Chegg 2014 Annual Report Download - page 42

Table of Contents
4
Our Offering
We offer products and services that help students throughout the lifecycle, from choosing a college through graduation
and beyond. We are increasingly expanding our offerings at each stage of a student's lifecycle, both for students and for third
parties that share in our vision to put students first.
Enrollment
College Admissions and Scholarship Services. Our College Admissions and Scholarship Services allow high school
students to highlight their interests, passions and personalities in a way that transcripts and standardized tests do not.
During 2014, we received 11.7 million inquiries from students using our College Admissions and Scholarship Services.
Our goal is to connect high school students to the “best fit” educational and scholarship opportunities at colleges. We strive
to present relevant matches for each student, and, in the process, reduce stress, time and costs, while improving student
satisfaction and graduation rates. On Chegg.com, we have begun to connect community and junior college students with
“best fit” possibilities to transfer to four-year colleges based on their profile information, and we have also begun to
connect college students with graduate school opportunities. If a student expresses an interest in a college, her profile
matches the expressed interest of a college, or our matching technology determines she might be a fit with a college in our
network, we offer the student an opportunity to connect with that college. Students in high school or college can use our
“Scholarship Match” tool to create a profile, which includes information such as their high school, GPA, intended major,
demographic background, college preferences and areas of interest. Based on this information, our tool can connect these
students with scholarship opportunities based on their profiles from a total database of more than $1.0 billion in
scholarship and merit aid awards.
Enrollment Marketing Services. We provide approximately 750 colleges with admission and transfer support through our
enrollment marketing services, delivering 5.0 million paid inquiries for interested students during 2014. Using the
information from the college-bound high school students who fill out a profile using our College Admissions and
Scholarship Services and from our affiliate network, we provide colleges with potential candidates and help them attract
and shape their classes much more cost effectively. The inquiries can be based either on students’ expressed preference for
a particular college or matching students’ general preferences with college profiles. We only provide student contact
information to colleges after the student has agreed to be referred. Colleges pay for these services on a per-student basis or
on a subscription fee basis. For colleges, we help significantly reduce the costs of recruiting and support enrollment and
retention rates. Rather than spending hundreds or thousands of dollars per enrollment, colleges that use our enrollment
marketing services can realize recruiting costs of generally less than $100 per student enrolled through our enrollment
marketing services, and we believe they are better able to shape their incoming class, reducing transfers and drop-outs by
using our services.
College
Print Textbooks. Most of our print textbook transactions are rentals, although we also offer both new and used books for
sale at a slight markup to our acquisition cost. In 2014, we implemented a partnership with Ingram, in which Ingram
fulfills portions of our print textbook rentals and sales, and in February 2015 we announced plans to expand this
partnership. We offer a compelling value proposition to students as our rental price is significantly lower than the
purchase price of a new or used book, which are also fulfilled through our strategic partnership with Ingram whereby
Ingram fulfills certain print textbook transactions. Orders are shipped to students in a distinctive orange Chegg box that
typically arrives within three business days. We expect the expanded partnership with Ingram to allow us to shorten the
average book delivery time for students. At the end of the academic term, students are able to return a rented textbook in
this same box for free. We also offer “Instant Access” to eTextbooks with participating publishers, which is a one-week
free trial of our eTextbook service, allowing the student to access the eTextbook while the print copy is in transit. Our data
shows students value this service and find it a great way to learn more about the eTextbook experience.
eTextbooks. All eTextbooks obtained from Chegg are accessed through our proprietary HTML5-web-based eTextbook
Reader. Our eTextbook Reader provides students with access to eTextbooks on PCs, tablets and smart phones, providing
access anytime, anywhere a student is connected to the Internet and giving students the ability to save a portion of the
book for offline access. Our eTextbook Reader enables fast and easy navigation, keyword search and the ability to
highlight text, take notes and preserve those notes in an online notepad with persistence of highlighting and notes across
platforms. During 2014, we rented or sold over 6.1 million print textbooks and eTextbooks.
Supplemental Materials. In addition to textbooks, we offer students access to other materials from publishers, professors,
students and subject matter experts. This includes related materials like study guides, lab manuals or digital services