LAUR - Chegg: Gathering Steam But Overvalued
Investment Considerations
Chegg (CHGG) is an interesting and rapidly growing company that is capturing a larger share of the high school and college student market. As Chegg transitions to become primarily an online education portal, revenue from its ongoing, core segments grew 27.9% in 2017 to $255.1 million. In 2018, the company has guided to revenues of $316.5 million, an increase of 24.1%.
While the momentum in revenue growth in 2018 is slowing slightly, momentum in earnings is greater because while revenues are growing, so is gross margin. In each quarter since Q1