I recently read an article Forbes ran about Chegg and I wanted to highlight a few stats I found noteworthy.
- Chegg’s estimated 2011 revenue of $200 million was up 38% over 2010.
- Chegg is still seeing 93% of their income from textbooks (new, used, ebooks, and rentals).
- CourseRank, which Chegg acquired in August 2010, has grown from 50,000 users to more than 400,000 users.
- Cramster, which Chegg acquired in December 2010, has doubled its user base.
While the textbook market is changing and new players are making waves, Chegg is positioned to withstand and grow in this new market. They’ve certainly become so much more than the leading rental company and while the Forbes piece didn’t touch upon it explicitly, it’s clear that Chegg has a very strong digital strategy with their acquisition of 3D3R and creation of HTML5 textbooks. And they’ve integrated this with their core business of rental as students can now get their textbooks free for 7 days in digital format while waiting for the rental to arrive.
What’s really important about what’s going on at Chegg is how the company continues to promote itself as the brand of choice for college students. With the reach Chegg’s amassed across the different sites they own, nobody can argue that they can deliver a brand message to the college community. It will be interesting to see how they employ this strategy over the next six months and its clear that they are looking to drive new revenue from this channel.