms - to drive even more customers.

Let me provide a little context. Since introducing automated answers in late December, we’ve seen a significant increase in the
number of students asking new questions, as well as the number of questions per student. This is because our new automated
service is delivering quality and accuracy almost immediately, which is a huge benefit to students. By building our own
language models, along with our algorithms to check for quality, students can feel confident in what they are learning on Chegg
and get support in real time. The impact has been immediate and significant. In January Chegg’s automated answers delivered
more than 2.2 million solutions to students, which is 3 times the number of new questions asked and answered this time last
year.

Importantly – as we scale – to ensure we meet our standards of accuracy and quality; we expect to launch the rest of our
proprietary models by the end of Q1. These models are being trained on Chegg’s data and we are leveraging our 150 thousand
subject matter experts to optimize our solutions for learning. In education, students cannot afford the illusion of accuracy to
learn, they need it to be correct, immediate, and personalized. We believe this is what Chegg can uniquely do for students, and
it’s a huge competitive advantage over generic AI models.

The overall benefit of our new service to students is enormous and there are also significant benefits to Chegg. As the hype of
AI dies down, leaders in their verticals like Chegg are taking control of their own destiny by building their own models which
allows for higher quality and lower cost. As an example, the cost to answer a new question using our own AI models is already
more than 75% less expensive and we believe it will continue to decline over time. This means we will be able to serve more
students at a lower cost per student, faster, and in more subjects and languages.

We are confident in the value of our new product and because of that confidence, and to be more competitive, we began testing
promotional pricing in international markets in the middle of last year. We believed that if we could introduce our offering to
more global learners, they would find the value and benefit of Chegg and continue to choose us and stay with us. In Q4, we saw
year-over-year new customer growth outside of the U. S. for the first time in 2 years. And just as important for our business
model, more of these users are taking the Chegg Study Pack, which is our higher priced subscription, and remaining paying
customers for longer periods of time. We developed this pricing and packaging to be revenue neutral this year, while we expand
new account growth substantially. While it is still early, we are seeing encouraging results. Given the success of what we’ve
seen internationally, we are now testing promotional pricing for new accounts in the U.S. which began in mid-January.
As we have said, online learning support and skills-based learning are a huge market, and they are only getting bigger. AI is
still in its infancy and our product roadmap is ambitious and exciting. Throughout 2024, we are introducing more AI-driven
capabilities, such as conversational chat, which continues to layer in personalization and interactivity for our learners. We also
plan to integrate personalized learning tools such as practice questions, flashcards, and study guides to our conversational
learning experience. Looking beyond 2024, as AI automated translation gets better and cheaper, we plan to expand the
localization of our offerings to non-English speaking users.

We also plan to build out more AI capabilities within Chegg Skills and integrate pathways for students with assessments and
other tools. We are already seeing a reduction in the time it takes to launch new Skills programs by approximately 40%, which
allows us to offer new courses at greater speeds and will significantly reduce our costs. And the importance of skills-based
training has never been more critical. In fact, half of recent graduates are questioning how prepared they are to enter the
workforce given the disruption of artificial intelligence. And employers agree, as 79% say that workers need more training to
work with AI more effectively. So, the opportunity for Chegg Skills has never been greater or more important.

There are number of exciting opportunities ahead of us and in 2024 we remain focused on the following priorities;
• Returning to new account growth globally;
• Maintaining strong margins and cash flow;
• Rolling out the next phase of Chegg’s enhanced AI services;
• And leveraging our momentum in Skills for continued growth.

Every decade or so the pace of technological innovation accelerates, and new growth opportunities open up. The history of the
internet has shown us that vertical players who know their customer, have reach, proprietary content, and can provide a
personalized user experience will win and win big. Given the strength of our brand, with over 90% of our customers reporting
they are satisfied with Chegg’s service, we believe we are well positioned to do just that in our sector.

Before I turn it over to Andy, I want to again thank him for all he has done for Chegg during his 12-and-a-half-year tenure.
Under his guidance Chegg grew from a physical textbook rental business to a global, online, learning platform. When Andy
took the job, Chegg was in debt, unprofitable, and we had a single business model – renting textbooks. Andy guided us through
our transition to a fully digital business and, in doing so, grew our digital revenue from $0 to over $700 million annually. In his
final full year as our CFO, Chegg generated $222 million in adjusted EBITDA and $173 million in free cash flow. Thank you
isn’t enough to acknowledge the impact Andy has had on this company and on me personally. Andy, you leave quite the legacy
at Chegg, and you will truly be missed. With that, I will turn it over to you, my friend.

Prepared Remarks - Andy Brown, CFO Chegg, Inc.

Thanks, Dan, for those kind words, but more importantly congratulations David, on a well-deserved promotion and I look
forward to working with you as you transition into your new role over the next few weeks.

Today, I will discuss our financial performance for the fourth quarter and full year 2023, as well as our outlook for the first
quarter of 2024.

As Dan mentioned, we ended the year on a positive note, with total revenue, adjusted EBITDA and free cash flow all coming in
above the high end of our expectations. While the year had its challenges, we executed well on our plan to reinvent the way we
help students navigate their learning experience by leveraging AI, and we continued to see strong profitability and cash flows.
This, along with the strength of our balance sheet, gave us the confidence to extinguish a significant amount of our debt at a
discount and repurchase shares, which we believe have, and will continue to, enhance shareholder value.

Looking more specifically at our 2023 performance, total revenue was $716 million, with Subscription Services declining 5%
to $641 million. Total subscribers were 7.7 million, of which international subscribers were 2.0 million. Since 2021,
international has increased from 11% of total revenue to 14% in 2023, or $100 million, and over time, we expect international
to be even more significant. Skills and Other revenue of $76 million declined 20% year-over-year. While Skills grew 55%, this
was offset by the impact from exiting the textbook business in 2022. We continued to take a prudent approach with expense
management, and we were very pleased that we were able to deliver adjusted EBITDA margin of 31% or $222 million, and free
cash flow margin of 24% or $173 million, which represented 78% of adjusted EBITDA. We expect interest income to
contribute less in 2024 from a combination of lower interest rates and a lower cash balance, as a result of the aforementioned
repurchases.
Looking at Q4, total revenue came in above the high end of our guidance at $188 million, which drove better than expected
adjusted EBITDA of $66 million. Subscription Services revenue of $166 million declined 6% year over year, driven by a
decline in subscribers, which was partially offset by the Chegg Study Pack take rate and a continued increase in retention. Skills
and Other revenue of $22 million declined 22%, as growth in skills was offset by the impact of exiting the textbook business.

Looking at the balance sheet, we ended the year with cash and investments of $580 million and net debt of $20 million. This is
the result of repurchasing $597 million of outstanding convertible notes during the year at a $92 million discount to par, and
initiating an accelerated share repurchase or ASR in Q4 of $150 million, which reduces our outstanding shares by
approximately 12%. We believe this prudent capital management will enhance shareholder value. We exited the year with 103
million shares outstanding, including the majority of the benefit from our most recent ASR. This represents a 19% reduction in
shares outstanding versus 2022. We believe our company is undervalued, as such we will continue to look for opportunities to
return value to our shareholders.

Our business is somewhat unique given our subscription model and the lifecycle of a student. While we are seeing encouraging
signs in the business, it is too early to predict when we will return to revenue and margin growth. The green shoots in
engagement, acquisitions, and retention will take time to build our renewal base before we see a positive impact on total
subscribers and revenue. In the meantime, we will continue to be prudent with expense management and prioritization, while
we continue to drive strong profitability and cash flows.

With respect to Q1 guidance we expect:

• Total revenue between $173 and $175 million, with Subscription Services revenue between $155 and $157 million;
• Gross margin to be in the range of 73 and 74 percent;
• And adjusted EBITDA between $43 and $45 million.

In closing, I am proud of what we have accomplished during my 12.5 years at Chegg. This is, by a large measure, the best
company I have worked for during my career. The mission, the culture and especially the team, are second to none. I want to
thank everyone who was with me on this journey. In particular, a special thanks to Dan, for your leadership, mentorship, and
especially the friendship we have developed. It means more than words can say. Thank you. I can also say with confidence that
the future is bright for Chegg, and as a long-term shareholder, I look forward to seeing the many future successes the team
accomplishes.

With that, I’ll turn the call over to the operator for your questions.

Conference Call and Webcast Information

To access the call, please dial 1-877-407-4018, or outside the U.S. +1-201-689-8471, five minutes prior to 1:30 p.m. Pacific
Time (or 4:30 p.m. Eastern Time). A live webcast of the call will also be available at http://investor.chegg.com under the Events
& Presentations menu. An audio replay will be available beginning at 4:30 p.m. Pacific Time (or 7:30 p.m. Eastern Time) on
February 5, 2024, until 8:59 p.m. Pacific Time (or 11:59 p.m. Eastern Time) on February 12, 2024, by calling 1-844-512-2921,
or outside the U.S. +1-412-317-6671, with Conference ID 13743807. An audio archive of the call will also be available
at http://investor.chegg.com.

Use of Investor Relations Website for Regulation FD Purposes

Chegg also uses its media center website, http://www.chegg.com/press, as a means of disclosing material non-public
information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should
monitor http://www.chegg.com/press, in addition to following press releases, Securities and Exchange Commission filings and
public conference calls and webcasts.

About Chegg

Millions of people all around the world learn with Chegg. No matter your goal, level or style, Chegg helps you learn with
confidence. We provide 24/7 on-demand support and our personalized learning assistant leverages the power of artificial
intelligence, more than a hundred million pieces of proprietary content, as well as, a decade of learning insights. Our platform
also helps learners build essential life and job skills to accelerate their path from learning to earning, and we work with
companies to offer learning programs for their employees. Chegg is a publicly held company and trades on the NYSE under
the symbol CHGG. For more information, visit www.chegg.com.
Investor Relations Contact: Tracey Ford IR@chegg.com
Media Contact: Heather Hatlo Porter press@chegg.com

Use of Non-GAAP Measures

To supplement Chegg’s financial results presented in accordance with generally accepted accounting principles in the United
States (GAAP), this press release and the accompanying tables and the related earnings conference call contain non-GAAP
financial measures, including adjusted EBITDA, non-GAAP cost of revenues, non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP weighted
average shares, non-GAAP net income per share, and free cash flow. For reconciliations of these non-GAAP financial measures
to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled,
“Reconciliation of Net Income to EBITDA and Adjusted EBITDA,” “Reconciliation of GAAP to Non-GAAP Financial
Measures,” “Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow,” and “Reconciliation of Forward-
Looking Net Loss to EBITDA and Adjusted EBITDA.”

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or
superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP
financial measures used by other companies. Chegg defines (1) adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, or EBITDA, adjusted for print textbook depreciation expense and to exclude share-based
compensation expense, other income (expense), net, acquisition-related compensation costs, content and related assets charge,
restructuring charges, loss contingency, transitional logistic charges, and impairment of lease related assets; (2) non-GAAP cost
of revenues as cost of revenues excluding content and related assets charge, amortization of intangible assets, share-based
compensation expense, acquisition-related compensation costs, restructuring charges, and transitional logistic charges; (3) non-
GAAP gross profit as gross profit excluding content and related assets charge, amortization of intangible assets, share-based
compensation expense, acquisition-related compensation costs, restructuring charges, and transitional logistic charges; (4) non-
GAAP gross margin is defined as non-GAAP gross profit divided by net revenues, (5) non-GAAP operating expenses as
operating expenses excluding share-based compensation expense, amortization of intangible assets, acquisition-related
compensation costs, content and related assets charge, restructuring charges, loss contingency, and impairment of lease related
assets; (6) non-GAAP income from operations as income (loss) from operations excluding share-based compensation expense,
amortization of intangible assets, acquisition-related compensation costs, content and related assets charge, restructuring
charges, loss contingency, transitional logistic charges, and impairment of lease related assets; (7) non-GAAP net income as net
income excluding share-based compensation expense, amortization of intangible assets, acquisition-related compensation costs,
amortization of debt issuance costs, income tax effect of non-GAAP adjustments, the gain on early extinguishment of debt,
content and related assets charge, restructuring charges, loss contingency, transitional logistic charges, realized loss on sale of
investments, the tax benefit related to release of valuation allowance, and impairment of lease related assets; (8) non-GAAP
weighted average shares outstanding as weighted average shares outstanding adjusted for the effect of outstanding stock plan
activity and shares related to our convertible senior notes, to the extent such shares are not already included in our weighted
average shares outstanding; (9) non-GAAP net income per share is defined as non-GAAP net income divided by non-GAAP
weighted average shares outstanding; and (10) free cash flow as net cash provided by operating activities adjusted for purchases
of property and equipment, purchases of textbooks and proceeds from disposition of textbooks. To the extent additional
significant non-recurring items arise in the future, Chegg may consider whether to exclude such items in calculating the non-
GAAP financial measures it uses.

Chegg believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial
measures, provide meaningful supplemental information regarding Chegg’s performance by excluding items that may not be
indicative of Chegg’s core business, operating results or future outlook. Chegg management uses these non-GAAP financial
measures in assessing Chegg’s operating results, as well as when planning, forecasting and analyzing future periods and
believes that such measures enhance investors’ overall understanding of our current financial performance. These non-GAAP
financial measures also facilitate comparisons of Chegg’s performance to prior periods.

As presented in the “Reconciliation of Net Income to EBITDA and Adjusted EBITDA,” “Reconciliation of GAAP to Non-
GAAP Financial Measures,” “Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA,” and
“Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow,” tables below, each of the non-GAAP
financial measures excludes one or more of the following items:

Share-based compensation expense

Share-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on
market forces that are often beyond Chegg's control. As a result, management excludes this item from Chegg's internal
operating forecasts and models. Management believes that non-GAAP measures adjusted for share-based compensation
expense provide investors with a basis to measure Chegg's core performance against the performance of other companies
without the variability created by share-based compensation as a result of the variety of equity awards used by other companies
and the varying methodologies and assumptions used.

Amortization of intangible assets

Chegg amortizes intangible assets, including those that contribute to generating revenues, that it acquires in conjunction with
acquisitions, which results in non-cash expenses that may not otherwise have been incurred. Chegg believes excluding the
expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of its ongoing
operations and provides investors with a better comparison of period-over-period operating results. No corresponding
adjustments have been made related to revenues generated from acquired intangible assets.

Acquisition-related compensation costs

Acquisition-related compensation costs include compensation expense resulting from the employment retention of certain key
employees established in accordance with the terms of the acquisitions. In most cases, these acquisition-related compensation
costs are not factored into management's evaluation of potential acquisitions or Chegg's performance after completion of
acquisitions, because they are not related to Chegg's core operating performance. In addition, the frequency and amount of such
charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired.
Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare
Chegg’s results against those of other companies without the variability caused by purchase accounting.

Content and related assets charge

As part of the design and build of our new generative AI experience, in August 2023, we streamlined our product experiences.
As a result, we elected to abandon certain content and software assets that did not align with our AI strategy. The content and
related assets charge represents a one-time charge consisting primarily of accelerated depreciation of certain content and
software assets of $34.2 million, the impairment of our indefinite-lived intangible asset of $3.6 million, the impairment of
certain in progress software assets of $2.6 million and other costs associated with abandoning these content and software assets
of $1.4 million. The one-time expense is excluded from non-GAAP financial measures because it is the result of a discrete
event that is not considered core-operating activities. Chegg believes that it is appropriate to exclude the content and related
assets charge from non-GAAP financial measures because it enables the comparison of period-over-period operating results.

Amortization of debt issuance costs

The difference between the effective interest expense and the contractual interest expense are excluded from management's
assessment of our operating performance because management believes that these non-cash expenses are not indicative of
ongoing operating performance. Chegg believes that the exclusion of the non-cash interest expense provides investors with a
better comparison of period-over-period operating results.

Restructuring charges

Restructuring charges represent expenses incurred in conjunction with a reduction in workforce to better position us to execute
against our AI strategy and to create long-term, sustainable value for its students and investors. Chegg believes that it is
appropriate to exclude them from non-GAAP financial measures because it is the result of an event that is not considered a
core-operating activity and we believe its exclusion provides investors with a better comparison of period-over-period operating
results.

Loss contingency

The loss contingency represents a one-time accrual in connection with a demand for repayment of certain investment proceeds
received in our capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). The loss contingency is excluded
from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating
activities. Chegg believes that it is appropriate to exclude the loss contingency from non-GAAP financial measures because it
enables the comparison of period-over-period operating results.
Gain on early extinguishment of debt

The difference between the carrying amount of early extinguished debt and the reacquisition price is excluded from
management's assessment of our operating performance because management believes that these non-cash gains are not
indicative of ongoing operating performance. Chegg believes that the exclusion of the gain on early extinguishment of debt
provides investors with a better comparison of period-over-period operating results.

Income tax effect of non-GAAP adjustments

In the periods following the release of our U.S. valuation allowance, we utilize a non-GAAP effective tax rate of 24% for
evaluating our operating results, which is based on our current mid-term projections. This non-GAAP tax rate could change for
various reasons including, but not limited to, significant changes resulting from tax legislation, changes to our corporate
structure and other significant events. Chegg believes that the inclusion of a non-GAAP provision for income tax adjustments
provides investors with a better comparison of period-over-period operating results.

Tax benefit related to release of valuation allowance

The tax benefit related to the release of the valuation allowance on our U.S. and non-California state deferred tax assets is a
result of our expectation that it is more likely than not that our operations will continue to be profitable. Chegg believes that it is
appropriate to exclude this from non-GAAP financial measures because it is the result of an event that is not considered a core-
operating activity and we believe its exclusion provides investors with a better comparison of period-over-period operating
results.

Transitional logistics charges

The transitional logistics charges represent incremental expenses incurred as we transition our print textbooks to a new third
party logistics provider. Chegg believes that it is appropriate to exclude them from non-GAAP financial measures because it is
the result of an event that is not considered a core-operating activity and we believe its exclusion provides investors with a
better comparison of period-over-period operating results.

Realized loss on sale of investments

The realized loss on sale of investments represents the one-time sale of certain investments primarily to align with our updated
investment policy. Chegg believes that it is appropriate to exclude this from non-GAAP financial measures because it is the
result of an event that is not considered a core-operating activity and we believe its exclusion provides investors with a better
comparison of period-over-period operating results.

Impairment of lease related assets

The impairment of lease related assets represents a non-cash impairment charge recorded on the ROU asset and leasehold
improvements associated with the closure of certain corporate offices. The impairment of lease related assets is a one-time
event that is not considered a core-operating activity and we believe its exclusion provides investors with a better comparison of
period-over-period operating results.

Effect of shares for stock plan activity

The effect of shares for stock plan activity represents the dilutive impact of outstanding stock options, RSUs, and PSUs
calculated under the treasury stock method.

Effect of shares related to convertible senior notes

The effect of shares related to convertible senior notes represents the dilutive impact of our convertible senior notes, to the
extent such shares are not already included in our weighted average shares outstanding as they were antidilutive on a GAAP
basis.
Free cash flow

Free cash flow represents net cash provided by operating activities adjusted for purchases of property and equipment and
purchases of textbooks and including proceeds from the disposition of textbooks. Chegg considers free cash flow to be a
liquidity measure that provides useful information to management and investors about the amount of cash generated by the
business after the purchases of property and equipment and textbooks, which can then be used to, among other things, invest
in Chegg's business and make strategic acquisitions. A limitation of the utility of free cash flow as a measure of financial
performance is that it does not represent the total increase or decrease in Chegg's cash balance for the period.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which include, without limitation, statements regarding our future growth and the future of
learning, the impact of artificial intelligence (AI) technology on our financial condition and results of operations, our ability to
leverage AI and make it the core of everything we do, our proprietary algorithms optimizing the quality and accuracy of our
exclusive content, our ability to compete more aggressively for new customers around the world, the results for students and
our business of our packaging, pricing, and product strategy, our embedding of AI into every facet of our platform, our ability
to build a truly personalized learning assistant (including a service that anticipates student needs, adapts to their strengths and
weaknesses, and supports them academically, professionally, and personally), the ways we intend to aggressively market our
new product experience, our ability to use international promotional pricing to convert the millions of students who have
entered the funnel but did not yet subscribe to our service, our building of sharing into our service to increase word of mouth,
expanding our presence on TikTok, enhancing our search engine optimization with increased questions from automated
answers, our business model benefiting from more students asking more questions, as we index those questions into search and
other platforms, to drive even more customers, trends of a significant increase in the number of students asking new questions
and the number of questions per student since introducing automated answers in late December 2023, our automated service's
delivery of quality and accuracy almost immediately and the related benefits to students, our ability to build our own language
models along with algorithms to check for quality, our ability to meet our standards of accuracy and quality, the timeline for the
availability of our new offerings, capabilities and experiences, expectations to launch the rest of our proprietary models by the
end of the first quarter of 2024, our belief that we can uniquely provide students correct, immediate, and personalized content
and the related huge competitive advantage over generic AI models, the enormous overall benefit of our new service to students
and the significant benefits to Chegg, our view that, as the hype of AI dies down, leaders in their verticals like us are taking
control of their own destiny by building their own models which allow for higher quality and lower cost, our belief that the cost
to answer a new question using our own AI models will continue to decline over time, our ability to serve more students at a
lower cost per student, faster, and in more subjects and languages, our confidence in the value of our new product, our belief
that, if we could introduce our offering to more global learners, they would find the value and benefit of Chegg and continue to
stay with us, our international pricing and packaging being revenue neutral this year while we expand new account growth
substantially, online learning support and skills-based learning being a huge market and their continued global growth, our
introduction throughout 2024 of more AI-driven capabilities, such as conversational chat, which continues to layer in
personalization and interactivity for our learners, our plans to integrate personalized learning tools such as practice questions,
flashcards, and study guides to our conversational learning experience, our plans beyond 2024, as AI automated translation gets
better and cheaper, to expand the localization of our offerings to non-English speaking users, our plan to build out more AI
capabilities within Chegg Skills and integrate pathways for students with assessments and other tools, the reduction of the time
it takes to launch a new Skills program allowing us to offer new courses at greater speeds and significantly reducing our costs in
the future, the opportunity for Chegg Skills never having been greater or more important, our priorities in 2024 (including
returning to new account growth globally, maintaining strong margins and cash flow, rolling out the next phase of Chegg's
enhanced AI services, and leveraging our momentum in Skills for continued growth), our belief that vertical players who know
their customer, have reach and proprietary content, and can provide a personalized user experience will win and win big, our
belief that Chegg will win and win big in our sector given the strength of our brand and customer satisfaction, our belief that
our securities repurchases will continue to enhance shareholder value, expectations that international revenue will become even
more significant over time, expectations that interest income will contribute less in 2024 from a combination of lower interest
rates and a lower cash balance as a result of securities repurchases, our intention to look for ways to continue to return value to
shareholders as we continue to see our company as undervalued, our belief that green shoots in engagement, acquisitions, and
retention will have to build our renewal base before we can see a positive impact on total subscribers and revenue, our
reallocation of resources to fund our AI investments and marketing channels to promote our new experience, expectations
regarding Chegg's execution against its strategic and financial objectives and guidance, our financial guidance, as well as those
included in the investor presentation referenced above, those included in the “Prepared Remarks” sections above, and all
statements about Chegg’s outlook under “Business Outlook.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“project,” “endeavor,” “will,” “should,” “future,” “transition,” “outlook” and similar expressions, as they relate to Chegg, are
intended to identify forward-looking statements. These statements are not guarantees of future performance, and are based on
management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks
and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any future
results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed
or implied by these forward-looking statements include the following: the effects of AI technology on Chegg’s business and the
economy generally; Chegg’s ability to attract new, and retain existing, students, to increase student engagement, and to increase
monetization; Chegg’s brand and reputation; changes in employment and wages and the uncertainty surrounding the evolving
educational landscape, enrollment and student behavior; Chegg’s ability to expand internationally; changes in search engine
methodologies that modify Chegg’s search result page rankings, resulting in decreased student engagement on Chegg’s website;
the success of Chegg’s new product offerings, including the new Chegg generative AI experience and personal learning
assistant; competition in aspects of Chegg’s business, and Chegg's expectation that such competition will increase; Chegg’s
ability to innovate in response to technological and market developments, including artificial intelligence; Chegg’s ability to
maintain its services and systems without interruption, including as a result of technical issues, cybersecurity threats, or cyber-
attacks; third-party payment processing risks; adoption of government regulation of education unfavorable to Chegg; the rate of
adoption of Chegg’s offerings; mobile app stores and mobile operating systems making Chegg’s apps and mobile website
available to students and to grow Chegg’s user base and increase their engagement; colleges and governments restricting online
access or access to Chegg’s services; Chegg’s ability to strategically take advantage of new opportunities; competitive
developments, including pricing pressures and other services targeting students; Chegg’s ability to build and expand its services
offerings; Chegg’s ability to integrate acquired businesses and assets; the impact of seasonality and student behavior on the
business; the outcome of any current litigation and investigations; Chegg’s ability to effectively control operating costs;
regulatory changes, in particular concerning privacy, marketing, and education; changes in the education market, including as a
result of AI technology and COVID-19; and general economic, political and industry conditions, including inflation, recession
and war. All information provided in this release and in the conference call is as of the date hereof, and Chegg undertakes no
duty to update this information except as required by law. These and other important risk factors are described more fully in
documents filed with the Securities and Exchange Commission, including Chegg's Annual Report on Form 10-K for the year
ended December 31, 2022 filed with the Securities and Exchange Commission on February 21, 2023 and Chegg's Annual
Report on Form 10-K for the year ended December 31, 2023 to be filed with the Securities and Exchange Commission, and
could cause actual results to differ materially from expectations.
 CHEGG, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except for number of shares and par value)
(unaudited)

December 31,
2023 2022
Assets
Current assets
Cash and cash equivalents $ 135,757 $ 473,677
Short-term investments 194,257 583,973
Accounts receivable, net of allowance of $376 and $394 at December 31, 2023 and
December 31, 2022, respectively 31,404 23,515
Prepaid expenses 20,980 28,481
Other current assets 32,437 34,754
Total current assets 414,835 1,144,400
Long-term investments 249,547 216,233
Property and equipment, net 183,073 204,383
Goodwill 631,995 615,093
Intangible assets, net 52,430 78,333
Right of use assets 25,130 18,838
Deferred tax assets 141,843 167,524
Other assets 28,382 20,612
Total assets $ 1,727,235 $ 2,465,416
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 28,184 $ 12,367
Deferred revenue 55,336 56,273
Accrued liabilities 77,863 70,234
Current portion of convertible senior notes, net 357,079 —
Total current liabilities 518,462 138,874
Long-term liabilities
Convertible senior notes, net 242,758 1,188,593
Long-term operating lease liabilities 18,063 13,375
Other long-term liabilities 3,334 7,985
Total long-term liabilities 264,155 1,209,953
Total liabilities 782,617 1,348,827
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value – 10,000,000 shares authorized, no shares issued and
outstanding at December 31, 2023 and December 31, 2022 — —
Common stock, $0.001 par value – 400,000,000 shares authorized; 102,823,700 and
126,473,827 shares issued and outstanding at December 31, 2023 and December 31, 2022,
respectively 103 126
Additional paid-in capital 1,031,627 1,244,504
Accumulated other comprehensive loss (34,739) (57,488)
Accumulated deficit (52,373) (70,553)
Total stockholders’ equity 944,618 1,116,589
Total liabilities and stockholders’ equity $ 1,727,235 $ 2,465,416
 CHEGG, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended December
31, Years Ended December 31,
2023 2022 2023 2022
Net revenues $ 187,987 $ 205,193 $ 716,295 $ 766,897
Cost of revenues(1) 45,804 51,424 225,941 197,396
Gross profit 142,183 153,769 490,354 569,501
Operating expenses:
Research and development(1) 45,724 46,316 191,705 196,637
Sales and marketing(1) 29,746 38,080 126,591 147,660
General and administrative(1) 53,426 61,700 239,783 216,247
Total operating expenses 128,896 146,096 558,079 560,544
Income (loss) from operations 13,287 7,673 (67,725) 8,957
Interest expense, net and other income (expense), net
Interest expense, net (658) (1,302) (3,773) (6,040)
Other income (expense), net 5,139 (4,218) 121,810 101,029
Total interest expense, net and other income (expense),
net 4,481 (5,520) 118,037 94,989
Income before (provision for) benefit from income taxes 17,768 2,153 50,312 103,946
(Provision for) benefit from income taxes (8,103) (295) (32,132) 162,692
Net income $ 9,665 $ 1,858 $ 18,180 $ 266,638
Net income (loss) per share
Basic $ 0.09 $ 0.01 $ 0.16 $ 2.09
Diluted $ 0.09 $ 0.01 $ (0.34) $ 1.34
Weighted average shares used to compute net income (loss) per
share
Basic 109,093 125,750 116,504 127,557
Diluted 118,902 127,518 128,569 149,859

(1)
Includes share-based compensation expense as follows:
Cost of revenues $ 571 $ 539 $ 2,256 $ 2,484
Research and development 10,194 10,381 44,103 41,335
Sales and marketing 2,408 2,681 9,524 13,857
General and administrative 18,733 21,514 77,619 75,780
Total share-based compensation expense $ 31,906 $ 35,115 $ 133,502 $ 133,456
 CHEGG, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Years Ended December 31,
2023 2022 2021
Cash flows from operating activities
Net income (loss) $ 18,180 $ 266,638 $ (1,458)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Share-based compensation expense 133,502 133,456 108,846
Other depreciation and amortization expense 129,718 89,997 63,274
Deferred tax assets 26,575 (168,679) (1,104)
(Gain)/loss on early extinguishments of debt (85,926) (93,519) 78,152
Loss contingency accrual 7,000 — —
Impairment of intangible asset 3,600 — —
Loss from write-offs of property and equipment 4,137 3,549 2,115
Amortization of debt issuance costs 3,156 5,166 5,922
Operating lease expense, net of accretion 6,079 6,327 5,994
Realized loss on sale of investments 2,106 9,675 178
(Gain)/loss on textbook library, net — (4,976) 10,956
Print textbook depreciation expense — 1,610 10,859
Gain on foreign currency remeasurement of purchase consideration — (4,628) —
Impairment on lease related assets — 5,225 —
Gain on sale of strategic equity investments — — (12,496)
Loss on change in fair value of derivative instruments, net — — 7,148
Other non-cash items (1,228) 378 (47)
Change in assets and liabilities, net of effect of acquisition of businesses:
Accounts receivable (7,799) (3,752) (5,004)
Prepaid expenses and other current assets 3,476 17,191 (21,854)
Other assets 10,829 14,563 16,387
Accounts payable 13,057 (4,144) 3,241
Deferred revenue (1,585) 7,538 2,523
Accrued liabilities (7,342) (20,111) 5,199
Other liabilities (11,337) (5,768) (5,607)
Net cash provided by operating activities 246,198 255,736 273,224
Cash flows from investing activities
Purchases of property and equipment (83,052) (103,092) (94,180)
Purchases of textbooks — (3,815) (10,931)
Proceeds from disposition of textbooks 9,787 6,003 8,714
Purchases of investments (637,939) (730,509) (1,688,384)
Proceeds from sale of investments 394,533 458,489 206,041
Maturities of investments 597,197 884,940 1,204,787
Proceeds from sale of strategic equity investments — — 16,076
Acquisition of businesses, net of cash acquired — (401,125) (7,891)
Purchases of strategic equity investments (11,853) (6,000) —
Net cash provided by (used in) investing activities 268,673 104,891 (365,768)
Cash flows from financing activities
Proceeds from common stock issued under stock plans, net 4,165 6,477 8,887
Payment of taxes related to the net share settlement of equity awards (16,440) (26,549) (94,423)
Proceeds from equity offering, net of offering costs — — 1,091,466
Repayment of convertible senior notes (505,986) (401,203) (300,762)
Proceeds from exercise of convertible senior notes capped call 297 — 69,005
Payment of escrow related to acquisition — — (7,451)
Repurchase of common stock (334,806) (323,528) (300,000)
Net cash (used in) provided by financing activities (852,770) (744,803) 466,722
Effect of exchange rate changes 21 4,137 —
Net (decrease) increase in cash, cash equivalents and restricted cash (337,878) (380,039) 374,178
Cash, cash equivalents and restricted cash, beginning of period 475,854 855,893 481,715
Cash, cash equivalents and restricted cash, end of period $ 137,976 $ 475,854 $ 855,893
 Years Ended December 31,
2023 2022 2021
Supplemental cash flow data:
Cash paid during the period for:
Interest $ 741 $ 875 $ 1,053
Income taxes, net of refunds $ 11,074 $ 6,841 $ 7,388
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 9,042 $ 8,863 $ 7,772
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 12,407 $ 10,232 $ —
Non-cash investing and financing activities:
Accrued purchases of long-lived assets $ 9,650 $ 4,927 $ 2,982
Issuance of common stock related to repayment of convertible senior notes $ — $ — $ 235,521

December 31,
2023 2022 2021
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents $ 135,757 $ 473,677 $ 854,078
Restricted cash included in other current assets — 63 —
Restricted cash included in other assets 2,219 2,114 1,815
Total cash, cash equivalents and restricted cash $ 137,976 $ 475,854 $ 855,893
 CHEGG, INC.
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(in thousands)
(unaudited)

Three Months Ended December

31, Years Ended December 31,
2023 2022 2023 2022
Net income $ 9,665 $ 1,858 $ 18,180 $ 266,638
Interest expense, net 658 1,302 3,773 6,040
Provision for (benefit from) income taxes 8,103 295 32,132 (162,692)
Print textbook depreciation expense — — — 1,610
Other depreciation and amortization expense(1) 20,773 25,702 129,718 89,997
EBITDA 39,199 29,157 183,803 201,593
Print textbook depreciation expense — — — (1,610)
Share-based compensation expense 31,906 35,115 133,502 133,456
Other (income) expense, net (5,139) 4,218 (121,810) (101,029)
Acquisition-related compensation costs 204 3,438 6,290 14,427
Content and related assets charge(1) — — 7,647 —
Restructuring charges — — 5,704 —
Loss contingency — — 7,000 —
Transitional logistics charges — 266 253 2,463
Impairment of lease related assets — 1,814 — 5,225
Adjusted EBITDA $ 66,170 $ 74,008 $ 222,389 $ 254,525
(1)
The total content and related assets charge during the year ended December 31, 2023 is $41.8 million consisting of $34.2 million of
accelerated depreciation included within other depreciation and amortization expense and $7.6 million of the remaining associated charges
included within content and related assets charge.
 CHEGG, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages and per share amounts)
(unaudited)

Three Months Ended December

31, Years Ended December 31,
2023 2022 2023 2022
Cost of revenues $ 45,804 $ 51,424 $ 225,941 $ 197,396
Content and related assets charge — — (38,242) —
Amortization of intangible assets (3,111) (3,290) (12,970) (14,402)
Share-based compensation expense (571) (539) (2,256) (2,484)
Acquisition-related compensation costs (4) (6) (21) (35)
Restructuring charges — — (12) —
Transitional logistics charges — (266) (253) (2,463)
Non-GAAP cost of revenues $ 42,118 $ 47,323 $ 172,187 $ 178,012

Gross profit $ 142,183 $ 153,769 $ 490,354 $ 569,501

Content and related assets charge — — 38,242 —
Amortization of intangible assets 3,111 3,290 12,970 14,402
Share-based compensation expense 571 539 2,256 2,484
Acquisition-related compensation costs 4 6 21 35
Restructuring charges — — 12 —
Transitional logistics charges — 266 253 2,463
Non-GAAP gross profit $ 145,869 $ 157,870 $ 544,108 $ 588,885

Gross margin % 76 % 75 % 68 % 74 %
Non-GAAP gross margin % 78 % 77 % 76 % 77 %

Operating expenses $ 128,896 $ 146,096 $ 558,079 $ 560,544

Share-based compensation expense (31,335) (34,576) (131,246) (130,972)
Amortization of intangible assets (2,594) (2,839) (11,417) (11,470)
Acquisition-related compensation costs (200) (3,432) (6,269) (14,392)
Content and related assets charge — — (3,600) —
Restructuring charges — — (5,692) —
Loss contingency — — (7,000) —
Impairment of lease related assets — (1,814) — (5,225)
Non-GAAP operating expenses $ 94,767 $ 103,435 $ 392,855 $ 398,485

Income (loss) from operations $ 13,287 $ 7,673 $ (67,725) $ 8,957

Share-based compensation expense 31,906 35,115 133,502 133,456
Amortization of intangible assets 5,705 6,129 24,387 25,872
Acquisition-related compensation costs 204 3,438 6,290 14,427
Content and related assets charge — — 41,842 —
Transitional logistics charges — 266 253 2,463
Restructuring charges — — 5,704 —
Loss contingency — — 7,000 —
Impairment of lease related assets — 1,814 — 5,225
Non-GAAP income from operations $ 51,102 $ 54,435 $ 151,253 $ 190,400
 Three Months Ended December
31, Years Ended December 31,
2023 2022 2023 2022
Net income $ 9,665 $ 1,858 $ 18,180 $ 266,638
Share-based compensation expense 31,906 35,115 133,502 133,456
Amortization of intangible assets 5,705 6,129 24,387 25,872
Acquisition-related compensation costs 204 3,438 6,290 14,427
Amortization of debt issuance costs 546 1,082 3,156 5,166
Income tax effect of non-GAAP adjustments (5,368) — (12,633) —
Gain on early extinguishment of debt — — (85,926) (93,519)
Content and related assets charge — — 41,842 —
Restructuring charges — — 5,704 —
Loss contingency — — 7,000 —
Transitional logistics charges — 266 253 2,463
Realized loss on sale of investments — 9,057 — 9,057
Tax benefit related to release of valuation allowance — — — (174,601)
Impairment of lease related assets — 1,814 — 5,225
Non-GAAP net income $ 42,658 $ 58,759 $ 141,755 $ 194,184

Weighted average shares used to compute net income (loss) per

share, diluted 118,902 127,518 128,569 149,859
Effect of shares for stock plan activity — — 514 —
Effect of shares related to convertible senior notes — 18,226 — —
Non-GAAP weighted average shares used to compute non-
GAAP net income per share, diluted 118,902 145,744 129,083 149,859

Net income (loss) per share, diluted $ 0.09 $ 0.01 $ (0.34) $ 1.34
Adjustments 0.27 0.39 1.44 (0.04)
Non-GAAP net income per share, diluted $ 0.36 $ 0.40 $ 1.10 $ 1.30
 CHEGG, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(in thousands)
(unaudited)
Years Ended December 31,
2023 2022
Net cash provided by operating activities $ 246,198 $ 255,736
Purchases of property and equipment (83,052) (103,092)
Purchases of textbooks — (3,815)
Proceeds from disposition of textbooks 9,787 6,003
Free cash flow $ 172,933 $ 154,832
 CHEGG, INC.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands)
(unaudited)
Three Months Ended
March 31, June 30, September 30, December 31,
2023 2023 2023 2023
Subscription Services $ 168,440 $ 165,855 $ 139,912 $ 166,313
Skills and Other 19,161 16,998 17,942 21,674
Total net revenues $ 187,601 $ 182,853 $ 157,854 $ 187,987

Gross profit 138,451 135,441 74,279 142,183

(Loss) income from operations (4,446) (18,696) (57,870) 13,287
Net income (loss) 2,186 24,612 (18,283) 9,665
Weighted average shares used to compute net income (loss) per
share:
Basic 123,710 117,977 115,407 109,093
Diluted 124,304 132,944 115,407 118,902
Net income (loss) per share:
Basic $ 0.02 $ 0.21 $ (0.16) $ 0.09
Diluted $ 0.02 $ (0.11) $ (0.16) $ 0.09

Three Months Ended

March 31, June 30, September 30, December 31,
2022 2022 2022 2022
Subscription Services $ 173,037 $ 175,424 $ 146,001 $ 177,506
Skills and Other 29,207 19,297 18,738 27,687
Total net revenues $ 202,244 $ 194,721 $ 164,739 $ 205,193

Gross profit 147,159 149,037 119,536 153,769

Income (loss) from operations 5,376 7,343 (11,435) 7,673
Net income 5,742 7,476 251,562 1,858
Weighted average shares used to compute net income per
share:
Basic 132,162 126,272 126,132 125,750
Diluted 133,270 149,574 148,045 127,518
Net income per share:
Basic $ 0.04 $ 0.06 $ 1.99 $ 0.01
Diluted $ 0.04 $ 0.06 $ 1.23 $ 0.01
 CHEGG, INC.
RECONCILIATION OF FORWARD-LOOKING NET LOSS TO EBITDA AND ADJUSTED EBITDA
(in thousands)
(unaudited)

Three Months
Ending March
31, 2024
Net loss $ (6,100)
Interest expense, net 500
Provision for income taxes 6,400
Other depreciation and amortization expense 20,100
EBITDA 20,900
Share-based compensation expense 30,000
Other income, net (7,100)
Acquisition-related compensation costs 200
Adjusted EBITDA* $ 44,000
* Adjusted EBITDA guidance for the three months ending March 31, 2024 represents the midpoint of the range of $43 million
to $45 million.