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26 May 2023

Chegg's Q1 Results Reveal ChatGPT Hindering Subscriber Growth

Chegg's Q1 Results Reveal ChatGPT Hindering Subscriber Growth

Shares of edtech company Chegg still haven't recovered from their dive earlier this month. While Chegg beat analyst expectations for the first quarter of the year, it also raised a warning that didn't fall on deaf ears: It warned that ChatGPT was hindering its ability to add new subscribers. Chegg is particularly vulnerable to competition from generative AI; although you may know it as a place to rent college textbooks, it has also proven an incredibly popular tool for cheating, TechCrunch+ reported.

AI might be the least of edtech's worries by Anna Heim

The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. 'Since March, we saw a significant spike in student interest in ChatGPT. We now believe it's having an impact on our new customer growth rate,' Chegg CEO Dan Rosensweig said during the company's Q1 earnings call.

Chegg, Q1 Results, ChatGPT, Subscriber Growth, Edtech, AI, College Textbooks, Cheating

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