Chegg 2013 Annual Report Download - page 98

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The following table summarizes our historical consolidated statements of operations data as a percentage of
net revenues for the periods shown:
Year Ended December 31,
2013 2012 2011
Net revenues .................................... 100% 100% 100%
Cost of revenues ................................. 68 68 74
Gross profit .................................... 32 32 26
Operating expenses:
Technology and development .................. 16 18 17
Sales and marketing .......................... 20 24 16
General and administrative .................... 16 12 12
Loss (gain) on liquidation of textbooks ........... — (1) 2
Total operating expenses .................. 52 53 47
Loss from operations ............................. (20) (21) (21)
Interest and other expense, net ...................... (2) (2) (1)
Loss before provision (benefit) for income taxes ....... (22) (23) (22)
Provision (benefit) for income taxes ................. — — —
Net loss ........................................ (22)% (23)% (22)%
Years Ended December 31, 2013, 2012 and 2011
Net Revenues
The following table sets forth our net revenues for the periods shown, in addition to detail of print textbooks
and non-print products and digital services (dollars in thousands):
Year Ended December 31, Change in 2013 Change in 2012
2013 2012 2011 $ % $ %
Print textbooks ................... $203,077 $185,169 $160,392 $17,908 10% $24,777 15%
Non-print products and digital
services ....................... 52,498 28,165 11,626 24,333 86 16,539 142
Net revenues ..................... $255,575 $213,334 $172,018 $42,241 20% $41,316 24%
Net revenues in 2013 increased $42.2 million, or 20%, compared to 2012. The year-over-year increase in
net revenues was the result of an 86% increase in non-print products and digital services due to growth in new
memberships for our Chegg Study service, growth in our enrollment marketing services as we reach more
universities, and an increase in eTextbook volumes. Non-print products and digital services represented 21% of
net revenues during 2013 and 13% of net revenues during 2012. The increase was also the result of a 16%
increase in print textbook rental volumes, partially offset by a reduction in price per rental unit. We anticipate
that our non-print products and digital services will continue to grow at a rate greater than our overall revenue
growth in future periods.
Net revenues in 2012 increased $41.3 million, or 24%, compared to 2011. The increase in net revenues was
due primarily to an increase in print textbook volumes of 22%, resulting from an increase in rental units. Non-
print products and digital services represented 7% of net revenues during 2011 and 13% of net revenues during
2012, increasing by 142% in absolute dollars during 2012 due to a full year of enrollment marketing services as a
result of our acquisition of Zinch in October 2011 and growth in new memberships for our Chegg Study service.
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