Chegg, Inc. reported its fourth-quarter 2024 financial results on February 24, 2025, with total revenue of $143.5 million, marking a 24% decrease year-over-year. Subscription Services revenue declined by 23% year-over-year to $128.5 million, and the company's subscriber base decreased by 21% to 3.6 million.
The company announced the initiation of a strategic review process to explore alternatives aimed at maximizing shareholder value, including a potential acquisition or go-private transaction. This decision is directly linked to the impact of Google's AI Overviews (AIO) on Chegg's traffic and revenue.
Concurrently, Chegg filed a complaint against Google LLC and Alphabet Inc. in federal court, alleging that Google's AI Overviews unjustly retain traffic and use Chegg's proprietary content without compensation. Chegg stated that its non-subscriber traffic plummeted 49% in January 2025 due to Google AIO.
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