In the report, chief executive officer Nathan Schultz singled out tools like Google AI Overviews (AIO) and ChatGPT as causes for its decline in subscribers and revenues.
“Recent advancements in the AI search experience and the adoption of free and paid generative AI services by students have resulted in challenges for Chegg,” he said. “These factors are adversely affecting our business outlook and are requiring us to refocus and adjust the size of our business.”
Looking ahead
In 2025, Chegg’s marketing strategy is focused on competing with external AI tools and prioritizing its customer and product experience.
“We are focused on helping students succeed on their learning journeys–not just getting them a quick answer but rather helping them to truly master the material,” said Bahri.
The company plans to continue launching creative campaigns featuring Ace to connect with consumers and highlight its brand capabilities.
“Get a Grip” will run across streaming TV and social media.