Chegg Inc at William Blair Growth Stock Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Yes. No, no, that was great. I appreciate that. I think maybe starting on with -- on the content side, I think, the value of the subscription seems like it's gone up as you continue to add content you made. An interesting announcement last night with a new form of content, I think, your Uversity, I believe that's how you say it. But -- so can you talk more about that offering, what it might add to your platform? And maybe any detail on how it could drive monetization? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 03, 2021 / 4:20PM, CHGG.N - Chegg Inc at William Blair Growth Stock Conference (Virtual)

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. And that makes sense. As you think about -- I guess, 2 follow-up questions on that. One, would you expect the focus still be in areas like -- I think you focused heavily on STEM subjects before you maybe expanded a little bit beyond that. But is this going to be -- would it be kind of more content focused on where you're already focusing? Or would there be a -- would you be looking at potentially adding content in new verticals? And then second, I guess when you're paying, is it like a revenue share that you'd be paying with for these professors? Or is it more like a fixed fee? I mean you talked about a rate card...

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. It's really helpful. I think a lot of investors have asked recently about the boost you've seen from the pandemic and whether there could be a reset in subscribers as more students move back to in-person education, hopefully, this fall. I think there could also be a counterargument that more higher education students have been exposed to the ROI of your solution. So if you think about this topic, kind of, one, how much risk you see in terms of a larger percentage of students canceling their subscription than you would normally see? And two, have you seen anything change in the cancellation rate so far?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. A lot to dig into there. And maybe on the account sharing side, just because we were talking about it. I guess -- and I think some investors have perceived this as potentially a onetime boost, where you had a certain population of students that didn't use -- that used the platform, but weren't paying for it. They were using piggybacking on other people's accounts. And so if you had a population there, you probably converted some of those people. But is there a multiyear growth impact here? And I guess the question would be, you're seeing higher brand awareness, you're seeing early brand awareness in international markets. If 5 people -- new people learn about the platform now, maybe before you had 1 convert into a paid sub and 2 or 3 piggybacking on it, maybe now you have 5 new people to learn about the platform and 4 -- 3 or 4 sign up, I guess. Do you view the account sharing as kind of a onetime boost to growth? Or do you think there's going to be a multiyear benefit from this? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 03, 2021 / 4:20PM, CHGG.N - Chegg Inc at William Blair Growth Stock Conference (Virtual)

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. And wanted to dig in a little bit more on the international side. It seems like that's one area that you're getting a lot of traction now. I think you talked about a little bit. How are students finding the platform now in these international markets, where you haven't invested much, I guess, how are they finding it?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : And if you think about in the U.S., I think it took a couple of years for you to get started to see -- you started to get some critical mass and then you started to see the second degree benefit in terms of subscriber growth driven by positive referrals, word-of-mouth activity on campuses. Would you expect to see similar trends internationally? And have you started to see any, I guess, early indications that, that could happen?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. I want to make sure I hit -- I asked at least about the bundled rollout of Chegg Study Pack. I mean can you talk some about the cadence of the rollout and any ballpark metrics on the adoption you've seen within the subscriber base? And just what -- as you've done this, what has surprised you the most about it?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. And it seems like your -- I think one of the things you do is you constantly test different forms of bundles in different markets. I guess, what should investors be expecting in terms of more iterations of the bundle to drive potentially revenue per subscriber higher? And how do solutions like tutoring potentially fit into that?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. Well, Andy, I think this went by way too fast. I wish we had more time here because there's a lot of other things we could dig into. Really appreciate your time. Thank you, everyone, for joining. We'll be in touch and look forward to digging in more. Thanks, everyone.