Chegg, Inc.

Greetings. Welcome to CHEG Inc. Fourth 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. Please note, this conference is being recorded. I will now turn the conference over to your host, Tracy Ford, VP of Investment Relations and ESG. You may begin.

Good afternoon. Good afternoon. Thank you for joining Chegg's fourth 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 on our earnings press release and the investor slide deck on our IR website, investor.cheg.com. We also recommend you review the investor 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 our 2021 Q4 earnings call. When we reported in early November, there was a great deal of uncertainty around the back-to-the-school season and the continuing impact of COVID-19. Fortunately, while enrollments were lower, we saw that schoolwork could eventually pick up so the need for CHEG increased throughout the quarter, helping us exit the year on a higher note. During these complicated times, the CHEG team has continued to execute extremely well, with CHEG study packs, take rates outperforming our expectations, and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for CHEG services. Our continued investment in content quality, subject matter expansion, personalization, and discovery keep adding more value for students around the world and create even bigger opportunities for Chegg. Students depend on Chegg and is an important part of their learning journey, and the momentum we experienced in Q4 is continuing into Q1. This is why we feel comfortable providing 2022 guidance, which Andy will walk you through shortly. As education evolves, so do the learning pathways, which means there are going to be more students which will require even more help. That is why we are expanding our learning support to reach these students, regardless of the path they choose, to improve their outcomes through learning. So for 2022, our priorities are, one, to expand and improve the discoverability and quality of our content. the subjects that we cover, and further personalize the user experience to make Chegg even better and more valuable for learners. Two, invest in our international expansion, including our newest and exciting edition of Busuu, entering us into the $17 billion digital language business. Three, invest in and grow our skills business by offering more courses through partnerships and through our direct channels.