Chegg Announces Increased Authorization of Securities Repurchase Program by $200 million

Rhea-AI Summary

Chegg, Inc. has authorized an increase of $200 million for its securities repurchase program. The program allows Chegg to buy back its common stock and/or convertible notes. Chegg also has $89 million remaining from its previously announced $2 billion repurchase program. The timing, volume, and nature of any repurchases will be determined by Chegg's management.

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Chegg, Inc. (NYSE: CHGG), the leading student-first connected learning platform, today announced its board of directors has authorized an increase of $200 million as part of its securities repurchase program. The program allows Chegg to buy back its common stock and/or convertible notes, through open market purchases, block trades and/or in privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. In addition to this increased $200 million securities repurchase authorization, Chegg has approximately $89 million remaining from its previously announced $2 billion securities repurchase program. The timing, volume, and nature of any repurchases will be determined by Chegg’s management, in consultation with the board’s Finance Committee, based on its evaluation of the capital needs of the business, market conditions, applicable legal requirements, and other factors. The repurchase program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by our board of directors. Chegg currently expects to fund the repurchase program from its existing cash balance and future cash flows from operations.

Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements, including Chegg’s intention to implement a program to purchase up to $200 million of Chegg’s common stock and/or convertible notes; the expected timing, volume and nature of such securities repurchase program; the expiration of the program; and the expected source of funding. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the market price of Chegg’s common stock prevailing from time to time, the amount of Chegg’s cash commitments, the nature of other acquisition or investment opportunities presented to Chegg from time to time, Chegg’s cash flows from operations, general economic conditions, inflation and other factors identified in Chegg’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 21, 2023. Additional information is also set forth in Chegg’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. 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. Chegg is under no obligation, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

About Chegg

Millions of people all around the world Learn with Chegg. Our mission is to improve learning and learning outcomes by putting students first. We support life-long learners starting with their academic journey and extending into their careers. The Chegg platform provides products and services to support learners to help them better understand their academic course materials, and also provides personal and professional development skills training, to help them achieve their learning goals. Chegg is a publicly held company based in Santa Clara, California and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230816576333/en/

Investor Relations Contact: Tracey Ford, IR@chegg.com

Media Contact: Emma McCulloch, Press@chegg.com

Source: Chegg

FAQ

What did Chegg announce?

Chegg announced an increase of $200 million for its securities repurchase program.

What can Chegg buy back through the repurchase program?

Chegg can buy back its common stock and/or convertible notes.

How will the repurchases be made?

The repurchases can be made through open market purchases, block trades, privately negotiated transactions, or pursuant to Rule 10b5-1 plans.

How much is remaining from Chegg's previous repurchase program?

Chegg has $89 million remaining from its previously announced $2 billion repurchase program.

Who will determine the timing, volume, and nature of the repurchases?

Chegg's management, in consultation with the board's Finance Committee, will determine the timing, volume, and nature of the repurchases.