CHEGG, INC, 10-Q filed on 8/5/2024
Quarterly Report
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Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Jul. 29, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
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, $0.001 par value per share  
Trading Symbol CHGG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   103,669,879
Entity Central Index Key 0001364954  
Current Fiscal Year End Date --12-31  
Document Fiscal Year End 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 133,068 $ 135,757
Short-term investments 212,396 194,257
Accounts receivable, net of allowance of $183 and $376 at June 30, 2024 and December 31, 2023, respectively 20,964 31,404
Prepaid expenses 30,841 20,980
Other current assets 36,279 32,437
Total current assets 433,548 414,835
Long-term investments 259,925 249,547
Property and equipment, net 179,278 183,073
Goodwill 189,769 631,995
Intangible assets, net 12,848 52,430
Right of use assets 21,508 25,130
Deferred tax assets 2,287 141,843
Other assets 15,167 28,382
Total assets 1,114,330 1,727,235
Current liabilities    
Accounts payable 14,424 28,184
Deferred revenue 45,023 55,336
Accrued liabilities 68,001 77,863
Current portion of convertible senior notes, net 357,838 357,079
Total current liabilities 485,286 518,462
Long-term liabilities    
Convertible senior notes, net 243,079 242,758
Long-term operating lease liabilities 15,595 18,063
Other long-term liabilities 4,870 3,334
Total long-term liabilities 263,544 264,155
Total liabilities 748,830 782,617
Commitments and contingencies
Stockholders' equity:    
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding 0 0
Common stock, $0.001 par value per share: 400,000,000 shares authorized; 103,360,633 and 102,823,700 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 103 103
Additional paid-in capital 1,075,989 1,031,627
Accumulated other comprehensive loss (39,915) (34,739)
Accumulated deficit (670,677) (52,373)
Total stockholders' equity 365,500 944,618
Total liabilities and stockholders' equity $ 1,114,330 $ 1,727,235
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance $ 183 $ 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) 103,360,633 102,823,700
Common stock, shares outstanding (in shares) 103,360,633 102,823,700
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Net revenues $ 163,147 $ 182,853 $ 337,497 $ 370,454
Cost of revenues 45,411 47,412 91,908 96,562
Gross profit 117,736 135,441 245,589 273,892
Operating expenses:        
Research and development 43,651 52,872 88,086 99,779
Sales and marketing 23,545 30,956 53,920 67,973
General and administrative 54,016 70,309 109,550 129,282
Impairment expense 481,531 0 481,531 0
Total operating expenses 602,743 154,137 733,087 297,034
Loss from operations (485,007) (18,696) (487,498) (23,142)
Interest expense, net and other income, net:        
Interest expense, net (651) (1,114) (1,301) (2,382)
Other income, net 7,119 64,103 17,899 76,179
Total interest expense, net and other income, net 6,468 62,989 16,598 73,797
(Loss) income before provision for income taxes (478,539) 44,293 (470,900) 50,655
Provision for income taxes (138,345) (19,681) (147,404) (23,857)
Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798
Net (loss) income per share        
Basic (in dollars per share) $ (6.01) $ 0.21 $ (6.03) $ 0.22
Diluted (in dollars per share) $ (6.01) $ (0.11) $ (6.03) $ (0.08)
Weighted average shares used to compute net (loss) income per share        
Basic (in shares) 102,604 117,977 102,474 120,828
Diluted (in shares) 102,604 132,944 102,474 137,416
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798
Other comprehensive income (loss)        
Change in net unrealized loss on investments (119) (4,420) (2,089) (608)
Change in foreign currency translation adjustments 876 6,579 (3,087) 14,917
Other comprehensive income (loss) 757 2,159 (5,176) 14,309
Total comprehensive (loss) income $ (616,127) $ 26,771 $ (623,480) $ 41,107
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CONDENSED 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, 2022   126,474,000      
Beginning balance at Dec. 31, 2022 $ 1,116,589 $ 126 $ 1,244,504 $ (57,488) $ (70,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (13,008,000)      
Repurchases of common stock (186,368) $ (13) (186,355)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   376,000      
Issuance of common stock upon exercise of stock options and ESPP 3,079   3,079    
Net share settlement of equity awards (in shares)   1,336,000      
Net share settlement of equity awards (11,066) $ 2 (11,068)    
Share-based compensation expense 71,363   71,363    
Proceeds from capped call related to extinguishment of 2025 notes 297   297    
Other comprehensive income (loss) 14,309     14,309  
Net (loss) income 26,798       26,798
Ending balance (in shares) at Jun. 30, 2023   115,178,000      
Ending balance at Jun. 30, 2023 1,035,001 $ 115 1,121,820 (43,179) (43,755)
Beginning balance (in shares) at Dec. 31, 2022   126,474,000      
Beginning balance at Dec. 31, 2022 $ 1,116,589 $ 126 1,244,504 (57,488) (70,553)
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)
Beginning balance (in shares) at Mar. 31, 2023   119,628,000      
Beginning balance at Mar. 31, 2023 1,006,759 $ 120 1,120,344 (45,338) (68,367)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (5,408,000)      
Repurchases of common stock (35,057) $ (6) (35,051)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   358,000      
Issuance of common stock upon exercise of stock options and ESPP 2,935   2,935    
Net share settlement of equity awards (in shares)   600,000      
Net share settlement of equity awards (3,331) $ 1 (3,332)    
Share-based compensation expense 36,627   36,627    
Proceeds from capped call related to extinguishment of 2025 notes 297   297    
Other comprehensive income (loss) 2,159     2,159  
Net (loss) income 24,612       24,612
Ending balance (in shares) at Jun. 30, 2023   115,178,000      
Ending balance at Jun. 30, 2023 $ 1,035,001 $ 115 1,121,820 (43,179) (43,755)
Beginning balance (in shares) at Dec. 31, 2023 102,823,700 102,824,000      
Beginning balance at Dec. 31, 2023 $ 944,618 $ 103 1,031,627 (34,739) (52,373)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (2,116,000)      
Repurchases of common stock (114) $ (2) (112)    
Issuance of common stock upon issuance of ESPP (in shares)   557,000      
Issuance of common stock upon issuance of ESPP 2,188   2,188    
Net share settlement of equity awards (in shares)   2,096,000      
Net share settlement of equity awards (7,823) $ 2 (7,825)    
Share-based compensation expense 50,111   50,111    
Other comprehensive income (loss) (5,176)     (5,176)  
Net (loss) income $ (618,304)       (618,304)
Ending balance (in shares) at Jun. 30, 2024 103,360,633 103,361,000      
Ending balance at Jun. 30, 2024 $ 365,500 $ 103 1,075,989 (39,915) (670,677)
Beginning balance (in shares) at Mar. 31, 2024   101,570,000      
Beginning balance at Mar. 31, 2024 963,474 $ 102 1,057,837 (40,672) (53,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon issuance of ESPP (in shares)   557,000      
Issuance of common stock upon issuance of ESPP 2,188   2,188    
Net share settlement of equity awards (in shares)   1,234,000      
Net share settlement of equity awards (3,530) $ 1 (3,531)    
Share-based compensation expense 19,495   19,495    
Other comprehensive income (loss) 757     757  
Net (loss) income $ (616,884)       (616,884)
Ending balance (in shares) at Jun. 30, 2024 103,360,633 103,361,000      
Ending balance at Jun. 30, 2024 $ 365,500 $ 103 $ 1,075,989 $ (39,915) $ (670,677)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities    
Net (loss) income $ (618,304) $ 26,798
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Share-based compensation expense 47,336 69,666
Depreciation and amortization expense 39,393 52,027
Deferred income taxes 141,032 20,142
Operating lease expense, net 3,141 3,009
Amortization of debt issuance costs 1,081 1,988
Loss from write-off of property and equipment 1,657 450
Impairment expense 481,531 0
Gain on early extinguishment of debt 0 (53,777)
Loss contingency 0 7,000
Impairment on lease related assets 2,189 0
Other non-cash items 82 (1,083)
Change in assets and liabilities:    
Accounts receivable 10,561 3,081
Prepaid expenses and other current assets (12,173) 15,082
Other assets (773) 5,470
Accounts payable (12,045) (671)
Deferred revenue (10,226) (3,634)
Accrued liabilities (4,057) (1,436)
Other liabilities (2,880) (8,205)
Net cash provided by operating activities 67,545 135,907
Cash flows from investing activities    
Purchases of property and equipment (45,817) (33,864)
Proceeds from disposition of textbooks 0 9,787
Purchases of investments (123,669) (552,409)
Maturities of investments 89,890 476,862
Proceeds from sale of investments 0 238,681
Proceeds from sale of strategic equity investment 15,500 0
Purchase of strategic equity investment 0 (9,604)
Net cash (used in) provided by investing activities (64,096) 129,453
Cash flows from financing activities    
Proceeds from common stock issued under stock plans, net 2,190 3,081
Payment of taxes related to the net share settlement of equity awards (7,825) (11,068)
Repurchase of common stock 0 (186,368)
Repayment of convertible senior notes 0 (369,761)
Proceeds from exercise of convertible senior notes capped call 0 297
Net cash used in financing activities (5,635) (563,819)
Effect of exchange rate changes (305) 197
Net decrease in cash, cash equivalents and restricted cash (2,491) (298,262)
Cash, cash equivalents and restricted cash, beginning of period 137,976 475,854
Cash, cash equivalents and restricted cash, end of period 135,485 177,592
Supplemental cash flow data:    
Interest 224 517
Income taxes, net of refunds 2,729 6,171
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases 4,346 4,909
Right of use assets obtained in exchange for lease obligations:    
Operating leases 663 12,407
Non-cash investing and financing activities:    
Accrued purchases of long-lived assets 5,016 4,518
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 133,068 175,368
Restricted cash included in other current assets 540 60
Restricted cash included in other assets 1,877 2,164
Total cash, cash equivalents and restricted cash $ 135,485 $ 177,592
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Background and Basis of Presentation
 6 Months Ended
Jun. 30, 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 AI-powered academic support thoughtfully designed for education coupled with access to a vast network of subject matter experts who ensure quality. 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

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2024, our results of operations, results of comprehensive (loss) income and stockholders' equity for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year.

We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the Annual Report on Form 10-K) filed with the SEC.

There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Aside from the addition of impairment expense as a component within our operating expenses on our condensed consolidated statements of operations, there have been no other changes to the components on our consolidated statements of operations described in our Annual Report on Form 10-K.

Components of Results of Operations

Operating Expenses

Impairment Expense

Our impairment expense consists of impairments of goodwill, intangible assets, and property and equipment, net that were recorded during the three months and six months ended June 30, 2024. For further information, see “Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets.” The following table presents our impairment expense (in thousands):

 
Impairment expense
Goodwill
$439,683 
Intangible assets
31,862 
Property and equipment, net
9,986 
Total impairment expense
$481,531 
Use of Estimates

The preparation of financial statements in conformity with 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. 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. There have been no material changes in our use of estimates during the six months ended June 30, 2024 as compared to the use of estimates disclosed in Part II, Item 8 “Consolidated Financial Statements and Supplementary Data” contained in our Annual Report on Form 10-K for the year ended December 31, 2023.

Reclassification of Prior Period Presentation

In order to confirm with current period presentation, $5.7 million of restructuring charges during the six months ended June 30, 2023 has been reclassified to changes in accrued liabilities on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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, however, we are currently in the process of evaluating the impact.

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.

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. Early adoption is permitted, and we are required to adopt the changes on a retrospective basis. The guidance is effective for annual periods beginning after December 15, 2023 and for interim periods beginning December 15, 2024. We did not early adopt ASU 2023-07 and we are currently in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the six months ended June 30, 2024 that had a material impact on our financial statements.
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Revenues
 6 Months Ended
Jun. 30, 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 tables present our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):
 Three Months Ended
June 30,		Change
 20242023$%
Subscription Services$146,813 $165,855 $(19,042)(11)%
Skills and Other16,334 16,998 (664)(4)
Total net revenues$163,147 $182,853 $(19,706)(11)

 Six Months Ended
June 30,		Change
 20242023$%
Subscription Services$300,864 $334,295 $(33,431)(10)%
Skills and Other36,633 36,159 474 1 
Total net revenues$337,497 $370,454 $(32,957)(9)

During the three and six months ended June 30, 2024, we recognized revenues of $38.9 million and $47.1 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and six months ended June 30, 2023, we recognized revenues of $41.1 million and $47.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period.

Contract Balances

The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 June 30,
2024		December 31, 2023$%
Accounts receivable, net$20,964 $31,404 $(10,440)(33)%
Contract assets7,674 8,598 (924)(11)
Deferred revenue45,023 55,336 (10,313)(19)

During the six months ended June 30, 2024 our accounts receivable, net balance decreased by $10.4 million, or 33%, primarily due to lower bookings from Chegg Skills and seasonality of our business. During the six months ended June 30, 2024, our contract assets balance decreased by $0.9 million, or 11%, primarily due to cash collections from our Chegg Skills service. During the six months ended June 30, 2024, our deferred revenue balance decreased by $10.3 million, or 19%, primarily due to lower bookings from Chegg Skills and seasonality of our business.
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Net (Loss) Income Per Share
 6 Months Ended
Jun. 30, 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):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Basic
Numerator:
Net (loss) income
$(616,884)$24,612 $(618,304)$26,798 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,604 117,977 102,474 120,828 
Net (loss) income per share, basic
$(6.01)$0.21 $(6.03)$0.22 
Diluted
Numerator:
Net (loss) income
$(616,884)$24,612 $(618,304)$26,798 
Convertible senior notes activity, net of tax
— (39,398)— (38,446)
Net (loss) income, diluted
$(616,884)$(14,786)$(618,304)$(11,648)
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,604 117,977 102,474 120,828 
Shares related to convertible senior notes— 14,967 — 16,588 
Weighted average shares used to compute net (loss) income per share, diluted
102,604 132,944 102,474 137,416 
Net (loss) income per share, diluted
$(6.01)$(0.11)$(6.03)$(0.08)

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):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Shares related to stock plan activity7,421 9,982 7,286 7,661 
Shares related to convertible senior notes9,234 — 9,234 — 
Total common stock equivalents16,655 9,982 16,520 7,661 
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Cash and Cash Equivalents, Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, Investments and Fair Value Measurements Cash and Cash Equivalents, 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 June 30, 2024 and December 31, 2023 (in thousands):
 June 30, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$46,551 $— $— $46,551 
Money market fundsLevel 186,517 — — 86,517 
Total cash and cash equivalents$133,068 $— $— $133,068 
Short-term investments:   
Corporate debt securitiesLevel 2$121,988 $— $(391)$121,597 
U.S. treasury securitiesLevel 166,138 — (247)65,891 
Agency bondsLevel 225,020 — (112)24,908 
Total short-term investments$213,146 $— $(750)$212,396 
Long-term investments:   
Corporate debt securitiesLevel 2$208,171 $144 $(951)$207,364 
U.S. treasury securitiesLevel 152,830 — (269)52,561 
Total long-term investments$261,001 $144 $(1,220)$259,925 

 December 31, 2023
 
Fair Value Level
Adjusted 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 securitiesLevel 125,734 — (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 June 30, 2024, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2024 and 2023, we did not recognize any losses on our investments due to credit related factors and our realized gains and losses on investments were not significant.

The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2024 (in thousands):
 Adjusted CostFair Value
Due within one year$213,146 $212,396 
Due after one year through three years261,001 259,925 
Investments not due at a single maturity date86,517 86,517 
Total$560,664 $558,838 
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 condensed consolidated statements of cash flows and the gain was included within other income, net on our condensed 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 expenses during the three and six months ended June 30, 2024 and 2023, 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 issuer during the three and six months ended June 30, 2024 and 2023.

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 (defined below). 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 June 30, 2024 and December 31, 2023 was $195.3 million and $202.9 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2024 and December 31, 2023 was $328.4 million and $329.5 million, respectively. For further information on the notes, refer to Note 7, “Convertible Senior Notes.”
v3.24.2.u1
Property and Equipment, Net
 6 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
June 30, 2024December 31, 2023
Content$362,957 $346,749 
Software
59,744 51,855 
Leasehold improvements10,213 10,857 
Furniture and fixtures4,253 4,607 
Computer and equipment3,210 3,496 
Property and equipment440,377 417,564 
Less accumulated depreciation and amortization(261,099)(234,491)
Property and equipment, net$179,278 $183,073 

Depreciation and content amortization expense during the three and six months ended June 30, 2024 was $16.2 million and $31.9 million, respectively. Depreciation and content amortization expense during the three and six months ended June 30, 2023 was $20.1 million and $39.4 million, respectively.

In connection with the June 2024 Restructuring, we announced that we will no longer offer Chegg Skills directly to customers. As a result, we wrote-off and accelerated depreciation over shortened useful lives for certain content assets of $1.1 million during the three months ended June 30, 2024, which were classified as cost of revenues on our condensed consolidated statements of operations. For further information on the restructuring, see “Note 11, Restructuring and Other Related Charges.”
In connection with the intangibles asset impairment analysis performed in June 2024, we also recorded an impairment expense of $10.0 million related to property and equipment, consisting of $6.6 million of content assets and $3.4 million of software assets, during the three months ended June 30, 2024, which were classified as impairment expense on our condensed consolidated statements of operations. For further information on the impairment analysis, see “Note 6, Goodwill and Intangible Assets.”
v3.24.2.u1
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill

Goodwill is tested for impairment at least annually or when certain events or indicators of impairment occur between annual impairment tests. During the three months ended June 30, 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 three months ended June 30, 2024, we recorded a $439.7 million impairment expense equal to the excess of the carrying value of our reporting unit over the estimated fair value, which was classified as impairment expense on our condensed consolidated statements of operations.

The following table presents our goodwill balances (in thousands):
Six Months Ended June 30, 2024
Year Ended December 31, 2023
Beginning balance$631,995 $615,093 
Impairment expense
(439,683)— 
Foreign currency translation adjustment(2,543)16,902 
Ending balance$189,769 $631,995 

Intangible Assets

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. 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 three months ended June 30, 2024, which was classified as impairment expense on our condensed consolidated statements of operations. We also recorded an impairment expense for property and equipment, net. For further information, see “Note 5, Property and Equipment, Net.”
The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):

 June 30, 2024
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(61,167)$(29,369)$(3,958)$12,209 
Content libraries6012,230 (11,883)— — 347 
Customer lists3534,190 (32,774)— (1,298)118 
Trade and domain names5216,213 (13,169)(2,493)(377)174 
Total intangible assets67$169,336 $(118,993)$(31,862)$(5,633)$12,848 

 December 31, 2023
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign 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 three and six months ended June 30, 2024, amortization expense related to our intangible assets totaled $3.5 million and $7.5 million, respectively. During the three and six months ended June 30, 2023, amortization expense related to our intangible assets totaled $6.4 million and $12.6 million, respectively. We did not recognize any impairment expenses on any of our other intangible assets during the three and six months ended June 30, 2023.

The following table presents the estimated future amortization expense related to our intangible assets as of June 30, 2024 (in thousands):
June 30, 2024
Remaining six months of 2024
$2,460 
20254,240 
20263,897 
20271,776 
2028407 
Thereafter68 
Total$12,848 
v3.24.2.u1
Convertible Senior Notes
 6 Months Ended
Jun. 30, 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.

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. During the three months ended June 30, 2024, the circumstances allowing holders of the 2026 notes and 2025 notes to convert were not met.

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 circumstances. As of June 30, 2024, the 2025 notes were classified as a current liability on our condensed consolidated balance sheets as they will be convertible at the option of the holder at any time beginning December 15, 2024 and will mature on March 15, 2025, both of which are within the next twelve months.

The following table presents the net carrying amount of the notes (in thousands):
June 30, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$244,479 $358,914 $244,479 $358,914 
Unamortized issuance costs(1,400)(1,076)(1,721)(1,835)
Net carrying amount$243,079 $357,838 $242,758 $357,079 

The following table presents the total interest expense recognized related to the notes (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2024
2023
2024
2023
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs160 310 321 635 
Total 2026 notes interest expense$160 $310 $321 $635 
2025 notes:
Contractual interest expense$111 $182 $220 $398 
Amortization of issuance costs380 621 760 1,353 
Total 2025 notes interest expense$491 $803 $980 $1,751 

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 June 30, 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 condensed 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.
v3.24.2.u1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 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. As of June 30, 2024, we believe a loss is probable and reasonably estimable, and we have previously recognized an estimated loss contingency accrual within general and administrative expense on our consolidated statements in 2023.

On November 9, 2022, Plaintiff Joshua Keller, individually and on behalf of all others similarly situated, filed a putative class action in the United States District Court for the Northern District of California (Case No. 22-cv-06986) on behalf of individuals whose data was allegedly impacted by past data breaches. On August 15, 2023, the Company received an order granting its motion to compel arbitration, and the case was stayed and administratively closed pending the conclusion of arbitration. The parties have since resolved this matter, and the related settlement amount did not have a significant impact on our financial statements.

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. 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 and seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. The Company has filed a motion to dismiss the case, which was denied by the Court. The Company disputes these claims and intends to vigorously defend itself in this matter.
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. The Company disputes these claims and intends to vigorously defend itself in this matter.

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. No monetary penalties or fines were included in the Final Order. We continue to work with the FTC on the implementation of and compliance with 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, the net impact of contingent liabilities less the related insurance loss recovery is $7.0 million, of which the contingent liabilities are included within accrued liabilities and the loss recovery is included within other current assets on our condensed 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.
v3.24.2.u1
Guarantees and Indemnifications
 6 Months Ended
Jun. 30, 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 limits 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 June 30, 2024.
v3.24.2.u1
Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchases

In February 2024, we repurchased 2,115,952 shares of our common stock related to the final delivery of our November 2023 accelerated share repurchase (ASR) agreement. 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.
Securities Repurchase Program

In August 2023, our board of directors approved a $200.0 million increase to our existing securities repurchase program authorizing the repurchase of up to $2.2 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. During the three and six months ended June 30, 2024, we had no cash repurchases of our common stock or notes. As of June 30, 2024, we had $3.7 million remaining under the securities repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors.

Share-based Compensation Expense

The following table presents total share-based compensation expense recorded (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Cost of revenues$466 $560 $979 $1,087 
Research and development7,123 11,968 16,332 22,882 
Sales and marketing1,726 2,182 3,866 4,681 
General and administrative8,732 21,210 26,159 41,016 
Total share-based compensation expense$18,047 $35,920 $47,336 $69,666 

During the three and six months ended June 30, 2024, we capitalized share-based compensation expense of $1.4 million and $2.7 million, respectively. During the three and six months ended June 30, 2023, we capitalized share-based compensation expense of $0.7 million and $1.7 million, respectively. As of June 30, 2024, total unrecognized share-based compensation expense was approximately $98.9 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 1.6 years.

The following table presents activity for outstanding RSUs and PSUs:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted5,541,759 4.37 
Released(3,186,924)21.83 
Forfeited(1,683,820)31.45 
Balance at June 30, 202410,736,798 $12.99 
v3.24.2.u1
Restructuring and Other Related Charges
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Other Related Charges Restructuring and Other Related Charges
Restructuring Charges

In June 2024, we announced a workforce reduction that resulted in a management approved restructuring plan. During the three months ended June 30, 2024, we recorded $6.7 million of restructuring charges, primarily related to one-time employee termination benefits, classified on our condensed consolidated statement of operations based on employees' job function. The restructuring liability is included within accrued liabilities on our condensed consolidated balance sheets. We estimate we will incur between $3 million and $4 million of additional restructuring charges over the next two fiscal quarters. 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):
 Three Months Ended June 30, 2024
Beginning balance
$— 
Restructuring charges
6,728 
Restructuring payments
(3,279)
Ending balance
$3,449 

Impairment of lease related assets

In connection with the June 2024 restructuring, we announced the closure of two offices outside of the United States. As a result, we recorded a full impairment expense of $2.2 million, consisting of $1.1 million impairment of ROU assets and $1.1 million leasehold improvements during the three months ended June 30, 2024, which was classified as general and administrative expense on our condensed 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.
v3.24.2.u1
Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
During the three and six months ended June 30, 2024, we recorded a provision for income taxes of $138.3 million and $147.4 million, respectively. During the three and six months ended June 30, 2023, we recorded a provision for income taxes of $19.7 million and $23.9 million, respectively.

During the three and six months ended June 30, 2024, the provision for income taxes was primarily from the valuation allowance establishment of $141.6 million as a discrete non-cash income tax expense against our U.S. federal and state deferred tax assets. 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. As of June 30, 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 during the three and six months ended June 30, 2024.
v3.24.2.u1
Subsequent Event
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
In July 2024, we entered into an amendment related to our office in India that primarily modifies our existing lease payments, increases the square footage, and extends the lease term. The result of the amendment is a net increase to our future minimum lease payments of approximately $12.3 million. The accounting for the lease amendment is in process as of the issuance date of our condensed consolidated financial statements and therefore we are unable to make any additional disclosures.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 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
v3.24.2.u1
Background and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2024, our results of operations, results of comprehensive (loss) income and stockholders' equity for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year.

We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the Annual Report on Form 10-K) filed with the SEC.
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with 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. 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.
Reclassification of Prior Period Presentation
Reclassification of Prior Period Presentation

In order to confirm with current period presentation, $5.7 million of restructuring charges during the six months ended June 30, 2023 has been reclassified to changes in accrued liabilities on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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, however, we are currently in the process of evaluating the impact.

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.

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. Early adoption is permitted, and we are required to adopt the changes on a retrospective basis. The guidance is effective for annual periods beginning after December 15, 2023 and for interim periods beginning December 15, 2024. We did not early adopt ASU 2023-07 and we are currently in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the six months ended June 30, 2024 that had a material impact on our financial statements.
v3.24.2.u1
Background and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Intangible Assets and Goodwill The following table presents our impairment expense (in thousands):
 
Impairment expense
Goodwill
$439,683 
Intangible assets
31,862 
Property and equipment, net
9,986 
Total impairment expense
$481,531 
v3.24.2.u1
Revenues (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following tables present our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):
 Three Months Ended
June 30,		Change
 20242023$%
Subscription Services$146,813 $165,855 $(19,042)(11)%
Skills and Other16,334 16,998 (664)(4)
Total net revenues$163,147 $182,853 $(19,706)(11)

 Six Months Ended
June 30,		Change
 20242023$%
Subscription Services$300,864 $334,295 $(33,431)(10)%
Skills and Other36,633 36,159 474 1 
Total net revenues$337,497 $370,454 $(32,957)(9)
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 June 30,
2024		December 31, 2023$%
Accounts receivable, net$20,964 $31,404 $(10,440)(33)%
Contract assets7,674 8,598 (924)(11)
Deferred revenue45,023 55,336 (10,313)(19)
v3.24.2.u1
Net (Loss) Income Per Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Net (Loss) Income Per Share, Basic and Diluted
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Basic
Numerator:
Net (loss) income
$(616,884)$24,612 $(618,304)$26,798 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,604 117,977 102,474 120,828 
Net (loss) income per share, basic
$(6.01)$0.21 $(6.03)$0.22 
Diluted
Numerator:
Net (loss) income
$(616,884)$24,612 $(618,304)$26,798 
Convertible senior notes activity, net of tax
— (39,398)— (38,446)
Net (loss) income, diluted
$(616,884)$(14,786)$(618,304)$(11,648)
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,604 117,977 102,474 120,828 
Shares related to convertible senior notes— 14,967 — 16,588 
Weighted average shares used to compute net (loss) income per share, diluted
102,604 132,944 102,474 137,416 
Net (loss) income per share, diluted
$(6.01)$(0.11)$(6.03)$(0.08)
Schedule of Antidilutive Securities Excluded from Computation of Net (Loss) Income 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):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Shares related to stock plan activity7,421 9,982 7,286 7,661 
Shares related to convertible senior notes9,234 — 9,234 — 
Total common stock equivalents16,655 9,982 16,520 7,661 
v3.24.2.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, 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 June 30, 2024 and December 31, 2023 (in thousands):
 June 30, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$46,551 $— $— $46,551 
Money market fundsLevel 186,517 — — 86,517 
Total cash and cash equivalents$133,068 $— $— $133,068 
Short-term investments:   
Corporate debt securitiesLevel 2$121,988 $— $(391)$121,597 
U.S. treasury securitiesLevel 166,138 — (247)65,891 
Agency bondsLevel 225,020 — (112)24,908 
Total short-term investments$213,146 $— $(750)$212,396 
Long-term investments:   
Corporate debt securitiesLevel 2$208,171 $144 $(951)$207,364 
U.S. treasury securitiesLevel 152,830 — (269)52,561 
Total long-term investments$261,001 $144 $(1,220)$259,925 

 December 31, 2023
 
Fair Value Level
Adjusted 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 securitiesLevel 125,734 — (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 Available-for-sale Securities Reconciliation
The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2024 (in thousands):
 Adjusted CostFair Value
Due within one year$213,146 $212,396 
Due after one year through three years261,001 259,925 
Investments not due at a single maturity date86,517 86,517 
Total$560,664 $558,838 
v3.24.2.u1
Property and Equipment, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
June 30, 2024December 31, 2023
Content$362,957 $346,749 
Software
59,744 51,855 
Leasehold improvements10,213 10,857 
Furniture and fixtures4,253 4,607 
Computer and equipment3,210 3,496 
Property and equipment440,377 417,564 
Less accumulated depreciation and amortization(261,099)(234,491)
Property and equipment, net$179,278 $183,073 
v3.24.2.u1
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table presents our goodwill balances (in thousands):
Six Months Ended June 30, 2024
Year Ended December 31, 2023
Beginning balance$631,995 $615,093 
Impairment expense
(439,683)— 
Foreign currency translation adjustment(2,543)16,902 
Ending balance$189,769 $631,995 
Schedule of Finite-lived Intangible Assets
The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):

 June 30, 2024
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(61,167)$(29,369)$(3,958)$12,209 
Content libraries6012,230 (11,883)— — 347 
Customer lists3534,190 (32,774)— (1,298)118 
Trade and domain names5216,213 (13,169)(2,493)(377)174 
Total intangible assets67$169,336 $(118,993)$(31,862)$(5,633)$12,848 

 December 31, 2023
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign 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 Indefinite-lived Intangible Assets
The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):

 June 30, 2024
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(61,167)$(29,369)$(3,958)$12,209 
Content libraries6012,230 (11,883)— — 347 
Customer lists3534,190 (32,774)— (1,298)118 
Trade and domain names5216,213 (13,169)(2,493)(377)174 
Total intangible assets67$169,336 $(118,993)$(31,862)$(5,633)$12,848 

 December 31, 2023
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization
Accumulated Impairment
Foreign 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 amortization expense related to our intangible assets as of June 30, 2024 (in thousands):
June 30, 2024
Remaining six months of 2024
$2,460 
20254,240 
20263,897 
20271,776 
2028407 
Thereafter68 
Total$12,848 
v3.24.2.u1
Convertible Senior Notes (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The following table presents the net carrying amount of the notes (in thousands):
June 30, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$244,479 $358,914 $244,479 $358,914 
Unamortized issuance costs(1,400)(1,076)(1,721)(1,835)
Net carrying amount$243,079 $357,838 $242,758 $357,079 
Schedule Of Interest Expense Recognized
The following table presents the total interest expense recognized related to the notes (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2024
2023
2024
2023
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs160 310 321 635 
Total 2026 notes interest expense$160 $310 $321 $635 
2025 notes:
Contractual interest expense$111 $182 $220 $398 
Amortization of issuance costs380 621 760 1,353 
Total 2025 notes interest expense$491 $803 $980 $1,751 
v3.24.2.u1
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees
The following table presents total share-based compensation expense recorded (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Cost of revenues$466 $560 $979 $1,087 
Research and development7,123 11,968 16,332 22,882 
Sales and marketing1,726 2,182 3,866 4,681 
General and administrative8,732 21,210 26,159 41,016 
Total share-based compensation expense$18,047 $35,920 $47,336 $69,666 
Schedule of Restricted Stock Unit Activity
The following table presents activity for outstanding RSUs and PSUs:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted5,541,759 4.37 
Released(3,186,924)21.83 
Forfeited(1,683,820)31.45 
Balance at June 30, 202410,736,798 $12.99 
v3.24.2.u1
Restructuring and Other Related Charges (Tables)
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Changes in Restructuring Liability Balance
The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands):
 Three Months Ended June 30, 2024
Beginning balance
$— 
Restructuring charges
6,728 
Restructuring payments
(3,279)
Ending balance
$3,449 
v3.24.2.u1
Background and Basis of Presentation - Narrative (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
USD ($)
segment
Jun. 30, 2023
USD ($)
Debt Instrument [Line Items]    
Number of operating segments | segment 1  
Number of reportable segments | segment 1  
Decrease in accrued liabilities | $ $ 4,057 $ 1,436
Revision of Prior Period, Reclassification, Adjustment    
Debt Instrument [Line Items]    
Decrease in accrued liabilities | $   $ 5,700
v3.24.2.u1
Background and Basis of Presentation - Impairment Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Impairment expense $ 439,683   $ 439,683   $ 0
Intangible assets 31,862   31,862    
Property and equipment, net 9,986   9,986    
Total impairment expense $ 481,531 $ 0 $ 481,531 $ 0  
v3.24.2.u1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Total net revenues $ 163,147 $ 182,853 $ 337,497 $ 370,454
Change, Total net revenues $ (19,706)   $ (32,957)  
Change, Total net revenues, percent (11.00%)   (9.00%)  
Subscription Services        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 146,813 165,855 $ 300,864 334,295
Change, Total net revenues $ (19,042)   $ (33,431)  
Change, Total net revenues, percent (11.00%)   (10.00%)  
Skills and Other        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 16,334 $ 16,998 $ 36,633 $ 36,159
Change, Total net revenues $ (664)   $ 474  
Change, Total net revenues, percent (4.00%)   1.00%  
v3.24.2.u1
Revenues - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]        
Contract with customer, liability, revenue recognized $ 38,900 $ 41,100 $ 47,100 $ 47,900
Decrease in accounts receivable, net     $ 10,440  
Decrease in accounts receivable, net, percent     33.00%  
Decrease in contract assets     $ 924  
Decrease in contract assets, percent     11.00%  
Decrease in deferred revenue     $ 10,313  
Decrease in deferred revenue, percent     19.00%  
v3.24.2.u1
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 20,964 $ 31,404
Change, accounts receivable, net $ (10,440)  
Change, accounts receivable, net, percent (33.00%)  
Contract assets $ 7,674 8,598
Change in contract assets $ (924)  
Change in contract assets, percent (11.00%)  
Deferred revenue $ 45,023 $ 55,336
Change in deferred revenue $ (10,313)  
Change in deferred revenue, percent (19.00%)  
v3.24.2.u1
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
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Numerator:        
Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798
Convertible senior notes activity, net of tax 0 (39,398) 0 (38,446)
Net (loss) income, diluted $ (616,884) $ (14,786) $ (618,304) $ (11,648)
Net (loss) income per share, basic, (in dollars per share) $ (6.01) $ 0.21 $ (6.03) $ 0.22
Denominator:        
Weighted average shares used to compute net (loss) income per share, basic (in shares) 102,604 117,977 102,474 120,828
Weighted average shares used to compute net loss per share, diluted (in shares) 102,604 132,944 102,474 137,416
Net (loss) income per share, diluted (in dollars per share) $ (6.01) $ (0.11) $ (6.03) $ (0.08)
Shares related to convertible senior notes        
Denominator:        
Shares related to convertible senior notes (in shares) 0 14,967 0 16,588
v3.24.2.u1
Net (Loss) Income Per Share - Shares Excluded From Computation Of Diluted Net (Loss) Income Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 16,655 9,982 16,520 7,661
Shares related to stock plan activity        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 7,421 9,982 7,286 7,661
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 9,234 0
v3.24.2.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Debt Securities, Available-for-sale [Line Items]      
Cash $ 133,068 $ 135,757 $ 175,368
Adjusted Cost 560,664    
Fair Value 558,838    
Cash      
Debt Securities, Available-for-sale [Line Items]      
Cash 46,551 45,050  
Short-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 213,146 194,787  
Unrealized Gain 0 0  
Unrealized Loss (750) (530)  
Fair Value 212,396 194,257  
Long-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 261,001 248,754  
Unrealized Gain 144 1,063  
Unrealized Loss (1,220) (270)  
Fair Value 259,925 249,547  
Level 1 | Money market funds      
Debt Securities, Available-for-sale [Line Items]      
Cash 86,517 90,707  
Corporate debt securities | Level 2 | Short-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 121,988 69,548  
Unrealized Gain 0 0  
Unrealized Loss (391) (170)  
Fair Value 121,597 69,378  
Corporate debt securities | Level 2 | Long-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 208,171 191,467  
Unrealized Gain 144 898  
Unrealized Loss (951) (213)  
Fair Value 207,364 192,152  
U.S. treasury securities | Level 1 | Short-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 66,138 25,734  
Unrealized Gain 0 0  
Unrealized Loss (247) (114)  
Fair Value 65,891 25,620  
U.S. treasury securities | Level 1 | Long-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 52,830 57,287  
Unrealized Gain 0 165  
Unrealized Loss (269) (57)  
Fair Value 52,561 57,395  
Agency bonds | Level 2 | Short-term investments:      
Debt Securities, Available-for-sale [Line Items]      
Adjusted Cost 25,020 99,505  
Unrealized Gain 0 0  
Unrealized Loss (112) (246)  
Fair Value $ 24,908 $ 99,259  
v3.24.2.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Adjusted Cost  
Due within one year $ 213,146
Due after one year through three years 261,001
Investments not due at a single maturity date 86,517
Adjusted Cost 560,664
Fair Value  
Due within one year 212,396
Due after one year through three years 259,925
Investments not due at a single maturity date 86,517
Fair Value $ 558,838
v3.24.2.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($)
$ in Thousands
 1 Months Ended 6 Months Ended
Jan. 01, 2024
May 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Jul. 31, 2022
Schedule of Investments [Line Items]            
Proceeds from sale of strategic equity investment     $ 15,500 $ 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%        
Investment, carrying amount         $ 11,700  
Proceeds from sale of strategic equity investment $ 15,500          
Equity method investment, realized gain on disposal $ 3,800          
Knack Technologies, Inc            
Schedule of Investments [Line Items]            
Investment without readily determinable fair value           $ 6,000
v3.24.2.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Senior Notes due 2026    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 195.3 $ 202.9
Senior Notes due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 328.4 $ 329.5
v3.24.2.u1
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment $ 440,377 $ 417,564
Less accumulated depreciation and amortization (261,099) (234,491)
Property and equipment, net 179,278 183,073
Content    
Property, Plant and Equipment [Line Items]    
Property and equipment 362,957 346,749
Software    
Property, Plant and Equipment [Line Items]    
Property and equipment 59,744 51,855
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 10,213 10,857
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment 4,253 4,607
Computer and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 3,210 $ 3,496
v3.24.2.u1
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Property, Plant and Equipment [Line Items]        
Depreciation and content amortization expense $ 16,200 $ 20,100 $ 31,900 $ 39,400
Property and equipment, net 9,986   $ 9,986  
Content        
Property, Plant and Equipment [Line Items]        
Property and equipment, net 6,600      
Content | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment        
Property, Plant and Equipment [Line Items]        
Disposal group, not discontinued operation, depreciation and amortization 1,100      
Software        
Property, Plant and Equipment [Line Items]        
Property and equipment, net $ 3,400      
v3.24.2.u1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]          
Impairment expense $ 439,683   $ 439,683   $ 0
Impairment of intangible assets 31,900        
Acquisition-Related Intangible Assets          
Finite Lived Intangible Assets [Line Items]          
Amortization expense of acquisition related to acquired intangible assets $ 3,500 $ 6,400 $ 7,500 $ 12,600  
v3.24.2.u1
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Dec. 31, 2023
Goodwill [Roll Forward]      
Goodwill, Beginning Balance   $ 631,995 $ 615,093
Impairment expense $ (439,683) (439,683) 0
Foreign currency translation adjustment   (2,543) 16,902
Goodwill, Ending Balance $ 189,769 $ 189,769 $ 631,995
v3.24.2.u1
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 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 (118,993) (111,493)
Accumulated Impairment (31,862) 0
Foreign Currency Translation Adjustment (5,633) (5,413)
Net Carrying Amount $ 12,848 $ 52,430
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 (61,167) (55,651)
Accumulated Impairment (29,369) 0
Foreign Currency Translation Adjustment (3,958) (3,757)
Net Carrying Amount $ 12,209 $ 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 (11,883) (11,189)
Accumulated Impairment 0 0
Foreign Currency Translation Adjustment 0 0
Net Carrying Amount $ 347 $ 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 (32,774) (31,836)
Accumulated Impairment 0 0
Foreign Currency Translation Adjustment (1,298) (1,298)
Net Carrying Amount $ 118 $ 1,056
Trade and domain names    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 52 months 52 months
Gross Carrying Amount $ 16,213 $ 16,213
Accumulated Amortization (13,169) (12,817)
Accumulated Impairment (2,493) 0
Foreign Currency Translation Adjustment (377) (358)
Net Carrying Amount $ 174 $ 3,038
v3.24.2.u1
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Remaining six months of 2024 $ 2,460  
2025 4,240  
2026 3,897  
2027 1,776  
2028 407  
Thereafter 68  
Net Carrying Amount $ 12,848 $ 52,430
v3.24.2.u1
Convertible Senior Notes - Narrative (Details) - Senior Notes
$ / shares in Units, $ in Thousands
 1 Months Ended
Aug. 31, 2020
USD ($)
$ / shares
Apr. 30, 2019
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Senior Notes due 2026        
Debt Instrument [Line Items]        
Face value | $ $ 1,000,000   $ 244,479 $ 244,479
Interest rate, stated percentage 0.00%      
Conversion ratio 0.0092978      
Conversion price (in dollars per share) | $ / shares $ 107.55      
Senior Notes due 2026 | Capped Call        
Debt Instrument [Line Items]        
Conversion price (in dollars per share) | $ / shares     $ 156.44  
Net proceeds | $ $ 103,400      
Debt instrument, convertible (in shares) | shares     9,297,800  
Senior Notes due 2025        
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    
Senior Notes due 2025 | Capped Call        
Debt Instrument [Line Items]        
Conversion price (in dollars per share) | $ / shares     $ 79.32  
Net proceeds | $   $ 97,200    
Debt instrument, convertible (in shares) | shares     6,961,352  
v3.24.2.u1
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Aug. 31, 2020
Apr. 30, 2019
2026 Notes        
Debt Instrument [Line Items]        
Principal $ 244,479 $ 244,479 $ 1,000,000  
Unamortized issuance costs (1,400) (1,721)    
2026 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount 243,079 242,758    
2025 Notes        
Debt Instrument [Line Items]        
Principal 358,914 358,914   $ 800,000
Unamortized issuance costs (1,076) (1,835)    
2025 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount $ 357,838 $ 357,079    
v3.24.2.u1
Convertible Senior Notes - Interest Expense Recognized (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Debt Instrument [Line Items]        
Amortization of issuance costs     $ 1,081 $ 1,988
Senior Notes | 2026 Notes        
Debt Instrument [Line Items]        
Contractual interest expense $ 0 $ 0 0 0
Amortization of issuance costs 160 310 321 635
Total interest expense 160 310 321 635
Senior Notes | 2025 Notes        
Debt Instrument [Line Items]        
Contractual interest expense 111 182 220 398
Amortization of issuance costs 380 621 760 1,353
Total interest expense $ 491 $ 803 $ 980 $ 1,751
v3.24.2.u1
Commitments and Contingencies (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Loss contingency accrual $ 7.0
v3.24.2.u1
Stockholders' Equity - Share Repurchase (Details) - shares
 1 Months Ended 12 Months Ended
Feb. 29, 2024
Dec. 31, 2023
November 2023 ASRs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Repurchases of common stock (in shares) 2,115,952  
Stock repurchased and retired during period, shares (in shares)   13,498,313
ASRs And Open Market Transactions    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Repurchases of common stock (in shares)   26,505,979
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 ASRs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock repurchased and retired during period, shares (in shares)   9,574,509
v3.24.2.u1
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended
Aug. 31, 2023
Jun. 30, 2024
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Cash repurchases     $ 0 $ 186,368,000
Securities Repurchase Program        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock repurchase program, increase of authorized amount $ 200,000,000      
Stock repurchase program, authorized amount $ 2,200,000,000      
Cash repurchases   $ 0 0  
Remaining under repurchase program   $ 3,700,000 $ 3,700,000  
v3.24.2.u1
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total share-based compensation expense $ 18,047 $ 35,920 $ 47,336 $ 69,666
Cost of revenues        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total share-based compensation expense 466 560 979 1,087
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total share-based compensation expense 7,123 11,968 16,332 22,882
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total share-based compensation expense 1,726 2,182 3,866 4,681
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total share-based compensation expense $ 8,732 $ 21,210 $ 26,159 $ 41,016
v3.24.2.u1
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense capitalized $ 1.4 $ 0.7 $ 2.7 $ 1.7
RSUs and PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation costs related to restricted stock units $ 98.9   $ 98.9  
Weighted-average vesting period     1 year 7 months 6 days  
v3.24.2.u1
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
Shares Outstanding  
Beginning balance (in shares) | shares 10,065,783
Granted (in shares) | shares 5,541,759
Released (in shares) | shares (3,186,924)
Forfeited (in shares) | shares (1,683,820)
Ending balance (in shares) | shares 10,736,798
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 23.63
Granted (in dollars per share) | $ / shares 4.37
Released (in dollars per share) | $ / shares 21.83
Forfeited (in dollars per share) | $ / shares 31.45
Ending balance (in dollars per share) | $ / shares $ 12.99
v3.24.2.u1
Restructuring and Other Related Charges - Reconciliation of Changes in Restructuring Liability Balance (Details)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 0
Restructuring charges 6,728
Restructuring payments (3,279)
Ending balance $ 3,449
v3.24.2.u1
Restructuring and Other Related Charges - Additional Information (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
office_building
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]          
Restructuring charges   $ 6,728      
Number of offices closed | office_building 2        
Total impairment expense   481,531 $ 0 $ 481,531 $ 0
Facility Closing          
Restructuring Cost and Reserve [Line Items]          
Total impairment expense   2,200      
Impairment of ROU asset   1,100      
Impairment of leasehold improvements   1,100      
Minimum          
Restructuring Cost and Reserve [Line Items]          
Estimated additional restructuring charges $ 3,000 3,000   3,000  
Maximum          
Restructuring Cost and Reserve [Line Items]          
Estimated additional restructuring charges $ 4,000 $ 4,000   $ 4,000  
v3.24.2.u1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Provision for income taxes $ (138,345) $ (19,681) $ (147,404) $ (23,857)
Establishment of a valuation allowance $ 141,600   $ 141,600  
v3.24.2.u1
Subsequent Event (Details)
$ in Millions
 1 Months Ended
Jul. 31, 2024
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Increase in future minimum lease payments $ 12.3