CHEGG, INC, 10-K filed on 2/24/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2024
Jan. 31, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-36180    
Entity Registrant Name CHEGG, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-3237489    
Entity Address, Address Line One 3990 Freedom Circle    
Entity Address, City or Town Santa Clara    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95054    
City Area Code 408    
Local Phone Number 855-5700    
Title of 12(b) Security Common Stock, $0.001 par value per share    
Trading Symbol CHGG    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 319,717,961
Entity Common Stock, Shares Outstanding   105,109,136  
Documents Incorporated by Reference
Portions of the Registrant's definitive proxy statement for the Registrant's 2025 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the Registrant's fiscal year ended December 31, 2024.
   
Entity Central Index Key 0001364954    
Document Fiscal Year End 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location San Jose, California
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 161,475 $ 135,757
Short-term investments 154,249 194,257
Accounts receivable, net of allowance of $190 and $376 at December 31, 2024 and December 31, 2023, respectively 23,641 31,404
Prepaid expenses 17,100 20,980
Other current assets 81,094 32,437
Total current assets 437,559 414,835
Long-term investments 212,650 249,547
Property and equipment, net 170,648 183,073
Goodwill, net 0 631,995
Intangible assets, net 10,347 52,430
Right of use assets 22,256 25,130
Deferred tax assets, net 964 141,843
Other assets 14,527 28,382
Total assets 868,951 1,727,235
Current liabilities    
Accounts payable 15,159 28,184
Deferred revenue 39,217 55,336
Accrued liabilities 115,360 77,863
Current portion of convertible senior notes, net 358,605 357,079
Total current liabilities 528,341 518,462
Long-term liabilities    
Convertible senior notes, net 127,344 242,758
Long-term operating lease liabilities 18,509 18,063
Other long-term liabilities 1,776 3,334
Total long-term liabilities 147,629 264,155
Total liabilities 675,970 782,617
Commitments and contingencies (Note 10)
Stockholders’ equity:    
Preferred stock, $0.001 par value – 10,000,000 shares authorized, no shares issued and outstanding at December 31, 2024 and December 31, 2023 0 0
Common stock, $0.001 par value – 400,000,000 shares authorized; 104,880,048 and 102,823,700 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively 105 103
Additional paid-in capital 1,114,550 1,031,627
Accumulated other comprehensive loss (32,233) (34,739)
Accumulated deficit (889,441) (52,373)
Total stockholders’ equity 192,981 944,618
Total liabilities and stockholders’ equity $ 868,951 $ 1,727,235
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable, current $ 190 $ 376
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 104,880,048 102,823,700
Common stock, shares outstanding (in shares) 104,880,048 102,823,700
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net revenues $ 617,574 $ 716,295 $ 766,897
Cost of revenues 180,927 225,941 197,396
Gross profit 436,647 490,354 569,501
Operating expenses:      
Research and development 170,431 191,705 196,637
Sales and marketing 108,329 126,591 147,660
General and administrative 217,756 236,183 216,247
Impairment expense 677,239 3,600 0
Total operating expenses 1,173,755 558,079 560,544
(Loss) income from operations (737,108) (67,725) 8,957
Interest expense, net and other income, net      
Interest expense, net (2,590) (3,773) (6,040)
Other income, net 51,332 121,810 101,029
Total interest expense, net and other income, net 48,742 118,037 94,989
(Loss) income before (provision for) benefit from income taxes (688,366) 50,312 103,946
(Provision for) benefit from income taxes (148,702) (32,132) 162,692
Net (loss) income $ (837,068) $ 18,180 $ 266,638
Net (loss) income per share      
Basic (in dollars per share) $ (8.10) $ 0.16 $ 2.09
Diluted (in dollars per share) $ (8.10) $ (0.34) $ 1.34
Weighted average shares used to compute net (loss) income per share      
Basic (in shares) 103,300 116,504 127,557
Diluted (in shares) 103,300 128,569 149,859
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net (loss) income $ (837,068) $ 18,180 $ 266,638
Other comprehensive income (loss)      
Change in net unrealized gain (loss) on investments, net of tax 585 5,534 (1,348)
Change in foreign currency translation adjustments, net of tax 1,921 17,215 (50,806)
Other comprehensive income (loss) 2,506 22,749 (52,154)
Total comprehensive (loss) income $ (834,562) $ 40,929 $ 214,484
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021   136,952,000      
Beginning balance at Dec. 31, 2021 $ 1,106,917 $ 137 $ 1,449,305 $ (5,334) $ (337,191)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchase of common stock (in shares)   (12,709,000)      
Repurchase of common stock (323,528) $ (13) (323,515)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   437,000      
Issuance of common stock upon exercise of stock options and ESPP 6,475   6,475    
Net share settlement of equity awards (in shares)   1,794,000      
Net share settlement of equity awards (26,547) $ 2 (26,549)    
Share-based compensation expense 138,788   138,788    
Other comprehensive income (loss) (52,154)     (52,154)  
Net income (loss) 266,638       266,638
Ending balance (in shares) at Dec. 31, 2022   126,474,000      
Ending balance at Dec. 31, 2022 1,116,589 $ 126 1,244,504 (57,488) (70,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchase of common stock (in shares)   (26,506,000)      
Repurchase of common stock (337,709) $ (26) (337,683)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   512,000      
Issuance of common stock upon exercise of stock options and ESPP 4,163 $ 1 4,162    
Net share settlement of equity awards (in shares)   2,344,000      
Net share settlement of equity awards (16,438) $ 2 (16,440)    
Share-based compensation expense 136,787   136,787    
Net proceeds from capped call related to conversions and extinguishments of 2023 notes and 2025 notes 297   297    
Other comprehensive income (loss) 22,749     22,749  
Net income (loss) $ 18,180       18,180
Ending balance (in shares) at Dec. 31, 2023 102,823,700 102,824,000      
Ending balance at Dec. 31, 2023 $ 944,618 $ 103 1,031,627 (34,739) (52,373)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchase of common stock (in shares)   (2,116,000)      
Repurchase of common stock (18) $ (2) (16)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   859,000      
Issuance of common stock upon exercise of stock options and ESPP 2,633 $ 1 2,632    
Net share settlement of equity awards (in shares)   3,313,000      
Net share settlement of equity awards (9,236) $ 3 (9,239)    
Share-based compensation expense 89,546   89,546    
Other comprehensive income (loss) 2,506     2,506  
Net income (loss) $ (837,068)       (837,068)
Ending balance (in shares) at Dec. 31, 2024 104,880,048 104,880,000      
Ending balance at Dec. 31, 2024 $ 192,981 $ 105 $ 1,114,550 $ (32,233) $ (889,441)
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net (loss) income $ (837,068) $ 18,180 $ 266,638
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Share-based compensation expense 84,614 133,502 133,456
Depreciation and amortization expense 78,344 129,718 89,997
Deferred tax assets 143,319 26,575 (168,679)
(Gain)/loss on early extinguishments of debt (19,515) (85,926) (93,519)
Loss contingency accrual 0 7,000 0
Impairment expense 677,239 3,600 0
Loss from write-offs of property and equipment 5,795 4,137 3,549
Amortization of debt issuance costs 2,147 3,156 5,166
Operating lease expense, net of accretion 5,864 6,079 6,327
Realized loss on sale of investments 27 2,106 9,675
Gain on textbook library, net 0 0 (4,976)
Print textbook depreciation expense 0 0 1,610
Gain on foreign currency remeasurement of purchase consideration 0 0 (4,628)
Impairment on lease related assets 5,557 0 5,225
Other non-cash items 656 (1,228) 378
Change in assets and liabilities, net of effect of acquisition of business:      
Accounts receivable 7,771 (7,799) (3,752)
Prepaid expenses and other current assets (41,732) 3,476 17,191
Other assets 1,130 10,829 14,563
Accounts payable (12,376) 13,057 (4,144)
Deferred revenue (15,885) (1,585) 7,538
Accrued liabilities 47,103 (7,342) (20,111)
Other liabilities (7,785) (11,337) (5,768)
Net cash provided by operating activities 125,205 246,198 255,736
Cash flows from investing activities      
Purchases of property and equipment (74,953) (83,052) (103,092)
Purchases of textbooks 0 0 (3,815)
Proceeds from disposition of textbooks 0 9,787 6,003
Purchases of investments (170,950) (637,939) (730,509)
Proceeds from sale of investments 70,077 394,533 458,489
Maturities of investments 171,671 597,197 884,940
Proceeds from sale of strategic equity investments 15,500 0 0
Acquisition of business, net of cash acquired 0 0 (401,125)
Purchases of strategic equity investments 0 (11,853) (6,000)
Net cash provided by investing activities 11,345 268,673 104,891
Cash flows from financing activities      
Proceeds from common stock issued under stock plans, net 2,636 4,165 6,477
Payment of taxes related to the net share settlement of equity awards (9,239) (16,440) (26,549)
Repayment of convertible senior notes (96,520) (505,986) (401,203)
Proceeds from exercise of convertible senior notes capped call 0 297 0
Payment of withholding tax (3,450) 0 0
Repurchase of common stock (2,569) (334,806) (323,528)
Net cash used in financing activities (109,142) (852,770) (744,803)
Effect of exchange rate changes (1,025) 21 4,137
Net increase (decrease) in cash, cash equivalents and restricted ca 26,383 (337,878) (380,039)
Cash, cash equivalents and restricted cash, beginning of period 137,976 475,854 855,893
Cash, cash equivalents and restricted cash, end of period 164,359 137,976 475,854
Supplemental cash flow data:      
Interest 449 741 875
Income taxes, net of refunds 8,085 11,074 6,841
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases 7,243 9,042 8,863
Right of use assets obtained in exchange for lease obligations:      
Operating leases 10,108 12,407 10,232
Non-cash investing and financing activities:      
Accrued purchases of long-lived assets 5,850 9,650 4,927
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 161,475 135,757 473,677
Restricted cash included in other current assets 956 0 63
Restricted cash included in other assets 1,928 2,219 2,114
Total cash, cash equivalents and restricted cash $ 164,359 $ 137,976 $ 475,854
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Background and Basis of Presentation
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation Background and Basis of Presentation
Company and Background

Chegg, Inc. (“we,” “us,” “our,” “Company” or “Chegg”), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Chegg provides individualized learning support to students as they pursue their educational journeys. Available on demand 24/7 and powered by over a decade of learning insights, the Chegg platform offers students artificial intelligence (“AI”)-powered academic support thoughtfully designed for education coupled with access to a vast network of subject matter experts who help ensure quality and accuracy. No matter the goal, level, or style, Chegg helps millions of students around the world learn with confidence by helping them build essential academic, life, and job skills to achieve success.
Basis of Presentation

Our fiscal year ends on December 31 and in this report, we refer to the year ended December 31, 2024, December 31, 2023, and December 31, 2022 as 2024, 2023, and 2022, respectively.

Reclassification of Prior Period Presentation

In order to conform with current period presentation, $3.6 million of impairment of intangible assets has been reclassified from general and administrative expense to impairment expense on our consolidated statements of operations during the year ended December 31, 2023 as well as from impairment of intangible asset to impairment expense on our consolidated statements of cash flows during the year ended December 31, 2023. These changes in presentation do not affect previously reported results.
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Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, share-based compensation expense including estimated forfeitures, accounting for income taxes, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill, intangible assets and long-lived assets, and internal-use software and website development costs. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations.

Principles of Consolidation

The consolidated financial statements include the accounts of Chegg and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. GAAP.

Cash and Cash Equivalents and Restricted Cash

We consider all highly liquid investments with a maturity date of three months or less from the date of purchase to be cash equivalents. Our cash and cash equivalents consist of cash and money market funds at financial institutions, and are stated at cost, which approximates fair value. We classify certain restricted cash balances within other current assets and other assets on the accompanying consolidated balance sheets based upon the term of the remaining restrictions.
Fair Value Measurements

We account for certain assets and liabilities at fair value. We have established a fair value hierarchy used to determine the fair value of our financial instruments as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value; the inputs require significant management judgment or estimation.

A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Investments

We hold investments in corporate debt securities and U.S. treasury securities. We classify our investments as available-for-sale that are either short or long-term based on the remaining contractual maturity of the investment. Our investments are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, net of taxes, included in other comprehensive income (loss) on our consolidated statements of stockholders’ equity. Unrealized losses related to credit loss factors are recorded through an allowance for credit losses in other income, net on our consolidated statements of operations, rather than as a reduction to other comprehensive income (loss), when a decline in fair value has resulted from a credit loss. When evaluating whether an investment's unrealized losses are related to credit factors, we review factors such as the extent to which fair value is below its cost basis, any changes to the credit rating of the security, adverse conditions specifically related to the security, changes in market interest rates and our intent to sell, or whether it is more likely than not we will be required to sell, before recovery of cost basis. We invest in highly rated securities with a weighted average maturity of eighteen months or less. In addition, our investment policy limits the amount of our credit exposure to any one issuer or industry sector and requires investments to be investment grade, with the primary objective of preserving capital and maintaining liquidity. Fair values were determined for each individual security in the investment portfolio. We determine realized gains or losses on the sale of investments on a specific identification method and record such gains or losses as other income, net.

The estimated fair value of our investments is based on quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. Other than our money market funds and U.S. treasury securities, we classify our fixed income available-for-sale investments as having Level 2 inputs. The valuation techniques used to measure the fair value of our investments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. We do not hold any investments valued with a Level 3 input.

Accounts Receivable, Net of Allowance

Accounts receivable is recorded at the invoiced amount and are non-interest bearing. We generally grant uncollateralized credit terms to our customers, which include partners and advertising customers.

We maintain an estimated allowance provision to account for potentially uncollectible accounts receivable based upon expected credit losses for outstanding receivables. Our estimate is derived using a variety of factors including historical collection and loss patterns, the current aging of accounts receivable, geographic and other customer-specific credit risk factors, and reasonable and supportable forecasts of future economic conditions which inform adjustments to historical loss patterns. The estimated allowance provision is classified as general and administrative operating expenses on our consolidated statements of operations. Accounts receivable that are deemed to be uncollectible are written off, net of expected or actual recoveries.
Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, and investments in accordance with our investment policy. We place the majority of our cash and cash equivalents with financial institutions in the United States that we believe to be of high credit quality, and accordingly minimal credit risk exists with respect to these instruments. Certain of our cash balances held with a financial institution are in excess of Federal Deposit Insurance Corporation limits. Our investment portfolio consists of investments diversified among security types, industries and issuers. Our investments were held and managed by recognized financial institutions that followed our investment policy with the main objective of preserving capital, generating a competitive return, and maintaining liquidity.
Concentrations of credit risk with respect to accounts receivables exist to the full extent of amounts presented in the financial statements. No customers represented over 10% of our net accounts receivable balance as of December 31, 2024 and December 31, 2023. No customers represented over 10% of net revenues during the years ended December 31, 2024, 2023 or 2022.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:

ClassificationUseful Life
Content
Shorter of the licensed content term or 5 years
Internal-use software and website development3 years
Leasehold improvements
Shorter of the remaining lease term or 5 years
Furniture and fixtures5 years
Computers and equipment3 years

We capitalize all costs associated with the development or acquisition of content that is utilized in our products and services. Content amortization is classified within cost of revenues on our consolidated statements of operations.

We capitalize certain costs associated with software developed or obtained for internal use and website development. We capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding and it is probable that the project will be completed, and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades. Depreciation expense is classified within cost of revenues or operating expenses categories on our consolidated statements of operations.

When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and content amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in (loss) income from operations.

Business Combinations

We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired through a business combination based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets acquired and liabilities assumed is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and, as a result, actual results may differ from estimates. During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Goodwill

Goodwill represents the excess of the fair value of purchase consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if certain events or indicators of impairment occur between annual impairment tests. We first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. In our qualitative assessment, we consider factors including economic conditions, industry and market conditions and developments, overall financial performance and other relevant entity-specific events. If our qualitative assessment concludes that it is more likely than not that the fair value is less than the carrying amount, a quantitative assessment of impairment is performed. In the quantitative test, we compare fair value, estimated utilizing the income approach, based on present value techniques, to the carrying value. If the carrying value exceeds the fair value, an impairment loss is recognized in an amount equal to the excess, limited to the remaining balance of goodwill.

Intangible Assets

Intangible assets are amortized over their estimated useful lives. Intangible assets are tested for impairment at the asset group level at least annually or when events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable.

Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use (ROU) assets and operating lease liabilities within current liabilities and long-term liabilities on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Lease agreements typically do not provide an implicit rate and therefore we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future minimum lease payments. Our incremental borrowing rate is estimated based on the estimated rate incurred to borrow, on a collateralized basis over a similar term as our leases, an amount equal to the lease payments in a similar economic environment. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We do not record leases on our consolidated balance sheet with a term of one year or less. We do not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Some of our leases include payments that are dependent on an index, such as the Consumer Price Index (CPI), and our minimum lease payments include payments based on the index at inception with any future changes in such indices recognized as an expense in the period of change. Where leases contain escalation clauses, rent abatement, or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line operating lease cost over the lease term. ROU assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Strategic Investments

Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any. Strategic investments are included in other assets on our consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies.

Convertible Senior Notes, net

Convertible senior notes, including the embedded conversion features, are accounted for under the traditional convertible debt accounting model entirely as a liability net of unamortized issuance costs. The carrying amount of the liability is classified as a current liability if we have committed to settle with current assets or the holders have the option to convert the notes at any time within twelve months after the reporting date; otherwise, we classify it as a long-term liability as we retain the election to settle conversion requests in shares of our common stock. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative; otherwise, they are classified as derivative instruments and recorded at fair value with changes in fair value recorded in other income, net on our consolidated statements of operations. The fair value
of any derivative instruments related to the notes are determined utilizing Level 2 inputs. Issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. In accounting for conversions of the notes, the carrying amount of the converted notes is reduced by the total consideration paid or issued for the respective converted notes and the difference is recorded to additional paid-in capital on our consolidated balance sheets. In accounting for extinguishments of the notes, the reacquisition price of the extinguished notes is compared to the carrying amount of the respective extinguished notes and a gain or loss is recorded in other income, net on our consolidated statements of operations.

Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps:

Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, we satisfy a performance obligation

Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated and actual refunds, which are based on historical data. Revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings are primarily recognized ratably over the monthly subscription period. Revenues from Chegg Skills are recognized over the delivery period, adjusted for an estimate of non-redemption. Revenues from advertising services are recognized upon fulfillment. Revenues from print textbooks and eTextbooks are recognized immediately.

Some of our customer arrangements include multiple performance obligations. We have determined these performance obligations qualify as distinct performance obligations, as the customer can benefit from the service on its own or together with other resources that are readily available to the customer, and our promise to transfer the service is separately identifiable from other promises in the contract. For these arrangements that contain multiple performance obligations, we allocate the transaction price based on the relative standalone selling price (SSP) method by comparing the SSP of each distinct performance obligation to the total value of the contract. We determine the SSP based on our historical pricing and discounting practices for the distinct performance obligation when sold separately. If the SSP is not directly observable, we estimate the SSP by considering information such as market conditions, and information about the customer. Additionally, we limit the amount of revenues recognized for delivered promises to the amount that is not contingent on future delivery of services or other future performance obligations.

Some of our customer arrangements may include an amount of variable consideration in addition to a fixed revenue share that we earn. This variable consideration can either increase or decrease the total transaction price depending on the nature of the variable consideration. We estimate the amount of variable consideration that we will earn at the inception of the contract, adjusted during each period, and include an estimated amount each period.

For sales of third-party products, we evaluate whether we are acting as a principal or an agent. Where our role in a transaction is that of principal, revenues are recognized on a gross basis. This requires revenue to comprise the gross value of the transaction billed to the customer, after trade discounts, with any related expenditure charged as a cost of revenues. Where our role in a transaction is that of an agent, revenues are recognized on a net basis with revenues representing the margin earned. Our determination is based on our evaluation of whether we control the specified goods or services prior to transferring them to the customer. When deciding the most appropriate basis for presenting revenues or costs of revenues, both the legal form and substance of the agreement between us and our business partners are reviewed to determine each party’s respective role in the transaction. We have concluded that we control our Subscription Services and therefore we recognize revenues and cost of revenues on a gross basis. For print textbooks and eTextbooks, we have concluded that we do not control the service and therefore we recognize revenues on a net basis based on our role in the transaction as an agent.

Contract assets are contained within other current assets and other assets on our consolidated balance sheets. Contract assets represent the goods or services that we have transferred to a customer before invoicing the customer and primarily consist of the income sharing payment arrangements we offer to students for our Skills service. Contract receivables are contained within accounts receivable, net on our consolidated balance sheets and represent unconditional consideration that will be received solely due to the passage of time. Contract liabilities are contained within deferred revenue on our consolidated
balance sheets. Deferred revenue primarily consists of advanced payments from students related to subscription performance obligations that have not been satisfied and estimated variable consideration. Deferred revenue related to rental and subscription performance obligations is recognized as revenues ratably over the term for subscriptions or when the services are provided, and all other revenue recognition criteria have been met. Deferred revenue related to variable consideration is recognized as revenues during each reporting period based on the estimated amount we believe we will earn over the life of the contract. Deferred contract costs are contained within other current assets on our consolidated balance sheets and are recognized if we expect to receive a future benefit from such costs. Deferred contract cost amortization expense is recognized consistent with the pattern of revenue recognition as cost of revenues on our consolidated statements of operations.

Cost of Revenues

Our cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of content amortization expense related to content that we develop, license from publishers, or acquire through acquisitions, web hosting fees, customer support fees, payment processing costs, amortization of acquired intangible assets, employee-related expenses, which includes salaries, benefits and share-based compensation expense, and other direct costs related to providing content or services. In addition, cost of revenues includes allocated information technology and facilities costs.

Research and Development Expense

Research and development expenses consist of employee-related expenses, which includes salaries, benefits, and share-based compensation expense for employees on our product, engineering, and technical teams who are responsible for maintaining our website, developing new products, and improving existing products. Research and development expenses also include technology costs to support our research and development, and outside services. We expense substantially all of our research and development expenses as they are incurred.

Paid Marketing Expense

Paid marketing expenses are expensed as incurred and consist primarily of online advertising and marketing promotional expenditures. During the years ended December 31, 2024, 2023, and 2022, paid marketing expenses were approximately $55.4 million, $57.4 million and $62.0 million, respectively.

Share-based Compensation Expense

Share-based compensation expense for restricted stock units (RSUs), performance-based restricted stock units (PSUs) with either a market-based condition or financial and strategic performance targets, and employee stock purchase plan (ESPP) is accounted for under the fair value method based on the grant-date fair value of the award. Share-based compensation expense for RSUs and PSUs with financial and strategic performance targets is measured based on the closing fair market value of our common stock, PSUs with a market-based condition are estimated using a Monte Carlo simulation model, and ESPP is estimated using the Black-Scholes-Merton option pricing model. We recognize share-based compensation expense on a straight-line basis for RSUs and ESPP and on a graded basis for PSUs. Share-based compensation expense is reduced by estimated forfeitures, which are estimated at the time of the grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Vesting for all awards is subject to continued service over the requisite service period, which is generally the vesting period. Vesting of PSUs with a market-based condition is also subject to the achievement of certain per share price of our common stock targets and vesting of PSUs with financial and strategic performance targets is also subject to our achievement of specified financial and strategic performance targets. RSUs and PSUs are converted into shares of our common stock upon vesting on a one-for-one basis. RSUs typically vest over one or three years, while PSUs with a market-based condition typically vest over a four-year period and PSUs with financial and strategic performance targets typically vest over a three-year period. Share-based compensation expense for PSUs with a market-based condition is recognized regardless of whether the market condition is satisfied whereas share-based compensation expense for PSUs with financial performance targets is recognized upon estimated or actual achievement of such targets. We assess the achievement of financial and strategic performance targets on a quarterly basis and adjust our share-based compensation expense as appropriate.
Income Taxes

We account for income taxes under an asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to an amount that is more likely than not to be realized. We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, we recognize the tax benefit as the largest amount that is cumulative more than 50% likely to be realized upon ultimate settlement with the related tax authority. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Net (Loss) Income Per Share

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is computed by adjusting net (loss) income for all related convertible senior notes activity, net of tax, and adjusting the weighted-average number of shares of common stock outstanding for all potential shares of common stock, including stock options, PSUs, RSUs, and shares related to convertible senior notes, to the extent dilutive. This assumes that all stock options and dilutive convertible shares were exercised or converted and is computed by applying the treasury stock method for outstanding stock options, PSUs, and RSUs, and the if-converted method for outstanding convertible senior notes. Under the treasury stock method, options, PSUs, and RSUs are assumed to be exercised or vested at the beginning of the period or at the time of issuance, if later, and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible senior notes are assumed to be converted into common stock at the beginning of the period or at the time of issuance, if later.

Foreign Currency Translation and Remeasurement

The functional currency of our foreign subsidiaries is the local currency, and our reporting currency is the U.S. Dollar. Adjustments resulting from the translation of foreign currencies into U.S. Dollars for balance sheet amounts are based on the exchange rates as of the consolidated balance sheet date. Revenues and expenses are translated at average exchange rates during the period. Foreign currency translation gains or losses are included in accumulated other comprehensive loss as a component of stockholders’ equity on the consolidated balance sheets. Gains or losses resulting from the remeasurement of foreign currency transactions, which are denominated in currencies other than the functional currency, are included in general and administrative expense on the consolidated statements of operations. During the years ended December 31, 2024 and 2023, the gains and losses from remeasurement of foreign currency transactions were not material. During the year ended December 31, 2022, net gains from remeasurement of foreign currency transactions were $3.7 million.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-04, Debt—Debt with Conversion and Other Options. ASU 2024-04 improves the relevance and consistency in application of the induced conversion guidance requirements in Accounting Standards Codification (ASC) 470-20—Debt. Early adoption is permitted, and the guidance can be applied on either a prospective or retrospective basis. The guidance is effective for annual periods beginning after December 15, 2025 and interim periods within those annual periods. We did not early adopt ASU 2024-04 and we are currently in the process of evaluating the impact of this guidance.

In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. ASU 2024-03 requires disclosure of specified information about certain costs and expenses in the notes to financial statements. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. We did not early adopt ASU 2024-03 and we are currently in the process of evaluating the impact of this guidance.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option
to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid that meet a quantitative threshold. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2023-09 and we are currently in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances current interim and annual reportable segment disclosures and requires additional disclosures about significant segment expenses. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280—Segment Reporting on an interim and annual basis. In 2024, we adopted ASU 2023-07 on a retrospective basis for annual periods starting with this Annual Report on Form 10-K. For further information on the additional reportable segment disclosures, refer to “Note 18, Segment Information.”
v3.25.0.1
Revenues
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues being recognized at a point in time.

The following table presents our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):

 Years Ended December 31,
Change in 2024
Change in 2023
 202420232022$%$%
Subscription Services$549,211 $640,520 $671,968 $(91,309)(14)%$(31,448)(5)%
Skills and Other68,363 75,775 94,929 (7,412)(10)(19,154)(20)
Total net revenues$617,574 $716,295 $766,897 $(98,721)(14)$(50,602)(7)

During the years ended December 31, 2024, 2023, and 2022, we recognized $53.5 million, $54.5 million and $33.9 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective fiscal year. During the year ended December 31, 2024, we recognized revenues of $2.8 million from performance obligations satisfied in previous periods and during the years ended December 31, 2023, and 2022, we recognized an immaterial amount of revenues from performance obligations satisfied in previous periods. As of December 31, 2024 and 2023, the closing balance of deferred contract costs was $2.8 million and $6.0 million, respectively, and we recognized $16.1 million and $15.8 million of deferred contract cost amortization during the years ended December 31, 2024 and 2023, respectively.

Contract Balances

The following table presents our accounts receivable, net, contract assets, and deferred revenue balances (in thousands, except percentages):
 December 31,Change
 20242023$%
Accounts receivable, net$23,641 $31,404 $(7,763)(25)%
Contract assets7,027 8,598 (1,571)(18)
Deferred revenue39,217 55,336 (16,119)(29)
During the year ended December 31, 2024, our accounts receivable, net balance decreased by $7.8 million, or 25%, primarily due to lower bookings from Chegg Skills. During the year ended December 31, 2024, our contract assets balance decreased by $1.6 million or 18%, primarily due to our Skills offering. During the year ended December 31, 2024, our deferred revenue balance decreased by $16.1 million, or 29%, primarily due to lower bookings from Subscription Services and Chegg Skills.
v3.25.0.1
Net (Loss) Income Per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net (Loss) Income Per Share Net (Loss) Income Per Share
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Years Ended December 31,
202420232022
Basic
Numerator:
Net (loss) income$(837,068)$18,180 $266,638 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
103,300 116,504 127,557 
Net (loss) income per share, basic
$(8.10)$0.16 $2.09 
Diluted
Numerator:
Net (loss) income$(837,068)$18,180 $266,638 
Convertible senior notes activity, net of tax
— (61,694)(65,444)
Net (loss) income, diluted
$(837,068)$(43,514)$201,194 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
103,300 116,504 127,557 
Shares related to stock plan activity— — 968 
Shares related to convertible senior notes— 12,065 21,334 
Weighted average shares used to compute net (loss) income per share, diluted
103,300 128,569 149,859 
Net (loss) income per share, diluted
$(8.10)$(0.34)$1.34 

The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands):
Years Ended December 31,
202420232022
Shares related to stock plan activity7,206 8,442 3,556 
Shares related to convertible senior notes9,234 — — 
Total common stock equivalents16,440 8,442 3,556 
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements
12 Months Ended
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, and Investments and Fair Value Measurements Cash and Cash Equivalents, and Investments and Fair Value Measurements
The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of December 31, 2024 and 2023 (in thousands):
 December 31, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$28,716 $— $— $28,716 
Money market fundsLevel 1132,759 — — 132,759 
Total cash and cash equivalents$161,475 $— $— $161,475 
Short-term investments:   
Corporate debt securitiesLevel 2$113,968 $157 $(29)$114,096 
U.S. treasury securitiesLevel 140,162 — (9)40,153 
Total short-term investments$154,130 $157 $(38)$154,249 
Long-term investments:
Corporate debt securitiesLevel 2$133,516 $736 $(78)$134,174 
U.S. treasury securitiesLevel 178,405 97 (26)78,476 
Total long-term investments$211,921 $833 $(104)$212,650 

 December 31, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$45,050 $— $— $45,050 
Money market fundsLevel 190,707 — — 90,707 
Total cash and cash equivalents$135,757 $— $— $135,757 
Short-term investments:   
Corporate debt securitiesLevel 2$69,548 $— $(170)$69,378 
U.S. treasury securities
Level 1
25,734 — (114)25,620 
Agency bondsLevel 299,505 — (246)99,259 
Total short-term investments$194,787 $— $(530)$194,257 
Long-term investments:
Corporate debt securitiesLevel 2$191,467 $898 $(213)$192,152 
U.S. treasury securitiesLevel 157,287 165 (57)57,395 
Total long-term investments$248,754 $1,063 $(270)$249,547 

As of December 31, 2024, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the years ended December 31, 2024, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors.

The following table presents the realized gain and loss related to our investments (in thousands):
 Years Ended December 31,
 202420232022
Realized gain$16 $346 $64 
Realized loss(43)(2,452)(9,739)
Realized loss on sale of investments$(27)$(2,106)$(9,675)
The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of December 31, 2024 (in thousands):
December 31, 2024
 Adjusted CostFair Value
Due within one year$154,130 $154,249 
Due after one year through three years211,921 212,650 
Investments not due at a single maturity date132,759 132,759 
Total$498,810 $499,658 

Investments not due at a single maturity date in the preceding table consisted of money market funds.

Strategic Investments

In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. As of December 31, 2023, the carrying amount of our investment was $11.7 million. On January 1, 2024, we sold our investment for a total cash consideration of $15.5 million, resulting in a gain of $3.8 million. The cash payment received was included within cash flows from investing activities on our consolidated statements of cash flows and the gain was included within other income, net on our consolidated statements of operations.

In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value.

We did not record any impairment charges on our strategic investments during the years ended December 31, 2024, 2023 and 2022, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuers during the years ended December 31, 2024, 2023 and 2022.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of December 31, 2024 and 2023 was $105.8 million and $202.9 million, respectively. The estimated fair value of the 2025 notes as of December 31, 2024 and 2023 was $350.4 million and $329.5 million, respectively. For further information on the notes refer to Note 8, “Convertible Senior Notes.”
v3.25.0.1
Property and Equipment, Net
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
The following table presents our property and equipment, net balances (in thousands):
December 31,
20242023
Content$381,629 $346,749 
Internal-use software and website development67,612 51,855 
Leasehold improvements8,207 10,857 
Furniture and fixtures3,346 4,607 
Computer and equipment2,953 3,496 
Property and equipment463,747 417,564 
Less accumulated depreciation(293,099)(234,491)
Property and equipment, net$170,648 $183,073 

Depreciation expense during the years ended December 31, 2024, 2023, and 2022 was $68.3 million, $105.3 million, which included the $34.2 million accelerated depreciation discussed below, and $64.1 million, respectively.

In connection with the November 2024 restructuring, we streamlined our product experiences and in connection with the June 2024 restructuring, we announced that we will no longer offer Chegg Skills directly to customers. As a result, we impaired internal-use software and content assets and accelerated depreciation of certain content assets of $6.1 million during the year ended December 31, 2024, which were classified as cost of revenues on our consolidated statements of operations. For further information on the November 2024 and June 2024 restructurings, see Note 15, “Restructuring Charges.”

In connection with the intangible assets impairment analysis performed in June 2024, we also recorded an impairment of $10.0 million related to property and equipment, consisting of $6.6 million of content assets and $3.4 million of internal-use software assets, during the year ended December 31, 2024, which was classified as impairment expense on our consolidated statements of operations. For further information on the intangible assets impairment analysis, see Note 7, “Goodwill and Intangible Assets.”
In connection with the design and build of our new generative AI experience in August 2023, we streamlined our product experiences. As a result, during the year ended December 31, 2023, we elected to abandon certain content and internal-use software assets and recorded charges of $38.2 million, consisting of $34.2 million of accelerated depreciation over shortened useful lives for completed assets, impaired internal-use software assets of $2.6 million, and $1.4 million in other costs recognized in association with abandoning these assets. All of which were classified as cost of revenues on our consolidated statements of operations.
v3.25.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill

The following table presents the changes in the carrying amount of our goodwill balances (in thousands):
 December 31,
20242023
Beginning balance$631,995 $615,093 
Impairment expense(635,391)— 
Foreign currency translation adjustment3,396 16,902 
Ending balance$— $631,995 
In September 2024 and June 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we evaluated our current operating performance. Accordingly, we determined that there were indicators of impairment and a quantitative assessment was necessary. In the quantitative assessment, we estimated the fair value of our reporting unit utilizing an income approach, based on the present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the weighted average cost of capital, growth rates, and amount and timing of expected future cash flows. As a result of the quantitative assessment, we determined that goodwill was impaired as the fair value of our reporting unit was less than the carrying value. As such, during the year ended December 31, 2024, we recorded impairment expense of $635.4 million equal to the excess of the carrying value of our reporting unit over the estimated fair value, limited to the remaining balance of goodwill, which was classified as impairment expense on our consolidated statements of operations. We did not record goodwill impairment expense during the years ended December 31, 2023, and 2022.

Intangible Assets

The following table presents our intangible assets balances (in thousands, except weighted-average amortization period):
 December 31, 2024
Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Accumulated ImpairmentForeign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(63,029)$(29,369)$(3,958)$10,347 
Content libraries6012,230 (12,230)— — — 
Customer lists3534,190 (32,892)— (1,298)— 
Trade and domain names5216,213 (13,343)(2,493)(377)— 
Total intangible assets67$169,336 $(121,494)$(31,862)$(5,633)$10,347 
 
 December 31, 2023
 Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Accumulated ImpairmentForeign Currency Translation AdjustmentNet
Carrying
Amount
Developed technologies80$106,703 $(55,651)$— $(3,757)$47,295 
Content libraries6012,230 (11,189)— — 1,041 
Customer lists3534,190 (31,836)— (1,298)1,056 
Trade and domain names5216,213 (12,817)— (358)3,038 
Total intangible assets67$169,336 $(111,493)$— $(5,413)$52,430 

During the years ended December 31, 2024, 2023 and 2022, intangible assets amortization expense was $10.0 million, $24.4 million and $25.9 million, respectively.

In conjunction with our goodwill impairment analysis in June 2024, we determined that there were indicators of impairment for our Busuu assets and a recoverability test was necessary. In the recoverability test, we determined that the expected future undiscounted cash flows for the asset group were not sufficient to recover the carrying value. We then proceeded in estimating the fair value of the asset group utilizing the income approach, based on a present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the growth rates and amount and timing of expected future cash flows. As a result of the impairment test, we determined the asset group was impaired and recorded a $31.9 million impairment expense related to the intangible assets during the year ended December 31, 2024, which was classified as impairment expense on our consolidated statements of operations. In connection with the design and build of our new generative AI experience in August 2023, we streamlined our product experiences. During the year ended December 31, 2023, we recognized an impairment charge on our indefinite-lived intangible asset of $3.6 million.
The following table presents the estimated future intangible assets amortization expense (in thousands):
December 31, 2024
2025$4,240 
20263,897 
20271,776 
2028407 
202927 
Total$10,347 
v3.25.0.1
Convertible Senior Notes
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior Notes
In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). In March/April 2019, we issued $800 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes). The 2026 notes bear no interest and will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. As of December 31, 2024, 9,297,800 and 6,961,352 shares remained underlying the 2026 notes and 2025 notes, respectively.

Each $1,000 principal amount of the 2026 notes will initially be convertible into 9.2978 shares of our common stock. This is equivalent to an initial conversion price of approximately $107.55 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Prior to the close of business on the business day immediately preceding June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes, the notes are convertible at the option of holders only upon satisfaction of certain circumstances. On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election.

As of December 31, 2024, the 2026 notes are not convertible and have been classified as a long-term liability. As of December 31, 2024, the 2025 notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date and have been classified as a current liability. We expect to settle any 2025 Notes conversion requests in shares of our common stock.

In November 2024, in connection with our securities repurchase program, we extinguished $116.6 million aggregate principal amount of the 2026 notes in privately-negotiated transactions for a total consideration of $96.2 million, which was paid to the holders in cash. We also incurred approximately $0.3 million in fees resulting in a total reacquisition price of $96.5 million. The carrying amount of the extinguished notes was $116.0 million resulting in a $19.5 million gain on early extinguishment of debt. We elected to reacquire and not cancel the extinguished 2026 notes and left the associated capped call transactions outstanding.

The following table presents the net carrying amount of the notes (in thousands):
December 31, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal amount$127,906 $358,914 $244,479 $358,914 
Unamortized issuance costs(562)(309)(1,721)(1,835)
Net carrying amount$127,344 $358,605 $242,758 $357,079 
    
The following table presents the total interest expense recognized related to the notes (in thousands):
Years Ended December 31,
2024
2023
2022
2026 notes:
Contractual interest expense
$— $— $— 
Amortization of issuance costs620 1,035 2,196 
Total 2026 notes interest expense$620 $1,035 $2,196 
2025 notes:
Contractual interest expense$443 $621 $874 
Amortization of issuance costs1,527 2,121 2,970 
Total 2025 notes interest expense$1,970 $2,742 $3,844 

Capped Call Transactions

Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of December 31, 2024, cover 9,297,800 and 6,961,352 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes.
v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
Our primary operating lease commitments as of December 31, 2024 are related to our corporate headquarters and offices in the United States and internationally. As of December 31, 2024 and 2023, we had operating lease ROU assets of $22.3 million and $25.1 million, respectively, and operating lease liabilities of $24.1 million and $24.9 million, respectively. As of December 31, 2024 and 2023, our weighted average remaining lease term in years was 6.3 and 3.9, respectively, and our weighted average discount rate was 5.6% and 5.8%, respectively.

In connection with the November 2024 and June 2024 restructuring actions, we announced the closure of our New York office and two international offices. As a result, during the year ended December 31, 2024, we recorded a full impairment of $5.6 million, consisting of $4.1 million impairment of ROU assets and $1.5 million impairment of leasehold improvements, which was classified as general and administrative expense on our consolidated statement of operations. Our intent and ability to sublease the office as well as the local market conditions were factored in when measuring the amount of impairment. For further information on the November 2024 and June 2024 restructuring actions, see Note 15, “Restructuring Charges.”

During the year ended December 31, 2024, we obtained $10.1 million of ROU assets in exchange for lease liabilities primarily as we entered into an amendment related to our offices in India that modifies our existing lease payments, increases the square footage, and extends the lease term.

During the years ended December 31, 2024, 2023 and 2022, operating lease expense, net of immaterial sublease income, was approximately $7.5 million, $7.6 million and $7.3 million, respectively. During the years ended December 31, 2024, 2023 and 2022, variable lease cost and short-term lease cost were immaterial.
The following table presents the future minimum lease payments and reconciliation to total operating lease liabilities (in thousands):
December 31, 2024
2025$6,822 
20264,141 
20274,298 
20283,531 
20291,959 
Thereafter8,414 
Total future minimum lease payments29,165 
Less imputed interest(5,031)
Total operating lease liabilities$24,134 
v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We may from time to time be subject to certain legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, patents, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, demands, disputes, investigations, or requests for information. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters.

On March 1, 2023, Plaintiff Shiva Stein, derivatively on behalf of Chegg, filed a stockholder derivative complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0244-NAC) asserting breach of fiduciary duty, unjust enrichment, and waste of corporate asset claims against members of Chegg’s Board and certain Chegg officers. The matter is stayed. The Company disputes these claims and intends to vigorously defend itself in this matter.

On February 14, 2023, Plaintiff Brian Stansell, individually and on behalf of other similarly situated stockholders of Chegg, filed a putative class action complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0180) on behalf of all Chegg stockholders who were eligible to vote at Chegg's 2022 Annual Stockholders' Meeting, asserting breach of fiduciary duty claims against the members of Chegg's Board. The Court dismissed this matter pursuant to the Company's motion to dismiss and the matter is concluded.

On December 22, 2022, JPMorgan Chase Bank, N.A. (JPMC) asserted a demand for repayment by the Company of certain investment proceeds received by the Company in its capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). JPMC seeks such repayment pursuant to certain provisions in the existing Support Agreement between JPMC and the Company that was entered into in connection with JPMC's acquisition of Frank. JPMC has alleged fraud on the part of certain former Frank executives regarding the quantity and quality of its customer accounts. The Company is not at fault, however is pursuing a settlement agreement with JPMC.

On March 30, 2022, Joseph Robinson, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws and breaches of fiduciary duties. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Choi, below, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter.

On January 12, 2022, Rak Joon Choi, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Robinson, above, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter.

On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a purported securities fraud class action on behalf of all purchasers of Chegg common stock between May 5, 2020 and November 1, 2021,
inclusive, against Chegg and certain of its current and former officers in the United States District Court for the Northern District of California (Case No. 5:21-cv-09953), alleging that Chegg and several of its officers made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 as amended (the Exchange Act). On September 7, 2022, KBC Asset Management and The Pompano Beach Police & Firefighters Retirement System were appointed as lead plaintiff in the case. On December 8, 2022, Plaintiff filed his Amended Complaint seeking unspecified compensatory damages, costs, and expenses, including counsel and expert fees. On September 26, 2024, the parties participated in an in-person mediation and reached a settlement in principle to pay $55.0 million wherein the Company denies any and all allegations of fault, liability, wrongdoing, or damages. On November 6, 2024, Plaintiffs filed a motion for preliminary approval of the settlement. The Court preliminarily approved the settlement on December 19, 2024. The estimated contingent liability for the loss contingency recorded was $55.0 million as of September 30, 2024 and was included within accrued liabilities on our consolidated balance sheets. The same amount was recorded for expected insurance loss recoveries, which is included within other current assets on our consolidated balance sheets.

On September 13, 2021, Pearson Education, Inc. (Pearson) filed a complaint captioned Pearson Education, Inc. v. Chegg, Inc. (Pearson Complaint) in the United States District Court for the District of New Jersey against the Company (Case 2:21-cv-16866), alleging infringement of Pearson’s registered copyrights and exclusive rights under copyright in violation of the United States Copyright Act. Pearson is seeking injunctive relief, monetary damages, costs, and attorneys’ fees. The Company filed its answer to the Pearson Complaint on November 19, 2021. Pearson’s June 29, 2022 Motion for Leave to File Amended Complaint seeking to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning as a plaintiff was denied. Pearson filed an Amended Complaint on May 10, 2023, and the Company filed an amended answer on June 7, 2023. Chegg and Pearson have resolved this litigation. Pursuant to the terms of the parties' confidential settlement, the Court dismissed the case with prejudice on December 20, 2024. While the terms of the settlement are confidential, Chegg’s decision to settle the lawsuit was driven by the expense, burden and uncertainty of ongoing protracted litigation.

On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) regarding certain alleged deceptive or unfair acts or practices related to consumer privacy and/or data security. On October 31, 2022, the FTC published the parties’ agreed-upon consent order regarding Chegg’s privacy and data security practices. On January 27, 2023, the FTC finalized its order ("Final Order") requiring Chegg to implement a comprehensive information security program, limit the data the Company can collect and retain, offer users multi factor authentication to secure their accounts, and allow users to request access to and delete their data. We are currently cooperating with the FTC on an investigation as to whether we have violated certain terms of the Final Order.

We record a contingent liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. Additionally, we record an insurance loss recovery up to the recognized loss contingency when realization is probable. Related to the above matters, as of December 31, 2024, the net impact of contingent liabilities less the related insurance loss recovery is $7.0 million. For those matters upon which we have sufficient insurance coverage, we have recorded contingent liabilities within accrued liabilities and the loss recovery from insurance within other current assets on our consolidated balance sheets. We are not aware of any other pending legal matters or claims, individually or in the aggregate, which are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows. Our analysis of whether a claim will proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly, time consuming, distract management personnel and have a negative effect on our business. In the ordinary course of business and for certain of the above matters, we are actively pursuing all avenues and strategies to resolve these matters, including available legal remedies, remediation and settlement negotiations with the parties. An adverse outcome in any of these actions, including a judgment or settlement, may cause a material adverse effect on our future business, operating results or financial condition.
v3.25.0.1
Guarantees and Indemnifications
12 Months Ended
Dec. 31, 2024
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications Guarantees and Indemnifications
We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that covers our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited.

We believe the fair value of these indemnification agreements is immaterial. We have not recorded any liabilities for these agreements as of December 31, 2024 and 2023.
v3.25.0.1
Common Stock
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Equity Common Stock
We are authorized to issue 400 million shares of our common stock, with a par value per share of $0.001. The following table presents the shares of our common stock we have reserved for future issuance:
December 31, 2024
Shares available for grant under the 2023 Equity Incentive Plan10,340,723 
Outstanding RSUs and PSUs7,386,965 
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan3,007,257 
Shares available for grant under the 2023 Equity Inducement Plan1,171,016 
Outstanding stock options182,076 
Total common shares reserved for future issuance22,088,037 

Stock Plans

2023 Equity Inducement Plan

On October 11, 2023, our Board of Directors approved and adopted our 2023 Equity Inducement Plan (the “2023 EINP”). On the effective date of the 2023 EINP, 2,000,000 shares of our common stock were reserved for issuance and as of December 31, 2024, there were 1,171,016 shares of common stock available for future issuance. The 2023 EINP permits the granting of non-qualified stock options and restricted stock unit awards. The 2023 EINP terminates on the later of (i) October 11, 2033 or (ii) ten years from the last date that additional shares are added to the EINP by the Compensation Committee of our Board of Directors.

2023 Equity Incentive Plan

On April 7, 2023, our Board of Directors adopted our 2023 Equity Incentive Plan (the “2023 EIP”), which was subsequently approved by our stockholders and became effective on June 7, 2023, replacing our 2013 Equity Incentive Plan (the “2013 Plan”). On the effective date of the 2023 EIP, 12,000,000 shares of our common stock were reserved for issuance. On June 6, 2023, the date on which the 2013 Plan expired, all remaining shares available for grant under the 2013 Plan were cancelled, and we will not make any additional grants under the 2013 Plan. In addition, any shares subject to awards, including shares subject to awards granted under the 2013 Plan that were outstanding on June 7, 2023, that are cancelled, forfeited, repurchased, expire by their terms without shares being issued, are used to pay the exercise price of an option or stock appreciation right or withheld to satisfy the tax withholding obligations related to any award, will be returned to the pool of shares available for grant and issuance under the 2023 EIP. As of December 31, 2024, there were 10,340,723 shares available for grant under the 2023 EIP. The 2023 EIP permits the granting of incentive stock options, non-qualified stock options, RSUs, restricted stock awards, stock bonus awards, stock appreciation rights and performance awards. The 2023 EIP terminates on April 7, 2033.

Amended and Restated 2013 Employee Stock Purchase Plan

On April 7, 2023, our Board of Directors adopted our Amended and Restated 2013 Employee Stock Purchase Plan (the “A&R ESPP”), which was subsequently approved by our stockholders and became effective on June 7, 2023. The A&R ESPP permits eligible employees to purchase shares of our common stock by accumulating funds through periodic payroll deductions. The A&R ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code. Under the A&R ESPP, eligible employees will be granted an option to purchase shares of our common stock at a 15% discount to the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last day of each purchase period in the applicable offering period. The Compensation Committee of our Board of Directors shall determine the duration and commencement date of each offering period, provided that an offering period shall in no event be longer than twenty-seven (27) months, except as otherwise provided by an applicable sub-plan. Upon approval of the A&R ESPP, the available share pool under our existing 2013 Employee Stock Purchase Plan was reduced, and we have reserved 4,000,000 shares of our common stock under the A&R ESPP. As of December 31, 2024, there were 3,007,257 shares of common stock available for future issuance under the A&R ESPP.
v3.25.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchases

During the year ended December 31, 2024, we received a total of 2,115,952 shares of our common stock related to the final delivery of our November 2023 accelerated share repurchase (ASR) agreement, which were retired immediately. The November 2023 ASR settled, and we were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement.

During the year ended December 31, 2023, we repurchased a total of 26,505,979 shares of our common stock, which included the initial delivery of 13,498,313 shares from our November 2023 ASR, 3,433,157 shares from open market transactions in June 2023, and the total delivery of 9,574,509 shares from our February 2023 ASR, which were retired immediately.

During the year ended December 31, 2022, we received a total of 12,709,278 shares of our common stock from prior ASR and open market transactions, which were retired immediately.

Share-based Compensation Expense

The following table presents total share-based compensation expense recorded (in thousands):
 Years Ended December 31,
 202420232022
Cost of revenues$1,786 $2,256 $2,484 
Research and development28,044 44,103 41,335 
Sales and marketing7,466 9,524 13,857 
General and administrative47,318 77,619 75,780 
Total share-based compensation expense$84,614 $133,502 $133,456 

During the years ended December 31, 2024, 2023 and 2022, we capitalized share-based compensation expense of $4.9 million, $3.3 million, and $5.3 million, respectively, which is included within property and equipment, net on our consolidated balance sheets. As of December 31, 2024, we had a total of approximately $40.7 million of unrecognized share-based compensation expense, related to unvested RSUs and PSUs, that is expected to be recognized over the remaining weighted average period of 1.2 years.

PSU Grants with Financial and Strategic Performance Targets

In June 2024, March 2023, and March 2022, we granted PSUs to certain of our key executives. The PSUs entitle the executives to receive a certain number of shares of our common stock based on our satisfaction of certain financial and strategic performance targets. Based on the achievement of the performance conditions for the June 2024, March 2023, and March 2022 PSUs, the final settlement partially met the target threshold, based on a specified objective formula approved by the Compensation Committee of the Board of Directors. The June 2024 and March 2023 PSUs vest over either a one-year or three-year period and the March 2022 PSUs vest over a three-year period. During the years ended December 31, 2024, 2023, and 2022, the number of shares underlying the June 2024, March 2023, and March 2022 PSUs totaled 693,750, 565,341, and 614,177, respectively, and each had a grant date fair value per share of $3.61, $15.89, and $35.82, respectively.
2021 PSU Grants with Market-Based Conditions

In March 2021, we granted PSUs with market-based conditions to certain of our key employees. The number of shares of our common stock that may be issued to settle these PSUs range from 50% at the threshold level to 150% at the maximum level of the 100% target level of the award depending on the maximum average market value of the per share price of our common stock, for a period of 60 consecutive trading days, over a three-year performance period ending on the third anniversary of the date of grant. No payout will be made for performance below the 50% threshold level. The market value of the per share price of our common stock must reach $123.81, $148.58, or $173.34 at the threshold, target, or maximum levels, respectively, for achievement of the award, which could result in issuance of 244,086, 488,173, or 732,260 shares of our common stock at each respective payout level. These PSUs vest over a four-year period, subject to continued service over the requisite period, with the initial vesting of 50% of the award occurring in March 2024. The number of PSUs granted totaled 732,260 shares, which represents the maximum number of shares, and had a grant date fair value of $68.55 per share, determined under the Monte Carlo simulation approach described further below. As of December 31, 2024, the market-based conditions have not been met.

Fair Value of PSUs with Market-Based Conditions

We estimate the fair value of the PSUs using a Monte Carlo simulation approach, which utilizes the fair value of our common stock based on an active market and requires input on the following subjective assumptions:

Expected Term. The expected term for the awards is the performance period of three years.
Expected Volatility. The expected volatility is based on the historical average volatility of our stock price over the expected term.
Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock.
Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield on the U.S. treasury zero-coupon issues, with a remaining term equal to the expected term.

The following table presents the key assumptions used to determine the fair value of the awards:

Expected term (years)3.00
Expected volatility49.04 %
Expected dividends— %
Risk-free interest rate0.27 %

Fair Value of ESPP

Under the ESPP, rights to purchase shares are granted during the second and fourth quarter of each year. We estimate the fair value of each right to purchase shares using the Black-Scholes-Merton option-pricing model, which utilizes the fair value of our common stock based on active market and requires input on the following subjective assumptions:

Expected Term. The expected term for rights to purchase shares is six months.
Expected Volatility. The expected volatility is based on the average volatility of our stock price over the expected term.
Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock.
Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield on the United States treasury zero-coupon issues, with a remaining term equal to the expected term.
The following table presents the key assumptions used to determine the fair value of rights granted under the ESPP:
 Years Ended December 31,
 202420232022
Expected term (years)0.500.500.50
Expected volatility
60.95%-85.39%
55.79%-109.39%
70.37%-78.74%
Dividend yield0.00 %0.00 %0.00 %
Risk-free interest rate
4.44%-5.40%
5.24%-5.41%
1.54%-4.54%
Weighted-average grant-date fair value per share$0.90 $3.62 $8.71 

Stockholder's Equity Activity

RSUs and PSUs Activity
 Number of RSUs and PSUs OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted5,853,240 4.24 
Released(5,069,408)21.02 
Forfeited(3,462,650)22.50 
Balance at December 31, 20247,386,965 $10.58 

The weighted-average grant-date fair value of RSUs and PSUs granted during the years ended December 31, 2024, 2023, and 2022 was $4.24, $14.58, and $27.68, respectively. The total fair value of RSUs and PSUs vested as of the vesting dates during the years ended December 31, 2024, 2023, and 2022 was $26.1 million, $45.3 million, and $74.2 million, respectively.

ESPP Activity

There were 859,302, 454,533 and 382,392 shares purchased during the years ended December 31, 2024, 2023 and 2022, respectively, at an average price per share of $3.05, $8.10 and $15.61, respectively, with cash proceeds from the issuance of shares of $2.6 million, $3.7 million and $6.0 million, respectively. Share-based compensation expense related to ESPP was $1.5 million, $2.5 million, and $3.1 million during the years ended December 31, 2024, 2023 and 2022, respectively.

Stock Option Activity
 
Number of Stock Options Outstanding
Weighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
Balance at December 31, 2023232,327 $6.02 1.81$1,240,014 
Forfeited(50,251) 
Balance at December 31, 2024182,076 $5.74 1.17$— 

We did not grant any stock options during the years ended December 31, 2024, 2023, and 2022. There were no stock options exercised during the year ended December 31, 2024 and the total intrinsic value of stock options exercised during the years ended December 31, 2023 and 2022, was $0.2 million and $1.3 million, respectively.
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We recorded a provision for income taxes of $148.7 million during the year ended December 31, 2024, a provision for income taxes of $32.1 million during the year ended December 31, 2023 and a benefit from income taxes of $162.7 million during the year ended December 31, 2022. The provision for income taxes during the year ended December 31, 2024 was primarily due to the establishment of a valuation allowance against our U.S. federal and state deferred tax assets. The provision for income taxes during the year ended December 31, 2023 was primarily due to the federal and state income taxes in the United States largely driven by shortfall associated with equity compensation. The benefit from income taxes during the year
ended December 31, 2022 was primarily due to the release of the valuation allowance on certain U.S. and state deferred tax assets.

The following table presents our (provision for) benefit from income taxes (in thousands):
Years Ended December 31,
202420232022
Current income taxes:
Federal$(234)$(2,460)$(113)
State(1,128)(3,064)(2,172)
Foreign(4,021)(33)(3,702)
Total current provision for income taxes(5,383)(5,557)(5,987)
Deferred income taxes:
Federal(122,057)(26,210)147,236 
State(17,558)(1,634)19,995 
Foreign(3,704)1,269 1,448 
Total deferred benefit from income taxes(143,319)(26,575)168,679 
Total (provision for) benefit from income taxes$(148,702)$(32,132)$162,692 

The following table presents our (loss) income before (provision for) benefit from income taxes (in thousands):
Years Ended December 31,
202420232022
United States$(297,183)$61,152 $123,269 
Foreign(391,183)(10,840)(19,323)
Total (loss) income before (provision for) benefit from income taxes$(688,366)$50,312 $103,946 

The following table presents the differences between our (provision for) benefit from income taxes as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate as a percentage of (loss) income before (provision for) benefit from income taxes (in percentages):
Years Ended December 31,
202420232022
Income tax at U.S. statutory rate21.0 %21.0 %21.0 %
State, net of federal benefit2.9 11.6 1.6 
Taxes on foreign earnings1.7 0.7 (1.1)
Share-based compensation(2.5)39.3 15.3 
Non-deductible expenses— (2.5)1.6 
Effect of flow-through entities12.5 — — 
Goodwill impairment(17.1)— — 
Tax credits— 0.8 (0.7)
Change in valuation allowance(40.1)4.2 (210.5)
Settlement of unrecognized tax benefits— (8.0)— 
Foreign-derived intangible income0.1 (5.2)— 
Convertible senior notes— — 15.0 
Other(0.1)2.0 1.3 
Total(21.6)%63.9 %(156.5)%
The following table presents a summary of our deferred tax assets (in thousands):
December 31,
20242023
Deferred tax assets:
Research and experimental expenditures capitalization$102,382 $69,362 
Net operating loss and credits carryforwards80,413 92,302 
Accrued expenses and reserves25,039 10,442 
Share-based compensation3,414 11,200 
Convertible senior notes1,790 5,566 
Goodwill89,583 — 
Property and equipment and intangible assets15,947 — 
Other items— 6,133 
Gross deferred tax assets318,568 195,005 
Valuation allowance(307,985)(40,162)
Total deferred tax assets$10,583 $154,843 
Deferred tax liabilities:
Property and equipment and intangibles assets$— $(2,621)
Other(11,396)(13,134)
Total deferred tax liabilities$(11,396)$(15,755)
Net deferred tax (liability) asset
$(812)$139,088 

As of December 31, 2024, we have determined our earnings in India are not permanently reinvested. As such, a cumulative net tax liability of $1.7 million has been accrued for taxes that would be incurred upon future repatriation of such earnings. During the year ended December 31, 2024, our subsidiary in India distributed $23.0 million to the United States, resulting in a remittance of $3.5 million in withholding tax, which was included within cash flows from financing activities on our consolidated statements of cash flows. The determination of the future tax consequences of the remittance of these earnings is not practicable. For our remaining foreign subsidiaries, to the extent we can repatriate cash with no significant tax cost, we have determined those earnings are not permanently reinvested. All other earnings have been determined to be permanently reinvested.

Realization of the deferred tax assets is dependent upon future taxable income, the amount and timing of which are uncertain. The valuation allowance increased by approximately $267.8 million during the year ended December 31, 2024 and increased by approximately $4.0 million during the year ended December 31, 2023. We regularly assess the need for a valuation allowance against our deferred tax assets. In performing our assessment, we consider both positive and negative evidence related to the likelihood of realizing our deferred tax assets. During the second quarter of 2024, we determined that it is more likely than not that the deferred tax benefit will not be realized due to the available negative evidence outweighing the positive evidence, primarily resulting from the cumulative loss influenced by the impairment expense recorded.

As of December 31, 2024, we had net operating loss carryforwards for federal and state income tax purposes of approximately $125 million and $207 million, respectively, which will begin to expire in years beginning 2030 and 2025, respectively. We also had net operating loss carryforwards for United Kingdom income tax purposes of approximately $109 million, which do not expire.

As of December 31, 2024, we had tax credit carryforwards for federal and state income tax purposes of approximately $12.7 million and $17.8 million, respectively. The federal credits expire in various years beginning in 2038. The state credits do not expire.

Utilization of our net operating losses and tax credit carryforwards may be subject to substantial annual limitations due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended (IRC), and similar state provisions. Such annual limitations could result in the expiration of the net operating losses and tax credit carryforwards before utilization.
We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2024, there are no accrued interest and penalties related to uncertain tax positions.

We file tax returns in U.S. federal, state, and certain foreign jurisdictions with varying statutes of limitations. Due to net operating loss and credit carryforwards, all of the tax years since inception through tax year 2024 remain subject to examination by the U.S. federal and some state authorities. Foreign jurisdictions remain subject to examination up to approximately five years from the filing date, depending on the jurisdiction. United Kingdom income tax remains subject to examination by the HM Revenue & Custom for all tax years due to net operating loss and credits carryforwards.

The following table presents the reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits, excluding accrued interest and penalties (in thousands):
Years Ended December 31,
202420232022
Beginning balance$12,400 $16,953 $16,805 
Increase in tax positions for prior years13 — 333 
Decrease in tax positions for prior years— (131)(876)
Decrease in tax positions for prior year settlement— (4,703)(386)
Decrease in tax positions for prior years due to statutes lapsing— — — 
Increase in tax positions for current year295 281 1,520 
Change due to translation of foreign currencies— — (443)
Ending balance$12,708 $12,400 $16,953 
As of December 31, 2024, the unrecognized tax benefits of $12.7 million would not affect the effective tax rate, if recognized. The actual amount of any taxes due could vary significantly depending on the ultimate timing and nature of any settlement. We believe that the amount by which the unrecognized tax benefits may increase or decrease within the next 12 months is not estimable.
v3.25.0.1
Restructuring Charges
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
November 2024 Restructuring Plan

In November 2024, we announced a workforce reduction that resulted in a management approved restructuring plan. During the year ended December 31, 2024, we recorded $14.6 million of restructuring charges, primarily related to one-time employee termination benefits, which were classified on our consolidated statement of operations based on employees' job function. The restructuring liability is included within accrued liabilities on our consolidated balance sheets. We estimate we will incur between $3 million and $4 million of additional restructuring charges over the next two fiscal quarters and we expect the plan to be substantially completed by the end of the third quarter of fiscal 2025.

The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands):
 Year Ended December 31, 2024
Beginning balance
$— 
Restructuring charges
14,632 
Restructuring payments
(10,717)
Ending balance
$3,915 
June 2024 Restructuring Plan

In June 2024, we announced a workforce reduction that resulted in a management approved restructuring plan. During the year ended December 31, 2024, we recorded $10.0 million of restructuring charges, primarily related to one-time employee termination benefits, which was classified on our consolidated statement of operations based on employees' job function. The restructuring liability is included within accrued liabilities on our consolidated balance sheets. The total amount of restructuring charges have been recorded and we expect the plan to be substantially completed by the end of the first quarter of fiscal 2025.

The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands):
 Year Ended December 31, 2024
Beginning balance
$— 
Restructuring charges
9,971 
Restructuring payments
(6,576)
Ending balance
$3,395 
v3.25.0.1
Consolidated Statements of Operations Details
12 Months Ended
Dec. 31, 2024
Other Income and Expenses [Abstract]  
Consolidated Statements of Operations Details Consolidated Statements of Operations Details
The following table presents the details of other income, net (in thousands):
Years Ended December 31,
202420232022
Gain on early extinguishment of debt(1)
$19,515 $85,926 $93,519 
Interest income28,050 37,411 12,431 
Realized loss on sale of investments(2)
(27)(2,106)(9,675)
Gain on sale of strategic equity investment(2)
3,783 — — 
Foreign currency impact on purchase consideration
— — 4,628 
Other11 579 126 
Total other income, net
$51,332 $121,810 $101,029 
_____________________________________________________
(1) For further information, see Note 8, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Cash and Cash Equivalents, and Investments and Fair Value Measurements.”
v3.25.0.1
Employee Benefit Plan
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan
We sponsor a 401(k) savings plan for eligible employees and their beneficiaries. Contributions by us are discretionary and participants may contribute, on a pretax basis, a percentage of their annual compensation, not to exceed a maximum contribution amount pursuant to Section 401(k) of the IRC. During the years ended December 31, 2024, 2023, and 2022, matching contributions totaled $4.6 million, $4.9 million and $4.4 million, respectively.
v3.25.0.1
Segment Information
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Our chief operating decision maker is our Chief Executive Officer who makes resource allocation decisions and reviews financial information presented on a consolidated basis. Accordingly, we have determined that we have a single operating and reportable segment and operating unit structure.

Our chief operating decision maker uses net (loss) income in assessing performance and determining how to allocate resources and is regularly provided with cost of revenues, paid marketing expenses, and consolidated operating expenses when reviewing financial information as part of the annual budgeting and forecasting process as well as the review over quarterly budget to actual variances.
The following table presents information about our significant segment expenses and includes a reconciliation to net (loss) income (in thousands):
Years Ended December 31,
202420232022
Net revenues$617,574 $716,295 $766,897 
Less:
Cost of revenues180,927 225,941 197,396 
Research and development170,431 191,705 196,637 
Paid marketing expenses(1)
55,381 57,351 62,008 
Other sales and marketing(2)
52,948 69,240 85,652 
General and administrative217,756 236,183 216,247 
Impairment expense677,239 3,600 — 
Total segment expenses1,354,682 784,020 757,940 
Other segment items(3)
(99,960)85,905 257,681 
Net (loss) income$(837,068)$18,180 $266,638 
_____________________________________________________
(1)Paid marketing expenses consist primarily of online advertising and marketing promotional expenditures.
(2)Other sales and marketing primarily consists of employee related expenses, including share-based compensation expense, and depreciation and amortization expenses.
(3)Other segment items consist of all interest expense, other income, and (provision for) benefit from income taxes.

We derive our revenues from our Subscription Services and Skills and Other product lines. Our Subscription Services include Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu. Our Skills and Other product line includes revenues from Chegg Skills, advertising services, print textbooks and eTextbooks.

The following table presents our total net revenues for our Subscription Services and Skills and Other product lines (in thousands):
Years Ended December 31,
202420232022
Subscription Services$549,211 $640,520 $671,968 
Skills and Other68,363 75,775 94,929 
Total net revenues$617,574 $716,295 $766,897 

The following table presents our total net revenues by geographic area (in thousands):
Years Ended December 31,
202420232022
United States$537,605 $616,359 $651,469 
International79,969 99,936 115,428 
Total net revenues$617,574 $716,295 $766,897 

The following table presents our long-lived assets by geographic area (in thousands):
December 31,
20242023
United States$172,483 $186,143 
International20,421 22,060 
Total long-lived assets$192,904 $208,203 

v3.25.0.1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts Financial Statement Schedules
Schedule II-Valuation and Qualifying Accounts (in thousands):
 Years Ended December 31, 2024, 2023, and 2022
 
Balance at Beginning of Year
(Release) Provision for Bad DebtsNet Write-offs
Balance at End of Year
Accounts receivable allowance    
2024$376 $(99)$(87)$190 
2023394 58 (76)376 
2022153 387 (146)394 
 Years Ended December 31, 2024, 2023, and 2022
 
Balance at Beginning of Year
Provision for RefundsRefunds Issued
Balance at End of Year
Refund reserve    
2024$1,538 $9,831 $(10,874)$495 
20231,499 9,724 (9,685)1,538 
20221,392 21,129 (21,022)1,499 
All other financial statement schedules are omitted because they are not applicable, or the information is included in the Registrant’s consolidated financial statements or related notes.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income (loss) $ (837,068) $ 18,180 $ 266,638
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Chegg and its Board of Directors (the “Board”) recognize the critical importance of maintaining the trust and confidence of our students, business partners, and employees. We have established an Information Security and Governance Program (“ISP") utilizing the National Institute of Standards and Technology Cybersecurity Framework as an authoritative source of cybersecurity standards and framework for measurement. The ISP is comprised of the following components: (i) policies which describe the core requirements and design aspects of the program, (ii) standards that provide quantifiable and prescriptive requirements to meet the program's design, (iii) processes that provide operational requirements to meet the ISP's policies and standards consistently, and (iv) implementation playbooks which are created, maintained, and used by the respective team responsible for implementation.

The ISP has three core functions underlying its design, which are intended to provide Chegg with appropriate oversight and governance to execute, monitor, measure and report on the performance of the program in a consistent manner:

management (control owners) have a responsibility to own and manage risks associated with day-to-day operations, including the design, implementation, and ongoing operation of controls;
compliance and cybersecurity teams enable the identification of emerging risks in daily operation of our business, providing compliance and oversight in the form of frameworks, policies, tools, and techniques to support management; and
independent assessors provide objective evaluation by assessing whether the first and second functions above are operating successfully, providing assurance that controls are effective in both design and operation.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have established an Information Security and Governance Program (“ISP") utilizing the National Institute of Standards and Technology Cybersecurity Framework as an authoritative source of cybersecurity standards and framework for measurement. The ISP is comprised of the following components: (i) policies which describe the core requirements and design aspects of the program, (ii) standards that provide quantifiable and prescriptive requirements to meet the program's design, (iii) processes that provide operational requirements to meet the ISP's policies and standards consistently, and (iv) implementation playbooks which are created, maintained, and used by the respective team responsible for implementation.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Audit Committee of the Board (the “Audit Committee”) provides independent oversight of the ISP. As a component of the ISP, the Audit Committee receives a report on the health and performance of the ISP on at least an annual basis. The Audit Committee provides guidance and oversight to help ensure the ISP meets the needs of all interested parties and fulfills its core functions.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee of the Board (the “Audit Committee”) provides independent oversight of the ISP. As a component of the ISP, the Audit Committee receives a report on the health and performance of the ISP on at least an annual basis. The Audit Committee provides guidance and oversight to help ensure the ISP meets the needs of all interested parties and fulfills its core functions.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee of the Board (the “Audit Committee”) provides independent oversight of the ISP. As a component of the ISP, the Audit Committee receives a report on the health and performance of the ISP on at least an annual basis. The Audit Committee provides guidance and oversight to help ensure the ISP meets the needs of all interested parties and fulfills its core functions.
Cybersecurity Risk Role of Management [Text Block]
Our Trust and Security organization (“T&S”) is responsible for implementing the ISP. T&S is led by our Chief Information Security Officer (“CISO”), Lonnie Benavides, who reports to our Chief Technology Officer (“CTO”), Chuck Geiger. T&S is made up of two sub-teams, each led by a director who reports to the CISO:

Information Security, which is responsible for implementing all aspects of the ISP and is structured around the following pillars: (i) Application Security, (ii) Infrastructure (Cloud) Security, (iii) Corporate IT Security, (iv) Security Operations, and (v) Governance and Risk Management.
Compliance and Privacy, which is responsible for assessing and preparing internal teams for regulatory compliance pertaining to information security, secured financial reporting, and privacy and is structured around the following pillars: (i) Privacy, (ii) Compliance, (iii) Vendor Risk Management, and (iv) Security Awareness.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Trust and Security organization (“T&S”) is responsible for implementing the ISP. T&S is led by our Chief Information Security Officer (“CISO”), Lonnie Benavides, who reports to our Chief Technology Officer (“CTO”), Chuck Geiger. T&S is made up of two sub-teams, each led by a director who reports to the CISO:

Information Security, which is responsible for implementing all aspects of the ISP and is structured around the following pillars: (i) Application Security, (ii) Infrastructure (Cloud) Security, (iii) Corporate IT Security, (iv) Security Operations, and (v) Governance and Risk Management.
Compliance and Privacy, which is responsible for assessing and preparing internal teams for regulatory compliance pertaining to information security, secured financial reporting, and privacy and is structured around the following pillars: (i) Privacy, (ii) Compliance, (iii) Vendor Risk Management, and (iv) Security Awareness.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Mr. Benavides joined Chegg in 2024 and has served various roles in information technology and security for over 25 years, including serving as CISO of a mortgage servicing company prior to joining Chegg. Mr. Benavides holds an undergraduate degree in Information Technology with a specialization in Information Assurance and Security and was a distinguished graduate of the US Air Force Secure Communications school. Mr. Geiger holds an undergraduate degree in computer science and has served in various roles in information technology for over 30 years, including serving as either the CTO or Executive Vice President of Technology of four companies prior to joining Chegg. Our CEO, CFO and General Counsel each hold degrees in their respective fields, and each have over 20 years of experience managing risks at Chegg and other companies, including risks arising from cybersecurity threats.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Trust and Security organization (“T&S”) is responsible for implementing the ISP. T&S is led by our Chief Information Security Officer (“CISO”), Lonnie Benavides, who reports to our Chief Technology Officer (“CTO”), Chuck Geiger. T&S is made up of two sub-teams, each led by a director who reports to the CISO:

Information Security, which is responsible for implementing all aspects of the ISP and is structured around the following pillars: (i) Application Security, (ii) Infrastructure (Cloud) Security, (iii) Corporate IT Security, (iv) Security Operations, and (v) Governance and Risk Management.
Compliance and Privacy, which is responsible for assessing and preparing internal teams for regulatory compliance pertaining to information security, secured financial reporting, and privacy and is structured around the following pillars: (i) Privacy, (ii) Compliance, (iii) Vendor Risk Management, and (iv) Security Awareness.

T&S also partners with other dedicated teams which report to our CTO:

Operations and Analytics, which is responsible for identifying and measuring consumer fraud and abuse of our customer-facing services, implementing manual and automated operations to ensure these are within acceptable bounds, and working with our product and engineering teams to design and implement longer term solutions.
Security and Fraud Engineering, which is responsible for building libraries, services, and integrations that interface with both backend and vendor systems to support the objectives of T&S.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

Our fiscal year ends on December 31 and in this report, we refer to the year ended December 31, 2024, December 31, 2023, and December 31, 2022 as 2024, 2023, and 2022, respectively.
Reclassification of Prior Period Presentation
Reclassification of Prior Period Presentation

In order to conform with current period presentation, $3.6 million of impairment of intangible assets has been reclassified from general and administrative expense to impairment expense on our consolidated statements of operations during the year ended December 31, 2023 as well as from impairment of intangible asset to impairment expense on our consolidated statements of cash flows during the year ended December 31, 2023. These changes in presentation do not affect previously reported results.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, share-based compensation expense including estimated forfeitures, accounting for income taxes, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill, intangible assets and long-lived assets, and internal-use software and website development costs. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations.
Principles of Consolidation
Principles of Consolidation

The consolidated financial statements include the accounts of Chegg and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. GAAP.
Cash and Cash Equivalents and Restricted Cash
Cash and Cash Equivalents and Restricted Cash
We consider all highly liquid investments with a maturity date of three months or less from the date of purchase to be cash equivalents. Our cash and cash equivalents consist of cash and money market funds at financial institutions, and are stated at cost, which approximates fair value. We classify certain restricted cash balances within other current assets and other assets on the accompanying consolidated balance sheets based upon the term of the remaining restrictions.
Fair Value Measurements
Fair Value Measurements

We account for certain assets and liabilities at fair value. We have established a fair value hierarchy used to determine the fair value of our financial instruments as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value; the inputs require significant management judgment or estimation.

A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Investments
Investments

We hold investments in corporate debt securities and U.S. treasury securities. We classify our investments as available-for-sale that are either short or long-term based on the remaining contractual maturity of the investment. Our investments are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, net of taxes, included in other comprehensive income (loss) on our consolidated statements of stockholders’ equity. Unrealized losses related to credit loss factors are recorded through an allowance for credit losses in other income, net on our consolidated statements of operations, rather than as a reduction to other comprehensive income (loss), when a decline in fair value has resulted from a credit loss. When evaluating whether an investment's unrealized losses are related to credit factors, we review factors such as the extent to which fair value is below its cost basis, any changes to the credit rating of the security, adverse conditions specifically related to the security, changes in market interest rates and our intent to sell, or whether it is more likely than not we will be required to sell, before recovery of cost basis. We invest in highly rated securities with a weighted average maturity of eighteen months or less. In addition, our investment policy limits the amount of our credit exposure to any one issuer or industry sector and requires investments to be investment grade, with the primary objective of preserving capital and maintaining liquidity. Fair values were determined for each individual security in the investment portfolio. We determine realized gains or losses on the sale of investments on a specific identification method and record such gains or losses as other income, net.

The estimated fair value of our investments is based on quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. Other than our money market funds and U.S. treasury securities, we classify our fixed income available-for-sale investments as having Level 2 inputs. The valuation techniques used to measure the fair value of our investments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. We do not hold any investments valued with a Level 3 input.
Accounts Receivable, Net of Allowance
Accounts Receivable, Net of Allowance

Accounts receivable is recorded at the invoiced amount and are non-interest bearing. We generally grant uncollateralized credit terms to our customers, which include partners and advertising customers.

We maintain an estimated allowance provision to account for potentially uncollectible accounts receivable based upon expected credit losses for outstanding receivables. Our estimate is derived using a variety of factors including historical collection and loss patterns, the current aging of accounts receivable, geographic and other customer-specific credit risk factors, and reasonable and supportable forecasts of future economic conditions which inform adjustments to historical loss patterns. The estimated allowance provision is classified as general and administrative operating expenses on our consolidated statements of operations. Accounts receivable that are deemed to be uncollectible are written off, net of expected or actual recoveries.
Concentration of Credit Risk
Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, and investments in accordance with our investment policy. We place the majority of our cash and cash equivalents with financial institutions in the United States that we believe to be of high credit quality, and accordingly minimal credit risk exists with respect to these instruments. Certain of our cash balances held with a financial institution are in excess of Federal Deposit Insurance Corporation limits. Our investment portfolio consists of investments diversified among security types, industries and issuers. Our investments were held and managed by recognized financial institutions that followed our investment policy with the main objective of preserving capital, generating a competitive return, and maintaining liquidity.
Concentrations of credit risk with respect to accounts receivables exist to the full extent of amounts presented in the financial statements.
Property and Equipment
Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
We capitalize all costs associated with the development or acquisition of content that is utilized in our products and services. Content amortization is classified within cost of revenues on our consolidated statements of operations.

We capitalize certain costs associated with software developed or obtained for internal use and website development. We capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding and it is probable that the project will be completed, and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades. Depreciation expense is classified within cost of revenues or operating expenses categories on our consolidated statements of operations.

When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and content amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in (loss) income from operations.
Business Combinations
Business Combinations

We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired through a business combination based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets acquired and liabilities assumed is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and, as a result, actual results may differ from estimates. During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Goodwill
Goodwill
Goodwill represents the excess of the fair value of purchase consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if certain events or indicators of impairment occur between annual impairment tests. We first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. In our qualitative assessment, we consider factors including economic conditions, industry and market conditions and developments, overall financial performance and other relevant entity-specific events. If our qualitative assessment concludes that it is more likely than not that the fair value is less than the carrying amount, a quantitative assessment of impairment is performed. In the quantitative test, we compare fair value, estimated utilizing the income approach, based on present value techniques, to the carrying value. If the carrying value exceeds the fair value, an impairment loss is recognized in an amount equal to the excess, limited to the remaining balance of goodwill.
Intangible Assets
Intangible Assets
Intangible assets are amortized over their estimated useful lives. Intangible assets are tested for impairment at the asset group level at least annually or when events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable.
Leases
Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use (ROU) assets and operating lease liabilities within current liabilities and long-term liabilities on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Lease agreements typically do not provide an implicit rate and therefore we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future minimum lease payments. Our incremental borrowing rate is estimated based on the estimated rate incurred to borrow, on a collateralized basis over a similar term as our leases, an amount equal to the lease payments in a similar economic environment. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We do not record leases on our consolidated balance sheet with a term of one year or less. We do not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Some of our leases include payments that are dependent on an index, such as the Consumer Price Index (CPI), and our minimum lease payments include payments based on the index at inception with any future changes in such indices recognized as an expense in the period of change. Where leases contain escalation clauses, rent abatement, or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line operating lease cost over the lease term. ROU assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Strategic Investments
Strategic Investments
Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any. Strategic investments are included in other assets on our consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies.
Convertible Senior Notes, net
Convertible Senior Notes, net

Convertible senior notes, including the embedded conversion features, are accounted for under the traditional convertible debt accounting model entirely as a liability net of unamortized issuance costs. The carrying amount of the liability is classified as a current liability if we have committed to settle with current assets or the holders have the option to convert the notes at any time within twelve months after the reporting date; otherwise, we classify it as a long-term liability as we retain the election to settle conversion requests in shares of our common stock. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative; otherwise, they are classified as derivative instruments and recorded at fair value with changes in fair value recorded in other income, net on our consolidated statements of operations. The fair value
of any derivative instruments related to the notes are determined utilizing Level 2 inputs. Issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. In accounting for conversions of the notes, the carrying amount of the converted notes is reduced by the total consideration paid or issued for the respective converted notes and the difference is recorded to additional paid-in capital on our consolidated balance sheets. In accounting for extinguishments of the notes, the reacquisition price of the extinguished notes is compared to the carrying amount of the respective extinguished notes and a gain or loss is recorded in other income, net on our consolidated statements of operations.
Revenue Recognition and Deferred Revenue
Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps:

Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, we satisfy a performance obligation

Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated and actual refunds, which are based on historical data. Revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings are primarily recognized ratably over the monthly subscription period. Revenues from Chegg Skills are recognized over the delivery period, adjusted for an estimate of non-redemption. Revenues from advertising services are recognized upon fulfillment. Revenues from print textbooks and eTextbooks are recognized immediately.

Some of our customer arrangements include multiple performance obligations. We have determined these performance obligations qualify as distinct performance obligations, as the customer can benefit from the service on its own or together with other resources that are readily available to the customer, and our promise to transfer the service is separately identifiable from other promises in the contract. For these arrangements that contain multiple performance obligations, we allocate the transaction price based on the relative standalone selling price (SSP) method by comparing the SSP of each distinct performance obligation to the total value of the contract. We determine the SSP based on our historical pricing and discounting practices for the distinct performance obligation when sold separately. If the SSP is not directly observable, we estimate the SSP by considering information such as market conditions, and information about the customer. Additionally, we limit the amount of revenues recognized for delivered promises to the amount that is not contingent on future delivery of services or other future performance obligations.

Some of our customer arrangements may include an amount of variable consideration in addition to a fixed revenue share that we earn. This variable consideration can either increase or decrease the total transaction price depending on the nature of the variable consideration. We estimate the amount of variable consideration that we will earn at the inception of the contract, adjusted during each period, and include an estimated amount each period.

For sales of third-party products, we evaluate whether we are acting as a principal or an agent. Where our role in a transaction is that of principal, revenues are recognized on a gross basis. This requires revenue to comprise the gross value of the transaction billed to the customer, after trade discounts, with any related expenditure charged as a cost of revenues. Where our role in a transaction is that of an agent, revenues are recognized on a net basis with revenues representing the margin earned. Our determination is based on our evaluation of whether we control the specified goods or services prior to transferring them to the customer. When deciding the most appropriate basis for presenting revenues or costs of revenues, both the legal form and substance of the agreement between us and our business partners are reviewed to determine each party’s respective role in the transaction. We have concluded that we control our Subscription Services and therefore we recognize revenues and cost of revenues on a gross basis. For print textbooks and eTextbooks, we have concluded that we do not control the service and therefore we recognize revenues on a net basis based on our role in the transaction as an agent.

Contract assets are contained within other current assets and other assets on our consolidated balance sheets. Contract assets represent the goods or services that we have transferred to a customer before invoicing the customer and primarily consist of the income sharing payment arrangements we offer to students for our Skills service. Contract receivables are contained within accounts receivable, net on our consolidated balance sheets and represent unconditional consideration that will be received solely due to the passage of time. Contract liabilities are contained within deferred revenue on our consolidated
balance sheets. Deferred revenue primarily consists of advanced payments from students related to subscription performance obligations that have not been satisfied and estimated variable consideration. Deferred revenue related to rental and subscription performance obligations is recognized as revenues ratably over the term for subscriptions or when the services are provided, and all other revenue recognition criteria have been met. Deferred revenue related to variable consideration is recognized as revenues during each reporting period based on the estimated amount we believe we will earn over the life of the contract. Deferred contract costs are contained within other current assets on our consolidated balance sheets and are recognized if we expect to receive a future benefit from such costs. Deferred contract cost amortization expense is recognized consistent with the pattern of revenue recognition as cost of revenues on our consolidated statements of operations.
Cost of Revenues
Cost of Revenues
Our cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of content amortization expense related to content that we develop, license from publishers, or acquire through acquisitions, web hosting fees, customer support fees, payment processing costs, amortization of acquired intangible assets, employee-related expenses, which includes salaries, benefits and share-based compensation expense, and other direct costs related to providing content or services. In addition, cost of revenues includes allocated information technology and facilities costs.
Research and Development Expense
Research and Development Expense

Research and development expenses consist of employee-related expenses, which includes salaries, benefits, and share-based compensation expense for employees on our product, engineering, and technical teams who are responsible for maintaining our website, developing new products, and improving existing products. Research and development expenses also include technology costs to support our research and development, and outside services. We expense substantially all of our research and development expenses as they are incurred.
Paid Marketing Expense
Paid Marketing Expense
Paid marketing expenses are expensed as incurred and consist primarily of online advertising and marketing promotional expenditures.
Share-based Compensation Expense
Share-based Compensation Expense
Share-based compensation expense for restricted stock units (RSUs), performance-based restricted stock units (PSUs) with either a market-based condition or financial and strategic performance targets, and employee stock purchase plan (ESPP) is accounted for under the fair value method based on the grant-date fair value of the award. Share-based compensation expense for RSUs and PSUs with financial and strategic performance targets is measured based on the closing fair market value of our common stock, PSUs with a market-based condition are estimated using a Monte Carlo simulation model, and ESPP is estimated using the Black-Scholes-Merton option pricing model. We recognize share-based compensation expense on a straight-line basis for RSUs and ESPP and on a graded basis for PSUs. Share-based compensation expense is reduced by estimated forfeitures, which are estimated at the time of the grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Vesting for all awards is subject to continued service over the requisite service period, which is generally the vesting period. Vesting of PSUs with a market-based condition is also subject to the achievement of certain per share price of our common stock targets and vesting of PSUs with financial and strategic performance targets is also subject to our achievement of specified financial and strategic performance targets. RSUs and PSUs are converted into shares of our common stock upon vesting on a one-for-one basis. RSUs typically vest over one or three years, while PSUs with a market-based condition typically vest over a four-year period and PSUs with financial and strategic performance targets typically vest over a three-year period. Share-based compensation expense for PSUs with a market-based condition is recognized regardless of whether the market condition is satisfied whereas share-based compensation expense for PSUs with financial performance targets is recognized upon estimated or actual achievement of such targets. We assess the achievement of financial and strategic performance targets on a quarterly basis and adjust our share-based compensation expense as appropriate.
Income Taxes
Income Taxes

We account for income taxes under an asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to an amount that is more likely than not to be realized. We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, we recognize the tax benefit as the largest amount that is cumulative more than 50% likely to be realized upon ultimate settlement with the related tax authority. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Net (Loss) Income Per Share
Net (Loss) Income Per Share

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is computed by adjusting net (loss) income for all related convertible senior notes activity, net of tax, and adjusting the weighted-average number of shares of common stock outstanding for all potential shares of common stock, including stock options, PSUs, RSUs, and shares related to convertible senior notes, to the extent dilutive. This assumes that all stock options and dilutive convertible shares were exercised or converted and is computed by applying the treasury stock method for outstanding stock options, PSUs, and RSUs, and the if-converted method for outstanding convertible senior notes. Under the treasury stock method, options, PSUs, and RSUs are assumed to be exercised or vested at the beginning of the period or at the time of issuance, if later, and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible senior notes are assumed to be converted into common stock at the beginning of the period or at the time of issuance, if later.
Foreign Currency Translation and Remeasurement
Foreign Currency Translation and Remeasurement
The functional currency of our foreign subsidiaries is the local currency, and our reporting currency is the U.S. Dollar. Adjustments resulting from the translation of foreign currencies into U.S. Dollars for balance sheet amounts are based on the exchange rates as of the consolidated balance sheet date. Revenues and expenses are translated at average exchange rates during the period. Foreign currency translation gains or losses are included in accumulated other comprehensive loss as a component of stockholders’ equity on the consolidated balance sheets. Gains or losses resulting from the remeasurement of foreign currency transactions, which are denominated in currencies other than the functional currency, are included in general and administrative expense on the consolidated statements of operations.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-04, Debt—Debt with Conversion and Other Options. ASU 2024-04 improves the relevance and consistency in application of the induced conversion guidance requirements in Accounting Standards Codification (ASC) 470-20—Debt. Early adoption is permitted, and the guidance can be applied on either a prospective or retrospective basis. The guidance is effective for annual periods beginning after December 15, 2025 and interim periods within those annual periods. We did not early adopt ASU 2024-04 and we are currently in the process of evaluating the impact of this guidance.

In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. ASU 2024-03 requires disclosure of specified information about certain costs and expenses in the notes to financial statements. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. We did not early adopt ASU 2024-03 and we are currently in the process of evaluating the impact of this guidance.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option
to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid that meet a quantitative threshold. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2023-09 and we are currently in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances current interim and annual reportable segment disclosures and requires additional disclosures about significant segment expenses. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280—Segment Reporting on an interim and annual basis. In 2024, we adopted ASU 2023-07 on a retrospective basis for annual periods starting with this Annual Report on Form 10-K. For further information on the additional reportable segment disclosures, refer to “Note 18, Segment Information.”
v3.25.0.1
Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Property, plant and equipment
Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
ClassificationUseful Life
Content
Shorter of the licensed content term or 5 years
Internal-use software and website development3 years
Leasehold improvements
Shorter of the remaining lease term or 5 years
Furniture and fixtures5 years
Computers and equipment3 years
The following table presents our property and equipment, net balances (in thousands):
December 31,
20242023
Content$381,629 $346,749 
Internal-use software and website development67,612 51,855 
Leasehold improvements8,207 10,857 
Furniture and fixtures3,346 4,607 
Computer and equipment2,953 3,496 
Property and equipment463,747 417,564 
Less accumulated depreciation(293,099)(234,491)
Property and equipment, net$170,648 $183,073 
v3.25.0.1
Revenues (Tables)
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):

 Years Ended December 31,
Change in 2024
Change in 2023
 202420232022$%$%
Subscription Services$549,211 $640,520 $671,968 $(91,309)(14)%$(31,448)(5)%
Skills and Other68,363 75,775 94,929 (7,412)(10)(19,154)(20)
Total net revenues$617,574 $716,295 $766,897 $(98,721)(14)$(50,602)(7)
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets, and deferred revenue balances (in thousands, except percentages):
 December 31,Change
 20242023$%
Accounts receivable, net$23,641 $31,404 $(7,763)(25)%
Contract assets7,027 8,598 (1,571)(18)
Deferred revenue39,217 55,336 (16,119)(29)
v3.25.0.1
Net (Loss) Income Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Years Ended December 31,
202420232022
Basic
Numerator:
Net (loss) income$(837,068)$18,180 $266,638 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
103,300 116,504 127,557 
Net (loss) income per share, basic
$(8.10)$0.16 $2.09 
Diluted
Numerator:
Net (loss) income$(837,068)$18,180 $266,638 
Convertible senior notes activity, net of tax
— (61,694)(65,444)
Net (loss) income, diluted
$(837,068)$(43,514)$201,194 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
103,300 116,504 127,557 
Shares related to stock plan activity— — 968 
Shares related to convertible senior notes— 12,065 21,334 
Weighted average shares used to compute net (loss) income per share, diluted
103,300 128,569 149,859 
Net (loss) income per share, diluted
$(8.10)$(0.34)$1.34 
Schedule of Common Shares Outstanding Excluded from Computation of Diluted Net Income (Loss) Per Share
The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands):
Years Ended December 31,
202420232022
Shares related to stock plan activity7,206 8,442 3,556 
Shares related to convertible senior notes9,234 — — 
Total common stock equivalents16,440 8,442 3,556 
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents, and Investments
The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of December 31, 2024 and 2023 (in thousands):
 December 31, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$28,716 $— $— $28,716 
Money market fundsLevel 1132,759 — — 132,759 
Total cash and cash equivalents$161,475 $— $— $161,475 
Short-term investments:   
Corporate debt securitiesLevel 2$113,968 $157 $(29)$114,096 
U.S. treasury securitiesLevel 140,162 — (9)40,153 
Total short-term investments$154,130 $157 $(38)$154,249 
Long-term investments:
Corporate debt securitiesLevel 2$133,516 $736 $(78)$134,174 
U.S. treasury securitiesLevel 178,405 97 (26)78,476 
Total long-term investments$211,921 $833 $(104)$212,650 

 December 31, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$45,050 $— $— $45,050 
Money market fundsLevel 190,707 — — 90,707 
Total cash and cash equivalents$135,757 $— $— $135,757 
Short-term investments:   
Corporate debt securitiesLevel 2$69,548 $— $(170)$69,378 
U.S. treasury securities
Level 1
25,734 — (114)25,620 
Agency bondsLevel 299,505 — (246)99,259 
Total short-term investments$194,787 $— $(530)$194,257 
Long-term investments:
Corporate debt securitiesLevel 2$191,467 $898 $(213)$192,152 
U.S. treasury securitiesLevel 157,287 165 (57)57,395 
Total long-term investments$248,754 $1,063 $(270)$249,547 
Schedule of Realized Gain (Loss) Related to Investments
The following table presents the realized gain and loss related to our investments (in thousands):
 Years Ended December 31,
 202420232022
Realized gain$16 $346 $64 
Realized loss(43)(2,452)(9,739)
Realized loss on sale of investments$(27)$(2,106)$(9,675)
Schedule of Available-for-sale Securities Reconciliation
The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of December 31, 2024 (in thousands):
December 31, 2024
 Adjusted CostFair Value
Due within one year$154,130 $154,249 
Due after one year through three years211,921 212,650 
Investments not due at a single maturity date132,759 132,759 
Total$498,810 $499,658 
v3.25.0.1
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, plant and equipment
Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
ClassificationUseful Life
Content
Shorter of the licensed content term or 5 years
Internal-use software and website development3 years
Leasehold improvements
Shorter of the remaining lease term or 5 years
Furniture and fixtures5 years
Computers and equipment3 years
The following table presents our property and equipment, net balances (in thousands):
December 31,
20242023
Content$381,629 $346,749 
Internal-use software and website development67,612 51,855 
Leasehold improvements8,207 10,857 
Furniture and fixtures3,346 4,607 
Computer and equipment2,953 3,496 
Property and equipment463,747 417,564 
Less accumulated depreciation(293,099)(234,491)
Property and equipment, net$170,648 $183,073 
v3.25.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table presents the changes in the carrying amount of our goodwill balances (in thousands):
 December 31,
20242023
Beginning balance$631,995 $615,093 
Impairment expense(635,391)— 
Foreign currency translation adjustment3,396 16,902 
Ending balance$— $631,995 
Schedule of Intangible Assets
The following table presents our intangible assets balances (in thousands, except weighted-average amortization period):
 December 31, 2024
Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Accumulated ImpairmentForeign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(63,029)$(29,369)$(3,958)$10,347 
Content libraries6012,230 (12,230)— — — 
Customer lists3534,190 (32,892)— (1,298)— 
Trade and domain names5216,213 (13,343)(2,493)(377)— 
Total intangible assets67$169,336 $(121,494)$(31,862)$(5,633)$10,347 
 
 December 31, 2023
 Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Accumulated ImpairmentForeign Currency Translation AdjustmentNet
Carrying
Amount
Developed technologies80$106,703 $(55,651)$— $(3,757)$47,295 
Content libraries6012,230 (11,189)— — 1,041 
Customer lists3534,190 (31,836)— (1,298)1,056 
Trade and domain names5216,213 (12,817)— (358)3,038 
Total intangible assets67$169,336 $(111,493)$— $(5,413)$52,430 
Schedule of Estimated Future Amortization Expense Related to Intangible Assets
The following table presents the estimated future intangible assets amortization expense (in thousands):
December 31, 2024
2025$4,240 
20263,897 
20271,776 
2028407 
202927 
Total$10,347 
v3.25.0.1
Convertible Senior Notes (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The following table presents the net carrying amount of the notes (in thousands):
December 31, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal amount$127,906 $358,914 $244,479 $358,914 
Unamortized issuance costs(562)(309)(1,721)(1,835)
Net carrying amount$127,344 $358,605 $242,758 $357,079 
Schedule of Interest Expense Recognized
The following table presents the total interest expense recognized related to the notes (in thousands):
Years Ended December 31,
2024
2023
2022
2026 notes:
Contractual interest expense
$— $— $— 
Amortization of issuance costs620 1,035 2,196 
Total 2026 notes interest expense$620 $1,035 $2,196 
2025 notes:
Contractual interest expense$443 $621 $874 
Amortization of issuance costs1,527 2,121 2,970 
Total 2025 notes interest expense$1,970 $2,742 $3,844 
v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Maturities of Operating Lease Liabilities
The following table presents the future minimum lease payments and reconciliation to total operating lease liabilities (in thousands):
December 31, 2024
2025$6,822 
20264,141 
20274,298 
20283,531 
20291,959 
Thereafter8,414 
Total future minimum lease payments29,165 
Less imputed interest(5,031)
Total operating lease liabilities$24,134 
v3.25.0.1
Common Stock (Tables)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Common Stock Reserved for Future Issuance The following table presents the shares of our common stock we have reserved for future issuance:
December 31, 2024
Shares available for grant under the 2023 Equity Incentive Plan10,340,723 
Outstanding RSUs and PSUs7,386,965 
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan3,007,257 
Shares available for grant under the 2023 Equity Inducement Plan1,171,016 
Outstanding stock options182,076 
Total common shares reserved for future issuance22,088,037 
v3.25.0.1
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense for Employees and Non-Employees
The following table presents total share-based compensation expense recorded (in thousands):
 Years Ended December 31,
 202420232022
Cost of revenues$1,786 $2,256 $2,484 
Research and development28,044 44,103 41,335 
Sales and marketing7,466 9,524 13,857 
General and administrative47,318 77,619 75,780 
Total share-based compensation expense$84,614 $133,502 $133,456 
Schedule of Assumptions Used to Determine Fair Value of ESPP
The following table presents the key assumptions used to determine the fair value of the awards:

Expected term (years)3.00
Expected volatility49.04 %
Expected dividends— %
Risk-free interest rate0.27 %
The following table presents the key assumptions used to determine the fair value of rights granted under the ESPP:
 Years Ended December 31,
 202420232022
Expected term (years)0.500.500.50
Expected volatility
60.95%-85.39%
55.79%-109.39%
70.37%-78.74%
Dividend yield0.00 %0.00 %0.00 %
Risk-free interest rate
4.44%-5.40%
5.24%-5.41%
1.54%-4.54%
Weighted-average grant-date fair value per share$0.90 $3.62 $8.71 
Schedule of Restricted Stock Unit and Performance Share Unit Activity
RSUs and PSUs Activity
 Number of RSUs and PSUs OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted5,853,240 4.24 
Released(5,069,408)21.02 
Forfeited(3,462,650)22.50 
Balance at December 31, 20247,386,965 $10.58 
Schedule of Stock Option Activity
Stock Option Activity
 
Number of Stock Options Outstanding
Weighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
Balance at December 31, 2023232,327 $6.02 1.81$1,240,014 
Forfeited(50,251) 
Balance at December 31, 2024182,076 $5.74 1.17$— 
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision
The following table presents our (provision for) benefit from income taxes (in thousands):
Years Ended December 31,
202420232022
Current income taxes:
Federal$(234)$(2,460)$(113)
State(1,128)(3,064)(2,172)
Foreign(4,021)(33)(3,702)
Total current provision for income taxes(5,383)(5,557)(5,987)
Deferred income taxes:
Federal(122,057)(26,210)147,236 
State(17,558)(1,634)19,995 
Foreign(3,704)1,269 1,448 
Total deferred benefit from income taxes(143,319)(26,575)168,679 
Total (provision for) benefit from income taxes$(148,702)$(32,132)$162,692 
Schedule of (Loss) Income before (Provision for) Benefit from Income Taxes
The following table presents our (loss) income before (provision for) benefit from income taxes (in thousands):
Years Ended December 31,
202420232022
United States$(297,183)$61,152 $123,269 
Foreign(391,183)(10,840)(19,323)
Total (loss) income before (provision for) benefit from income taxes$(688,366)$50,312 $103,946 
Schedule of Effective Income Tax Rate Reconciliation
The following table presents the differences between our (provision for) benefit from income taxes as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate as a percentage of (loss) income before (provision for) benefit from income taxes (in percentages):
Years Ended December 31,
202420232022
Income tax at U.S. statutory rate21.0 %21.0 %21.0 %
State, net of federal benefit2.9 11.6 1.6 
Taxes on foreign earnings1.7 0.7 (1.1)
Share-based compensation(2.5)39.3 15.3 
Non-deductible expenses— (2.5)1.6 
Effect of flow-through entities12.5 — — 
Goodwill impairment(17.1)— — 
Tax credits— 0.8 (0.7)
Change in valuation allowance(40.1)4.2 (210.5)
Settlement of unrecognized tax benefits— (8.0)— 
Foreign-derived intangible income0.1 (5.2)— 
Convertible senior notes— — 15.0 
Other(0.1)2.0 1.3 
Total(21.6)%63.9 %(156.5)%
Schedule of Deferred Tax Assets and Liabilities
The following table presents a summary of our deferred tax assets (in thousands):
December 31,
20242023
Deferred tax assets:
Research and experimental expenditures capitalization$102,382 $69,362 
Net operating loss and credits carryforwards80,413 92,302 
Accrued expenses and reserves25,039 10,442 
Share-based compensation3,414 11,200 
Convertible senior notes1,790 5,566 
Goodwill89,583 — 
Property and equipment and intangible assets15,947 — 
Other items— 6,133 
Gross deferred tax assets318,568 195,005 
Valuation allowance(307,985)(40,162)
Total deferred tax assets$10,583 $154,843 
Deferred tax liabilities:
Property and equipment and intangibles assets$— $(2,621)
Other(11,396)(13,134)
Total deferred tax liabilities$(11,396)$(15,755)
Net deferred tax (liability) asset
$(812)$139,088 
Schedule of Reconciliation of Unrecognized Tax Benefits
The following table presents the reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits, excluding accrued interest and penalties (in thousands):
Years Ended December 31,
202420232022
Beginning balance$12,400 $16,953 $16,805 
Increase in tax positions for prior years13 — 333 
Decrease in tax positions for prior years— (131)(876)
Decrease in tax positions for prior year settlement— (4,703)(386)
Decrease in tax positions for prior years due to statutes lapsing— — — 
Increase in tax positions for current year295 281 1,520 
Change due to translation of foreign currencies— — (443)
Ending balance$12,708 $12,400 $16,953 
v3.25.0.1
Restructuring Charges (Tables)
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Reconciliation of Restructuring Liability
The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands):
 Year Ended December 31, 2024
Beginning balance
$— 
Restructuring charges
14,632 
Restructuring payments
(10,717)
Ending balance
$3,915 
The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands):
 Year Ended December 31, 2024
Beginning balance
$— 
Restructuring charges
9,971 
Restructuring payments
(6,576)
Ending balance
$3,395 
v3.25.0.1
Consolidated Statements of Operations Details (Tables)
12 Months Ended
Dec. 31, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Income, Net
The following table presents the details of other income, net (in thousands):
Years Ended December 31,
202420232022
Gain on early extinguishment of debt(1)
$19,515 $85,926 $93,519 
Interest income28,050 37,411 12,431 
Realized loss on sale of investments(2)
(27)(2,106)(9,675)
Gain on sale of strategic equity investment(2)
3,783 — — 
Foreign currency impact on purchase consideration
— — 4,628 
Other11 579 126 
Total other income, net
$51,332 $121,810 $101,029 
_____________________________________________________
(1) For further information, see Note 8, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Cash and Cash Equivalents, and Investments and Fair Value Measurements.”
v3.25.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Significant Segment Expenses
The following table presents information about our significant segment expenses and includes a reconciliation to net (loss) income (in thousands):
Years Ended December 31,
202420232022
Net revenues$617,574 $716,295 $766,897 
Less:
Cost of revenues180,927 225,941 197,396 
Research and development170,431 191,705 196,637 
Paid marketing expenses(1)
55,381 57,351 62,008 
Other sales and marketing(2)
52,948 69,240 85,652 
General and administrative217,756 236,183 216,247 
Impairment expense677,239 3,600 — 
Total segment expenses1,354,682 784,020 757,940 
Other segment items(3)
(99,960)85,905 257,681 
Net (loss) income$(837,068)$18,180 $266,638 
_____________________________________________________
(1)Paid marketing expenses consist primarily of online advertising and marketing promotional expenditures.
(2)Other sales and marketing primarily consists of employee related expenses, including share-based compensation expense, and depreciation and amortization expenses.
(3)Other segment items consist of all interest expense, other income, and (provision for) benefit from income taxes.
Schedule of Revenue by Product Line
The following table presents our total net revenues for our Subscription Services and Skills and Other product lines (in thousands):
Years Ended December 31,
202420232022
Subscription Services$549,211 $640,520 $671,968 
Skills and Other68,363 75,775 94,929 
Total net revenues$617,574 $716,295 $766,897 
Schedule of Revenue by Geographic Areas
The following table presents our total net revenues by geographic area (in thousands):
Years Ended December 31,
202420232022
United States$537,605 $616,359 $651,469 
International79,969 99,936 115,428 
Total net revenues$617,574 $716,295 $766,897 

The following table presents our long-lived assets by geographic area (in thousands):
December 31,
20242023
United States$172,483 $186,143 
International20,421 22,060 
Total long-lived assets$192,904 $208,203 

v3.25.0.1
Background and Basis of Presentation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Impairment expense $ 677,239 $ 3,600 $ 0
Revision of Prior Period, Reclassification, Adjustment      
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Impairment expense   $ 3,600  
v3.25.0.1
Significant Accounting Policies - Investments (Details)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Weighted average maturity 18 months
v3.25.0.1
Significant Accounting Policies - Property Plant and Equipment (Details)
Dec. 31, 2024
Content  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Internal-use software and website development  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Computers and equipment  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
v3.25.0.1
Significant Accounting Policies - Paid Marketing Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Paid marketing expenses $ 55.4 $ 57.4 $ 62.0
v3.25.0.1
Significant Accounting Policies - Share-based Compensation Expense (Details)
1 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Conversion ratio   1
Restricted Stock Units (RSUs) | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   1 year
Restricted Stock Units (RSUs) | Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   3 years
Performance Shares, Market Based Conditions    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards 3 years 4 years
Performance Shares, Financial And Strategic Performance Targets    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   3 years
v3.25.0.1
Significant Accounting Policies - Foreign Currency Translation and Remeasurement (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Net gains (losses) from remeasurement of foreign currency transactions $ 0.0 $ 0.0 $ 3.7
v3.25.0.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total net revenues $ 617,574 $ 716,295 $ 766,897
Change, Total net revenues $ (98,721) $ (50,602)  
Change, Total net revenues, percent (14.00%) (7.00%)  
Subscription Services      
Disaggregation of Revenue [Line Items]      
Total net revenues $ 549,211 $ 640,520 671,968
Change, Total net revenues $ (91,309) $ (31,448)  
Change, Total net revenues, percent (14.00%) (5.00%)  
Skills and Other      
Disaggregation of Revenue [Line Items]      
Total net revenues $ 68,363 $ 75,775 $ 94,929
Change, Total net revenues $ (7,412) $ (19,154)  
Change, Total net revenues, percent (10.00%) (20.00%)  
v3.25.0.1
Revenues - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]      
Contract with customer, liability, revenue recognized $ 53,500 $ 54,500 $ 33,900
Contract with customer, liability, revenue recognized, prior period 2,800 0 $ 0
Closing balance of deferred contract cost 2,800 6,000  
Deferred contract cost amortization 16,100 $ 15,800  
Decrease in accounts receivable, net $ 7,763    
Decrease in accounts receivable, net, percent 25.00%    
Decrease in contract assets $ 1,571    
Decrease in contract assets, percent 18.00%    
Decrease in deferred revenue $ 16,119    
Decrease in deferred revenue, percent 29.00%    
v3.25.0.1
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 23,641 $ 31,404
Change, accounts receivable, net $ (7,763)  
Change, accounts receivable, net, percent (25.00%)  
Contract assets $ 7,027 8,598
Change in contract assets $ (1,571)  
Change in contract assets, percent (18.00%)  
Deferred revenue $ 39,217 $ 55,336
Change in deferred revenue $ (16,119)  
Change in deferred revenue, percent (29.00%)  
v3.25.0.1
Net (Loss) Income Per Share - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:      
Net (loss) income $ (837,068) $ 18,180 $ 266,638
Convertible senior notes activity, net of tax 0 (61,694) (65,444)
Net (loss) income, diluted $ (837,068) $ (43,514) $ 201,194
Denominator:      
Weighted average shares used to compute net (loss) income per share, basic (in shares) 103,300 116,504 127,557
Net (loss) income per share, basic (in dollars per share) $ (8.10) $ 0.16 $ 2.09
Weighted average shares used to compute net (loss) income per share, diluted (in shares) 103,300 128,569 149,859
Net (loss) income per share, diluted (in dollars per share) $ (8.10) $ (0.34) $ 1.34
Shares related to stock plan activity      
Denominator:      
Incremental common shares attributable to dilutive effect (in shares) 0 0 968
Shares related to convertible senior notes      
Denominator:      
Incremental common shares attributable to dilutive effect (in shares) 0 12,065 21,334
v3.25.0.1
Net (Loss) Income Per Share - Shares Excluded From Computation Of Diluted Net (Loss) Income Per Share (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 16,440 8,442 3,556
Shares related to stock plan activity      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 7,206 8,442 3,556
Shares related to convertible senior notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 9,234 0 0
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Schedule of Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]      
Cash $ 161,475 $ 135,757 $ 473,677
Adjusted Cost 498,810    
Fair Value 499,658    
Cash      
Schedule Of Available For Sale Securities [Line Items]      
Cash 28,716 45,050  
Level 1 | Money market funds      
Schedule Of Available For Sale Securities [Line Items]      
Cash 132,759 90,707  
Short-term investments:      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 154,130 194,787  
Unrealized Gain 157 0  
Unrealized Loss (38) (530)  
Fair Value 154,249 194,257  
Short-term investments: | Corporate debt securities | Level 2      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 113,968 69,548  
Unrealized Gain 157 0  
Unrealized Loss (29) (170)  
Fair Value 114,096 69,378  
Short-term investments: | U.S. treasury securities | Level 1      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 40,162 25,734  
Unrealized Gain 0 0  
Unrealized Loss (9) (114)  
Fair Value 40,153 25,620  
Short-term investments: | Agency bonds | Level 2      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost   99,505  
Unrealized Gain   0  
Unrealized Loss   (246)  
Fair Value   99,259  
Long-term investments:      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 211,921 248,754  
Unrealized Gain 833 1,063  
Unrealized Loss (104) (270)  
Fair Value 212,650 249,547  
Long-term investments: | Corporate debt securities | Level 2      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 133,516 191,467  
Unrealized Gain 736 898  
Unrealized Loss (78) (213)  
Fair Value 134,174 192,152  
Long-term investments: | U.S. treasury securities | Level 1      
Schedule Of Available For Sale Securities [Line Items]      
Adjusted Cost 78,405 57,287  
Unrealized Gain 97 165  
Unrealized Loss (26) (57)  
Fair Value $ 78,476 $ 57,395  
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Schedule of Realized Gain (Loss) Related to Investments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]      
Realized gain $ 16 $ 346 $ 64
Realized loss (43) (2,452) (9,739)
Realized loss on sale of investments $ (27) $ (2,106) $ (9,675)
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Schedule of Contractual Maturity (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Adjusted Cost  
Due within one year $ 154,130
Due after one year through three years 211,921
Investments not due at a single maturity date 132,759
Adjusted Cost 498,810
Fair Value  
Due within one year 154,249
Due after one year through three years 212,650
Investments not due at a single maturity date 132,759
Fair Value $ 499,658
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Strategic Investment (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Jan. 01, 2024
May 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jul. 31, 2022
Schedule of Investments [Line Items]            
Proceeds from sale of strategic equity investments     $ 15,500 $ 0 $ 0  
Equity Method Investment, Realized Gain (Loss) on Disposal     $ 3,783 0 $ 0  
Sound Ventures AI Fund, LP            
Schedule of Investments [Line Items]            
Commitment to invest   $ 15,000        
Invests in artificial intelligence companies, ownership percentage   6.00%        
Equity method investment       $ 11,700    
Proceeds from sale of strategic equity investments $ 15,500          
Equity Method Investment, Realized Gain (Loss) on Disposal $ 3,800          
Knack Technologies, Inc            
Schedule of Investments [Line Items]            
Investment without readily determinable fair value           $ 6,000
v3.25.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Fair Value, Measurements, Nonrecurring - Senior Notes - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
2026 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 105.8 $ 202.9
2025 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 350.4 $ 329.5
v3.25.0.1
Property and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment $ 463,747 $ 417,564
Less accumulated depreciation (293,099) (234,491)
Property and equipment, net 170,648 183,073
Content    
Property, Plant and Equipment [Line Items]    
Property and equipment 381,629 346,749
Internal-use software and website development    
Property, Plant and Equipment [Line Items]    
Property and equipment 67,612 51,855
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 8,207 10,857
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment 3,346 4,607
Computer and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 2,953 $ 3,496
v3.25.0.1
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Impaired Long-Lived Assets Held and Used [Line Items]      
Depreciation expense $ 68.3 $ 105.3 $ 64.1
Accelerated depreciation 34.2 34.2  
Impairment charges 10.0    
Other costs   1.4  
Software and Software Development Costs and Content Assets      
Impaired Long-Lived Assets Held and Used [Line Items]      
Impairment charges 6.1    
Impaired assets to be disposed of by method other than sale, impairment loss   38.2  
Content      
Impaired Long-Lived Assets Held and Used [Line Items]      
Impairment charges 6.6    
Software Development      
Impaired Long-Lived Assets Held and Used [Line Items]      
Impairment charges $ 3.4    
Impaired assets to be disposed of by method other than sale, impairment loss   $ 2.6  
v3.25.0.1
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]      
Beginning balance $ 631,995,000 $ 615,093,000  
Impairment expense (635,391,000) 0 $ 0
Foreign currency translation adjustment 3,396,000 16,902,000  
Ending balance $ 0 $ 631,995,000 $ 615,093,000
v3.25.0.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]      
Goodwill, impairment loss $ 635,391,000 $ 0 $ 0
Impairment of intangible assets (excluding goodwill) $ 31,900,000    
Impairment, intangible asset, statement of income or comprehensive income [extensible enumeration] Impairment expense    
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment | Total Content And Related Assets Charge      
Finite Lived Intangible Assets [Line Items]      
Disposal group, not discontinued operation, impairment of indefinite-lived intangibles   3,600,000  
Acquisition-Related Intangible Assets      
Finite Lived Intangible Assets [Line Items]      
Amortization expense of acquisition related to acquired intangible assets $ 10,000,000.0 $ 24,400,000 $ 25,900,000
v3.25.0.1
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 67 months 67 months
Gross Carrying Amount $ 169,336 $ 169,336
Accumulated Amortization (121,494) (111,493)
Accumulated Impairment (31,862) 0
Foreign Currency Translation Adjustment (5,633) (5,413)
Total $ 10,347 $ 52,430
Trade and domain names    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 52 months  
Gross Carrying Amount $ 16,213  
Accumulated Amortization (13,343)  
Foreign Currency Translation Adjustment (377)  
Total $ 0  
Developed technologies    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 80 months 80 months
Gross Carrying Amount $ 106,703 $ 106,703
Accumulated Amortization (63,029) (55,651)
Accumulated Impairment (29,369) 0
Foreign Currency Translation Adjustment (3,958) (3,757)
Total $ 10,347 $ 47,295
Content libraries    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 60 months 60 months
Gross Carrying Amount $ 12,230 $ 12,230
Accumulated Amortization (12,230) (11,189)
Accumulated Impairment 0 0
Foreign Currency Translation Adjustment 0 0
Total $ 0 $ 1,041
Customer lists    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 35 months 35 months
Gross Carrying Amount $ 34,190 $ 34,190
Accumulated Amortization (32,892) (31,836)
Accumulated Impairment 0 0
Foreign Currency Translation Adjustment (1,298) (1,298)
Total 0 $ 1,056
Trade and domain names    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months)   52 months
Gross Carrying Amount   $ 16,213
Accumulated Amortization   (12,817)
Accumulated Impairment $ (2,493) 0
Foreign Currency Translation Adjustment   (358)
Total   $ 3,038
v3.25.0.1
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 4,240  
2026 3,897  
2027 1,776  
2028 407  
2029 27  
Total $ 10,347 $ 52,430
v3.25.0.1
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Nov. 30, 2024
USD ($)
Aug. 31, 2020
USD ($)
$ / shares
Apr. 30, 2019
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]            
Repayments of convertible senior notes       $ 96,520 $ 505,986 $ 401,203
(Gain)/loss on early extinguishments of debt       19,515 85,926 $ 93,519
2026 Notes | Senior Notes            
Debt Instrument [Line Items]            
Face value   $ 1,000,000   $ 127,906 244,479  
Interest rate, stated percentage   0.00%        
Conversion ratio   0.0092978        
Conversion price (in dollars per share) | $ / shares   $ 107.55        
Repayments of convertible senior notes $ 96,200          
Extinguishment incurred 300          
Repayments of convertible debt and extinguishment fees 96,500          
Debt extinguished 116,600          
Carrying amount of extinguished notes 116,000          
(Gain)/loss on early extinguishments of debt $ 19,500          
2026 Notes | Senior Notes | Capped Call            
Debt Instrument [Line Items]            
Debt instrument, convertible (in shares) | shares       9,297,800    
Conversion price (in dollars per share) | $ / shares       $ 156.44    
2025 Notes | Senior Notes            
Debt Instrument [Line Items]            
Face value     $ 800,000 $ 358,914 $ 358,914  
Interest rate, stated percentage     0.125%      
Conversion ratio     0.0193956      
Conversion price (in dollars per share) | $ / shares     $ 51.56      
2025 Notes | Senior Notes | Capped Call            
Debt Instrument [Line Items]            
Debt instrument, convertible (in shares) | shares       6,961,352    
Conversion price (in dollars per share) | $ / shares       $ 79.32    
v3.25.0.1
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Aug. 31, 2020
Apr. 30, 2019
2026 Notes        
Debt Instrument [Line Items]        
Principal amount $ 127,906 $ 244,479 $ 1,000,000  
Unamortized issuance costs (562) (1,721)    
2026 Notes | Net carrying amount | Fair Value, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount 127,344 242,758    
2025 Notes        
Debt Instrument [Line Items]        
Principal amount 358,914 358,914   $ 800,000
Unamortized issuance costs (309) (1,835)    
2025 Notes | Net carrying amount | Fair Value, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount $ 358,605 $ 357,079    
v3.25.0.1
Convertible Senior Notes - Interest Expense Recognized (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Amortization of issuance costs $ 2,147 $ 3,156 $ 5,166
Senior Notes | 2026 Notes      
Debt Instrument [Line Items]      
Contractual interest expense 0 0 0
Amortization of issuance costs 620 1,035 2,196
Total interest expense 620 1,035 2,196
Senior Notes | 2025 Notes      
Debt Instrument [Line Items]      
Contractual interest expense 443 621 874
Amortization of issuance costs 1,527 2,121 2,970
Total interest expense $ 1,970 $ 2,742 $ 3,844
v3.25.0.1
Convertible Senior Notes - Capped Call Transactions (Details) - Senior Notes - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
Dec. 31, 2024
2026 Notes      
Debt Instrument [Line Items]      
Conversion price (in dollars per share) $ 107.55    
2025 Notes      
Debt Instrument [Line Items]      
Conversion price (in dollars per share)   $ 51.56  
Capped Call | 2026 Notes      
Debt Instrument [Line Items]      
Net proceeds $ 103.4    
Debt instrument, convertible (in shares)     9,297,800
Conversion price (in dollars per share)     $ 156.44
Capped Call | 2025 Notes      
Debt Instrument [Line Items]      
Net proceeds   $ 97.2  
Debt instrument, convertible (in shares)     6,961,352
Conversion price (in dollars per share)     $ 79.32
v3.25.0.1
Leases - Narrative (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
lease
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Lessee, Lease, Description [Line Items]      
Right of use assets $ 22,256 $ 25,130  
Operating lease liability $ 24,134 $ 24,900  
Weighted average remaining lease term for operating lease 6 years 3 months 18 days 3 years 10 months 24 days  
Weighted average discount rate used to determine the operating lease liability 5.60% 5.80%  
Number of offices closed | lease 2    
Impairment expense $ 677,239 $ 3,600 $ 0
Operating leases 10,108 12,407 10,232
Lease expense 7,500 $ 7,600 $ 7,300
Facility Closing      
Lessee, Lease, Description [Line Items]      
Impairment expense 5,600    
Operating lease, impairment loss 4,100    
Impairment of leasehold $ 1,500    
v3.25.0.1
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
2025 $ 6,822  
2026 4,141  
2027 4,298  
2028 3,531  
2029 1,959  
Thereafter 8,414  
Total future minimum lease payments 29,165  
Less imputed interest (5,031)  
Total operating lease liabilities $ 24,134 $ 24,900
v3.25.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Sep. 26, 2024
Dec. 31, 2024
Sep. 30, 2024
Loss Contingencies [Line Items]      
Loss contingency   $ 7.0  
Steven Leventhal | Settled Litigation      
Loss Contingencies [Line Items]      
Litigation settlement, amount awarded to other party $ 55.0    
Loss contingency     $ 55.0
Loss contingency, receivable, current     $ 55.0
v3.25.0.1
Common Stock - Narrative (Details) - shares
Oct. 11, 2023
Jun. 07, 2023
Dec. 31, 2024
Class of Stock [Line Items]      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)     22,088,037
Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)   4,000,000  
Share-based compensation arrangement by share-based payment award, maximum offering period   27 months  
2023 Equity Inducement Plan      
Class of Stock [Line Items]      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares) 2,000,000    
Shares available for grant (in shares)     1,171,016
Common shares reserved for future issuance, length of termination period 10 years    
2023 Equity Incentive Plan      
Class of Stock [Line Items]      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)   12,000,000  
Shares available for grant (in shares)     10,340,723
2013 Employee Stock Purchase Plan | Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)     3,007,257
Share-based compensation arrangement by share-based payment award, discount from market price, purchase date   15.00%  
v3.25.0.1
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares
Dec. 31, 2024
Dec. 31, 2023
Oct. 11, 2023
Jun. 07, 2023
Class of Stock [Line Items]        
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares) 22,088,037      
Outstanding stock options (in shares) 182,076 232,327    
2023 Equity Incentive Plan        
Class of Stock [Line Items]        
Shares available for grant (in shares) 10,340,723      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)       12,000,000
2023 Equity Inducement Plan        
Class of Stock [Line Items]        
Shares available for grant (in shares) 1,171,016      
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)     2,000,000  
PSUs and RSUs        
Class of Stock [Line Items]        
Outstanding RSUs and PSUs (in shares) 7,386,965 10,065,783    
Employee Stock Purchase Plan        
Class of Stock [Line Items]        
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares)       4,000,000
Employee Stock Purchase Plan | 2013 Employee Stock Purchase Plan        
Class of Stock [Line Items]        
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan (in shares) 3,007,257      
v3.25.0.1
Stockholders' Equity - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Aug. 29, 2013
Mar. 31, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation expense capitalized     $ 4,900 $ 3,300 $ 5,300
Offering period 6 months        
Stock issued during period, shares, employee stock purchase plans (in shares)     859,302 454,533 382,392
Weighted average purchase price of shares purchased (in dollars per share)     $ 3.05 $ 8.10 $ 15.61
Share-based compensation expense     $ 84,614 $ 133,502 $ 133,456
Stock option awards (in shares)     0 0 0
Exercised in period (in shares)     0    
Exercises in period, intrinsic value       $ 200 $ 1,300
PSUs and RSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized compensation costs related to restricted stock units     $ 40,700    
Weighted-average vesting period     1 year 2 months 12 days    
Granted (in shares)     5,853,240    
Granted (in dollars per share)     $ 4.24 $ 14.58 $ 27.68
Total fair value of awards vested     $ 26,100 $ 45,300 $ 74,200
Performance-based Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted (in shares)     693,750 565,341 614,177
Granted (in dollars per share)     $ 3.61 $ 15.89 $ 35.82
Performance-based Restricted Stock Units | March 2022 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards     3 years    
Performance-based Restricted Stock Units | Minimum | June 2024 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards     1 year    
Performance-based Restricted Stock Units | Minimum | March 2023 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards     1 year    
Performance-based Restricted Stock Units | Maximum | June 2024 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards     3 years    
Performance-based Restricted Stock Units | Maximum | March 2023 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards     3 years    
Performance Shares, Market Based Conditions          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards   3 years 4 years    
Target level of award   100.00%      
Consecutive trading days achieving maximum average market value   60 days      
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage   50.00%      
Expected term (years)     3 years    
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche One          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share)   $ 123.81      
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares)   244,086      
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche Two          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share)   $ 148.58      
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares)   488,173      
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche Three          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share)   $ 173.34      
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares)   732,260      
Performance Shares, Market Based Conditions | March 2021 PSU Grants          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted (in dollars per share)   $ 68.55      
Performance Shares, Market Based Conditions | March 2021 PSU Grants, 2013 Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period of stock awards   4 years      
Granted (in shares)   732,260      
Performance Shares, Market Based Conditions | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock issued as percent of target level of achieving maximum average market value   50.00%      
Performance Shares, Market Based Conditions | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock issued as percent of target level of achieving maximum average market value   150.00%      
Employee Stock Purchase Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Expected term (years)     6 months 6 months 6 months
Proceeds from issuance of shares under ESPP     $ 2,600 $ 3,700 $ 6,000
Share-based compensation expense     $ 1,500 $ 2,500 $ 3,100
November 2023 Accelerated Share Repurchase Program          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock repurchased and retired during period, shares (in shares)     2,115,952 13,498,313  
Accelerated Share Repurchase Program          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock repurchased and retired during period, shares (in shares)       26,505,979 12,709,278
Open Market Transactions          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock repurchased and retired during period, shares (in shares)       3,433,157  
February 2023 Accelerated Share Repurchase Program          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock repurchased and retired during period, shares (in shares)       9,574,509  
v3.25.0.1
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation expense $ 84,614 $ 133,502 $ 133,456
Cost of revenues      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation expense 1,786 2,256 2,484
Research and development      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation expense 28,044 44,103 41,335
Sales and marketing      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation expense 7,466 9,524 13,857
General and administrative      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total share-based compensation expense $ 47,318 $ 77,619 $ 75,780
v3.25.0.1
Stockholders' Equity - Schedule of Assumptions (Details) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Performance Shares, Market Based Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 3 years    
Expected volatility 49.04%    
Dividend yield 0.00%    
Risk-free interest rate 0.27%    
Employee Stock Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 6 months 6 months 6 months
Dividend yield 0.00% 0.00% 0.00%
Weighted-average grant-date fair value per share $ 0.90 $ 3.62 $ 8.71
Employee Stock Purchase Plan | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 60.95% 55.79% 70.37%
Risk-free interest rate 4.44% 5.24% 1.54%
Employee Stock Purchase Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 85.39% 109.39% 78.74%
Risk-free interest rate 5.40% 5.41% 4.54%
v3.25.0.1
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - RSUs and PSUs - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock Units Outstanding      
Outstanding, Beginning (in shares) 10,065,783    
Granted (in shares) 5,853,240    
Released (in shares) (5,069,408)    
Forfeited (in shares) (3,462,650)    
Outstanding, Ending (in shares) 7,386,965 10,065,783  
Weighted-Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 23.63    
Granted (in dollars per share) 4.24 $ 14.58 $ 27.68
Released (in dollars per share) 21.02    
Forfeited (in dollars per share) 22.50    
Ending balance (in dollars per share) $ 10.58 $ 23.63  
v3.25.0.1
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of Options Outstanding    
Number of Options Outstanding, Beginning (shares) 232,327  
Number of Options, Forfeited (shares) (50,251)  
Number of Options Outstanding, Ending (shares) 182,076 232,327
Weighted-Average Exercise Price per Share    
Weighted Average Exercise Price per Share, Outstanding, Beginning (in dollars per share) $ 6.02  
Weighted Average Exercise Price per Share, Outstanding, Ending (in dollars per share) $ 5.74 $ 6.02
Options Outstanding, Weighted-Average Remaining Contractual Term 1 year 2 months 1 day 1 year 9 months 21 days
Options Outstanding, Aggregate Intrinsic Value $ 0 $ 1,240,014
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]        
Provision for (benefit from) income taxes $ 148,702,000 $ 32,132,000 $ (162,692,000)  
Deferred tax liabilities, undistributed foreign earnings 1,700,000      
Foreign earnings repatriated 23,000,000      
Payment of withholding tax 3,450,000 0 0  
(Decrease) increase in valuation allowance 267,800,000 4,000,000.0    
Interest and penalties accrued related to uncertain tax positions 0      
Unrecognized tax benefits 12,708,000 $ 12,400,000 $ 16,953,000 $ 16,805,000
Federal        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 125,000,000      
Tax credit carryforwards 12,700,000      
State        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 207,000,000      
Tax credit carryforwards 17,800,000      
Foreign | His Majesty's Revenue and Customs (HMRC)        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards $ 109,000,000      
v3.25.0.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income taxes:      
Federal $ (234) $ (2,460) $ (113)
State (1,128) (3,064) (2,172)
Foreign (4,021) (33) (3,702)
Total current provision for income taxes (5,383) (5,557) (5,987)
Deferred income taxes:      
Federal (122,057) (26,210) 147,236
State (17,558) (1,634) 19,995
Foreign (3,704) 1,269 1,448
Total deferred benefit from income taxes (143,319) (26,575) 168,679
Total (provision for) benefit from income taxes $ (148,702) $ (32,132) $ 162,692
v3.25.0.1
Income Taxes - (Loss) Income Before (Provision for) Benefit From Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ (297,183) $ 61,152 $ 123,269
Foreign (391,183) (10,840) (19,323)
(Loss) income before (provision for) benefit from income taxes $ (688,366) $ 50,312 $ 103,946
v3.25.0.1
Income Taxes - Effective Income Tax Reconciliation (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Income tax at U.S. statutory rate 21.00% 21.00% 21.00%
State, net of federal benefit 2.90% 11.60% 1.60%
Taxes on foreign earnings 1.70% 0.70% (1.10%)
Share-based compensation (2.50%) 39.30% 15.30%
Non-deductible expenses 0.00% (2.50%) 1.60%
Effect of flow-through entities 0.125 0 0
Goodwill impairment (17.10%) 0.00% 0.00%
Tax credits 0.00% 0.80% (0.70%)
Change in valuation allowance (40.10%) 4.20% (210.50%)
Settlement of unrecognized tax benefits 0.00% (8.00%) 0.00%
Foreign-derived intangible income 0.10% (5.20%) 0.00%
Convertible senior notes 0.00% 0.00% 15.00%
Other (0.10%) 2.00% 1.30%
Total (21.60%) 63.90% (156.50%)
v3.25.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Research and experimental expenditures capitalization $ 102,382 $ 69,362
Net operating loss and credits carryforwards 80,413 92,302
Accrued expenses and reserves 25,039 10,442
Share-based compensation 3,414 11,200
Convertible senior notes 1,790 5,566
Goodwill 89,583 0
Property and equipment and intangible assets 15,947 0
Other items 0 6,133
Gross deferred tax assets 318,568 195,005
Valuation allowance (307,985) (40,162)
Total deferred tax assets 10,583 154,843
Deferred tax liabilities:    
Property and equipment and intangibles assets 0 (2,621)
Other (11,396) (13,134)
Total deferred tax liabilities (11,396) (15,755)
Net deferred tax liability $ (812)  
Net deferred tax asset   $ 139,088
v3.25.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 12,400 $ 16,953 $ 16,805
Increase in tax positions for prior years 13 0 333
Decrease in tax positions for prior years 0 (131) (876)
Decrease in tax positions for prior year settlement 0 (4,703) (386)
Decrease in tax positions for prior years due to statutes lapsing 0 0 0
Increase in tax positions for current year 295 281 1,520
Change due to translation of foreign currencies 0 0 (443)
Ending balance $ 12,708 $ 12,400 $ 16,953
v3.25.0.1
Restructuring Charges - Additional Information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Restructuring Cost and Reserve [Line Items]  
Restructuring incurred cost statement of income or comprehensive income extensible enumeration not disclosed flag false
November 2024 Restructuring Plan  
Restructuring Cost and Reserve [Line Items]  
Restructuring charges $ 14,632
November 2024 Restructuring Plan | Minimum  
Restructuring Cost and Reserve [Line Items]  
Additional restructuring charges 3,000
November 2024 Restructuring Plan | Maximum  
Restructuring Cost and Reserve [Line Items]  
Additional restructuring charges 4,000
June 2024 Restructuring Plan  
Restructuring Cost and Reserve [Line Items]  
Restructuring charges $ 9,971
v3.25.0.1
Restructuring Charges - Restructuring and Related Costs (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
November 2024 Restructuring Plan  
Restructuring Reserve [Roll Forward]  
Beginning balance $ 0
Restructuring charges 14,632
Restructuring payments (10,717)
Ending balance 3,915
June 2024 Restructuring Plan  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Restructuring charges 9,971
Restructuring payments (6,576)
Ending balance $ 3,395
v3.25.0.1
Consolidated Statements of Operations Details (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Income and Expenses [Abstract]      
Gain on early extinguishment of debt $ 19,515 $ 85,926 $ 93,519
Interest income 28,050 37,411 12,431
Realized loss on sale of investments (27) (2,106) (9,675)
Gain on sale of strategic equity investments 3,783 0 0
Foreign currency impact on purchase consideration 0 0 4,628
Other 11 579 126
Total other income, net $ 51,332 $ 121,810 $ 101,029
v3.25.0.1
Employee Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Matching contributions $ 4.6 $ 4.9 $ 4.4
v3.25.0.1
Segment Information - Schedule of Significant Segment Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Net revenues $ 617,574 $ 716,295 $ 766,897
Cost of revenues 180,927 225,941 197,396
Research and development 170,431 191,705 196,637
Paid marketing expenses 55,400 57,400 62,000
General and administrative 217,756 236,183 216,247
Impairment expense 677,239 3,600 0
Net (loss) income (837,068) 18,180 266,638
Reportable Segment      
Segment Reporting Information [Line Items]      
Net revenues 617,574 716,295 766,897
Cost of revenues 180,927 225,941 197,396
Research and development 170,431 191,705 196,637
Paid marketing expenses 55,381 57,351 62,008
Other selling and marketing expense 52,948 69,240 85,652
General and administrative 217,756 236,183 216,247
Impairment expense 677,239 3,600 0
Total operating expenses 1,354,682 784,020 757,940
Other segment items (99,960) 85,905 257,681
Net (loss) income $ (837,068) $ 18,180 $ 266,638
v3.25.0.1
Segment Information - Schedule of Revenue by Product Line and Geographic Areas (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from External Customer [Line Items]      
Net revenues $ 617,574 $ 716,295 $ 766,897
United States      
Revenue from External Customer [Line Items]      
Net revenues 537,605 616,359 651,469
International      
Revenue from External Customer [Line Items]      
Net revenues 79,969 99,936 115,428
Subscription Services      
Revenue from External Customer [Line Items]      
Net revenues 549,211 640,520 671,968
Skills and Other      
Revenue from External Customer [Line Items]      
Net revenues $ 68,363 $ 75,775 $ 94,929
v3.25.0.1
Segment Information - Schedule of Long-Lived Assets by Geographical Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Total long-lived assets $ 192,904 $ 208,203
United States    
Segment Reporting Information [Line Items]    
Total long-lived assets 172,483 186,143
International    
Segment Reporting Information [Line Items]    
Total long-lived assets $ 20,421 $ 22,060
v3.25.0.1
Segment Information - Narrative (Details)
12 Months Ended
Dec. 31, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts receivable allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 376 $ 394 $ 153
Release for Bad Debts (99)    
Provision for Bad Debts   58 387
Net Write-offs (87) (76) (146)
Balance at End of Year 190 376 394
Refund reserve      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 1,538 1,499 1,392
Provision for Bad Debts 9,831 9,724 21,129
Net Write-offs (10,874) (9,685) (21,022)
Balance at End of Year $ 495 $ 1,538 $ 1,499