CHEGG, INC, 10-K filed on 2/22/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2021
Jan. 31, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-36180    
Entity Registrant Name CHEGG, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-3237489    
Entity Address, Address Line One 3990 Freedom Circle    
Entity Address, City or Town Santa Clara    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95054    
City Area Code 408    
Local Phone Number 855-5700    
Title of 12(b) Security Common Stock, $0.001 par value per share    
Trading Symbol CHGG    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 11,839,510,015
Entity Common Stock, Shares Outstanding   134,848,498  
Documents Incorporated by Reference Portions of the Registrant's definitive proxy statement for the Registrant's 2022 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the Registrant's fiscal year ended December 31, 2021.    
Entity Central Index Key 0001364954    
Document Fiscal Year End 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location San Jose, California
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 854,078 $ 479,853
Short-term investments 691,781 665,567
Accounts receivable, net of allowance of $153 at December 31, 2021 and December 31, 2020. 17,850 12,913
Prepaid expenses 35,093 12,776
Other current assets 23,846 11,846
Total current assets 1,622,648 1,182,955
Long-term investments 745,993 523,628
Textbook library, net 11,241 34,149
Property and equipment, net 169,938 125,807
Goodwill 289,763 285,214
Intangible assets, net 40,566 51,249
Right of use assets 18,062 24,226
Other assets 21,035 24,030
Total assets 2,919,246 2,251,258
Current liabilities    
Accounts payable 11,992 8,547
Deferred revenue 35,143 32,620
Accrued liabilities 67,209 68,565
Total current liabilities 114,344 109,732
Long-term liabilities    
Convertible senior notes, net 1,678,155 1,506,922
Long-term operating lease liabilities 12,447 19,264
Other long-term liabilities 7,383 5,705
Total long-term liabilities 1,697,985 1,531,891
Total liabilities 1,812,329 1,641,623
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value – 10,000,000 shares authorized, no shares issued and outstanding at December 31, 2021 and December 31, 2020 0 0
Common stock, $0.001 par value – 400,000,000 shares authorized; 136,951,956 and 129,343,524 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively 137 129
Additional paid-in capital 1,449,305 1,030,577
Accumulated other comprehensive (loss) income (5,334) 1,530
Accumulated deficit (337,191) (422,601)
Total stockholders’ equity 1,106,917 609,635
Total liabilities and stockholders’ equity $ 2,919,246 $ 2,251,258
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable, current $ 153 $ 153
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) 136,951,956 129,343,524
Common stock, shares outstanding (in shares) 136,951,956 129,343,524
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Net revenues $ 776,265 $ 644,338 $ 410,926
Cost of revenues 254,904 205,417 92,182
Gross profit 521,361 438,921 318,744
Operating expenses:      
Research and development 178,821 170,905 139,772
Sales and marketing 105,414 81,914 63,569
General and administrative 159,019 129,349 97,586
Total operating expenses 443,254 382,168 300,927
Income from operations 78,107 56,753 17,817
Interest expense, net and other income, net:      
Interest expense, net (6,896) (66,297) (44,851)
Other (expense) income, net (65,472) 8,683 20,063
Total interest expense, net and other (expense) income, net (72,368) (57,614) (24,788)
Income (loss) before provision for income taxes 5,739 (861) (6,971)
Provision for income taxes 7,197 5,360 2,634
Net loss $ (1,458) $ (6,221) $ (9,605)
Net Loss Per Share, basic (in dollars per share) $ (0.01) $ (0.05) $ (0.08)
Net Loss Per Share, diluted (in dollars per share) $ (0.01) $ (0.05) $ (0.08)
Weighted average shares used to compute net loss per share, basic (in shares) 141,262 125,367 119,204
Weighted average shares used to compute net loss per share, diluted (in shares) 141,262 125,367 119,204
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net loss $ (1,458) $ (6,221) $ (9,605)
Other comprehensive (loss) income      
Change in net unrealized (loss) gain on investments, net of tax (5,729) 1,037 668
Change in foreign currency translation adjustments, net of tax (1,135) 1,589 (745)
Other comprehensive (loss) income (6,864) 2,626 (77)
Total comprehensive loss $ (8,322) $ (3,595) $ (9,682)
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive (Loss) Income
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2018     115,500,000          
Beginning balance at Dec. 31, 2018 $ 410,634 $ (111) $ 116 $ 818,113   $ (1,019) $ (406,576) $ (111)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Equity component of 2025/2026 convertible senior notes, net of issuance costs 206,747     206,747        
Purchase of 2025/2026 convertible senior notes capped call (97,200)     (97,200)        
Repurchase of common stock (in shares)     (504,000)          
Repurchase of common stock (20,000)   $ (1) (19,999)        
Issuance of common stock upon exercise of stock options and ESPP (in shares)     3,276,000          
Issuance of common stock upon exercise of stock options and ESPP 35,097   $ 4 35,093        
Net issuance of common stock for settlement of RSUs (in shares)     3,248,000          
Net share settlement of equity awards (94,568)   $ 3 (94,571)        
Issuance of common stock in connection with prior acquisition (in shares)     64,000          
Issuance of common stock in connection with prior acquisition 3,003     3,003        
Share-based compensation expense 64,909     64,909        
Other comprehensive loss (77)         (77)    
Net loss (9,605)           (9,605)  
Ending balance (in shares) at Dec. 31, 2019     121,584,000          
Ending balance at Dec. 31, 2019 $ 498,829 (88) $ 122 916,095   (1,096) (416,292) (88)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Accounting Standards Update [Extensible List] Accounting Standards Update 2016-13 [Member]              
Equity component of 2025/2026 convertible senior notes, net of issuance costs $ 237,462     237,462        
Purchase of 2025/2026 convertible senior notes capped call (103,400)     (103,400)        
Equity component related to conversions of 2023 convertible senior notes (442,667)     (442,667)        
Issuance of common stock upon conversion of 2023 convertible senior notes (in shares)     4,182,000          
Issuance of common stock upon conversion of 2023 convertible senior notes 327,141   $ 4 327,137        
Net proceeds from capped call related to conversions and extinguishments of 2023 notes and 2025 notes 77,095     77,095        
Issuance of common stock upon exercise of stock options and ESPP (in shares)     1,154,000          
Issuance of common stock upon exercise of stock options and ESPP 15,481   $ 1 15,480        
Net issuance of common stock for settlement of RSUs (in shares)     2,424,000          
Net share settlement of equity awards (80,678)   $ 2 (80,680)        
Share-based compensation expense 84,055     84,055        
Other comprehensive loss 2,626         2,626    
Net loss $ (6,221)           (6,221)  
Ending balance (in shares) at Dec. 31, 2020 129,343,524   129,344,000          
Ending balance at Dec. 31, 2020 $ 609,635 $ (378,138) $ 129 1,030,577 $ (465,006) 1,530 (422,601) $ 86,868
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Accounting Standards Update [Extensible List] Accounting Standards Update 2020-06              
Repurchase of common stock (in shares)     (8,403,000)          
Repurchase of common stock $ (300,000)   $ (8) (299,992)        
Issuance of common stock in connection with follow-on offering, net of offering costs (in shares)     10,975,000          
Issuance of common stock in connection with follow-on offering, net of offering costs 1,091,466   $ 11 1,091,455        
Equity component related to conversions of 2023 convertible senior notes (236,921)     (236,921)        
Issuance of common stock upon conversion of 2023 convertible senior notes (in shares)     2,983,000          
Issuance of common stock upon conversion of 2023 convertible senior notes 235,521   $ 3 235,518        
Net proceeds from capped call related to conversions and extinguishments of 2023 notes and 2025 notes 67,770     67,770        
Issuance of common stock upon exercise of stock options and ESPP (in shares)     413,000          
Issuance of common stock upon exercise of stock options and ESPP 8,885     8,885        
Net issuance of common stock for settlement of RSUs (in shares)     1,640,000          
Net share settlement of equity awards (94,421)   $ 2 (94,423)        
Share-based compensation expense 111,442     111,442        
Other comprehensive loss (6,864)         (6,864)    
Net loss $ (1,458)           (1,458)  
Ending balance (in shares) at Dec. 31, 2021 136,951,956   136,952,000          
Ending balance at Dec. 31, 2021 $ 1,106,917   $ 137 $ 1,449,305   $ (5,334) $ (337,191)  
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities      
Net loss $ (1,458) $ (6,221) $ (9,605)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Print textbook depreciation expense 10,859 15,397 0
Other depreciation and amortization expense 63,274 47,018 30,247
Share-based compensation expense 108,846 84,055 64,909
Amortization of debt discount and issuance costs 5,922 64,573 43,202
Repayment of convertible senior notes attributable to debt discount 0 (20,433) 0
Loss on early extinguishments of debt 78,152 4,286 0
Loss on change in fair value of derivative instruments, net 7,148 0 0
Loss from write-offs of property and equipment 2,115 1,211 1,009
Loss from impairment of strategic equity investment 0 10,000 0
Gain on sale of strategic equity investments (12,496) 0 0
Loss (gain) on textbook library, net 10,956 (1,453) 0
Operating lease expense, net of accretion 5,994 4,901 4,385
Other non-cash items (973) (227) (455)
Change in assets and liabilities, net of effect of acquisition of businesses:      
Accounts receivable (5,004) (400) 1,829
Prepaid expenses and other current assets (21,854) 5,419 (12,930)
Other assets 16,387 (4,214) (1,494)
Accounts payable 3,241 1,119 (2,395)
Deferred revenue 2,523 12,918 (1,682)
Accrued liabilities 5,199 22,444 (206)
Other liabilities (5,607) (3,951) (3,411)
Net cash provided by operating activities 273,224 236,442 113,403
Cash flows from investing activities      
Purchases of property and equipment (94,180) (81,317) (42,326)
Purchases of textbooks (10,931) (58,567) 0
Proceeds from disposition of textbooks 8,714 7,569 0
Purchases of investments (1,688,384) (1,045,564) (959,911)
Proceeds from sale of investments 206,041 0 53,261
Maturities of investments 1,204,787 539,889 324,700
Proceeds from sale of strategic equity investments 16,076 0 0
Acquisition of businesses, net of cash acquired (7,891) (92,796) (79,149)
Purchase of strategic equity investment 0 (2,000) 0
Net cash used in investing activities (365,768) (732,786) (703,425)
Cash flows from financing activities      
Proceeds from common stock issued under stock plans, net 8,887 15,483 35,100
Payment of taxes related to the net share settlement of equity awards (94,423) (80,680) (94,571)
Proceeds from equity offering, net of offering costs 1,091,466 0 0
Repayment of convertible senior notes (300,762) (303,967) 0
Proceeds from exercise of convertible senior notes capped call 69,005 77,095 0
Payment of escrow related to acquisition (7,451) 0 0
Repurchase of common stock (300,000) 0 (20,000)
Proceeds from issuance of convertible senior notes, net of issuance costs 0 984,096 780,180
Purchase of convertible senior notes capped call 0 (103,400) (97,200)
Net cash provided by financing activities 466,722 588,627 603,509
Net increase in cash, cash equivalents and restricted cash 374,178 92,283 13,487
Cash, cash equivalents and restricted cash, beginning of period 481,715 389,432 375,945
Cash, cash equivalents and restricted cash, end of period 855,893 481,715 389,432
Supplemental cash flow data:      
Interest 1,053 1,766 1,332
Income taxes, net of refunds 7,388 3,436 2,070
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from operating leases 7,772 6,790 5,297
Right of use assets obtained in exchange for lease obligations, operating leases 0 13,688 3,364
Non-cash investing and financing activities:      
Accrued purchases of long-lived assets 2,982 1,588 10,036
Accrued escrow related to acquisition 0 7,451 0
Issuance of common stock related to repayment of convertible senior notes 235,521 327,141 0
Issuance of common stock related to prior acquisition 0 0 3,003
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 854,078 479,853 387,520
Restricted cash included in other current assets 0 122 149
Restricted cash included in other assets 1,815 1,740 1,763
Total cash, cash equivalents and restricted cash $ 855,893 $ 481,715 $ 389,432
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Background and Basis of Presentation
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation 1. 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. Millions of people all around the world Learn with Chegg. Our mission is to improve learning and learning outcomes by putting students first. We support life-long learners starting with their academic journey and extending into their careers. The Chegg platform provides products and services to support learners to help them better understand their academic course materials, and also provides personal and professional development skills training, to help them achieve their learning goals.
Basis of Presentation

Our fiscal year ends on December 31 and in this report we refer to the year ended December 31, 2021, December 31, 2020, and December 31, 2019 as 2021, 2020, and 2019, respectively.

Reclassification of Prior Period Presentation

In order to conform with current period presentation, $6.6 million of current operating lease liabilities have been reclassified to accrued liabilities on our consolidated balance sheet as of December 31, 2020. This change in presentation does not affect previously reported results.
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Significant Accounting Policies
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Use of Estimates

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

Principles of Consolidation

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

Cash and Cash Equivalents and Restricted Cash

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

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

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

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

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

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

Investments

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

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

Accounts Receivable, Net of Allowance

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

We maintain an allowance to account for potentially uncollectible receivables. We assess the creditworthiness of our customers based on multiple sources of information, and analyze such factors as our historical bad debt experience, industry and geographic concentrations of credit risk, economic trends, and customer payment history. This assessment requires significant judgment. Because of this assessment, we maintain an allowance for estimated losses resulting from the inability of certain customers to make all of their required payments. In making this estimate, we analyze historical payment performance and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Accounts receivable are written off as a decrease to the allowance when all collection efforts have been exhausted and an account is deemed uncollectible.
Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, and investments in highly liquid instruments in accordance with our investment policy. We place the majority of our cash and cash equivalents and restricted cash with financial institutions in the United States that we believe to be of high credit quality, and accordingly minimal credit risk exists with respect to these instruments. Certain of our cash balances held with a financial institution are in excess of Federal Deposit Insurance Corporation limits. Our investment portfolio consists of investments diversified among security types, industries and issuers. Our investments were held and managed by recognized financial institutions that followed our investment policy with the main objective of preserving capital and maintaining liquidity.
Concentrations of credit risk with respect to accounts receivables exist to the full extent of amounts presented in the financial statements. We had no customers that represented over 10% of our net accounts receivable balance as of December 31, 2021 and we had one customer that represented 10% of our net accounts receivable balance as of December 31, 2020. No customers represented over 10% of net revenues during the years ended December 31, 2021, 2020 or 2019.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
ClassificationUseful Life
Content
Shorter of the licensed content term or the estimated useful life of 5 years
Leasehold improvements
Shorter of the remaining lease term or the estimated useful life of 5 years
Internal-use software and website development3 years
Furniture and fixtures5 years
Computers and equipment3 years

Depreciation and content amortization expense are generally classified within the corresponding cost of revenues and operating expenses categories on our consolidated statements of operations. The cost of maintenance and repairs is expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in income from operations.

Internal-Use Software and Website Development Costs

We capitalize certain costs associated with software developed or obtained for internal use and website and application development. We capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding and it is probable that the project will be completed and the software will be used as intended. Such costs are amortized on a straight-line basis over a three year estimated useful life of the related asset. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades.

Business Combinations

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

Goodwill and Indefinite-Lived Intangible Asset

Goodwill represents the excess of the fair value of purchase consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. Our indefinite-lived intangible asset represents the internships.com trade name. Goodwill and our indefinite-lived intangible asset are not amortized but rather tested for impairment at least annually on October 1, or more frequently if certain events or indicators of impairment occur between annual impairment tests. We first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. In our qualitative assessment, we consider factors including economic conditions, industry and market conditions and developments, overall financial performance and other relevant entity-specific events in determining whether it is more likely than not that the fair value of our reporting unit is less than the carrying amount. We completed our annual impairment test on October 1st of 2021 and 2020, each of which did not result in any impairment as our qualitative assessment did not indicate that it is more likely than not that the fair value of our reporting unit is less than the carrying amount.

Acquired Intangible Assets and Other Long-Lived Assets

Acquired intangible assets with finite useful lives, which include developed technology, content library, customer lists, trade names, domain names, and non-compete agreements, are amortized over their estimated useful lives. We assess the impairment of acquired intangible assets and other long-lived assets when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

Leases

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

Strategic Investments

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

Convertible Senior Notes, net

In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total gross proceeds of $800 million. In April 2018, we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). Collectively, the 2026 notes, 2025 notes, and the 2023 notes are
referred to as the “notes.” The notes, including the embedded conversion features, are accounted for under the traditional convertible debt accounting model entirely as a liability net of unamortized issuance costs. The carrying amount of the liability is classified as a current liability if we have committed to settle with current assets; otherwise, we classify it as a long-term liability as we retain the election to settle conversion requests in shares of our common stock. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative; otherwise, they are classified as derivative instruments and recorded at fair value with changes in fair value recorded in other (expense) income, net on our consolidated statements of operations. The fair value of any derivative instruments related to the notes are determined utilizing Level 2 inputs. Issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. In accounting for conversions of the notes, the carrying amount of the converted notes is reduced by the total consideration paid or issued for the respective converted notes and the difference is recorded to additional paid-in capital on our consolidated balance sheets. In accounting for extinguishments of the notes, the reacquisition price of the extinguished notes is compared to the carrying amount of the respective extinguished notes and a gain or loss is recorded in other (expense) income, net on our consolidated statements of operations.

Textbook Library

Beginning in January 2020, we began our transition back to print textbook ownership by purchasing print textbooks to establish our textbook library. We consider our print textbook library to be a long-term productive asset and, as such, classify it as a non-current asset on our consolidated balance sheets. All print textbooks in our textbook library are stated at cost, which includes the purchase price less accumulated depreciation. We write down textbooks on a book-by-book basis for lost, damaged, or excess print textbooks.

We depreciate our print textbooks, less an estimated salvage value, over an estimated useful life of four years using an accelerated method of depreciation, as we estimate this method most accurately reflects the actual pattern of decline in their economic value. The salvage value considers the historical trend and projected proceeds for print textbooks. The useful life is determined based on the estimated time period in which the print textbooks are held and rented. We review the estimated salvage value and useful life of our print textbook library on an ongoing basis.
Write-downs for print textbooks, print textbook depreciation expense, the gain or loss on print textbooks liquidated, and the net book value of print textbooks purchased by students at the end of the term or on a just-in-time basis are recorded in cost of revenues on our consolidated statements of operations and classified as adjustments to cash flows from operating activities. Cash outflows for the acquisition of print textbooks net of changes in related accounts payable and accrued liabilities, and cash inflows received from the proceeds from the disposition of print textbooks net of changes in related accounts receivable, are classified as cash flows from investing activities on our consolidated statements of cash flows.

Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated cancellations and customer returns, which are based on historical data. Customer refunds from cancellations and returns are recorded as a reduction to revenues.

We determine revenue recognition through the following steps:

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

We generate revenues from our Chegg Services product line which primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Revenues from Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, and Mathway are primarily recognized ratably over the monthly subscription period. Revenues from Thinkful are recognized either ratably over the term of the course, generally six months, or upon completion of the lessons, depending on the instruction type of the course.

Revenues from our Required Materials product line includes revenues from print textbooks that we own or that are owned by a partner as well as revenues from eTextbooks. Beginning in 2020, our Required Materials product line includes
operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term or rental term, generally a two- to five-month period. Students generally have the option to extend the term of their rental or purchase the print textbook at the end of the term otherwise the print textbook is returned to our print textbook library for future rental. If a student chooses to purchase or not return the print textbook at the end of their rental term, we charge the student for the book and recognize the revenues immediately. Additionally, we provide students the ability to purchase print textbooks on a just-in-time basis and recognize revenues immediately upon shipment. Revenues from print textbooks owned by a partner are recognized as a revenue share on the total transaction amount of a rental or sale transaction immediately when a print textbook ships to a student. Shipping and handling activities are expensed as incurred. Revenues from eTextbooks are recognized ratably over the contractual period, generally a two- to five-month period.

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

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

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

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

We have elected a practical expedient to record incremental costs to obtain or fulfill a contract when the amortization period would have been one year or less as incurred. These incremental costs primarily relate to sales commissions costs and are recorded in sales and marketing expense on our consolidated statements of operations.
Cost of Revenues

Our cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of content amortization expense related to content that we develop, license from publishers for which we pay one-time license fees, or acquire through acquisitions, web hosting fees, customer support fees, payment processing costs, amortization of acquired intangible assets, order fulfillment fees primarily related to outbound shipping and fulfillment as well as publisher content fees for eTextbooks, write-downs for print textbooks, the gain or loss on print textbooks liquidated, the net book value of print textbooks purchased by students at the end of the term or on a just-in-time basis, print textbook depreciation expense, personnel costs and other direct costs related to providing content or services. In addition, cost of revenues includes allocated information technology and facilities costs.

Research and Development Costs

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

Advertising Costs

Advertising costs are expensed as incurred and consist primarily of online advertising and marketing promotional expenditures. During the years ended December 31, 2021, 2020, and 2019, advertising costs were approximately $45.1 million, $35.3 million and $24.4 million, respectively.

Share-based Compensation Expense

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

Income Taxes

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

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

Foreign Currency Translation

The functional currency of our foreign subsidiaries is the local currency. Adjustments resulting from the translation of foreign currencies into U.S. dollars for balance sheet amounts are based on the exchange rates as of the consolidated balance sheet date. Revenues and expenses are translated at average exchange rates during the period. Foreign currency translation gains or losses are included in accumulated other comprehensive (loss) income as a component of stockholders’ equity on the consolidated balance sheets. Gains or losses resulting from the remeasurement of foreign currency transactions, which are denominated in currencies other than the functional currency, are included in general and administrative expense on the consolidated statements of operations and were not material during the years ended December 31, 2021, 2020 or 2019.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations-Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (ASC) Topic 606 as if the acquirer had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We will early adopt ASU 2021-08 on January 1, 2022 and will apply it prospectively to all business combinations for which the acquisition date occurs on or after such date, such as our acquisition of Busuu. The impact on our financial statements will depend on the contract assets and contract liabilities acquired in business combinations after January 1, 2022. We believe the most significant impacts will be an increase in contract liabilities and goodwill on our consolidated balance sheets.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. ASU 2021-04 aims to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange based on the economic substance of the modification or exchange. Early adoption is permitted and the guidance must be applied prospectively to all modifications or exchanges that occur on or after the date of adoption. The guidance is effective for annual periods beginning after December 15, 2021. We will adopt ASU 2021-04 on January 1, 2022 and do not expect a material impact on our financial statements as a result of the adoption.

Recently Adopted Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. ASU 2020-06 simplifies the guidance in ASC 470-20, Debt - Debt with Conversion and Other Options. Under ASU 2020-06, convertible instruments with embedded conversion features, that are not required to be accounted for as a derivative or that do not result in a substantial premium, are no longer required to be separated from the host contract thereby eliminating the cash conversion feature model. Instead, these convertible debt instruments will be accounted for as a single liability measured at amortized cost under the traditional convertible debt accounting model. ASU 2020-06 also requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. Adoption of ASU 2020-06 resulted in an increase to convertible senior notes of $378.1 million and a decrease to additional paid-in capital of $465.0 million due to the application of the traditional convertible debt model and no longer separating the
embedded conversion feature. Accumulated deficit also decreased by $86.9 million due to the reduction in non-cash interest expense related to the debt discount and we expect interest expense to decrease in future periods. Refer to Note 10, “Convertible Senior Notes” for more information.

In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions for applying reference rate reform to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance is required to be applied immediately and only applies to contract modifications made or hedging relationships entered into or evaluated before December 31, 2022. We do not have any hedging relationships and currently do not have material contracts impacted by reference rate reform, however, we will continue to assess contracts through December 31, 2022.
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Revenues
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

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

The following table sets forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):

 Years Ended December 31,Change in 2021Change in 2020
 202120202019$%$%
Chegg Services$669,894 $521,228 $332,221 $148,666 29 %$189,007 57 %
Required Materials106,371 123,110 78,705 (16,739)(14)44,405 56 
Total net revenues$776,265 $644,338 $410,926 $131,927 20 $233,412 57 

During the years ended December 31, 2021, 2020, and 2019, we recognized $32.6 million, $18.3 million and $17.0 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective fiscal year. During the year ended December 31, 2021, we recognized a reduction of revenues of $4.9 million from performance obligations satisfied in previous periods primarily due to a change in the estimated variable consideration ascribed to Thinkful. During the year ended December 31, 2020, we recognized an immaterial amount from performance obligations satisfied in previous periods. During the year ended December 31, 2019, we recognized $3.4 million of previously deferred revenues recognized from performance obligations satisfied in previous periods related to variable consideration recognized from our agreement with our Required Materials print textbook partner. During the years ended December 31, 2021 and 2020, we recognized $34.6 million and $50.8 million, respectively, of operating lease income from print textbook rentals that we own.

Contract Balances

The following table presents our accounts receivable, net, contract assets, and deferred revenue balances (in thousands, except percentages):
 December 31,Change
 20212020$%
Accounts receivable, net$17,850 $12,913 $4,937 38 %
Contract assets14,231 13,243 988 
Deferred revenue35,143 32,620 2,523 

During the year ended December 31, 2021, our accounts receivable, net balance increased by $4.9 million, or 38%, primarily due to timing of billings and seasonality of our business. During the year ended December 31, 2021, our contract assets balance increased by $1.0 million or 7%, primarily due to our Thinkful service. During the year ended December 31, 2021, our deferred revenue balance increased by $2.5 million, or 8%, primarily due to increased bookings and seasonality of our business.
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Net Loss Per Share
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
Adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity

We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, outstanding convertible senior notes are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later).

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):
Years Ended December 31,
2021
2020(1)
2019(1)
Numerator:
Net loss$(1,458)$(6,221)$(9,605)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted141,262 125,367 119,204 
Net loss per share, basic and diluted$(0.01)$(0.05)$(0.08)
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.

The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):
Years Ended December 31,
202120202019
Shares related to stock plan activity2,545 4,470 7,094 
Shares related to convertible senior notes23,300 4,942 3,526 
Total common stock equivalents25,845 9,412 10,620 
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Cash and Cash Equivalents, and Investments and Fair Value Measurements
12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, and Investments and Fair Value Measurements Cash and Cash Equivalents, and Investments and Fair Value Measurements
The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of December 31, 2021 and 2020 (in thousands, except for fair value level):

 December 31, 2021
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$30,324 $— $— $30,324 
Money market fundsLevel 1823,754 — — 823,754 
Total cash and cash equivalents$854,078 $— $— $854,078 
Short-term investments:   
Commercial paperLevel 2$124,211 $$(33)$124,180 
Corporate debt securitiesLevel 2552,609 36 (546)552,099 
Agency bondsLevel 215,500 — 15,502 
Total short-term investments$692,320 $40 $(579)$691,781 
Long-term investments:
Corporate debt securitiesLevel 2$724,517 $— $(3,277)$721,240 
U.S. treasury securitiesLevel 124,860 — (107)24,753 
Total long-term investments$749,377 $— $(3,384)$745,993 

 December 31, 2020
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$15,054 $— $— $15,054 
Money market fundsLevel 1464,799 — — 464,799 
Total cash and cash equivalents$479,853 $— $— $479,853 
Short-term investments:   
Commercial paperLevel 2$204,152 $24 $(6)$204,170 
Corporate debt securitiesLevel 2459,967 1,478 (48)461,397 
Total short-term investments$664,119 $1,502 $(54)$665,567 
Long-term investments:
Corporate debt securitiesLevel 2$484,275 $605 $(283)$484,597 
Agency bondsLevel 238,995 36 — 39,031 
Total long-term investments$523,270 $641 $(283)$523,628 

As of December 31, 2021, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the years ended December 31, 2021 and 2020 we did not recognize any losses on our investments due to credit related factors. During the years ended December 31, 2021, 2020 and 2019, our gross realized gains and losses on investments were not significant.
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of December 31, 2021 (in thousands):
December 31, 2021
 CostFair Value
Due in 1 year or less$692,320 $691,781 
Due in 1-2 years749,377 745,993 
Investments not due at a single maturity date823,754 823,754 
Total$2,265,451 $2,261,528 

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

Strategic Investments

We previously invested $2.0 million in TAPD, Inc., also known as Frank; a U.S.-based service that helps students access financial aid. In September 2021, we sold our investment in Frank for total consideration of $9.2 million, resulting in a $7.2 million gain included within other (expense) income, net on our consolidated statements of operations. We received a cash payment of $9.0 million included within cash flows from investing activities on our consolidated statements of cash flows.

We also previously invested $3.0 million in a foreign entity to explore expanding our reach internationally. In March 2021, we sold our investment in that foreign entity for total consideration of $8.3 million, resulting in a $5.3 million gain included within other (expense) income, net on our consolidated statements of operations. We received a cash payment, net of taxes withheld, of $7.1 million included within cash flows from investing activities on our consolidated statements of cash flows.

We did not record any impairment charges on our strategic investments, other than a $10.0 million impairment charge previously recorded in 2020 on our strategic investment in WayUp, Inc., during the years ended December 31, 2021, 2020 and 2019, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. We considered general market conditions as a result of the COVID-19 pandemic in our impairment analysis. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuers during the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021, we had no amounts related to strategic investments recorded on our consolidated balance sheet.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. For further information on the notes refer to Note 10, “Convertible Senior Notes.”

The carrying amounts and estimated fair values of the notes as of December 31, 2021 and 2020 are as follows (in thousands):
December 31, 2021
December 31, 2020 (1)
 Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
2026 notes$987,691 $840,000 $761,930 $1,129,370 
2025 notes690,464 682,202 640,614 1,456,800 
2023 notes— — 104,378 376,949 
Convertible senior notes, net$1,678,155 $1,522,202 $1,506,922 $2,963,119 
(1) Prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method. Refer to Note 10, “Convertible Senior Notes” for more information.

The carrying amount of the 2026 notes and 2025 notes as of December 31, 2021 was net of unamortized issuance costs of $12.3 million and $9.5 million, respectively, and there is no carrying amount of the 2023 notes as we settled the principal amount of the 2023 notes during the year ended December 31, 2021. The carrying amount of the 2026 notes, 2025 notes and
2023 notes as of December 31, 2020 was net of unamortized debt discount of $226.7 million, $149.1 million and $10.0 million, respectively, and unamortized issuance costs of $11.3 million, $10.2 million and $1.2 million, respectively.
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Long-Lived Assets
12 Months Ended
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Long-Lived Assets Long-Lived Assets
Textbook Library, Net

Textbook library, net consisted of the following (in thousands):
December 31,
20212020
Textbook library$27,569 $47,293 
Less accumulated depreciation(16,328)(13,144)
Textbook library, net$11,241 $34,149 

During the years ended December 31, 2021 and December 31, 2020, print textbook depreciation expense was approximately $10.9 million and $15.4 million, respectively. During the year ended December 31, 2021, net loss on textbook library was approximately $11.0 million, primarily due to increased write-downs, and during the year ended December 31, 2020, net gain on textbook library was approximately $1.5 million.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):
December 31,
20212020
Content$258,005 $181,938 
Internal-use software and website development29,711 15,646 
Leasehold improvements19,913 19,574 
Furniture and fixtures4,352 3,891 
Computer and equipment3,370 3,368 
Property and equipment315,351 224,417 
Less accumulated depreciation and amortization(145,413)(98,610)
Property and equipment, net$169,938 $125,807 

Depreciation and content amortization expense during the years ended December 31, 2021, 2020, and 2019 were approximately $49.6 million, $32.6 million, and $24.2 million, respectively.
v3.22.0.1
Acquisitions
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
2022 Acquisition

On January 13, 2022, we completed our acquisition of 100% of the outstanding shares of Busuu Online S.L. (Busuu), an online language learning company that offers a comprehensive solution through a combination of self-paced lessons, live classes with expert tutors and the ability to learn and practice with members of the Busuu language learning community, for approximately $417 million in an all-cash transaction. The acquisition helps to expand our existing offerings and global reach through language learning, allowing us to drive further into international markets. There are additional payments of up to $25 million, subject to continued service of certain key employees of Busuu, that are not included in the fair value of the purchase consideration. During the year ended December 31, 2021, we incurred $5.3 million of acquisition-related expenses associated with our acquisition of Busuu, which have been included in general and administrative expense on our consolidated statements of operations. We plan to account for the acquisition as a business combination and the initial accounting for this acquisition, including the valuation of acquired tangible and intangibles assets and liabilities assumed, is in process as of the issuance date for our financial statements, therefore, we are unable to make any additional disclosures.
2021 Acquisition

On February 22, 2021, we completed an acquisition, accounted for as a business combination, of 100% of the outstanding shares of a company for a technology that will strengthen our content creation abilities for a purchase consideration of $8.0 million in cash. Our total allocation of purchase consideration included acquired assets of $0.4 million, acquired developed technology intangible asset of $3.3 million and goodwill of $5.3 million less assumed liabilities of $1.0 million. This acquisition did not have a material impact on our consolidated financial statements and is not expected to have a material impact in future periods.

2020 Acquisition

On June 4, 2020, we completed our acquisition of 100% of the outstanding shares of Mathway, LLC (Mathway), an online, on-demand math problem solving company that provides a vast range of subject areas in mathematics, including pre-algebra, algebra, trigonometry, pre-calculus, calculus, and linear algebra, and related disciplines. This acquisition helps to strengthen our Chegg Math service with the addition of new subjects, languages, and international reach. The total fair value of the purchase consideration was $101.0 million, of which $93.5 million was paid in cash on the acquisition date and $7.5 million was held in escrow as security for general representations and warranties and potential post-closing adjustments. The escrow amount was released in September 2021.

The Mathway purchase agreement provides for additional payments of up to $15.0 million, subject to the achievement of specified milestones and continued employment of the sellers. These payments are not included in the fair value of the purchase consideration but rather are expensed ratably as acquisition-related compensation costs classified as research and development and general and administrative expenses, based on the seller's job function, on our consolidated statement of operations. During the year ended December 31, 2021, the milestones were met. As of December 31, 2021 and 2020, we have recorded approximately $0.4 million and $2.9 million, respectively, within accrued liabilities on our consolidated balance sheets for these payments.

The following table presents the total allocation of purchase consideration recorded on our consolidated balance sheet as of the acquisition date (in thousands):
 Mathway
Cash$712 
Accounts receivable1,132 
Other acquired assets779 
Acquired intangible assets30,320 
Total identifiable assets acquired32,943 
Deferred revenue(1,423)
Liabilities assumed(727)
Net identifiable assets acquired30,793 
Goodwill70,167 
Total fair value of purchase consideration$100,960 

Goodwill is primarily attributable to the potential for enhancing our existing offerings and expanding our reach by providing additional mathematics support for students and helping them through their academic journey. The amounts recorded for intangible assets and goodwill are deductible for tax purposes.
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Mathway
AmountWeighted-Average Amortization Period (in months)
Trade name$520 18
Domain names220 18
Customer lists6,220 48
Developed technology23,360 84
Total acquired intangible assets$30,320 75

During the year ended December 31, 2020, we incurred $3.1 million of acquisition-related expenses associated with our acquisition of Mathway, which have been included in general and administrative expense on our consolidated statement of operations. We have recorded immaterial amounts of revenue and earnings from Mathway during the period since the acquisition date through December 31, 2020.

The following unaudited supplemental pro forma net loss is for informational purposes only and presents our combined results as if the acquisition of Mathway had occurred on January 1, 2019. The unaudited supplemental pro forma information includes the historical combined operating results adjusted for acquisition-related compensation costs, amortization of intangible assets, share-based compensation expense and acquisition-related expenses and does not necessarily reflect the actual results that would have been achieved, nor is it necessarily indicative of our future consolidated results. During the years ended December 31, 2020 and 2019, our supplemental pro forma net loss would have been $6.1 million and $27.3 million, respectively. Revenues from Mathway were immaterial during the years ended December 31, 2020 and 2019.

2019 Acquisition

On October 1, 2019, we completed our acquisition of 100% of the outstanding shares of Thinkful, Inc. (Thinkful), our skills-based learning platform to expand our existing offerings by adding affordable and high-quality courses focused on the most in-demand technology skills. The total fair value of the purchase consideration was $79.2 million, which was paid in cash and included an escrow amount of $9.0 million for general representations and warranties and potential post-closing adjustments. The escrow amount was released in April 2021.

Included in the purchase agreement for the acquisition of Thinkful are additional payments of up to $20.0 million subject to the achievement of specified milestones and continued employment of key employees. These payments are not included in the fair value of the purchase consideration and are expensed ratably as acquisition related compensation costs classified as research and development, general and administrative, and sales and marketing expenses, based on the key employee's job function, on our consolidated statement of operations. These payments may be settled by us, at our sole discretion, either in cash or shares of our common stock. During the year ended December 31, 2020, the terms of the purchase agreement were amended such that the retention incentive was reduced to $12.8 million, half of which is subject to the achievement of specified milestones and payable in cash and half of which will be settled in equity grants, to adjust for employee departures. During the year ended December 31, 2021, the milestones were met and all cash payments were made therefore we have no amounts recorded as of December 31, 2021. As of December 31, 2020 and 2019 we have recorded approximately $5.7 million and $3.0 million, respectively, included within accrued liabilities on our consolidated balance sheet for the cash payments.

Goodwill is primarily attributable to the potential for expanding our existing offerings and reach by providing educational services for students and helping them through their professional journey. The amounts recorded for intangible assets and goodwill are not deductible for tax purposes.
The following table presents the total allocation of purchase consideration recorded on our consolidated balance sheet as of the acquisition date (in thousands):
Thinkful
Cash$51 
Accounts receivable547 
Other acquired assets1,710 
Acquired intangible assets16,360 
Total identifiable assets acquired18,668 
Deferred revenue(2,455)
Liabilities assumed(1,906)
Net identifiable assets acquired14,307 
Goodwill64,893 
Total fair value of purchase consideration$79,200 

The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Thinkful
AmountWeighted-Average Amortization
Period
(in months)
Trade name$4,430 48
Domain names330 48
Content library6,940 60
Developed technology4,660 36
Acquired intangible assets$16,360 50

During the year ended December 31, 2019, we incurred $1.0 million of acquisition-related expenses associated with our acquisition of Thinkful, which have been included in general and administrative expenses on our consolidated statement of operations. During the year ended December 31, 2019, $8.6 million of our consolidated net loss was attributed to Thinkful and we have recorded an immaterial amount of revenues during the period since the acquisition date through December 31, 2019.

The following unaudited supplemental pro forma net loss is for informational purposes only and presents our combined results as if the acquisition of Thinkful had occurred on January 1, 2018. The unaudited supplemental pro forma information includes the historical combined operating results adjusted for acquisition related compensation costs, amortization of intangible assets, share-based compensation expense and transaction expenses and does not necessarily reflect the actual results that would have been achieved, nor is it necessarily indicative of our future consolidated results. During the year ended December 31, 2019, our supplemental pro forma net loss would have been $25.0 million. Revenues from Thinkful were immaterial during the year ended December 31, 2019.
v3.22.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill consists of the following (in thousands):
 Years Ended December 31,
20212020
Beginning balance$285,214 $214,513 
Additions due to acquisitions5,782 70,167 
Foreign currency translation adjustment(707)822 
Measurement period adjustments related to prior acquisitions(526)(288)
Ending balance$289,763 $285,214 
Intangible assets as of December 31, 2021 and December 31, 2020 consist of the following (in thousands, except weighted-average amortization period):
 December 31, 2021
Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies76$57,521 $(31,790)$25,731 
Content library6012,230 (6,836)5,394 
Customer lists4716,190 (12,432)3,758 
Trade and domain names4411,613 (9,530)2,083 
Indefinite-lived trade name— 3,600 — 3,600 
Total intangible assets65$101,154 $(60,588)$40,566 
 
 December 31, 2020
 Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies75$54,540 $(24,246)$30,294 
Content library6012,230 (4,390)7,840 
Customer lists4716,190 (10,437)5,753 
Trade and domain names4411,613 (7,888)3,725 
Non-compete agreements312,018 (1,981)37 
Indefinite-lived trade name— 3,600 — 3,600 
Total intangible assets64$100,191 $(48,942)$51,249 

During the years ended December 31, 2021, 2020 and 2019, amortization expense related to our intangible assets totaled approximately $13.7 million, $14.3 million and $7.5 million, respectively.

As of December 31, 2021, the estimated future amortization expense related to our intangible assets is as follows (in thousands):
2022$11,303 
20239,173 
20246,121 
20254,307 
20263,959 
Thereafter2,103 
Total$36,966 
v3.22.0.1
Balance Sheet Details
12 Months Ended
Dec. 31, 2021
Balance Sheet Details [Abstract]  
Balance Sheet Details Balance Sheet Details
Other Current Assets

Other current assets consist of the following (in thousands):
December 31,
20212020
Insurance recovery related to loss contingency$7,800 $— 
Other16,046 11,846 
Other current assets$23,846 $11,846 

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):
December 31,
20212020
Taxes payable$11,127 $6,166 
Loss contingency8,000 — 
Current operating lease liabilities6,663 6,603 
Accrued content related costs6,448 6,273 
Order fulfillment fees6,254 11,430 
Payment processing fees3,419 2,130 
Accrued purchases of long-lived assets2,982 1,588 
Refund reserve1,392 1,515 
Restructuring liability785 — 
Acquisition-related compensation417 9,611 
Accrued escrow related to acquisition— 7,451 
Other19,722 15,798 
Accrued liabilities$67,209 $68,565 
v3.22.0.1
Convertible Senior Notes
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior Notes
Adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity

We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. Under ASU 2020-06, convertible instruments with embedded conversion features, that are not required to be accounted for as a derivative or that do not result in a substantial premium, are no longer required to be separated from the host contract thereby eliminating the cash conversion feature model. Instead, these convertible debt instruments will be accounted for as a single liability measured at amortized cost under the traditional convertible debt accounting model.

In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). The aggregate principal amount of the 2026 notes includes $100 million from the initial purchasers fully exercising their option to purchase additional notes. In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total principal amount of $800 million. In April 2018, we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes and together with the 2026 notes and the 2025 notes, the notes). The aggregate principal amount of the 2023 notes included $45 million from the initial purchasers fully exercising their option to purchase additional notes. The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933.
The total net proceeds from the notes are as follows (in thousands):
2026 Notes2025 Notes2023 Notes
Principal amount$1,000,000 $800,000 $345,000 
Less initial purchasers’ discount(15,000)(18,998)(8,625)
Less other issuance costs(904)(822)(757)
Net proceeds$984,096 $780,180 $335,618 

During the year ended December 31, 2021, we settled $115.6 million of aggregate principal amount of the 2023 notes, consisting of $24.7 million related to requests for conversions and $90.9 million pursuant to our election of our option to redeem the remaining outstanding 2023 notes, for a total aggregate consideration of $351.1 million, consisting of $115.6 million in cash and 2,983,011 shares of our common stock with an aggregate value of $235.5 million. The carrying amount of the 2023 notes was $114.2 million, resulting in a $236.9 million difference that was recorded in additional paid-in capital on our consolidated balance sheet. Additionally, we entered into 2023 notes capped call privately-negotiated transactions which terminated capped call transactions underlying 4,288,459 shares of our common stock and received aggregate cash proceeds of $45.2 million. As of December 31, 2021, no amounts of our 2023 notes remain outstanding and no shares remain underlying the 2023 notes capped call transactions.

In March 2021, in connection with our securities repurchase program, we extinguished $100.0 million aggregate principal amount of the 2025 notes in privately-negotiated transactions for aggregate consideration of $184.9 million, which was paid in cash. Upon execution, we concluded that the 2025 notes embedded conversion features no longer met the derivative scope exception and, as a result, initially recorded a derivative liability of $176.5 million, related to the fair value of extinguished 2025 notes. We settled the derivative liability for aggregate consideration of $184.9 million resulting in a $8.4 million loss on change in fair value. The carrying amount of the 2025 notes subject to the extinguishment was $98.3 million resulting in a $78.2 million loss on early extinguishment of debt. Additionally, we entered into 2025 notes capped call privately-negotiated transactions which terminated capped call transactions underlying 1,939,560 shares of our common stock and received aggregate cash proceeds of $23.9 million. Upon execution, we concluded that the capped call transactions no longer met the derivative scope exception and, as a result recorded a derivative liability of $22.6 million related to the fair value of terminated 2025 notes capped call transactions. We settled the capped call transactions for aggregate consideration of $23.9 million resulting in a $1.3 million gain on change in fair value.

During the year ended December 31, 2020, in connection with our securities repurchase program, we extinguished $57.4 million aggregate principal amount of the 2023 notes in privately-negotiated transactions for an aggregate consideration of $149.6 million, which was paid in cash. Of the $149.6 million consideration, we allocated $52.6 million and $97.0 million to the liability and equity components of the extinguished 2023 notes, respectively. The fair value of the liability component was calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amount of the liability component of the 2023 notes subject to the extinguishment was $51.6 million resulting in a $1.0 million loss on early extinguishment which was recorded in other (expense) income, net on our consolidated statements of operations. Additionally, we terminated 2023 notes capped call transactions underlying 2,131,354 shares of our common stock and received cash proceeds of $19.7 million.

During the year ended December 31, 2020, in connection with our issuance of the 2026 notes, we exchanged $172.0 million aggregate principal amount of the 2023 notes in privately-negotiated transactions for an aggregate consideration of $501.7 million, consisting of $174.6 million in cash and 4,182,320 shares of our common stock with a value of $327.1 million. Of the $501.7 million consideration, we allocated $156.1 million and $345.6 million to the liability and equity components of the exchanged 2023 notes, respectively. The fair value of the liability component was calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amount of the liability component of the 2023 notes subject to the exchange was $152.8 million resulting in a $3.3 million loss on early extinguishment of debt which was recorded in other (expense) income, net on our consolidated statements of operations. Additionally, we terminated 2023 notes capped call transactions underlying 6,380,815 shares of our common stock and received cash proceeds of $57.4 million.

The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Wells Fargo Bank, National Association, as Trustee (the indentures). 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. The 2023 notes bore interest of 0.25% per year which was payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2018.

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. Each $1,000 principal amount of the 2023 notes was initially convertible into 37.1051 shares of our common stock. This was equivalent to an initial conversion price of approximately $26.95 per share, which was 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 the following circumstances:

during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 for the 2026 notes and June 30, 2019 for the 2025 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day;
during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;
if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
upon the occurrence of certain specified corporate events described in the indentures.

On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election. If we undergo a fundamental change, as defined in the indentures, prior to the respective maturity dates, subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events, described in the indentures, occur prior to the respective maturity dates, we will also increase the conversion rate for a holder who elects to convert their notes in connection with such specified corporate events.

The conditions allowing holders of the 2026 notes to convert were not met and therefore the 2026 notes are not convertible. The conditions allowing holders of the 2025 notes to convert were not met during the three months ended December 31, 2021, therefore the 2025 notes are no longer convertible. The first circumstance noted above allowing holders of the 2025 notes to convert was met during the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 and therefore, the 2025 notes were convertible starting October 1, 2020 through December 31, 2021. Aside from the extinguishment of $100.0 million aggregate principal amount of the 2025 notes discussed above, during the year ended December 31, 2021, we received immaterial requests for conversion of the 2025 notes which we settled or intend to settle in cash.

The net carrying amount of the notes is as follows (in thousands):
December 31, 2021
December 31, 2020(1)
2026 Notes2025 Notes2026 Notes2025 Notes2023 Notes
Principal amount$1,000,000 $699,982 $1,000,000 $800,000 $115,576 
Unamortized debt discount— — (226,732)(149,138)(9,953)
Unamortized issuance costs(12,309)(9,518)(11,338)(10,248)(1,245)
Net carrying amount (liability)$987,691 $690,464 $761,930 $640,614 $104,378 
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.    
    
The following table sets forth the total interest expense recognized related to the notes (in thousands):
Years Ended December 31,
2021
2020(1)
2019(1)
2026 notes:
Amortization of debt discount$— $14,568 $— 
Amortization of issuance costs2,635 728 — 
Total 2026 notes interest expense$2,635 $15,296 $— 
2025 notes:
Contractual interest expense$896 $1,001 $769 
Amortization of debt discount— 35,561 27,302 
Amortization of issuance costs3,045 2,443 1,876 
Total 2025 notes interest expense$3,941 $39,005 $29,947 
2023 notes:
Contractual interest expense$78 $691 $862 
Amortization of debt discount— 10,073 12,536 
Amortization of issuance costs242 1,200 1,488 
Total 2023 notes interest expense$320 $11,964 $14,886 
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.

Capped Call Transactions

Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of December 31, 2021, cover 9,297,800 and 13,576,571 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes.
v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
We have operating leases for our corporate offices worldwide, which expire at various dates through 2027. Our primary operating lease commitments at December 31, 2021 are related to our corporate headquarters in Santa Clara, California and offices in San Francisco, California and New York City, New York. As of December 31, 2021 and 2020, we had operating lease ROU assets of $18.1 million and $24.2 million, respectively, and operating lease liabilities of $19.1 million and $25.9 million, respectively.

As of December 31, 2021 and 2020, we did not have finance leases recorded on our consolidated balance sheet, our weighted average remaining lease term was 4.0 years and 4.6 years, respectively, and our weighted average discount rate was 4.8%. Operating lease expense, net of immaterial sublease income, was approximately $7.1 million, $5.6 million and $5.0 million, respectively, during the years ended December 31, 2021, 2020 and 2019. Variable lease cost and short term lease cost were immaterial during the years ended December 31, 2021, 2020 and 2019.
The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of December 31, 2021, are as follows (in thousands):
December 31, 2021
2022$7,435 
20235,599 
20242,559 
20251,823 
20261,869 
Thereafter1,750 
Total future minimum lease payments21,035 
Less imputed interest(1,925)
Total operating lease liabilities$19,110 
During the year ended December 31, 2021, we entered into a 5.5 year amendment to expand our office space in Portland, Oregon with future minimum lease payments of approximately $3.7 million. As of December 31, 2021, this lease has not yet commenced and therefore these future minimum lease payments are not included in table above.
v3.22.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2021
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 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 breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, among others. 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. The plaintiff in this matter seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. 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. The Company disputes these claims and intends to vigorously defend itself in this matter.

On December 1, 2020, we received notice that a class action lawsuit was filed against Chegg in New York alleging violations of the American with Disabilities Act. The claim asserted that one of Chegg’s websites is not compatible with software used by vision-impaired individuals. During the year ended December 31, 2021, we settled this matter for an immaterial amount, and it is now concluded.

On August 18, 2020, we received notice that a class action lawsuit was filed against Chegg in California alleging violations of the Unruh Civil Rights Act. The claim asserted that one of Chegg’s websites is not compatible with software used by vision-impaired individuals. During the year ended December 31, 2021, we settled this matter for an immaterial amount, and it is now concluded.
On July 21, 2020, VitalSource Technologies LLC (VST), which is wholly owned by Ingram Industries Inc., filed a complaint against Chegg alleging that Chegg breached its contract with VST involving the development of an eTextbook reader and eTextbook reader platform. The suit sought uncertain damages, but the complaint alleged that they exceeded $75 thousand. During the year ended December 31, 2021, we settled this matter for an immaterial amount, and it is now concluded.

On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) to determine whether we may have violated Section 5 of the FTC Act or the Children's Online Privacy Protection Act (COPPA), as they relate to deceptive or unfair acts or practices related to consumer privacy and/or data security. We have provided the FTC with the requested responses to interrogatories and follow-up questions and have produced documents pertaining to data breach incidents and our data security and privacy practices generally.

On May 12, 2020, we received notice that 15,107 arbitration demands were filed against us on April 30, 2020 by individuals all represented by the same legal counsel. Each individual claimant claimed to have suffered more than $25 thousand in damages as a result of the unauthorized access of certain items of their user data in April 2018 (the 2018 Data Incident). On July 1, 2020, an additional 1,007 arbitration demands were filed by the same counsel, making identical allegations. On August 12, 2020, an additional 577 arbitration demands were filed by the same counsel, making identical allegations. Related cases have been filed by the same counsel in Maryland and California. We dispute that these claimants have a valid basis for seeking arbitration, assert that they have acted in bad faith and are working with the Maryland and California courts and plaintiffs’ counsel on resolution of these claims. On August 22, 2021, Chegg and the claimants' legal counsel, on behalf of its clients, entered into a settlement agreement, pursuant to which each eligible claimant that signs a release agreement agrees, among other things, to dismiss with prejudice all claims against Chegg that such claimant currently maintains in exchange for such claimant's pro rata portion of the settlement amount. Claimants had until January 26, 2022 to sign their release agreements. In March 2021, we recorded a loss contingency accrual and a corresponding insurance loss recovery, the net impact of which did not materially impact our consolidated statements of operations.

On November 5, 2018, NetSoc, LLC (NetSoc) filed a complaint against us captioned NetSoc, LLC v. Chegg, Inc., (Civil Action No. 1:18-CV-10262-RAC) in the U.S. District Court for the Southern District of New York (SDNY) for patent infringement alleging that the Chegg Tutors service infringes U.S. Patent No. 9,978,107 (the NetSoc Patent) and seeking unspecified compensatory damages. A responsive pleading was filed on February 19, 2019. On January 13, 2020, the SDNY issued an order dismissing the case as to Chegg. On January 30, 2020, NetSoc appealed the dismissal to the United States Court of Appeals for the Federal Circuit (the Federal Circuit). On September 24, 2021, the Federal Circuit dismissed NetSoc's appeal of the SDNY dismissal. On December 2, 2020, the U.S. Patent and Trademark Office determined that the NetSoc Patent is invalid based on two Inter Partes Review (IPR) proceedings instituted in part by Chegg, and on January 4, 2021, NetSoc filed a Notice of Appeals at the Federal Circuit appealing the IPR decisions. On October 18, 2021, Chegg filed a motion to dismiss NetSoc's appeal of the IPR decisions. On December 7, 2021, the Federal Circuit granted Chegg’s motion to terminate the IPR appeal. This matter is now concluded.

Aside from the loss contingency accrual for the 2018 Data Incident matter, we have not recorded any additional amounts related to the above matters as we do not believe that a loss is probable in these remaining matters. We are not aware of any other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows. However, 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. 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 and/or financial condition.
v3.22.0.1
Guarantees and Indemnifications
12 Months Ended
Dec. 31, 2021
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 December 31, 2021.
v3.22.0.1
Common Stock
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Common Stock Common Stock
We are authorized to issue 400 million shares of our common stock, with a par value per share of $0.001. As of December 31, 2021, we have reserved the following shares of our common stock for future issuance:
December 31, 2021
Outstanding stock options381,756 
Outstanding RSUs and PSUs8,171,462 
Shares available for grant under the 2013 Plan30,629,068 
Shares available for issuance under the 2013 ESPP9,814,172 
Total common shares reserved for future issuance48,996,458 

Stock Plans

2013 Equity Incentive Plan

On June 6, 2013, the Board of Directors adopted our 2013 Equity Incentive Plan (the 2013 Plan), which was subsequently approved by our stockholders on August 29, 2013. The 2013 Plan became effective on November 11, 2013 and replaced the 2005 Plan. On the effective date of the 2013 Plan, 12,000,000 shares of our common stock were reserved for issuance, plus an additional 3,838,985 shares reserved but not issued or subject to outstanding awards under our 2005 Plan on the effective date of the 2013 Plan, plus, on and after the effective date of the 2013 Plan, (i) shares that are subject to outstanding awards under the 2005 Plan which cease to be subject to such awards, (ii) shares issued under the 2005 Plan that are forfeited or repurchased at their original issue price and (iii) shares subject to awards under the 2005 Plan that are used to pay the exercise price of an option or withheld to satisfy the tax withholding obligations related to any award. As of December 31, 2021, there were 30,629,068 shares available for grant under the 2013 Plan. The 2013 Plan permits the granting of incentive stock options, non-qualified stock options, RSUs, stock appreciation rights, restricted shares of common stock and performance share awards. The exercise price of stock options may not be less than the 100% of the fair market value of the common stock on the date of grant. Options granted pursuant to the 2013 Plan generally expire no later than 10 years.

2013 Employee Stock Purchase Plan

On June 6, 2013, our Board of Directors adopted our 2013 Employee Stock Purchase Plan (the 2013 ESPP) and our stockholders subsequently approved the 2013 ESPP Plan on August 29, 2013. The 2013 ESPP permits eligible employees to acquire shares of our common stock by accumulating funds through periodic payroll deductions of up to 15% of base salary. Our 2013 ESPP is intended to qualify as an ESPP under Section 423 of the Code and employees will receive a 15% discount to the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last day of each purchase period in the applicable offering period. Each offering period may run for no more than six months. We have reserved 4,000,000 shares of our common stock under our 2013 ESPP. The aggregate number of shares issued over the term of our 2013 ESPP will not exceed 20,000,000 shares of our common stock. As of December 31, 2021, there were 9,814,172 shares of common stock available for future issuance under the 2013 ESPP.
v3.22.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Accelerated Share Repurchase

On December 3, 2021, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2021 ASR). We accounted for the 2021 ASR as two separate transactions, a repurchase of our common stock and an equity-linked contract indexed to our common stock that met certain accounting criteria for classification in stockholders' equity. Upon execution, we paid a fixed amount of $300.0 million and received an initial delivery of 8,403,361 shares of our common stock, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $300.0 million, which was based on the share price of our common stock on the date of execution. The 2021 ASR was recorded as a reduction to additional paid in capital on our consolidated statements of stockholders’ equity. The 2021 ASR settled during the first quarter of 2022 and we received an additional delivery of 2,163,219 shares of our common stock, which were retired immediately. The 2021 ASR resulted in a total repurchase of 10,566,580 shares of our common stock at a volume-weighted-average price, less an agreed upon discount, of $28.3914 per share. We were not required to make any additional cash payments or delivery of common stock to the financial institutions upon settlement.
Securities Repurchase Program

In November 2021, our board of directors approved a $500.0 million increase to our existing securities repurchase program authorizing the repurchase of up to $1.0 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 year ended December 31, 2021, we entered into the 2021 ASR for $300.0 million and repurchased $100.0 million of aggregate principal amount of the 2025 notes in privately-negotiated transaction for an aggregate consideration of $184.9 million. During the year ended December 31, 2020, we repurchased $57.4 million of aggregate principal amount of the 2023 notes in privately-negotiated transactions for an aggregate consideration of $149.6 million. As of December 31, 2021 $365.5 million remains under the 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.

Equity Offering

In February 2021, we entered into an underwriting agreement pursuant to which we agreed to issue and sell 10,974,600 shares of our common stock at a public offering price of $102.00 per share generating aggregate net proceeds of $1,091.5 million, after deducting underwriting discounts and commissions of $26.9 million and offering expenses of $1.1 million.

Share-based Compensation Expense

Total share-based compensation expense recorded for employees and non-employees, is as follows (in thousands):
 Years Ended December 31,
 202120202019
Cost of revenues$1,621 $950 $426 
Research and development37,131 31,588 22,229 
Sales and marketing13,887 9,606 7,380 
General and administrative56,207 41,911 34,874 
Total share-based compensation expense$108,846 $84,055 $64,909 

During the year ended December 31, 2021 we capitalized share-based compensation expense of $2.6 million. As of December 31, 2021, we had a total of approximately $273.0 million of unrecognized share-based compensation expense that is expected to be recognized over the remaining weighted average period of 2.6 years.

2021 PSU Grants with Market-Based Conditions

In March 2021, we granted PSUs under the 2013 Equity Incentive Plan (the 2013 Plan) with market-based conditions to certain of our key employees. The number of shares of our common stock that may be issued to settle these PSUs range from 50% at the threshold level to 150% at the maximum level of the 100% target level of the award depending on achieving a maximum average market value of the per share price of our common stock, for a period of 60 consecutive trading days, over a three-year performance period ending on the third anniversary of the date of grant. No payout will be made for performance below the 50% threshold level. The market value of the per share price of our common stock must reach $123.81, $148.58, or $173.34 at the threshold, target, or maximum levels, respectively, for achievement of the award, which could result in issuance of 244,086, 488,173, or 732,260 shares of our common stock at each respective payout level. These PSUs will vest over a four-year period, with the initial vesting of 50% of the award occurring in March 2024. The number of PSUs granted totaled 732,260 shares, which represents the maximum number of shares, and had a grant date fair value of $68.55 per share, determined under the Monte Carlo simulation approach described further below. As of December 31, 2021, the market-based conditions have not been met.
Fair Value of PSUs with Market-Based Conditions

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

Expected Term. The expected term for the awards is the performance period of three years.

Expected Volatility. The expected volatility is based on the historical average volatility of our stock price over the expected term.

Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock.

Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield currently available on the U.S. treasury zero-coupon issues, with a remaining term equal to the expected term.

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

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

2021 PSU Grants with Financial and Strategic Performance Targets

In March 2021, we granted PSUs under the 2013 Plan to certain of our key executives. The PSUs entitle the executives to receive a certain number of shares of our common stock based on our satisfaction of certain financial and strategic performance targets during 2021. Based on the achievement of the performance conditions for the March 2021 grants, the final settlement partially met the target threshold based on a specified objective formula approved by the Compensation Committee. These PSUs will vest over a three-year period, with the initial vesting occurring in March 2022. The number of shares underlying these March 2021 PSUs granted during the year ended December 31, 2021 totaled 278,644 shares and had a grant date fair value of $99.05 per share.

2020 PSU Grants with Financial and Strategic Performance Targets

In March 2020, we granted PSUs under the 2013 Plan to certain of our key executives. The PSUs entitle the executives to receive a certain number of shares of our common stock based on our satisfaction of certain financial and strategic performance targets during 2020. Based on the achievement of the performance conditions for the March 2020 grants, the final settlement met the target threshold based on a specified objective formula approved by the Compensation Committee. These PSUs will vest over a three-year period, with the initial vesting occurring in March 2021. The number of shares underlying the March 2020 PSUs granted during the year ended December 31, 2020 totaled 460,976 shares and had a grant date fair value of $39.21 per share.

2019 PSU Grants with Financial and Strategic Performance Targets

In March 2019, we granted PSUs under the 2013 Plan to certain of our key executives. The PSUs entitle the executives to receive a certain number of shares of our common stock based on our satisfaction of certain financial and strategic performance targets during 2019. Based on the achievement of the performance conditions for the March 2019 grants, the final settlement met the target threshold based on a specified objective formula approved by the Compensation Committee. These PSUs will vest over a three-year period, with the initial vesting occurring in March 2020. The number of shares underlying the March 2019 PSUs granted during the year ended December 31, 2019 totaled 436,042 shares and had a grant date fair value of $40.42 per share.
RSUs and PSUs Activity
 RSUs and PSUs Outstanding
 Number of RSUs and PSUs OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20204,816,000 $37.82 
Granted6,758,593 47.95 
Released(2,762,251)34.77 
Forfeited(640,880)48.97 
Balance at December 31, 20218,171,462 $46.36 

The weighted-average grant-date fair value of RSUs and PSUs granted during the years ended December 31, 2021, 2020, and 2019 was $47.95, $45.37, and $37.56, respectively. The total fair value of RSUs and PSUs vested as of the vesting dates during the years ended December 31, 2021, 2020, and 2019 was $232.0 million, $200.1 million, and $222.3 million, respectively.

Fair Value of 2013 ESPP

Under the 2013 ESPP, rights to purchase shares are generally granted during the second and fourth quarter of each year. We estimate the fair value of each right to purchase shares under our 2013 ESPP using the Black-Scholes-Merton option-pricing model, which utilizes the fair value of our common stock based on active market and requires input on the following subjective assumptions:

Expected Term. The expected term for rights to purchase shares under the 2013 ESPP is six months.

Expected Volatility. The expected volatility is based on the average volatility of our stock price over the expected term.

Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock.

Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield currently available on the United States treasury zero-coupon issues, with a remaining term equal to the expected term.

The following table summarizes the key assumptions used to determine the fair value of rights granted under the 2013 ESPP:
 Years Ended December 31,
 202120202019
Expected term (years)0.500.500.50
Expected volatility
47.02%-99.96%
52.06%-68.09%
40.51%-41.81%
Dividend yield— %— %— %
Risk-free interest rate
0.04%-0.07%
0.12%-0.15%
1.59%-2.43%
Weighted-average grant-date fair value per share$14.70 $20.52 $9.88 

2013 ESPP Activity

There were 167,890, 173,992 and 201,581 shares purchased under the 2013 ESPP during the years ended December 31, 2021, 2020 and 2019, respectively, at an average price per share of $40.35, $38.85 and $25.55, respectively, with cash proceeds from the issuance of shares of $6.8 million, $6.8 million and $5.1 million, respectively.
Stock Option Activity
 Options Outstanding
 Number of Options OutstandingWeighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
Balance at December 31, 2020627,317 $7.86 3.48$51,733,285 
Released(245,561)8.78  
Balance at December 31, 2021381,756 $7.28 2.80$8,942,541 

We did not grant any stock option awards during the years ended December 31, 2021, 2020, and 2019. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019, was approximately $10.7 million, $53.5 million and $90.8 million, respectively.
v3.22.0.1
Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We recorded an income tax provision of approximately $7.2 million, $5.4 million and $2.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The income tax provision for the year ended December 31, 2021 was primarily due to state and foreign income tax expenses and the withholding taxes related to the sale of our strategic equity investment. The income tax provision for the years ended December 31, 2020 and 2019 was primarily due to state and foreign income tax expense.

Our income tax provision consisted of the following (in thousands):
Years Ended December 31,
202120202019
Current income taxes:
Federal$— $— $(185)
State852 459 264 
Foreign7,449 5,010 2,594 
Total current income taxes8,301 5,469 2,673 
Deferred income taxes:
Federal250 187 (17)
State218 255 42 
Foreign(1,572)(551)(64)
Total deferred income taxes(1,104)(109)(39)
Total income tax provision$7,197 $5,360 $2,634 

Loss before provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
202120202019
United States$(6,256)$(10,369)$(12,497)
Foreign11,995 9,508 5,526 
Total$5,739 $(861)$(6,971)
The differences between our income tax provision as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate consists of the items shown in the following table as a percentage of pretax loss (in percentages):
Years Ended December 31,
202120202019
Income tax at U.S. statutory rate21.0 %21.0 %21.0 %
State, net of federal benefit(232.0)(169.5)(76.3)
Foreign rate differential35.5 (285.9)(19.4)
Share-based compensation(209.0)2,901.5 695.4 
Non-deductible expenses1.5 (50.3)0.4 
Tax credits(28.3)351.6 19.3 
Acquisition related17.2 — 31.8 
Convertible senior notes(2,435.3)(5,854.8)(412.6)
Other0.5 1.2 27.9 
Change in valuation allowance2,954.3 2,462.7 (325.3)
Total125.4 %(622.5)%(37.8)%

A summary of our deferred tax assets is as follows (in thousands):
As of December 31,
20212020
Deferred tax assets:
Accrued expenses and reserves$6,402 $6,365 
Share-based compensation8,979 6,473 
Accrued compensation— 2,402 
Net operating loss carryforwards188,329 190,904 
Property and equipment, textbooks and intangibles assets1,849 — 
Convertible senior notes32,254 — 
Other items7,221 5,734 
Gross deferred tax assets245,034 211,878 
Valuation allowance(238,317)(151,825)
Total deferred tax assets6,717 60,053 
Deferred tax liabilities:
Property and equipment, textbooks and intangibles assets— (4,066)
Convertible senior notes— (51,607)
Other(7,878)(5,890)
Total deferred tax liabilities(7,878)(61,563)
Net deferred tax liability$(1,161)$(1,510)

At December 31, 2021 and 2020, the deferred tax liability is primarily created by the tax amortization of acquired indefinite lived intangible assets. Under the accounting guidance this deferred tax liability can be used as a source of income for recognition of deferred tax assets when determining the amount of valuation allowance to be recorded.

As of December 31, 2021, we intend to permanently reinvest all 2018 and later earnings from our foreign subsidiaries. As such, we have not provided for any remaining tax effect, if any, of the outside basis difference of our foreign subsidiaries based upon plans of future reinvestment. The determination of the future tax consequences of the remittance of these earnings is not practicable.
Realization of the deferred tax assets is dependent upon future taxable income, the amount and timing of which are uncertain. Accordingly, the federal and state gross deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by approximately $86.5 million during the year ended December 31, 2021 and increased by approximately $3.3 million during the year ended December 31, 2020.

As of December 31, 2021, we had net operating loss carryforwards for federal and state income tax purposes of approximately $660 million and $485 million, respectively, which will begin to expire in years beginning 2028 and 2022, respectively.

As of December 31, 2021, we had tax credit carryforwards for federal and state income tax purposes of approximately $21.4 million and $15.7 million, respectively. The federal credits expire in various years beginning in 2030. The state credits do not expire.

Utilization of our net operating losses and tax credit carryforwards may be subject to substantial annual limitations due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended (IRC), and similar state provisions. Such annual limitations could result in the expiration of the net operating losses and tax credit carryforwards before utilization.

We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. During the years ended December 31, 2021, 2020 and 2019, we recognized an increase of $0.1 million, $0.1 million and $45 thousand of interest and penalties, respectively. Accrued interest and penalties as of December 31, 2021 and 2020 were approximately $0.3 million and $0.2 million, respectively.

We file tax returns in U.S. federal, state, and certain foreign jurisdictions with varying statutes of limitations. Due to net operating loss and credit carryforwards, all of the tax years since inception through the 2021 tax year remain subject to examination by the U.S. federal and some state authorities. Foreign jurisdictions remain subject to examination up to approximately seven years from the filing date, depending on the jurisdiction.

A reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):
Years Ended December 31,
202120202019
Beginning balance$14,654 $10,993 $8,771 
Increase in tax positions for prior years305 479 221 
Decrease in tax positions for prior years(952)(535)(1,550)
Decrease in tax positions for prior year settlement(22)(208)— 
Decrease in tax positions for prior years due to statutes lapsing(426)(26)(164)
Increase in tax positions for current year3,309 3,999 3,722 
Change due to translation of foreign currencies(63)(48)(7)
Ending balance$16,805 $14,654 $10,993 

The amount of unrecognized tax benefits, if recognized, that would affect the effective tax rate is $4.5 million for the year ended December 31, 2021. One or more of these unrecognized tax benefits could be subject to a valuation allowance if, and when recognized in a future period, which could impact the timing of any related effective tax rate benefit.
The actual amount of any taxes due could vary significantly depending on the ultimate timing and nature of any settlement. We believe that the amount by which the unrecognized tax benefits may increase or decrease within the next 12 months is not estimable.
v3.22.0.1
Related-Party Transactions
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions Our Chief Executive Officer is a member of the Board of Directors of Adobe Systems Incorporated (Adobe). During the years ended December 31, 2021, 2020, and 2019, we purchased services of $2.4 million, $1.7 million and $2.1 million, respectively, from Adobe. We had no revenues from Adobe during the year ended December 31, 2021 and $0.1 million and $0.2 million, in revenues during the years ended December 31, 2020 and 2019, respectively. We had no payables as of
December 31, 2021 and $0.1 million of payables as of December 31, 2020 to Adobe. We had no outstanding receivables as of December 31, 2021 and 2020 from Adobe.    

The immediate family of one of our board members is a member of the Board of Directors of PayPal Holdings, Inc. (PayPal). During the years ended December 31, 2021, 2020, and 2019, we incurred payment processing fees of $2.8 million, $2.1 million and $1.6 million, respectively, to PayPal.

One of our board members is a member of the Board of Directors of Zuora, Inc. (Zuora). During the years ended December 31, 2021 and 2020 we purchased services of $1.9 million and $1.3 million, respectively, from Zuora. We had no payables as December 31, 2021 and 2020 to Zuora.

One of our board members is also the Chief Executive Officer of the San Francisco 49ers (49ers). During the years ended December 31, 2021, 2020 and 2019, we purchased advertisements of $0.2 million, $0.1 million, and $0.2 million, respectively, from the 49ers.
v3.22.0.1
Restructuring Charges
12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
In September 2021, we changed our go-to-market strategy for our Thinkful product offering which we believe will have the most growth potential to serve learners. This resulted in a management approved restructuring plan that impacted approximately 60 full-time employees and 100 part-time employees in the United States. During the year ended December 31, 2021, we recorded restructuring charges of $1.9 million related to one-time employee termination benefits classified on our consolidated statements of operations based on the employees' job function and made cash payments of $1.1 million. As of December 31, 2021, we have $0.8 million remaining liability which is included within accrued liabilities on our consolidated balance sheets. The total cost of the restructuring plan has been recorded and we expect it to be completed by the end of the second quarter of fiscal year 2022. We expect cost savings from the restructuring plan to be reinvested in future growth opportunities.

The following table summarizes the activity related to the restructuring liability (in thousands):
Year Ended December 31, 2021
Beginning balance$— 
Restructuring charges1,922 
Cash payments(1,137)
Ending balance$785 
v3.22.0.1
Consolidated Statements of Operations Details
12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Abstract]  
Consolidated Statements of Operations Details Consolidated Statements of Operations Details
Other (expense) income, net, net consists of the following (in thousands):
Years Ended December 31,
202120202019
Loss on early extinguishment of debt(1)
$(78,152)$(4,286)$— 
Loss on change in fair value of derivative instruments, net(1)
(7,148)— — 
Gain on sale of strategic equity investments(2)
12,496 — — 
Interest income6,700 12,783 19,586 
Other632 186 477 
Total other (expense) income, net$(65,472)$8,683 $20,063 
(1) For further information, see Note 10, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Cash and Cash Equivalents, and Investments and Fair Value Measurements.”
v3.22.0.1
Employee Benefit Plan
12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit PlanWe sponsor a 401(k) savings plan for eligible employees and their beneficiaries. Contributions by us are discretionary and participants may contribute, on a pretax basis, a percentage of their annual compensation, not to exceed a maximum contribution amount pursuant to Section 401(k) of the IRC. During the years ended December 31, 2021, 2020, and 2019, matching contributions totaled approximately $2.6 million, $2.2 million and $1.7 million, respectively.
v3.22.0.1
Segment Information
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Our chief operating decision-maker is our Chief Executive Officer who makes resource allocation decisions and reviews financial information presented on a consolidated basis. Accordingly, we have determined that we have a single operating and reportable segment and operating unit structure.

Product Information

We derive our revenues from our Chegg Services and Required Materials product lines. Our Chegg Services primarily include Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Our Required Materials product line includes revenues from print textbooks and eTextbooks.

The following table sets forth our total net revenues for the periods shown for our Chegg Services and Required Materials product lines (in thousands):
Years Ended December 31,
202120202019
Chegg Services$669,894 $521,228 $332,221 
Required Materials106,371 123,110 78,705 
Total net revenues$776,265 $644,338 $410,926 

Our headquarters are located in the United States where we primarily conduct our sales, marketing and customer service activities. During the year ended December 31, 2021, we had revenues of $690.0 million from the United States and $86.3 million internationally. During the years ended December 31, 2020 and 2019, substantially all of our revenue was from the United States. As of December 31, 2021 and 2020, substantially all of our long-lived assets are located in the United States.
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Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts Financial Statement Schedules
Schedule II-Valuation and Qualifying Accounts (in thousands):
 Years Ended December 31, 2021, 2020 and 2019
 
Balance at Beginning of Year
Provision (Release) for Bad DebtsNet Write-offs
Balance at End of Year
Accounts receivable allowance    
2021$153 $57 $(57)$153 
202056 191 (94)153 
2019229 (79)(94)56 
 Years Ended December 31, 2021, 2020 and 2019
 
Balance at Beginning of Year
Provision for RefundsRefunds Issued
Balance at End of Year
Refund reserve    
2021$1,515 $58,553 $(58,676)$1,392 
2020554 44,171 (43,210)1,515 
2019396 24,987 (24,829)554 
All other financial statement schedules are omitted because they are not applicable or the information is included in the Registrant’s consolidated financial statements or related notes.
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Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Use of Estimates
Use of Estimates

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

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

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

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

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

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

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

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

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

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

We maintain an allowance to account for potentially uncollectible receivables. We assess the creditworthiness of our customers based on multiple sources of information, and analyze such factors as our historical bad debt experience, industry and geographic concentrations of credit risk, economic trends, and customer payment history. This assessment requires significant judgment. Because of this assessment, we maintain an allowance for estimated losses resulting from the inability of certain customers to make all of their required payments. In making this estimate, we analyze historical payment performance and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Accounts receivable are written off as a decrease to the allowance when all collection efforts have been exhausted and an account is deemed uncollectible.
Concentration of Credit Risk
Concentration of Credit Risk

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

Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
Depreciation and content amortization expense are generally classified within the corresponding cost of revenues and operating expenses categories on our consolidated statements of operations. The cost of maintenance and repairs is expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in income from operations.
Internal-Use Software and Website Development Costs Internal-Use Software and Website Development CostsWe capitalize certain costs associated with software developed or obtained for internal use and website and application development. We capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding and it is probable that the project will be completed and the software will be used as intended. Such costs are amortized on a straight-line basis over a three year estimated useful life of the related asset. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades.
Business Combinations
Business Combinations

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

Goodwill represents the excess of the fair value of purchase consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. Our indefinite-lived intangible asset represents the internships.com trade name. Goodwill and our indefinite-lived intangible asset are not amortized but rather tested for impairment at least annually on October 1, or more frequently if certain events or indicators of impairment occur between annual impairment tests. We first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. In our qualitative assessment, we consider factors including economic conditions, industry and market conditions and developments, overall financial performance and other relevant entity-specific events in determining whether it is more likely than not that the fair value of our reporting unit is less than the carrying amount. We completed our annual impairment test on October 1st of 2021 and 2020, each of which did not result in any impairment as our qualitative assessment did not indicate that it is more likely than not that the fair value of our reporting unit is less than the carrying amount.
Acquired Intangible Assets, and Other Long-Lived Assets Acquired Intangible Assets and Other Long-Lived AssetsAcquired intangible assets with finite useful lives, which include developed technology, content library, customer lists, trade names, domain names, and non-compete agreements, are amortized over their estimated useful lives. We assess the impairment of acquired intangible assets and other long-lived assets when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.
Leases
Leases

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

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

In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total gross proceeds of $800 million. In April 2018, we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). Collectively, the 2026 notes, 2025 notes, and the 2023 notes are
referred to as the “notes.” The notes, including the embedded conversion features, are accounted for under the traditional convertible debt accounting model entirely as a liability net of unamortized issuance costs. The carrying amount of the liability is classified as a current liability if we have committed to settle with current assets; otherwise, we classify it as a long-term liability as we retain the election to settle conversion requests in shares of our common stock. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative; otherwise, they are classified as derivative instruments and recorded at fair value with changes in fair value recorded in other (expense) income, net on our consolidated statements of operations. The fair value of any derivative instruments related to the notes are determined utilizing Level 2 inputs. Issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. In accounting for conversions of the notes, the carrying amount of the converted notes is reduced by the total consideration paid or issued for the respective converted notes and the difference is recorded to additional paid-in capital on our consolidated balance sheets. In accounting for extinguishments of the notes, the reacquisition price of the extinguished notes is compared to the carrying amount of the respective extinguished notes and a gain or loss is recorded in other (expense) income, net on our consolidated statements of operations.
Textbook Library
Textbook Library

Beginning in January 2020, we began our transition back to print textbook ownership by purchasing print textbooks to establish our textbook library. We consider our print textbook library to be a long-term productive asset and, as such, classify it as a non-current asset on our consolidated balance sheets. All print textbooks in our textbook library are stated at cost, which includes the purchase price less accumulated depreciation. We write down textbooks on a book-by-book basis for lost, damaged, or excess print textbooks.

We depreciate our print textbooks, less an estimated salvage value, over an estimated useful life of four years using an accelerated method of depreciation, as we estimate this method most accurately reflects the actual pattern of decline in their economic value. The salvage value considers the historical trend and projected proceeds for print textbooks. The useful life is determined based on the estimated time period in which the print textbooks are held and rented. We review the estimated salvage value and useful life of our print textbook library on an ongoing basis.
Write-downs for print textbooks, print textbook depreciation expense, the gain or loss on print textbooks liquidated, and the net book value of print textbooks purchased by students at the end of the term or on a just-in-time basis are recorded in cost of revenues on our consolidated statements of operations and classified as adjustments to cash flows from operating activities. Cash outflows for the acquisition of print textbooks net of changes in related accounts payable and accrued liabilities, and cash inflows received from the proceeds from the disposition of print textbooks net of changes in related accounts receivable, are classified as cash flows from investing activities on our consolidated statements of cash flows.
Revenue Recognition and Deferred Revenue
Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated cancellations and customer returns, which are based on historical data. Customer refunds from cancellations and returns are recorded as a reduction to revenues.

We determine revenue recognition through the following steps:

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

We generate revenues from our Chegg Services product line which primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Revenues from Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, and Mathway are primarily recognized ratably over the monthly subscription period. Revenues from Thinkful are recognized either ratably over the term of the course, generally six months, or upon completion of the lessons, depending on the instruction type of the course.

Revenues from our Required Materials product line includes revenues from print textbooks that we own or that are owned by a partner as well as revenues from eTextbooks. Beginning in 2020, our Required Materials product line includes
operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term or rental term, generally a two- to five-month period. Students generally have the option to extend the term of their rental or purchase the print textbook at the end of the term otherwise the print textbook is returned to our print textbook library for future rental. If a student chooses to purchase or not return the print textbook at the end of their rental term, we charge the student for the book and recognize the revenues immediately. Additionally, we provide students the ability to purchase print textbooks on a just-in-time basis and recognize revenues immediately upon shipment. Revenues from print textbooks owned by a partner are recognized as a revenue share on the total transaction amount of a rental or sale transaction immediately when a print textbook ships to a student. Shipping and handling activities are expensed as incurred. Revenues from eTextbooks are recognized ratably over the contractual period, generally a two- to five-month period.

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

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

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

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

We have elected a practical expedient to record incremental costs to obtain or fulfill a contract when the amortization period would have been one year or less as incurred. These incremental costs primarily relate to sales commissions costs and are recorded in sales and marketing expense on our consolidated statements of operations.
Operating leases, lessor Beginning in 2020, our Required Materials product line includes operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term or rental term, generally a two- to five-month period.
Cost of Revenues Cost of RevenuesOur cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of content amortization expense related to content that we develop, license from publishers for which we pay one-time license fees, or acquire through acquisitions, web hosting fees, customer support fees, payment processing costs, amortization of acquired intangible assets, order fulfillment fees primarily related to outbound shipping and fulfillment as well as publisher content fees for eTextbooks, write-downs for print textbooks, the gain or loss on print textbooks liquidated, the net book value of print textbooks purchased by students at the end of the term or on a just-in-time basis, print textbook depreciation expense, personnel costs and other direct costs related to providing content or services. In addition, cost of revenues includes allocated information technology and facilities costs.
Research and Development Costs
Research and Development Costs

Our research and development expenses consist of salaries, benefits, and share-based compensation expense for employees on our product, engineering, and technical teams who are responsible for maintaining our website, developing new products, and improving existing products. Research and development costs also include technology costs to support our research and development, and outside services. We expense substantially all of our research and development expenses as they are incurred.
Advertising Costs Advertising CostsAdvertising costs are expensed as incurred and consist primarily of online advertising and marketing promotional expenditures.
Share-based Compensation Expense
Share-based Compensation Expense

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

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

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

The functional currency of our foreign subsidiaries is the local currency. Adjustments resulting from the translation of foreign currencies into U.S. dollars for balance sheet amounts are based on the exchange rates as of the consolidated balance sheet date. Revenues and expenses are translated at average exchange rates during the period. Foreign currency translation gains or losses are included in accumulated other comprehensive (loss) income as a component of stockholders’ equity on the consolidated balance sheets. Gains or losses resulting from the remeasurement of foreign currency transactions, which are denominated in currencies other than the functional currency, are included in general and administrative expense on the consolidated statements of operations and were not material during the years ended December 31, 2021, 2020 or 2019.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations-Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (ASC) Topic 606 as if the acquirer had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We will early adopt ASU 2021-08 on January 1, 2022 and will apply it prospectively to all business combinations for which the acquisition date occurs on or after such date, such as our acquisition of Busuu. The impact on our financial statements will depend on the contract assets and contract liabilities acquired in business combinations after January 1, 2022. We believe the most significant impacts will be an increase in contract liabilities and goodwill on our consolidated balance sheets.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. ASU 2021-04 aims to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange based on the economic substance of the modification or exchange. Early adoption is permitted and the guidance must be applied prospectively to all modifications or exchanges that occur on or after the date of adoption. The guidance is effective for annual periods beginning after December 15, 2021. We will adopt ASU 2021-04 on January 1, 2022 and do not expect a material impact on our financial statements as a result of the adoption.

Recently Adopted Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. ASU 2020-06 simplifies the guidance in ASC 470-20, Debt - Debt with Conversion and Other Options. Under ASU 2020-06, convertible instruments with embedded conversion features, that are not required to be accounted for as a derivative or that do not result in a substantial premium, are no longer required to be separated from the host contract thereby eliminating the cash conversion feature model. Instead, these convertible debt instruments will be accounted for as a single liability measured at amortized cost under the traditional convertible debt accounting model. ASU 2020-06 also requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. Adoption of ASU 2020-06 resulted in an increase to convertible senior notes of $378.1 million and a decrease to additional paid-in capital of $465.0 million due to the application of the traditional convertible debt model and no longer separating the
embedded conversion feature. Accumulated deficit also decreased by $86.9 million due to the reduction in non-cash interest expense related to the debt discount and we expect interest expense to decrease in future periods. Refer to Note 10, “Convertible Senior Notes” for more information.

In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions for applying reference rate reform to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance is required to be applied immediately and only applies to contract modifications made or hedging relationships entered into or evaluated before December 31, 2022. We do not have any hedging relationships and currently do not have material contracts impacted by reference rate reform, however, we will continue to assess contracts through December 31, 2022.
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Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Useful Lives For Property And Equipment Property and equipment are recorded at cost less accumulated depreciation and content amortization. Depreciation and content amortization are computed using the straight-line method over the following estimated useful lives of the assets:
ClassificationUseful Life
Content
Shorter of the licensed content term or the estimated useful life of 5 years
Leasehold improvements
Shorter of the remaining lease term or the estimated useful life of 5 years
Internal-use software and website development3 years
Furniture and fixtures5 years
Computers and equipment3 years
v3.22.0.1
Revenues (Tables)
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table sets forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):

 Years Ended December 31,Change in 2021Change in 2020
 202120202019$%$%
Chegg Services$669,894 $521,228 $332,221 $148,666 29 %$189,007 57 %
Required Materials106,371 123,110 78,705 (16,739)(14)44,405 56 
Total net revenues$776,265 $644,338 $410,926 $131,927 20 $233,412 57 
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets, and deferred revenue balances (in thousands, except percentages):
 December 31,Change
 20212020$%
Accounts receivable, net$17,850 $12,913 $4,937 38 %
Contract assets14,231 13,243 988 
Deferred revenue35,143 32,620 2,523 
v3.22.0.1
Net Loss Per Share (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):
Years Ended December 31,
2021
2020(1)
2019(1)
Numerator:
Net loss$(1,458)$(6,221)$(9,605)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted141,262 125,367 119,204 
Net loss per share, basic and diluted$(0.01)$(0.05)$(0.08)
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method
Common Shares Outstanding Excluded from Computation of Diluted Net Loss Per Share
The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):
Years Ended December 31,
202120202019
Shares related to stock plan activity2,545 4,470 7,094 
Shares related to convertible senior notes23,300 4,942 3,526 
Total common stock equivalents25,845 9,412 10,620 
v3.22.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, and Investments
The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of December 31, 2021 and 2020 (in thousands, except for fair value level):

 December 31, 2021
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$30,324 $— $— $30,324 
Money market fundsLevel 1823,754 — — 823,754 
Total cash and cash equivalents$854,078 $— $— $854,078 
Short-term investments:   
Commercial paperLevel 2$124,211 $$(33)$124,180 
Corporate debt securitiesLevel 2552,609 36 (546)552,099 
Agency bondsLevel 215,500 — 15,502 
Total short-term investments$692,320 $40 $(579)$691,781 
Long-term investments:
Corporate debt securitiesLevel 2$724,517 $— $(3,277)$721,240 
U.S. treasury securitiesLevel 124,860 — (107)24,753 
Total long-term investments$749,377 $— $(3,384)$745,993 

 December 31, 2020
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$15,054 $— $— $15,054 
Money market fundsLevel 1464,799 — — 464,799 
Total cash and cash equivalents$479,853 $— $— $479,853 
Short-term investments:   
Commercial paperLevel 2$204,152 $24 $(6)$204,170 
Corporate debt securitiesLevel 2459,967 1,478 (48)461,397 
Total short-term investments$664,119 $1,502 $(54)$665,567 
Long-term investments:
Corporate debt securitiesLevel 2$484,275 $605 $(283)$484,597 
Agency bondsLevel 238,995 36 — 39,031 
Total long-term investments$523,270 $641 $(283)$523,628 
Schedule of Available-for-sale Securities Reconciliation
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of December 31, 2021 (in thousands):
December 31, 2021
 CostFair Value
Due in 1 year or less$692,320 $691,781 
Due in 1-2 years749,377 745,993 
Investments not due at a single maturity date823,754 823,754 
Total$2,265,451 $2,261,528 
Fair Value Measurements, Nonrecurring
The carrying amounts and estimated fair values of the notes as of December 31, 2021 and 2020 are as follows (in thousands):
December 31, 2021
December 31, 2020 (1)
 Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
2026 notes$987,691 $840,000 $761,930 $1,129,370 
2025 notes690,464 682,202 640,614 1,456,800 
2023 notes— — 104,378 376,949 
Convertible senior notes, net$1,678,155 $1,522,202 $1,506,922 $2,963,119 
(1) Prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method. Refer to Note 10, “Convertible Senior Notes” for more information.
v3.22.0.1
Long-Lived Assets (Tables)
12 Months Ended
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of textbook library assets
Textbook library, net consisted of the following (in thousands):
December 31,
20212020
Textbook library$27,569 $47,293 
Less accumulated depreciation(16,328)(13,144)
Textbook library, net$11,241 $34,149 
Property, plant and equipment
Property and equipment, net consisted of the following (in thousands):
December 31,
20212020
Content$258,005 $181,938 
Internal-use software and website development29,711 15,646 
Leasehold improvements19,913 19,574 
Furniture and fixtures4,352 3,891 
Computer and equipment3,370 3,368 
Property and equipment315,351 224,417 
Less accumulated depreciation and amortization(145,413)(98,610)
Property and equipment, net$169,938 $125,807 
v3.22.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table presents the total allocation of purchase consideration recorded on our consolidated balance sheet as of the acquisition date (in thousands):
 Mathway
Cash$712 
Accounts receivable1,132 
Other acquired assets779 
Acquired intangible assets30,320 
Total identifiable assets acquired32,943 
Deferred revenue(1,423)
Liabilities assumed(727)
Net identifiable assets acquired30,793 
Goodwill70,167 
Total fair value of purchase consideration$100,960 
The following table presents the total allocation of purchase consideration recorded on our consolidated balance sheet as of the acquisition date (in thousands):
Thinkful
Cash$51 
Accounts receivable547 
Other acquired assets1,710 
Acquired intangible assets16,360 
Total identifiable assets acquired18,668 
Deferred revenue(2,455)
Liabilities assumed(1,906)
Net identifiable assets acquired14,307 
Goodwill64,893 
Total fair value of purchase consideration$79,200 
Schedule Of Allocation Of Purchase Consideration To Acquired Intangible Assets
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Mathway
AmountWeighted-Average Amortization Period (in months)
Trade name$520 18
Domain names220 18
Customer lists6,220 48
Developed technology23,360 84
Total acquired intangible assets$30,320 75
Schedule Of Purchase Consideration Allocation To Intangible Assets
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Thinkful
AmountWeighted-Average Amortization
Period
(in months)
Trade name$4,430 48
Domain names330 48
Content library6,940 60
Developed technology4,660 36
Acquired intangible assets$16,360 50
v3.22.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Goodwill consists of the following (in thousands):
 Years Ended December 31,
20212020
Beginning balance$285,214 $214,513 
Additions due to acquisitions5,782 70,167 
Foreign currency translation adjustment(707)822 
Measurement period adjustments related to prior acquisitions(526)(288)
Ending balance$289,763 $285,214 
Intangible Assets
Intangible assets as of December 31, 2021 and December 31, 2020 consist of the following (in thousands, except weighted-average amortization period):
 December 31, 2021
Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies76$57,521 $(31,790)$25,731 
Content library6012,230 (6,836)5,394 
Customer lists4716,190 (12,432)3,758 
Trade and domain names4411,613 (9,530)2,083 
Indefinite-lived trade name— 3,600 — 3,600 
Total intangible assets65$101,154 $(60,588)$40,566 
 
 December 31, 2020
 Weighted-Average Amortization
Period
(in months)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies75$54,540 $(24,246)$30,294 
Content library6012,230 (4,390)7,840 
Customer lists4716,190 (10,437)5,753 
Trade and domain names4411,613 (7,888)3,725 
Non-compete agreements312,018 (1,981)37 
Indefinite-lived trade name— 3,600 — 3,600 
Total intangible assets64$100,191 $(48,942)$51,249 
Estimated Future Amortization Expense Related to Intangible Assets
As of December 31, 2021, the estimated future amortization expense related to our intangible assets is as follows (in thousands):
2022$11,303 
20239,173 
20246,121 
20254,307 
20263,959 
Thereafter2,103 
Total$36,966 
v3.22.0.1
Balance Sheet Details (Tables)
12 Months Ended
Dec. 31, 2021
Balance Sheet Details [Abstract]  
Schedule of Other Current Assets
Other current assets consist of the following (in thousands):
December 31,
20212020
Insurance recovery related to loss contingency$7,800 $— 
Other16,046 11,846 
Other current assets$23,846 $11,846 
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
December 31,
20212020
Taxes payable$11,127 $6,166 
Loss contingency8,000 — 
Current operating lease liabilities6,663 6,603 
Accrued content related costs6,448 6,273 
Order fulfillment fees6,254 11,430 
Payment processing fees3,419 2,130 
Accrued purchases of long-lived assets2,982 1,588 
Refund reserve1,392 1,515 
Restructuring liability785 — 
Acquisition-related compensation417 9,611 
Accrued escrow related to acquisition— 7,451 
Other19,722 15,798 
Accrued liabilities$67,209 $68,565 
v3.22.0.1
Convertible Senior Notes (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule Of Net Proceeds From Debt Issuance
The total net proceeds from the notes are as follows (in thousands):
2026 Notes2025 Notes2023 Notes
Principal amount$1,000,000 $800,000 $345,000 
Less initial purchasers’ discount(15,000)(18,998)(8,625)
Less other issuance costs(904)(822)(757)
Net proceeds$984,096 $780,180 $335,618 
Schedule of Debt
The net carrying amount of the notes is as follows (in thousands):
December 31, 2021
December 31, 2020(1)
2026 Notes2025 Notes2026 Notes2025 Notes2023 Notes
Principal amount$1,000,000 $699,982 $1,000,000 $800,000 $115,576 
Unamortized debt discount— — (226,732)(149,138)(9,953)
Unamortized issuance costs(12,309)(9,518)(11,338)(10,248)(1,245)
Net carrying amount (liability)$987,691 $690,464 $761,930 $640,614 $104,378 
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.
Schedule Of Interest Expense Recognized
The following table sets forth the total interest expense recognized related to the notes (in thousands):
Years Ended December 31,
2021
2020(1)
2019(1)
2026 notes:
Amortization of debt discount$— $14,568 $— 
Amortization of issuance costs2,635 728 — 
Total 2026 notes interest expense$2,635 $15,296 $— 
2025 notes:
Contractual interest expense$896 $1,001 $769 
Amortization of debt discount— 35,561 27,302 
Amortization of issuance costs3,045 2,443 1,876 
Total 2025 notes interest expense$3,941 $39,005 $29,947 
2023 notes:
Contractual interest expense$78 $691 $862 
Amortization of debt discount— 10,073 12,536 
Amortization of issuance costs242 1,200 1,488 
Total 2023 notes interest expense$320 $11,964 $14,886 
(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.
v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lessee, Operating Lease, Liability, Maturity
The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of December 31, 2021, are as follows (in thousands):
December 31, 2021
2022$7,435 
20235,599 
20242,559 
20251,823 
20261,869 
Thereafter1,750 
Total future minimum lease payments21,035 
Less imputed interest(1,925)
Total operating lease liabilities$19,110 
v3.22.0.1
Common Stock (Tables)
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Schedule of Common Stock Reserved for Future Issuance As of December 31, 2021, we have reserved the following shares of our common stock for future issuance:
December 31, 2021
Outstanding stock options381,756 
Outstanding RSUs and PSUs8,171,462 
Shares available for grant under the 2013 Plan30,629,068 
Shares available for issuance under the 2013 ESPP9,814,172 
Total common shares reserved for future issuance48,996,458 
v3.22.0.1
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense for Employees and Non-Employees
Total share-based compensation expense recorded for employees and non-employees, is as follows (in thousands):
 Years Ended December 31,
 202120202019
Cost of revenues$1,621 $950 $426 
Research and development37,131 31,588 22,229 
Sales and marketing13,887 9,606 7,380 
General and administrative56,207 41,911 34,874 
Total share-based compensation expense$108,846 $84,055 $64,909 
Summary of Assumptions Used to Determine Fair Value of ESPP
The following table summarizes the key assumptions used to determine the fair value of the awards:

Expected term (years)3.00
Expected volatility49.04 %
Expected dividends— %
Risk-free interest rate0.27 %
The following table summarizes the key assumptions used to determine the fair value of rights granted under the 2013 ESPP:
 Years Ended December 31,
 202120202019
Expected term (years)0.500.500.50
Expected volatility
47.02%-99.96%
52.06%-68.09%
40.51%-41.81%
Dividend yield— %— %— %
Risk-free interest rate
0.04%-0.07%
0.12%-0.15%
1.59%-2.43%
Weighted-average grant-date fair value per share$14.70 $20.52 $9.88 
Summary of Restricted Stock Unit Activity
RSUs and PSUs Activity
 RSUs and PSUs Outstanding
 Number of RSUs and PSUs OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20204,816,000 $37.82 
Granted6,758,593 47.95 
Released(2,762,251)34.77 
Forfeited(640,880)48.97 
Balance at December 31, 20218,171,462 $46.36 
Summary of Stock Option Activity
Stock Option Activity
 Options Outstanding
 Number of Options OutstandingWeighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
Balance at December 31, 2020627,317 $7.86 3.48$51,733,285 
Released(245,561)8.78  
Balance at December 31, 2021381,756 $7.28 2.80$8,942,541 
v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision
Our income tax provision consisted of the following (in thousands):
Years Ended December 31,
202120202019
Current income taxes:
Federal$— $— $(185)
State852 459 264 
Foreign7,449 5,010 2,594 
Total current income taxes8,301 5,469 2,673 
Deferred income taxes:
Federal250 187 (17)
State218 255 42 
Foreign(1,572)(551)(64)
Total deferred income taxes(1,104)(109)(39)
Total income tax provision$7,197 $5,360 $2,634 
Schedule of Loss before Provision for Income Taxes
Loss before provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
202120202019
United States$(6,256)$(10,369)$(12,497)
Foreign11,995 9,508 5,526 
Total$5,739 $(861)$(6,971)
Schedule of Effective Income Tax Rate Reconciliation
The differences between our income tax provision as presented in the accompanying consolidated statements of operations and the income tax expense computed at the federal statutory rate consists of the items shown in the following table as a percentage of pretax loss (in percentages):
Years Ended December 31,
202120202019
Income tax at U.S. statutory rate21.0 %21.0 %21.0 %
State, net of federal benefit(232.0)(169.5)(76.3)
Foreign rate differential35.5 (285.9)(19.4)
Share-based compensation(209.0)2,901.5 695.4 
Non-deductible expenses1.5 (50.3)0.4 
Tax credits(28.3)351.6 19.3 
Acquisition related17.2 — 31.8 
Convertible senior notes(2,435.3)(5,854.8)(412.6)
Other0.5 1.2 27.9 
Change in valuation allowance2,954.3 2,462.7 (325.3)
Total125.4 %(622.5)%(37.8)%
Schedule of Deferred Tax Assets and Liabilities
A summary of our deferred tax assets is as follows (in thousands):
As of December 31,
20212020
Deferred tax assets:
Accrued expenses and reserves$6,402 $6,365 
Share-based compensation8,979 6,473 
Accrued compensation— 2,402 
Net operating loss carryforwards188,329 190,904 
Property and equipment, textbooks and intangibles assets1,849 — 
Convertible senior notes32,254 — 
Other items7,221 5,734 
Gross deferred tax assets245,034 211,878 
Valuation allowance(238,317)(151,825)
Total deferred tax assets6,717 60,053 
Deferred tax liabilities:
Property and equipment, textbooks and intangibles assets— (4,066)
Convertible senior notes— (51,607)
Other(7,878)(5,890)
Total deferred tax liabilities(7,878)(61,563)
Net deferred tax liability$(1,161)$(1,510)
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):
Years Ended December 31,
202120202019
Beginning balance$14,654 $10,993 $8,771 
Increase in tax positions for prior years305 479 221 
Decrease in tax positions for prior years(952)(535)(1,550)
Decrease in tax positions for prior year settlement(22)(208)— 
Decrease in tax positions for prior years due to statutes lapsing(426)(26)(164)
Increase in tax positions for current year3,309 3,999 3,722 
Change due to translation of foreign currencies(63)(48)(7)
Ending balance$16,805 $14,654 $10,993 
v3.22.0.1
Restructuring Charges (Tables)
12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve by Type of Cost
The following table summarizes the activity related to the restructuring liability (in thousands):
Year Ended December 31, 2021
Beginning balance$— 
Restructuring charges1,922 
Cash payments(1,137)
Ending balance$785 
v3.22.0.1
Consolidated Statements of Operations Details (Tables)
12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Abstract]  
Schedule of (Expense) Other Income, Net
Other (expense) income, net, net consists of the following (in thousands):
Years Ended December 31,
202120202019
Loss on early extinguishment of debt(1)
$(78,152)$(4,286)$— 
Loss on change in fair value of derivative instruments, net(1)
(7,148)— — 
Gain on sale of strategic equity investments(2)
12,496 — — 
Interest income6,700 12,783 19,586 
Other632 186 477 
Total other (expense) income, net$(65,472)$8,683 $20,063 
(1) For further information, see Note 10, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Cash and Cash Equivalents, and Investments and Fair Value Measurements.”
v3.22.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Revenue by Product Line
The following table sets forth our total net revenues for the periods shown for our Chegg Services and Required Materials product lines (in thousands):
Years Ended December 31,
202120202019
Chegg Services$669,894 $521,228 $332,221 
Required Materials106,371 123,110 78,705 
Total net revenues$776,265 $644,338 $410,926 
v3.22.0.1
Background and Basis of Presentation (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Current operating lease liabilities $ 6,663 $ 6,603
v3.22.0.1
Significant Accounting Policies - Investments (Details)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Weighted average maturity 12 months
v3.22.0.1
Significant Accounting Policies - Concentration of Credit Risk (Details)
12 Months Ended
Dec. 31, 2020
Largest Customer | Customer Concentration Risk | Accounts Receivable  
Concentration Risk [Line Items]  
Concentration risk, percentage 10.00%
v3.22.0.1
Significant Accounting Policies - Property Plant and Equipment (Details)
12 Months Ended
Dec. 31, 2021
Content  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Internal-use software and website development  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Computers and equipment  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Textbook Library  
Property, Plant and Equipment [Line Items]  
Useful life 4 years
v3.22.0.1
Significant Accounting Policies - Convertible Senior Notes (Details) - Convertible Senior Notes - USD ($)
1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
Apr. 30, 2018
Dec. 31, 2021
Dec. 31, 2020
Mar. 31, 2019
0% Convertible Senior Notes Due 2026            
Debt Instrument [Line Items]            
Face amount $ 1,000,000,000     $ 1,000,000,000 $ 1,000,000,000  
Interest rate, stated percentage 0.00%          
Principal amount $ 1,000,000,000          
0.125 Percent Convertible Senior Notes Due 2025            
Debt Instrument [Line Items]            
Face amount       $ 699,982,000 800,000,000 $ 700,000,000
Interest rate, stated percentage           0.125%
Option to purchase additional notes   $ 100,000,000        
Principal amount   $ 800,000,000        
0.25% Convertible Senior Notes Due 2023            
Debt Instrument [Line Items]            
Face amount     $ 345,000,000   $ 115,576,000  
Interest rate, stated percentage     0.25%      
Option to purchase additional notes     $ 45,000,000      
Principal amount     $ 345,000,000      
v3.22.0.1
Significant Accounting Policies - Revenue Recognition (Details)
12 Months Ended
Dec. 31, 2021
Thinkful, Inc  
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]  
Contractual period 6 months
Minimum | Textbook Library  
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]  
Contractual period 2 months
Minimum | eTextbooks  
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]  
Contractual period 2 months
Maximum | Textbook Library  
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]  
Contractual period 5 months
Maximum | eTextbooks  
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]  
Contractual period 5 months
v3.22.0.1
Significant Accounting Policies - Advertising Cost (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]      
Advertising costs $ 45.1 $ 35.3 $ 24.4
v3.22.0.1
Significant Accounting Policies - Share-based Compensation Expense (Details)
1 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Conversion ratio   1
Restricted Stock Units (RSUs) | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   3 years
Restricted Stock Units (RSUs) | Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   4 years
Performance Shares, Market Based Conditions    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards 4 years 4 years
Performance Shares, Financial And Strategic Performance Targets    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of stock awards   3 years
v3.22.0.1
Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity $ 1,106,917   $ 609,635 $ 498,829 $ 410,634
Additional Paid-In Capital          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity 1,449,305   1,030,577 916,095 818,113
Accumulated Deficit          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity $ (337,191)   (422,601) (416,292) (406,576)
Cumulative Effect, Period of Adoption, Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity     (378,138) (88) (111)
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity     (465,006)    
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity     $ 86,868 $ (88) $ (111)
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity   $ 465,000      
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity   86,900      
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | Convertible Senior Notes          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Equity   $ 378,100      
v3.22.0.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Net revenues $ 776,265 $ 644,338 $ 410,926
Change in total net revenues $ 131,927 $ 233,412  
Change in total net revenues, percent 20.00% 57.00%  
Chegg Services      
Disaggregation of Revenue [Line Items]      
Net revenues $ 669,894 $ 521,228 332,221
Change in total net revenues $ 148,666 $ 189,007  
Change in total net revenues, percent 29.00% 57.00%  
Required Materials      
Disaggregation of Revenue [Line Items]      
Net revenues $ 106,371 $ 123,110 $ 78,705
Change in total net revenues $ (16,739) $ 44,405  
Change in total net revenues, percent (14.00%) 56.00%  
v3.22.0.1
Revenues - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Contract with customer, liability, revenue recognized $ 32.6 $ 18.3 $ 17.0
Contract with customer, liability, revenue recognized, prior period 4.9   $ 3.4
Textbook Library      
Disaggregation of Revenue [Line Items]      
Operating lease income $ 34.6 $ 50.8  
v3.22.0.1
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 17,850 $ 12,913
Change in accounts receivable $ 4,937  
Change in accounts receivable, percent 38.00%  
Contract assets $ 14,231 13,243
Change in contract assets $ 988  
Change in contract assets, percent 7.00%  
Deferred revenue $ 35,143 $ 32,620
Change in deferred revenue $ 2,523  
Change in deferred revenue, percent 8.00%  
v3.22.0.1
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net loss $ (1,458) $ (6,221) $ (9,605)
Denominator:      
Weighted average shares used to compute net loss per share, basic (in shares) 141,262 125,367 119,204
Weighted average shares used to compute net loss per share, diluted (in shares) 141,262 125,367 119,204
Net Loss Per Share, basic (in dollars per share) $ (0.01) $ (0.05) $ (0.08)
Net Loss Per Share, diluted (in dollars per share) $ (0.01) $ (0.05) $ (0.08)
v3.22.0.1
Net Loss Per Share - Shares Excluded From Computation Of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 25,845 9,412 10,620
Shares related to stock plan activity      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 2,545 4,470 7,094
Shares related to convertible senior notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total common stock equivalents (in shares) 23,300 4,942 3,526
v3.22.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Schedule of Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost $ 2,265,451  
Fair Value 2,261,528  
Cash and cash equivalents:    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 854,078 $ 479,853
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 854,078 479,853
Cash and cash equivalents: | Cash    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 30,324 15,054
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 30,324 15,054
Cash and cash equivalents: | Money market funds | Level 1    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 823,754 464,799
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 823,754 464,799
Short-term investments:    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 692,320 664,119
Unrealized Gain 40 1,502
Unrealized Loss (579) (54)
Fair Value 691,781 665,567
Short-term investments: | Commercial paper | Level 2    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 124,211 204,152
Unrealized Gain 2 24
Unrealized Loss (33) (6)
Fair Value 124,180 204,170
Short-term investments: | Corporate debt securities | Level 2    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 552,609 459,967
Unrealized Gain 36 1,478
Unrealized Loss (546) (48)
Fair Value 552,099 461,397
Short-term investments: | Agency bonds | Level 2    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 15,500  
Unrealized Gain 2  
Unrealized Loss 0  
Fair Value 15,502  
Long-term investments:    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 749,377 523,270
Unrealized Gain 0 641
Unrealized Loss (3,384) (283)
Fair Value 745,993 523,628
Long-term investments: | Corporate debt securities | Level 2    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 724,517 484,275
Unrealized Gain 0 605
Unrealized Loss (3,277) (283)
Fair Value 721,240 484,597
Long-term investments: | Agency bonds | Level 2    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost   38,995
Unrealized Gain   36
Unrealized Loss   0
Fair Value   $ 39,031
Long-term investments: | U.S. treasury securities | Level 1    
Schedule Of Available For Sale Securities [Line Items]    
Adjusted Cost 24,860  
Unrealized Gain 0  
Unrealized Loss (107)  
Fair Value $ 24,753  
v3.22.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Contractual Maturity (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Cash and Cash Equivalents [Abstract]  
Due in 1 year or less, Cost $ 692,320
Due in 1-2 years, Cost 749,377
Investments not due at a single maturity date, Cost 823,754
Adjusted Cost 2,265,451
Due in 1 year or less, Fair Value 691,781
Due in 1-2 years, Fair Value 745,993
Investments not due at a single maturity date, Fair Value 823,754
Total, Fair Value $ 2,261,528
v3.22.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Strategic Investment (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Sep. 30, 2021
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Mar. 31, 2020
Mar. 31, 2017
Schedule of Investments [Line Items]              
Gain on sale of strategic equity investments     $ 12,496 $ 0 $ 0    
Proceeds from sale of strategic equity investments     16,076 0 0    
Impairment charge     $ 0 10,000 $ 0    
TAPD, Inc.              
Schedule of Investments [Line Items]              
Cost method investment           $ 2,000  
Consideration received on sale $ 9,200            
Gain on sale of strategic equity investments 7,200            
Proceeds from sale of strategic equity investments $ 9,000            
Foreign Entity              
Schedule of Investments [Line Items]              
Cost method investment             $ 3,000
Consideration received on sale   $ 8,300          
Gain on sale of strategic equity investments   5,300          
Proceeds from sale of strategic equity investments   $ 7,100          
WayUp, Inc.              
Schedule of Investments [Line Items]              
Impairment charge       $ 10,000      
v3.22.0.1
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Debt (Details) - Convertible Senior Notes - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 1,678,155 $ 1,506,922
Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 1,522,202 2,963,119
0% Convertible Senior Notes Due 2026    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unamortized issuance costs 12,309 11,338
Unamortized debt discount 0 226,732
0% Convertible Senior Notes Due 2026 | Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 987,691 761,930
0% Convertible Senior Notes Due 2026 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 840,000 1,129,370
0.125 Percent Convertible Senior Notes Due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unamortized issuance costs 9,518 10,248
Unamortized debt discount 0 149,138
0.125 Percent Convertible Senior Notes Due 2025 | Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 690,464 640,614
0.125 Percent Convertible Senior Notes Due 2025 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 682,202 1,456,800
0.25% Convertible Senior Notes Due 2023    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unamortized issuance costs   1,245
Unamortized debt discount   9,953
0.25% Convertible Senior Notes Due 2023 | Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 0 104,378
0.25% Convertible Senior Notes Due 2023 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 0 $ 376,949
v3.22.0.1
Long-Lived Assets - Textbook Library (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Property and equipment, gross $ 27,569 $ 47,293  
Less accumulated depreciation and amortization (16,328) (13,144)  
Textbook library, net 11,241 34,149  
Print textbook depreciation expense 10,859 15,397 $ 0
Loss (gain) on textbook library, net $ 10,956 $ (1,453) $ 0
v3.22.0.1
Long-Lived Assets - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Property and equipment $ 315,351 $ 224,417  
Less accumulated depreciation and amortization (145,413) (98,610)  
Property and equipment, net 169,938 125,807  
Depreciation and amortization 49,600 32,600 $ 24,200
Content      
Property, Plant and Equipment [Line Items]      
Property and equipment 258,005 181,938  
Internal-use software and website development      
Property, Plant and Equipment [Line Items]      
Property and equipment 29,711 15,646  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment 19,913 19,574  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment 4,352 3,891  
Computers and equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment $ 3,370 $ 3,368  
v3.22.0.1
Acquisitions - 2022 Acquisition (Details) - Busuu Online S.L. - USD ($)
$ in Millions
12 Months Ended
Jan. 13, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Acquisition related expenses   $ 5.3
Subsequent Event    
Business Acquisition [Line Items]    
Ownership percent of stock acquired 100.00%  
Payments for contingent consideration arrangements $ 417.0  
Contingent consideration arrangements $ 25.0  
v3.22.0.1
Acquisitions - 2021 Acquisition (Details) - USD ($)
$ in Thousands
Feb. 22, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill   $ 289,763 $ 285,214 $ 214,513
Technology Company        
Business Acquisition [Line Items]        
Ownership percent of stock acquired 100.00%      
Payments for contingent consideration arrangements $ 8,000      
Total identifiable assets acquired 400      
Acquired intangible assets 3,300      
Goodwill 5,300      
Liabilities assumed $ 1,000      
v3.22.0.1
Acquisitions - 2020 Acquisition (Details) - Mathway, LLC - USD ($)
$ in Millions
12 Months Ended
Jun. 04, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2021
Business Acquisition [Line Items]        
Ownership percent of stock acquired 100.00%      
Fair value of purchase consideration $ 101.0      
Payments for contingent consideration arrangements 93.5      
Escrow 7.5      
Contingent payments $ 15.0      
Contingent purchase consideration, cash   $ 2.9   $ 0.4
Acquisition related expenses   3.1    
Pro forma net loss   $ 6.1 $ 27.3  
v3.22.0.1
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Jun. 04, 2020
Dec. 31, 2019
Oct. 01, 2019
Business Acquisition [Line Items]          
Goodwill $ 289,763 $ 285,214   $ 214,513  
Mathway, LLC          
Business Acquisition [Line Items]          
Cash     $ 712    
Accounts receivable     1,132    
Other acquired assets     779    
Acquired intangible assets     30,320    
Total identifiable assets acquired     32,943    
Deferred revenue     (1,423)    
Liabilities assumed     (727)    
Net identifiable assets acquired     30,793    
Goodwill     70,167    
Total fair value of purchase consideration     $ 100,960    
Thinkful, Inc          
Business Acquisition [Line Items]          
Cash         $ 51
Accounts receivable         547
Other acquired assets         1,710
Acquired intangible assets         16,360
Total identifiable assets acquired         18,668
Deferred revenue         (2,455)
Liabilities assumed         (1,906)
Net identifiable assets acquired         14,307
Goodwill         64,893
Total fair value of purchase consideration         $ 79,200
v3.22.0.1
Acquisitions - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 04, 2020
Oct. 01, 2019
Mathway, LLC    
Business Acquisition [Line Items]    
Acquired intangible assets $ 30,320  
Weighted-Average Amortization Period (in months) 75 months  
Thinkful, Inc    
Business Acquisition [Line Items]    
Acquired intangible assets   $ 16,360
Weighted-Average Amortization Period (in months)   50 months
Trade name | Mathway, LLC    
Business Acquisition [Line Items]    
Acquired intangible assets $ 520  
Weighted-Average Amortization Period (in months) 18 months  
Trade name | Thinkful, Inc    
Business Acquisition [Line Items]    
Acquired intangible assets   $ 4,430
Weighted-Average Amortization Period (in months)   48 months
Domain names | Mathway, LLC    
Business Acquisition [Line Items]    
Acquired intangible assets $ 220  
Weighted-Average Amortization Period (in months) 18 months  
Domain names | Thinkful, Inc    
Business Acquisition [Line Items]    
Acquired intangible assets   $ 330
Weighted-Average Amortization Period (in months)   48 months
Customer lists | Mathway, LLC    
Business Acquisition [Line Items]    
Acquired intangible assets $ 6,220  
Weighted-Average Amortization Period (in months) 48 months  
Content library | Thinkful, Inc    
Business Acquisition [Line Items]    
Acquired intangible assets   $ 6,940
Weighted-Average Amortization Period (in months)   60 months
Developed technology | Mathway, LLC    
Business Acquisition [Line Items]    
Acquired intangible assets $ 23,360  
Weighted-Average Amortization Period (in months) 84 months  
Developed technology | Thinkful, Inc    
Business Acquisition [Line Items]    
Acquired intangible assets   $ 4,660
Weighted-Average Amortization Period (in months)   36 months
v3.22.0.1
Acquisitions - 2019 Acquisitions (Details) - Thinkful, Inc - USD ($)
$ in Millions
12 Months Ended
Oct. 01, 2019
Dec. 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Ownership percent of stock acquired 100.00%      
Fair value of purchase consideration $ 79.2      
Escrow 9.0      
Contingent consideration arrangements $ 20.0     $ 12.8
Contingent purchase consideration, cash   $ 3.0 $ 0.0 $ 5.7
Acquisition related expenses   1.0    
Consolidated net loss attributed to acquiree since acquisition date   8.6    
Pro forma net loss   $ 25.0    
v3.22.0.1
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Beginning balance $ 285,214 $ 214,513
Additions due to acquisitions 5,782 70,167
Foreign currency translation adjustment (707) 822
Measurement period adjustments related to prior acquisitions (526) (288)
Ending balance $ 289,763 $ 285,214
v3.22.0.1
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period 65 months 64 months
Accumulated Amortization $ (60,588) $ (48,942)
Net Carrying Amount 36,966  
Indefinite-lived trade name 3,600 3,600
Total intangible assets, gross carrying amount 101,154 100,191
Intangible assets, net $ 40,566 $ 51,249
Developed technology    
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period 76 months 75 months
Gross Carrying Amount $ 57,521 $ 54,540
Accumulated Amortization (31,790) (24,246)
Net Carrying Amount $ 25,731 $ 30,294
Content    
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period 60 months 60 months
Gross Carrying Amount $ 12,230 $ 12,230
Accumulated Amortization (6,836) (4,390)
Net Carrying Amount $ 5,394 $ 7,840
Customer lists    
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period 47 months 47 months
Gross Carrying Amount $ 16,190 $ 16,190
Accumulated Amortization (12,432) (10,437)
Net Carrying Amount $ 3,758 $ 5,753
Trade name    
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period 44 months 44 months
Gross Carrying Amount $ 11,613 $ 11,613
Accumulated Amortization (9,530) (7,888)
Net Carrying Amount $ 2,083 $ 3,725
Non-compete agreements    
Finite Lived Intangible Assets [Line Items]    
Weighted-average amortization period   31 months
Gross Carrying Amount   $ 2,018
Accumulated Amortization   (1,981)
Net Carrying Amount   $ 37
v3.22.0.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Acquisition-Related Intangible Assets      
Finite Lived Intangible Assets [Line Items]      
Amortization expense of acquisition related to acquired intangible assets $ 13.7 $ 14.3 $ 7.5
v3.22.0.1
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 11,303
2023 9,173
2024 6,121
2025 4,307
2026 3,959
Thereafter 2,103
Net Carrying Amount $ 36,966
v3.22.0.1
Balance Sheet Details - Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Balance Sheet Details [Abstract]    
Insurance recovery related to loss contingency $ 7,800 $ 0
Other 16,046 11,846
Other current assets $ 23,846 $ 11,846
v3.22.0.1
Balance Sheet Details - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Balance Sheet Details [Abstract]    
Taxes payable $ 11,127 $ 6,166
Loss contingency $ 8,000 $ 0
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Current operating lease liabilities $ 6,663 $ 6,603
Accrued content related costs 6,448 6,273
Order fulfillment fees 6,254 11,430
Payment processing fees 3,419 2,130
Accrued purchases of long-lived assets 2,982 1,588
Refund reserve 1,392 1,515
Restructuring liability 785 0
Acquisition-related compensation 417 9,611
Accrued escrow related to acquisition 0 7,451
Other 19,722 15,798
Accrued liabilities $ 67,209 $ 68,565
v3.22.0.1
Convertible Senior Notes - Convertible Senior Notes (Details)
1 Months Ended 12 Months Ended
Mar. 31, 2021
USD ($)
shares
Aug. 31, 2020
USD ($)
Apr. 30, 2019
USD ($)
Apr. 30, 2018
USD ($)
trading_day
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Debt Instrument [Line Items]                
Net proceeds         $ 0 $ 984,096,000 $ 780,180,000  
Repayments of convertible senior notes         300,762,000 303,967,000 0  
Equity component of 2025/2026 convertible senior notes, net of issuance costs           237,462,000 206,747,000  
Proceeds from exercise of convertible senior notes capped call         69,005,000 77,095,000 0  
Loss on early extinguishments of debt         78,152,000 4,286,000 $ 0  
Convertible Senior Notes | 0% Convertible Senior Notes Due 2026                
Debt Instrument [Line Items]                
Face amount   $ 1,000,000,000     $ 1,000,000,000 1,000,000,000    
Interest rate, stated percentage   0.00%            
Principal amount   $ 1,000,000,000            
Less initial purchasers’ discount   (15,000,000)            
Less other issuance costs   (904,000)            
Net proceeds   $ 984,096,000            
Conversion price (in dollars per share) | $ / shares         $ 107.55      
Conversion ratio   0.0092978            
Convertible Senior Notes | 0% Convertible Senior Notes Due 2026 | Capped Call                
Debt Instrument [Line Items]                
Net proceeds   $ 103,400,000            
Conversion price (in dollars per share) | $ / shares         $ 156.44      
Shares covered by capped call transactions (in shares) | shares         9,297,800      
Convertible Senior Notes | 0% Convertible Senior Notes Due 2026, Additional Notes                
Debt Instrument [Line Items]                
Face amount   $ 100,000,000            
Convertible Senior Notes | 0.125 Percent Convertible Senior Notes Due 2025                
Debt Instrument [Line Items]                
Face amount         $ 699,982,000 800,000,000   $ 700,000,000
Interest rate, stated percentage               0.125%
Option to purchase additional notes     $ 100,000,000          
Principal amount     800,000,000          
Less initial purchasers’ discount     (18,998,000)          
Less other issuance costs     (822,000)          
Net proceeds     $ 780,180,000          
Repurchased principal amount         100,000,000      
Repayments of convertible senior notes $ 184,900,000       $ 184,900,000      
Carrying amount 98,300,000              
Debt extinguished 100,000,000              
Derivative liability 176,500,000              
Gain (loss) in change in fair value 8,400,000              
Loss on early extinguishments of debt $ (78,200,000)              
Conversion price (in dollars per share) | $ / shares         $ 51.56      
Conversion ratio     0.0193956          
Convertible Senior Notes | 0.125 Percent Convertible Senior Notes Due 2025 | Capped Call                
Debt Instrument [Line Items]                
Net proceeds     $ 97,200,000          
Debt instrument, convertible, shares terminated (in shares) | shares 1,939,560              
Proceeds from exercise of convertible senior notes capped call $ 23,900,000              
Derivative liability 22,600,000              
Gain (loss) in change in fair value $ 1,300,000              
Conversion price (in dollars per share) | $ / shares         $ 79.32      
Shares covered by capped call transactions (in shares) | shares         13,576,571      
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023                
Debt Instrument [Line Items]                
Face amount       $ 345,000,000   115,576,000    
Interest rate, stated percentage       0.25%        
Option to purchase additional notes       $ 45,000,000        
Principal amount       345,000,000        
Less initial purchasers’ discount       (8,625,000)        
Less other issuance costs       (757,000)        
Net proceeds       $ 335,618,000        
Repurchased principal amount         $ 115,600,000 57,400,000    
Aggregate consideration         351,100,000      
Repayments of convertible senior notes         115,600,000 149,600,000    
Debt conversion, shares issued, value         235,500,000      
Carrying amount         114,200,000      
Equity component of 2025/2026 convertible senior notes, net of issuance costs         $ 236,900,000      
Conversion price (in dollars per share) | $ / shares         $ 26.95      
Conversion ratio       0.0371051        
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Sale Price Is Greater Or Equal 130%                
Debt Instrument [Line Items]                
Threshold trading days | trading_day       20        
Threshold consecutive trading days | trading_day       30        
Threshold percentage of stock price trigger       130.00%        
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Trading Price Per $1,000 Principal Amount Less Than 98%                
Debt Instrument [Line Items]                
Threshold trading days | trading_day       5        
Threshold consecutive trading days | trading_day       10        
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Trading Price Per $1,000 Principal Amount Less Than 98% | Maximum                
Debt Instrument [Line Items]                
Threshold percentage of stock price trigger       98.00%        
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Exchange Of Aggregate Principal Amount                
Debt Instrument [Line Items]                
Repurchased principal amount           172,000,000    
Repayments of convertible senior notes           $ 174,600,000    
Debt conversion, shares issued (in shares) | shares         2,983,011 4,182,320    
Debt conversion, shares issued, value           $ 327,100,000    
Carrying amount           152,800,000    
Loss on early extinguishments of debt           3,300,000    
Aggregate consideration for principal amount exchanged           501,700,000    
Convertible senior notes           156,100,000    
Debt instrument, equity component           $ 345,600,000    
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Requests For Conversions                
Debt Instrument [Line Items]                
Repurchased principal amount         $ 24,700,000      
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Election Of Option To Redeem Outstanding Notes                
Debt Instrument [Line Items]                
Repurchased principal amount         $ 90,900,000      
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Capped Call                
Debt Instrument [Line Items]                
Debt instrument, convertible, shares terminated (in shares) | shares         4,288,459 6,380,815    
Proceeds from exercise of convertible senior notes capped call         $ 45,200,000 $ 57,400,000    
Convertible Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Extinguishment Of Aggregate Principal Amount                
Debt Instrument [Line Items]                
Repurchased principal amount           57,400,000    
Carrying amount           $ 51,600,000    
Debt instrument, convertible, shares terminated (in shares) | shares           2,131,354    
Proceeds from exercise of convertible senior notes capped call           $ 19,700,000    
Loss on early extinguishments of debt           1,000,000    
Aggregate consideration for principal amount exchanged           149,600,000    
Convertible senior notes           52,600,000    
Debt instrument, equity component           $ 97,000,000    
v3.22.0.1
Convertible Senior Notes - Net Carrying Amount (Details) - Convertible Senior Notes - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Aug. 31, 2020
Mar. 31, 2019
Apr. 30, 2018
0% Convertible Senior Notes Due 2026          
Debt Instrument [Line Items]          
Principal amount $ 1,000,000,000 $ 1,000,000,000 $ 1,000,000,000    
Unamortized debt discount 0 (226,732,000)      
Unamortized issuance costs (12,309,000) (11,338,000)      
0.125 Percent Convertible Senior Notes Due 2025          
Debt Instrument [Line Items]          
Principal amount 699,982,000 800,000,000   $ 700,000,000  
Unamortized debt discount 0 (149,138,000)      
Unamortized issuance costs (9,518,000) (10,248,000)      
0.25% Convertible Senior Notes Due 2023          
Debt Instrument [Line Items]          
Principal amount   115,576,000     $ 345,000,000
Unamortized debt discount   (9,953,000)      
Unamortized issuance costs   (1,245,000)      
Carrying Amount | Fair Value, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount (liability) 1,678,155,000 1,506,922,000      
Carrying Amount | Fair Value, Nonrecurring | 0% Convertible Senior Notes Due 2026          
Debt Instrument [Line Items]          
Net carrying amount (liability) 987,691,000 761,930,000      
Carrying Amount | Fair Value, Nonrecurring | 0.125 Percent Convertible Senior Notes Due 2025          
Debt Instrument [Line Items]          
Net carrying amount (liability) 690,464,000 640,614,000      
Carrying Amount | Fair Value, Nonrecurring | 0.25% Convertible Senior Notes Due 2023          
Debt Instrument [Line Items]          
Net carrying amount (liability) $ 0 $ 104,378,000      
v3.22.0.1
Convertible Senior Notes - Interest Expense Recognized (Details) - Convertible Senior Notes - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
0% Convertible Senior Notes Due 2026      
Debt Instrument [Line Items]      
Amortization of debt discount $ 0 $ 14,568 $ 0
Amortization of issuance costs 2,635 728 0
Total interest expense 2,635 15,296 0
0.125 Percent Convertible Senior Notes Due 2025      
Debt Instrument [Line Items]      
Contractual interest expense 896 1,001 769
Amortization of debt discount 0 35,561 27,302
Amortization of issuance costs 3,045 2,443 1,876
Total interest expense 3,941 39,005 29,947
0.25% Convertible Senior Notes Due 2023      
Debt Instrument [Line Items]      
Contractual interest expense 78 691 862
Amortization of debt discount 0 10,073 12,536
Amortization of issuance costs 242 1,200 1,488
Total interest expense $ 320 $ 11,964 $ 14,886
v3.22.0.1
Leases - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]      
Right of use assets $ 18,062 $ 24,226  
Operating lease liability $ 19,110 $ 25,900  
Weighted average remaining lease term for operating lease 4 years 4 years 7 months 6 days  
Weighted average discount rate used to determine the operating lease liability 4.80% 4.80%  
Lease expense $ 7,100 $ 5,600 $ 5,000
Future minimum lease payments $ 21,035    
Portland, Oregon Office Space      
Lessee, Lease, Description [Line Items]      
Lease term 5 years 6 months    
Future minimum lease payments $ 3,700    
v3.22.0.1
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
2022 $ 7,435  
2023 5,599  
2024 2,559  
2025 1,823  
2026 1,869  
Thereafter 1,750  
Total future minimum lease payments 21,035  
Less imputed interest (1,925)  
Total operating lease liabilities $ 19,110 $ 25,900
v3.22.0.1
Commitments and Contingencies (Details)
$ in Thousands
Aug. 12, 2020
claim
Jul. 01, 2020
claim
May 12, 2020
USD ($)
claim
Jul. 21, 2020
USD ($)
VitalSource Technologies LLC (VST) vs. Chegg | Pending Litigation        
Loss Contingencies [Line Items]        
Estimate of possible loss | $       $ 75
2018 Data Incident, Arbitration Demands        
Loss Contingencies [Line Items]        
Number of arbitration demands filed | claim 577      
2018 Data Incident, Arbitration Demands | Pending Litigation        
Loss Contingencies [Line Items]        
Number of arbitration demands filed | claim   1,007 15,107  
Damages sought, value | $     $ 25  
v3.22.0.1
Common Stock (Details) - $ / shares
Nov. 11, 2013
Aug. 29, 2013
Dec. 31, 2021
Dec. 31, 2020
Class of Stock [Line Items]        
Common stock, shares authorized (in shares)     400,000,000 400,000,000
Common stock, par value (in dollars per share)     $ 0.001 $ 0.001
Outstanding stock options     381,756 627,317
Total common shares reserved for future issuance     48,996,458  
2013 Plan        
Class of Stock [Line Items]        
Shares available for grant under the 2013 Plan     30,629,068  
Total common shares reserved for future issuance 12,000,000      
Award exercise price as percent of fair market value of common stock on grant date threshold 100.00%      
Expiration period 10 years      
2013 Employee Stock Purchase Plan        
Class of Stock [Line Items]        
Total common shares reserved for future issuance     9,814,172  
Maximum employee subscription rate   15.00%    
Employee discount on applicable offering period   15.00%    
Offering period (no more than 6 months)   6 months    
Shares reserved   4,000,000    
Maximum aggregate number of shares to be issued   20,000,000    
2005 Stock Incentive Plan        
Class of Stock [Line Items]        
Total common shares reserved for future issuance 3,838,985      
PSUs and RSUs        
Class of Stock [Line Items]        
Outstanding RSUs and PSUs     8,171,462 4,816,000
v3.22.0.1
Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Thousands
1 Months Ended 2 Months Ended 3 Months Ended 12 Months Ended
Dec. 03, 2021
USD ($)
transaction
shares
Aug. 29, 2013
Mar. 31, 2024
Nov. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
$ / shares
shares
Feb. 28, 2021
USD ($)
$ / shares
shares
Mar. 31, 2020
Mar. 31, 2019
Feb. 22, 2022
shares
Feb. 22, 2022
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Purchase price                     $ 300,000 $ 0 $ 20,000
Stock repurchase program, increase of authorized amount       $ 500,000                  
Stock repurchase program, authorized amount       $ 1,000,000                  
Repayments of convertible senior notes                     300,762 $ 303,967 $ 0
Remaining under repurchase program                     365,500    
Capitalized share-based compensation expense                     $ 2,600    
Stock issued under ESPP (in shares) | shares                     167,890 173,992 201,581
Weighted average purchase price of shares purchased (in dollars per share) | $ / shares                     $ 40.35 $ 38.85 $ 25.55
Stock option awards (in shares) | shares                     0 0 0
Exercises in period, intrinsic value                     $ 10,700 $ 53,500 $ 90,800
Public Offering                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Number of shares issued and sold (in shares) | shares           10,974,600              
Offering price per share (in dollars per share) | $ / shares           $ 102.00              
Proceeds from the offering           $ 1,091,500              
Sale of stock, underwriting discounts and commissions           26,900              
Sale of stock, offering expenses           $ 1,100              
0.125 Percent Convertible Senior Notes Due 2025 | Convertible Senior Notes                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Repurchased principal amount                     100,000    
Repayments of convertible senior notes         $ 184,900           184,900    
0.25% Convertible Senior Notes Due 2023 | Convertible Senior Notes                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Repurchased principal amount                     115,600 57,400  
Repayments of convertible senior notes                     115,600 $ 149,600  
RSUs and PSUs                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Unrecognized compensation costs related to restricted stock units                     $ 273,000    
Weighted average vesting period for recognition of compensation expense                     2 years 7 months 6 days    
Performance based restricted stock unit award granted to executive officers (in shares) | shares                     6,758,593    
Performance based restricted stock unit award granted weighted average grant date fair value (in dollars per share) | $ / shares                     $ 47.95 $ 45.37 $ 37.56
Total fair value of awards vested                     $ 232,000 $ 200,100 $ 222,300
Employee stock purchase plan                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Expected term                     6 months 6 months 6 months
Proceeds from issuance of shares under ESPP                     $ 6,800 $ 6,800 $ 5,100
Performance Shares, Market Based Conditions                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Target level of award         100.00%                
Consecutive trading days achieving maximum average market value         60 days                
Share based arrangement by share based payment award, performance period         3 years                
Vesting period of stock awards         4 years           4 years    
Performance based restricted stock unit award granted to executive officers (in shares) | shares         732,260                
Performance based restricted stock unit award granted weighted average grant date fair value (in dollars per share) | $ / shares         $ 68.55                
Expected term                     3 years    
Performance Shares, Market Based Conditions | Forecast                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage     50.00%                    
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche One                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share) | $ / shares         $ 123.81                
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares) | shares         244,086                
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche Two                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share) | $ / shares         $ 148.58                
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares) | shares         488,173                
Performance Shares, Market Based Conditions | Share-based Payment Arrangement, Tranche Three                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Share based arrangement by share based payment award, market value per share price minimum threshold (in dollars per share) | $ / shares         $ 173.34                
Share based arrangement by share based payment award, stock issued based on achieving target levels (in shares) | shares         732,260                
Performance Shares, Market Based Conditions | Minimum                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Stock issued as percent of target level of achieving maximum average market value         50.00%                
Performance Shares, Market Based Conditions | Maximum                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Stock issued as percent of target level of achieving maximum average market value         150.00%                
2013 Employee Stock Purchase Plan                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Offering period (no more than 6 months)   6 months                      
March 2021 PSU Grants, 2013 Plan | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Vesting period of stock awards         3 years                
March 2020 PSU Grants | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Performance based restricted stock unit award granted to executive officers (in shares) | shares                     278,644 460,976  
A2020 Performance Period | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Performance based restricted stock unit award granted weighted average grant date fair value (in dollars per share) | $ / shares                     $ 99.05 $ 39.21  
March 2020 PSU Grants, 2013 Plan | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Vesting period of stock awards             3 years            
2013 Plan | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Vesting period of stock awards               3 years          
March 2019 PSU Grants | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Performance based restricted stock unit award granted to executive officers (in shares) | shares                         436,042
2019 Performance Period | Performance-based restricted stock units                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Performance based restricted stock unit award granted weighted average grant date fair value (in dollars per share) | $ / shares                         $ 40.42
Accelerated Share Repurchase Program                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Number of transactions | transaction 2                        
Purchase price $ 300,000                   $ 300,000    
Stock repurchased and retired during period, shares (in shares) | shares 8,403,361                        
Stock repurchased and retired during period, percentage 80.00%                        
Accelerated Share Repurchase Program | Subsequent Event                          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                          
Stock repurchased and retired during period, shares (in shares) | shares                 2,163,219 10,566,580      
Stock repurchased and retired during the period, weighted-average price (in dollars per share) | $ / shares                   $ 28.3914      
v3.22.0.1
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 108,846 $ 84,055 $ 64,909
Cost of revenues      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 1,621 950 426
Research and development      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 37,131 31,588 22,229
Sales and marketing      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 13,887 9,606 7,380
General and administrative      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 56,207 $ 41,911 $ 34,874
v3.22.0.1
Stockholders' Equity - Summary of Assumptions (Details) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Performance Shares, Market Based Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 3 years    
Expected volatility 49.04%    
Dividend yield 0.00%    
Risk-free interest rate 0.27%    
Employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 6 months 6 months 6 months
Dividend yield 0.00% 0.00% 0.00%
Weighted-average grant-date fair value per share (in dollars per share) $ 14.70 $ 20.52 $ 9.88
Employee stock purchase plan | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 47.02% 52.06% 40.51%
Risk-free interest rate 0.04% 0.12% 1.59%
Employee stock purchase plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 99.96% 68.09% 41.81%
Risk-free interest rate 0.07% 0.15% 2.43%
v3.22.0.1
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - RSUs and PSUs - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock Units Outstanding      
Number of Restricted Stock Units Outstanding, Beginning (in shares) 4,816,000    
Number of Restricted Stock Units, Granted (in shares) 6,758,593    
Number of Restricted Stock Units, Released (in shares) (2,762,251)    
Number of Restricted Stock Units, Forfeited (in shares) (640,880)    
Number of Restricted Stock Units Outstanding, Ending (in shares) 8,171,462 4,816,000  
Weighted-Average Grant Date Fair Value      
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) $ 37.82    
Weighted Average Grant Date Fair Value, Granted (in dollars per share) 47.95 $ 45.37 $ 37.56
Weighted Average Grant Date Fair Value, Released (in dollars per share) 34.77    
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) 48.97    
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) $ 46.36 $ 37.82  
v3.22.0.1
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Number of Options Outstanding    
Number of Options Outstanding, Beginning (shares) 627,317  
Number of Options, Released (shares) (245,561)  
Number of Options Outstanding, Ending (shares) 381,756 627,317
Weighted-Average Exercise Price per Share    
Weighted Average Exercise Price per Share, Outstanding, Beginning (in dollars per share) $ 7.86  
Weighted-Average Exercise Price per Share, Released (in dollars per share) 8.78  
Weighted Average Exercise Price per Share, Outstanding, Ending (in dollars per share) $ 7.28 $ 7.86
Options outstanding, weighted-average remaining contractual term 2 years 9 months 18 days 3 years 5 months 23 days
Options outstanding, aggregate intrinsic value $ 8,942,541 $ 51,733,285
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]      
Provision for income taxes $ 7,197 $ 5,360 $ 2,634
Increase in valuation allowance 86,500 3,300  
Interest and penalties related to uncertain tax positions, increase (decrease) 100 100 $ 45
Interest and penalties accrued related to uncertain tax positions 300 $ 200  
Unrecognized tax benefits that would impact the effective tax rate 4,500    
Federal      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 660,000    
Tax credit carryforwards 21,400    
State      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 485,000    
Tax credit carryforwards $ 15,700    
v3.22.0.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current income taxes:      
Federal $ 0 $ 0 $ (185)
State 852 459 264
Foreign 7,449 5,010 2,594
Total current income taxes 8,301 5,469 2,673
Deferred income taxes:      
Federal 250 187 (17)
State 218 255 42
Foreign (1,572) (551) (64)
Total deferred income taxes (1,104) (109) (39)
Total income tax provision $ 7,197 $ 5,360 $ 2,634
v3.22.0.1
Income Taxes - Loss before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
United States $ (6,256) $ (10,369) $ (12,497)
Foreign 11,995 9,508 5,526
Income (loss) before provision for income taxes $ 5,739 $ (861) $ (6,971)
v3.22.0.1
Income Taxes - Effective Income Tax Reconciliation (Details)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Income tax at U.S. statutory rate 21.00% 21.00% 21.00%
State, net of federal benefit (232.00%) (169.50%) (76.30%)
Foreign rate differential 35.50% (285.90%) (19.40%)
Share-based compensation (209.00%) 2901.50% 695.40%
Non-deductible expenses 1.50% (50.30%) 0.40%
Tax credits (28.30%) 351.60% 19.30%
Acquisition related 17.20% 0.00% 31.80%
Convertible senior notes (2435.30%) (5854.80%) (412.60%)
Other 0.50% 1.20% 27.90%
Change in valuation allowance 2954.30% 2462.70% (325.30%)
Total 125.40% (622.50%) (37.80%)
v3.22.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Accrued expenses and reserves $ 6,402 $ 6,365
Share-based compensation 8,979 6,473
Accrued compensation 0 2,402
Net operating loss carryforwards 188,329 190,904
Property and equipment, textbooks and intangibles assets 1,849 0
Convertible senior notes 32,254 0
Other items 7,221 5,734
Gross deferred tax assets 245,034 211,878
Valuation allowance (238,317) (151,825)
Total deferred tax assets 6,717 60,053
Deferred tax liabilities:    
Property and equipment, textbooks and intangibles assets 0 (4,066)
Convertible senior notes 0 (51,607)
Other (7,878) (5,890)
Total deferred tax liabilities (7,878) (61,563)
Net deferred tax liability $ (1,161) $ (1,510)
v3.22.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 14,654 $ 10,993 $ 8,771
Increase in tax positions for prior years 305 479 221
Decrease in tax positions for prior years (952) (535) (1,550)
Decrease in tax positions for prior year settlement (22) (208) 0
Decrease in tax positions for prior years due to statutes lapsing (426) (26) (164)
Increase in tax positions for current year 3,309 3,999 3,722
Change due to translation of foreign currencies (63) (48) (7)
Ending balance $ 16,805 $ 14,654 $ 10,993
v3.22.0.1
Related-Party Transactions (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
board_member
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Chief Executive Officer | Adobe Systems | Purchased Services      
Related Party Transaction [Line Items]      
Purchases from related party $ 2.4 $ 1.7 $ 2.1
Revenue from related parties 0.0 0.1 0.2
Due to related parties 0.0 0.1  
Receivable from related parties $ 0.0 0.0  
Immediate Family Member of Management or Principal Owner | PayPal Holdings, Inc. | Payment Processing Fees      
Related Party Transaction [Line Items]      
Number of board members appointed to Board of Directors of related party | board_member 1    
Expenses from transactions with related party $ 2.8 2.1 1.6
Board of Directors Member | Zuora, Inc. | Purchased Services      
Related Party Transaction [Line Items]      
Purchases from related party 1.9 1.3  
Due to related parties $ 0.0 0.0  
Number of board members appointed to chief executive officer of related party | board_member 1    
Board of Directors Member | San Francisco 49ers | Purchased Advertisements      
Related Party Transaction [Line Items]      
Purchases from related party $ 0.2 $ 0.1 $ 0.2
Number of board members appointed to chief executive officer of related party | board_member 1    
v3.22.0.1
Restructuring Charges - Additional Information (Details)
$ in Thousands
1 Months Ended 12 Months Ended
Sep. 30, 2021
full_time_employee
Sep. 30, 2021
part_time_employee
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Restructuring and Related Activities [Abstract]        
Number of positions impacted 60 100    
Restructuring charges     $ 1,922  
Payments for restructuring     1,137  
Restructuring liability     $ 785 $ 0
v3.22.0.1
Restructuring Charges - Accrual For Restructuring Activity (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 0
Restructuring charges 1,922
Cash payments (1,137)
Ending balance $ 785
v3.22.0.1
Consolidated Statements of Operations Details (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Other Income and Expenses [Abstract]      
Loss on early extinguishments of debt $ (78,152) $ (4,286) $ 0
Loss on change in fair value of derivative instruments, net (7,148) 0 0
Gain on sale of strategic equity investments 12,496 0 0
Interest income 6,700 12,783 19,586
Other 632 186 477
Total other (expense) income, net $ (65,472) $ 8,683 $ 20,063
v3.22.0.1
Employee Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]      
Matching contributions $ 2.6 $ 2.2 $ 1.7
v3.22.0.1
Segment Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue from External Customer [Line Items]      
Total Revenue $ 776,265 $ 644,338 $ 410,926
United States      
Revenue from External Customer [Line Items]      
Total Revenue 690,000    
Internationally      
Revenue from External Customer [Line Items]      
Total Revenue 86,300    
Chegg Services      
Revenue from External Customer [Line Items]      
Total Revenue 669,894 521,228 332,221
Required Materials      
Revenue from External Customer [Line Items]      
Total Revenue $ 106,371 $ 123,110 $ 78,705
v3.22.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounts receivable allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 153 $ 56 $ 229
Provision (Release) for Bad Debts 57 191 (79)
Net Write-offs (57) (94) (94)
Balance at End of Year 153 153 56
Refund reserve      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 1,515 554 396
Provision (Release) for Bad Debts 58,553 44,171 24,987
Net Write-offs (58,676) (43,210) (24,829)
Balance at End of Year $ 1,392 $ 1,515 $ 554
v3.22.0.1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-02 [Member]