Chegg, Inc.

Greetings, and welcome to the Check, Inc. First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Tracey Ford, Investor Relations for Check. Please go ahead, Ms. Ford.

Good afternoon. Thank you for joining Chegg's first quarter 2020 conference call. On today's call are Dan Rosensweig, co-chairperson and CEO, and Andy Brown, chief financial officer. A copy of our earnings press release along with the investor presentation is available on our investor relations website, investors.cheggs.com. A replay of this call will also be available on our website. We routinely post information on our website and intend to make important announcements on our Media Center website at kegs.com. We encourage you to make use of these resources. Before we begin, I would like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of the company. These forward-looking statements are subject to material risks and uncertainties. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. We also recommend you review the investor data sheet, which is also posted in our IR website. Now, I will turn the call over to Dan.

Thank you, Tracey, and welcome everyone to CHEGS Q1 2020 earnings call. We are living through an unprecedented time, and we want to take a moment to acknowledge the tremendous challenges that our society is facing. First, we want to give our heartfelt thanks to all the frontline workers, first responders, and caregivers who are putting themselves in harm's way for all of us. I also want to thank the institutions, professors, and administrators who were able to rapidly shift the curriculum online to continue supporting their students. All of us have been impacted by COVID-19, some much more adversely than others. With the many ripple effects now impacting our economy and our education system, we feel fortunate to be able to report that our Chegg employees and their families are healthy and that our business is performing at an accelerated level. We also hope that all of you listening in today are healthy, safe, and well. In mid-March, as we started navigating the impact of COVID-19, we prioritized the health and well-being of our employees and their families. We then moved quickly to set up our teams to work remotely and were able to seamlessly continue providing Chegg products and services The fact that we were able to execute this transition so effectively is a testament to the adaptability of our employees and the investments we have made in our technology infrastructure. More importantly, due to the strength of our business and our balance sheet, we have been able to retain our staff, meet the increased needs of our business as it grows, and continue to make important investments in our future. As a student-first company, we can appreciate that there are many underserved students who depend on their institutions for support and now must seek help elsewhere. Our goal during this crisis is to do all we can to help the most students, which is why we partnered with Verizon, where together we are providing the most in-need students in their network free access to our CHEGS study pack to help them finish their semester. However, for many students, the impact of COVID-19 goes beyond just affecting their academics. Some have lost their jobs. Some fear losing them, and many may not be able to find the jobs when they graduate. So we are ramping up our efforts through Thinkful as we recognize our responsibility to help as many students as possible get the skills they need to prepare them for the post-COVID-19 workforce. Specifically, we are expanding our curriculum, substantially increasing access to our scholarships, and we are working to reduce prices even further, which we plan to roll out later this summer. Our goal is to help more students of more diverse backgrounds to get the in-demand skills they need to compete in today's economy. Chegg's vision has always been to increase access to high-quality learning content with on-demand support, all while lowering the financial risk to our students. We are a global company, and our teams around the world are committed to investing in their community. So along with our employees, we are proud to have stepped up our support for nonprofits who are focusing on issues like food insecurity during this crisis. As so many students lost access to on-campus food banks when their schools had to close, we feel fortunate that we can provide this help. To date, we have already committed approximately $1 million to help students and our local communities impacted by the effects of COVID-19. Clearly, the education industry was hit hard, and schools had to act immediately. without any precedent for moving exclusively online. As students were required to leave campus and learn from home, we began to see some remarkable trends. We saw a substantial increase in new subscribers, both domestically and globally. We saw a marked increase in engagement from our existing subscribers. And we are seeing a meaningful increase in the take rate of our new Chegg study pack. much earlier than we expected. The financial impact on our business is quite meaningful, so I want to turn it over to Andy to walk you through the details and our guidance. Andy?