Benzinga | Nov 2, 2021 11:13AM EDT

Why Chegg Shares Are Falling

Chegg Inc (NYSE:CHGG) shares are trading lower after the company reported worse-than-expected third-quarter sales results and issued fourth-quarter and FY21 sales guidance below estimates.

Chegg reported quarterly sales of $171.90 million which missed the analyst consensus estimate of $174.54 million by 1.5%. This is a 12% percent increase over sales of $154.02 million the same period last year.

"Over the last year and a half, we experienced extraordinary growth and, in midst of a strong year, had a solid third quarter, growing Chegg Services revenue 23% year-over-year. However, in late September it became clear to us that the education industry is experiencing a slowdown that we believe is temporary and is a direct result of the COVID-19 pandemic," said Dan Rosensweig, CEO and President of Chegg.

"Despite these trends, our team continues to execute at a high level. Chegg is in an excellent position to come out of this stronger than ever and take advantage of the opportunities before us," Rosensweig stated.

Chegg has a 52-week high of $115.21 and a 52-week low of $57.25.