It's Tuesday, August 10th, welcome to Marketfoolery, I'm Chris Hill with me today, Maria Gallagher.

Thanks for being here.

Thanks so much for having me.

We've got a trio of second quarter earnings reports and we're going to start with Cheg.

Good results from Cheg.

This is the online education company, Profits and Revenue came in higher than expected.

They also raised guidance for the full fiscal year and shares up around 5%.

This tracks, this seems like the right response for the stock when Cheg's putting up these

kind of numbers and raising their guidance.

Yeah, Cheg's actually been a pretty fascinating story to follow.

It was founded in 2005.

It was initially your place to go to for textbook purchases and rentals.

So it was more of a capital intensive and low margin business.

But then when Amazon invaded that textbook category, it began to expand its service offering.

So in 2015, it shifted that strategy away from the textbook business to the higher margin

learning category.

So it's made a number of acquisitions starting with EasyBib in 2016, most recently thinkful

in 2019 to expand their service offerings.

So I think that Cheg is this really interesting example of kind of a turnaround.

Like you said, last quarter revenue was up 30%.

There are a total of 6.6 million Cheg services subscribers, which is 67% up year over

year.

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