2023-05-01 17:29:04 ET
Chegg ( NYSE: CHGG ) fell sharply after the company warned ChatGPT was having a financial impact on its results.
Beginning in March, Chegg ( CHGG ) noted that it saw a significant spike in student interest in ChatGPT. The company said it now believes it is having a negative impact on new customer growth rate.
Looking ahead, Chegg CEO Dan Rosensweig said the company is embracing artificial intelligence technology as it continues to evolve at a rapid pace. The company is aggressively and prioritizing our investments to meet this opportunity.
Total revenue fell 7% year-over-year in Q1 to $188M and subscription services revenues decline 3%. Guidance for Q2 was for revenue of $175M to $178M vs. $194M consensus.
Shares of Chegg ( CHGG ) fell 30.55% in postmarket trading.
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Chegg slides 31% with students ramping up usage of ChatGPT