Chegg, Inc.

Greetings and welcome to Chegg, Inc. First Quarter 2021 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 is now my pleasure to introduce your host, Tracy Ford, Vice President of Investor Relations for Chegg. Thank you. You may begin.

Good afternoon. Thank you for joining Chegg's first quarter 2021 conference call. On today's call are Dan Rosenzweig, co-chairperson and CEO, and Andy Brown, chief financial officer. A copy of our earnings press release, along with our investor presentation, is available on our investor relations website, investor.chegg.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 chegg.com slash Media Center. 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. that could cause actual results to differ materially from those in the forward-looking statements. We caution you to consider the important factors that could cause actual results to differ materially from those in the forward-looking statements. In particular, we refer you to the cautionary language included in today's earnings release and the risk factors described in Chegg's annual report on Form 10-K, filed with the Securities and Exchange Commission on February 22, 2021, as well as our other filings with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and the investor slide deck found on our IR website, investor.check.com. We also recommend you review the invested data sheet, which is also posted on our IR website. Now I will turn the call over to Dan.

Thank you, Tracy, and welcome everyone to Chegg's Q1 2021 earnings call. Even as COVID is receding in the United States, we know many are still dealing with real challenges. So we hope all of you and your families are healthy and well. And despite the ongoing global uncertainty, Chegg has had a tremendous start to the year. I want to thank our team for their focus and execution to deliver on our student-first mission to ensure learners around the world have the support and the resources they need. And while our U.S. business remains incredibly strong, we are very excited about our significant international growth and are on our way to exceeding our 1 million subscriber goal. We continue to fire on all cylinders and our Q1 results reflect the popularity and importance of Chegg services, which experienced 64% subscriber growth, reaching a record 4.8 million subscribers in the quarter. To put that in perspective, it is almost 1 million more subscribers than we had in all of 2019. And our overall year-over-year revenue grew by 51%. These results and continued momentum give us the confidence to once again raise our full year guidance. And Andy will walk you through the financial details shortly. Direct-to-consumer platforms like Chegg, who own the relationship with their customer, own the data, their channels of distribution, and their content, are in the best position to serve their customers, grow faster, and be more profitable at scale. Having that relationship and data allows CHEG to more effectively and immediately differentiate our services and respond faster to our students' evolving needs. We believe our ability to invest in our existing services and add new and better services while increasing margins puts CHEG in a unique position to impact the future of the higher education ecosystem. Our market is only getting bigger and more important, and we are excited about CHEG's position to lead and capture these new growth areas. Content quality, comprehensiveness, and effectiveness are the moat that allows Chegg to provide overwhelming value to students. This quarter, we added 6 million new solutions to our expert Q&A database, which now has more than 59 million solutions. And 33% of the new questions came from our international subscribers. The more expert-generated content we offer and the higher the quality, the better our growth, renewals, and retention for students in the U.S. and around the world. This supports our view that Chegg services are truly global in nature. This also applies to newly added services like Mathway, which we acquired last year and invested in, which led to accelerated growth due to the strength of the Chegg brand, outreach, and our platforms. Our vision of offering overwhelming value to students is exemplified by the introduction of our JEGS study pack bundle, which more and more of our customers are subscribing to. And with our continued efforts around limiting account sharing, we are seeing positive impact in customer acquisition and an increased lifetime value. COVID-19 was a wake-up call for the education industry, with many now trying to rapidly transition online. For those of you who are new to our story, Chegg services were built from the beginning to support students online, on demand, with high quality differentiated content in multiple modalities on every device, whether they are on campus or off campus. Chegg is focused on providing world-class academic services that help students master their subjects, better understand their course material, and have better outcomes on their learning journey. We have expanded our offerings to include skills-based learning. As it is clear, more people have to learn more things over the course of their careers, particularly for tech-enabled jobs. Although the skills category is early for us, we believe it represents an enormous opportunity for CHEG on a global basis in the coming years. We believe education must evolve to meet the changing needs of modern students. Students today are older, many have children, have jobs, have less time, and they need and deserve more support. The learner economy supports them by helping more learners access more subjects, more modalities, and more content from expert educators to help them take their education and careers into their own hands. Both the number of students and the length of time they will spend learning are dramatically expanding. which is why CHEG will meet this opportunity by continuing to invest in expert, high-quality content of all types from even more sources to become a unified global learning platform for academic support and skills. As we look ahead, I could not be prouder of the CHEG team who continue to overperform in very difficult circumstances. And I want to share my appreciation as we once again We're named one of Fortune Magazine's best technology companies to work for, and we won eight awards comparably, including being named on the list for best company culture and best company outlook. We are fortunate to be a mission-driven company at a time when what we provide is more important than ever. We see the learner economy only getting bigger and more impactful. We believe Chegg's core business of academic support and skills has significant growth ahead of it. And with a strong balance sheet, we will always look for opportunities to better serve the student. CHEG will continue to lead the transition from learning to earning and support students no matter the path they take in their academic and professional careers. And with that, I will turn it over to Andy. Andy?