Chegg 2015 Annual Report Download - page 43

Table of Contents
4
PART I
ITEM 1. BUSINESS
Overview
Chegg is the leading student-first connected learning platform. Our goal is to help students transition from high school
to college to career, with a view to improving student outcomes. We help students study more effectively for college admissions
exams, find the right college to accomplish their goals, get better grades and test scores while in school, and find internships
that allow them to gain valuable skills to help them enter the workforce after college. We strive to improve the overall return
on investment in education by helping students learn more in less time and at a lower cost. During 2015, nearly 6.4 million
students turned to Chegg to save time, save money and get smarter.
In 2015, we matched approximately 5.0 million domestic and international students with colleges and universities and
other academic institutions, which we collectively refer to as colleges, in the United States. Students get help finding the best fit
school for them and colleges are able to reach the best candidates at a fraction of the cost of traditional marketing. In November
2015, we also launched Test Prep which is currently designed to help students increase their standardized SAT and ACT exam
scores to improve their chances of getting accepted to a school of their choice. Once in college, we provide a range of products
and services to help students save time, save money and get smarter. We offer Required Materials, which includes products that
are essential for students to meet the requirements of their coursework, including an extensive print textbook and eTextbook
library for rent and sale, in part through our strategic partnership with Ingram Content Group (Ingram). We expect our
partnership with Ingram to allow us to focus primarily on our products and services other than Required Materials, which we
refer to as "Chegg Services". In 2015, we provided over 6.4 million textbooks and eTextbooks, and over 1.4 million students
subscribed to our digital services, such as our Chegg Study service, which provides step-by-step Textbook Solutions and Expert
Answers, helping students with their course work. When students are really stuck, they can reach a live tutor online, anytime,
anywhere. Finally, as of December 31, 2015, we provided access to over 320,000 internships to help students gain skills and
experiences that are critical to securing their first job.
To deliver these services, we partner with several third parties. In 2015, we entered into agreements with over 500
colleges to help shape their incoming classes. During 2015, we sourced print textbooks, eTextbooks and supplemental materials
directly or indirectly from thousands of publishers in the United States, including Pearson, Cengage Learning, McGraw Hill,
Wiley and MacMillan. We have a large network of students and professionals who leverage our platform to tutor in their spare
time. As of December 31, 2015, more than 94,000 employers leverage our platform to post their internships and jobs. In
addition, because we have a large student audience, local and national brands partner with us to reach the college and high
school demographic.
Our Offering
We offer products and services that help students throughout the student lifecycle, from choosing a college while in
high school, through college graduation and beyond. We are continually 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
2015, we received 20.7 million inquiries from students through our College Admissions and Scholarship Services or through
our affiliate network. 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 connect community and junior college students with
“best fit” possibilities to transfer to four-year colleges based on their profile information. 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 as of December 31, 2015.