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Chegg (CHGG) Collaborates with NRCCUA to Boost Enrollment
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Chegg, Inc. (CHGG - Free Report) entered into a strategic partnership with The National Research Center for College & University Admissions (“NRCCUA”) in order to improve the college selection process and boost enrollments.
NRCCUA is a leading provider of data, technology and programs, servicing public and private colleges and universities to enhance their marketing and recruiting efforts.
The Deal
NRCCUA will be exclusively reselling Chegg’s direct-to-student digital marketing services. It will also be managing, renewing and maintaining Chegg's existing university contracts.
The partnership will allow the companies to provide new and enhanced programs to students. Also, with the help of data, analytics, technology and digital services, the companies will be able to make more informed decisions to improve student outcome.
Impact on Fiscal 2017
Notably, Chegg does not expect the partnership to impact its 2017 annual guidance but anticipates a restructuring charge of approximately $1.0 million, the majority of which will occur in the first quarter of 2017.
Total net revenue is projected at $230 million while Chegg Service revenues are estimated at around $172 million for fiscal 2017 and adjusted EBITDA is projected at $35 million.
Stock Price Movement
Chegg’s shares have gained over 30% in the last one year , compared to the 17.9% rally of the Zacks categorized Internet Software industry. It also surpassed earnings estimates in all of the past four quarters with an average beat of 91.9%. Current quarter and year earnings estimates for this Zacks Rank #3 stock remained stable in the past sixty days.
Stocks to Consider
Better-ranked stocks in the Internet software industry include Connecture, Inc. , Box Inc. (BOX - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Connecture’s current quarter 2016 earnings are expected to rise 5.3% while that of PayPal are expected to grow 5.1%. For fiscal 2017, Box’s earnings are projected to increase 27.7%.
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Chegg (CHGG) Collaborates with NRCCUA to Boost Enrollment
Chegg, Inc. (CHGG - Free Report) entered into a strategic partnership with The National Research Center for College & University Admissions (“NRCCUA”) in order to improve the college selection process and boost enrollments.
NRCCUA is a leading provider of data, technology and programs, servicing public and private colleges and universities to enhance their marketing and recruiting efforts.
The Deal
NRCCUA will be exclusively reselling Chegg’s direct-to-student digital marketing services. It will also be managing, renewing and maintaining Chegg's existing university contracts.
The partnership will allow the companies to provide new and enhanced programs to students. Also, with the help of data, analytics, technology and digital services, the companies will be able to make more informed decisions to improve student outcome.
Impact on Fiscal 2017
Notably, Chegg does not expect the partnership to impact its 2017 annual guidance but anticipates a restructuring charge of approximately $1.0 million, the majority of which will occur in the first quarter of 2017.
Total net revenue is projected at $230 million while Chegg Service revenues are estimated at around $172 million for fiscal 2017 and adjusted EBITDA is projected at $35 million.
Stock Price Movement
Chegg’s shares have gained over 30% in the last one year , compared to the 17.9% rally of the Zacks categorized Internet Software industry. It also surpassed earnings estimates in all of the past four quarters with an average beat of 91.9%. Current quarter and year earnings estimates for this Zacks Rank #3 stock remained stable in the past sixty days.
Stocks to Consider
Better-ranked stocks in the Internet software industry include Connecture, Inc. , Box Inc. (BOX - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
All the three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Connecture’s current quarter 2016 earnings are expected to rise 5.3% while that of PayPal are expected to grow 5.1%. For fiscal 2017, Box’s earnings are projected to increase 27.7%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>