Chegg Inc Q4 2020 Earnings Call 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 : Great to see the increased revenue guidance for 2021, but I just wanted to ask about assumptions for the second half of the year in particular. It seems to assume, based on the quarterly cadence that you guys laid out, a pretty big slowdown in year-over-year revenue growth. I think you'd noted some assumed headwinds in Required Materials. So can you help roughly frame what you've maybe assumed between the 2 segments in the second half of 2021? I'm just curious about what you're expecting in particular for Chegg Services revenue growth.

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Yes. And so I guess within Required Materials, I guess, are you assuming that revenue in the second half is down a decent amount year-over-year?

Question: Brett Anthony Knoblauch - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Congrats on the good quarter. You ended the year with, I guess, a rather big cash position. Obviously, the acquisitions of past have been relatively small to that cash position. What is your capital allocation plan going forward? Is M&A still going to be the #1 priority there? And if that is the priority, I guess where would you look to further expand? Would it be mostly on the Thinkful side now that you have a taste for that market?

Question: Brett Anthony Knoblauch - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Perfect. And maybe if I can just ask one more, just regarding maybe the international subscriber count that you guys put out there. Is there any way for you guys to provide a growth rate for that? Should we expect international to account for more than 10% of revenues in 2021?