Chegg 2015 Annual Report Download - page 50

Table of Contents
11
Available Information
Our website address is www.chegg.com and our Investor Relations website address is investor.chegg.com. Our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed
pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are filed with the
U.S. Securities and Exchange Commission (SEC). We are subject to the informational requirements of the Exchange Act and
file or furnish reports, proxy statements, and other information with the SEC. Such reports and other information filed by the
Company with the SEC are available free of charge on our website at investor.chegg.com when such reports are available on
the SEC’s website. We use our www.chegg.com/mediacenter website as a means of disclosing material non-public information
and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor
www.chegg.com/mediacenter, in addition to following our press releases, SEC filings and public conference calls and
webcasts.
The public may read and copy any materials filed by Chegg with the SEC at the SEC’s Public Reference Room at 100
F Street, NE, Room 1580, Washington, D.C. 20549. The public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and
information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.
The contents of the websites referred to above are not incorporated into this filing. Further, our references to the URLs
for these websites are intended to be inactive textual references only.
ITEM 1A. RISK FACTORS
The risks and uncertainties set forth below, as well as other risks and uncertainties described elsewhere in this Annual
Report on Form 10-K including in our consolidated financial statements and related notes and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” or in other filings by Chegg with the SEC, could adversely affect
our business, financial condition, results of operations and the trading price of our common stock. Additional risks and
uncertainties that are not currently known to us or that are not currently believed by us to be material may also harm our
business operations and financial results. Because of the following risks and uncertainties, as well as other factors affecting our
financial condition and operating results, past financial performance should not be considered to be a reliable indicator of
future performance, and investors should not use historical trends to anticipate results or trends in future periods.
Risks Related to Our Business and Industry
Our limited operating history, recent business model transition and evolving digital offerings make it difficult to evaluate
our current business and future prospects.
Although we began our operations in July 2005, we did not launch our online print textbook rental business until 2007
or begin generating revenues at scale from print textbook rentals until 2010. We began transitioning to a new model for our
Required Materials product line in August 2014 through our strategic partnership with Ingram to accelerate our transition away
from the more capital intensive aspects of the print textbook rental business. We expect to cease maintaining a textbook library
and to be a fully digital company by 2017. We continue to market, use our branding and maintain the customer experience
around print textbook rentals, while Ingram funds all new rental textbook inventory, fulfillment, logistics, and has title and risk
of loss related to textbook rentals for the textbooks they own. The transition may be disruptive to our operations and may
adversely affect our business and results of operations if we are unable to successfully transition these aspects of the print
textbook rental business to Ingram.
Since July 2010, we also have been focused on expanding our other offerings, in many instances through the
acquisition of other companies, to include digital textbooks (eTextbooks), supplemental materials, multiplatform eTextbook
Reader software, Chegg Study, Chegg Tutors, Chegg Test Prep, College Admissions and Scholarship Services, purchases of
used textbooks, internships, careers, college counseling, enrollment marketing services and brand advertising. Our newer
products and services, or any other products and services we may introduce or acquire, may not be integrated effectively into
our business, achieve or sustain profitability or achieve market acceptance at levels sufficient to justify our investment.
Our ability to fully integrate new products and services into our connected learning platform or achieve satisfactory
financial results from them is unproven. Because we have a limited operating history and the market for our products and
services, including newly acquired or developed products and services, is rapidly evolving, it is difficult for us to predict our
operating results, particularly with respect to our newer offerings, and the ultimate size of the market for our products and
services. If the market for a connected learning platform does not develop as we expect, or if we fail to address the needs of this
market, our business will be harmed.