Chegg, Inc. (NYSE: CHGG), the Student Hub, and The National Research Center for College & University Admissions (NRCCUA) today announced the formation of a new strategic partnership to improve student outcomes in the college selection process. With this deal, NRCCUA will become the exclusive reseller of the direct-to-student digital marketing services that Chegg will continue to provide to colleges and universities. NRCCUA, which already has relationships with thousands of colleges and universities, will immediately assume responsibility for managing, renewing, and maintaining Chegg’s existing university contracts. Chegg will continue to own the student experience, which includes its college and scholarship search, while expanding the number of schools it can help match to best fit students.
“NRCCUA is a longtime champion of lifelong learning. We have a proven history of working directly with college and university admissions offices to help them reach their unique enrollment goals,” said Patrick Vogt CEO of NRCCUA. “This partnership leverages NRCCUA’s data analytics platform, college member reach, and marketing strengths to foster insightful decision making for the institution. Furthermore, the partnership will combine the strengths and deep reach of both companies to provide new and enhanced program offerings to comprehensively serve students seeking to fulfill their potential.”
The two companies have been partners for several years and this new agreement will provide full-service solutions that enable universities to combine data, analytics, technology and digital services to make more informed decisions that help to improve student outcomes.
“This partnership refines Chegg’s focus in the college selection process to building direct-to-student services and relationships while simultaneously and significantly expanding our institutional reach,” said Mike Osier, Chief Outcomes Officer at Chegg. “Students win as Chegg continues to own the student experience, including college and scholarship search, and because we can now help more students than before connect with an expanded number of schools that may be looking for students like them.”
As a result of this partnership, Chegg does not anticipate a change to the 2017 annual guidance provided on its Q3 earnings conference call on November 7, 2016. With the full execution of its agreement with NRCCUA, Chegg anticipates a restructuring charge of approximately $1.0 million, the majority of which will occur in Q1 2017 and which will appear in Chegg’s Annual Report on Form 10-K to be filed with the Securities and Exchange Commission no later than March 16, 2017.
Chegg puts students first. As the leading student-first connected learning platform, the company makes higher education more affordable, more accessible, and more successful for students. Chegg is a publicly-held company based in Santa Clara, California and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.
The National Research Center for College & University Admissions™ is an educational data platform and research organization based in Lee’s Summit, Missouri and Austin, Texas. For 44 years, NRCCUA has been a leading provider of data, technology and programs servicing public and private colleges and universities to enhance their marketing and recruiting efforts. These solutions represent the link between students making important life decisions and providing the resources and information they need to succeed in their post-secondary educations and careers. NRCCUA is part of Sterling Partners’ Education Opportunity Fund. For more information, visit nrccua.org.
SAFE HARBOR STATEMENT
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including Chegg's belief that its partnership with NRCCUA will improve student outcomes in the college selection process, will provide new and enhanced program offerings, will significantly expand the institutional reach of Chegg and will allow Chegg to help more students than before connect with an expanded number of schools; and that Chegg expects approximately a $1.0 million restructuring charge attributable to its partnership with NRCCUA. Therefore, actual results, performance or achievements may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the "Risk Factors" section of Chegg's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016 filed with the Securities and Exchange Commission, or SEC, on November 7, 2016 and Chegg's other SEC filings. You can obtain copies of Chegg's SEC filings on the SEC's website at www.sec.gov or at Chegg's Investor Relations website at investor.chegg.com. The forward-looking statements included herein are made only as of the date hereof, and Chegg undertakes an obligation to revise or update any forward-looking statements for any reason except as required by law.
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