Welcome to The CITE -- a blog on Course materials, Innovation, and Technology in Education, created by Mark Nelson and now part of the Publications Department of the National Association of College Stores. CITE is a pun with multiple meanings - referring to cite as in citation, something people reference; site as in location, website, or place people go to; and sight as in foresight or looking ahead to what is coming. Comments, discussion, feedback and ideas are welcome.

Tuesday, August 20, 2013

Chegg Going Public, Issues IPO

Chegg used to be a Craigslist-type of business for selling and renting textbooks. Now, it bills itself as a “student hub” offering textbook solutions in both print and digital formats, scholarships, study tools, and a place to resell course materials.

Having grown over the years, Chegg is filing an initial public offering that it hopes will raise $150 million. The company is valued at $800 million, generated a net revenue of more than $213 million last year, and has raised nearly $200 million from investors, according to an eCampus News report.

While the company value is impressive, it’s also been piling up impressive losses such as $26 million in red ink in 2010. But the bleeding is beginning to slow with a net loss of $21 million in the first half of 2013, compared to a first-half loss of $32 million in 2012.

“What Chegg must prove to investors is that its growing revenue can be converted to profits,” wrote Alex Wilhelm in a TechCrunch post. “However, given the scale of its raise compared to its current cash position, it doesn’t appear to be in a hurry to reach the black.”

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