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Chegg's Q2 2025 Earnings Call: Unpacking Contradictions in B2B Growth Strategies and Market Positioning
Generated by AI AgentEarnings Decrypt
Tuesday, Aug 5, 2025 7:27 pm ET1min read
Aime SummaryB2B growth strategy, business-to-institution partnerships, skills business market positioning, growth strategy and investments, and sustainability of B2B growth in Busuu are the key contradictions discussed in Chegg's latest 2025Q2 earnings call.
Busuu's Growth and Expansion:
- Busuu, Chegg's language learning business, achieved a 15% year-over-year revenue increase in Q2 2025, with B2C revenue increasing by 6% and B2B revenue growing by 39%.
- The growth was driven by successful product innovation, particularly the integration of AI-powered features like speaking bites, and strategic partnerships, notably with Guild and new partners in the DACH region.
Skills Business Transformation:
- Chegg's Skills business, focused on workplace readiness and upskilling, saw enrollments increase 16% quarter-over-quarter and a 11% increase in monthly active users across new programs.
- The transformation was facilitated by modernizing product offerings, prioritizing AI programs, career fundamentals, and professional upskilling, and pursuing ACE Credit recommendations for program validation.
Chegg Study's Evolution:
- Study, the company's core academic product, is being reinvented as a personalized learning assistant, with monthly retention rates improving by 117 basis points in Q2 2025.
- This evolution is driven by AI integration, including new features like Solution Scout and AI-powered practicing flashcard generators, which have enhanced user engagement and satisfaction.
Cost Management and Savings:
- Chegg identified an additional $17 million in CapEx and expense savings to be realized in 2026, on top of the previously announced restructuring efforts targeting non-GAAP expense savings of $165 million to $175 million in 2025.
- The cost management initiatives are aimed at strengthening cash flow and generating shareholder value, driven by disciplined expense management and innovative use of AI to reduce content and software development CapEx.
Busuu's Growth and Expansion:
- Busuu, Chegg's language learning business, achieved a 15% year-over-year revenue increase in Q2 2025, with B2C revenue increasing by 6% and B2B revenue growing by 39%.
- The growth was driven by successful product innovation, particularly the integration of AI-powered features like speaking bites, and strategic partnerships, notably with Guild and new partners in the DACH region.
Skills Business Transformation:
- Chegg's Skills business, focused on workplace readiness and upskilling, saw enrollments increase 16% quarter-over-quarter and a 11% increase in monthly active users across new programs.
- The transformation was facilitated by modernizing product offerings, prioritizing AI programs, career fundamentals, and professional upskilling, and pursuing ACE Credit recommendations for program validation.
Chegg Study's Evolution:
- Study, the company's core academic product, is being reinvented as a personalized learning assistant, with monthly retention rates improving by 117 basis points in Q2 2025.
- This evolution is driven by AI integration, including new features like Solution Scout and AI-powered practicing flashcard generators, which have enhanced user engagement and satisfaction.
Cost Management and Savings:
- Chegg identified an additional $17 million in CapEx and expense savings to be realized in 2026, on top of the previously announced restructuring efforts targeting non-GAAP expense savings of $165 million to $175 million in 2025.
- The cost management initiatives are aimed at strengthening cash flow and generating shareholder value, driven by disciplined expense management and innovative use of AI to reduce content and software development CapEx.
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