Chegg Inc (CHGG) 2022 Q3 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Chegg, Inc. Third Quarter 2022 Earnings Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Tracey Ford, VP of Investor Relations and ESG. Please go ahead.

謝謝你的支持。這是會議接線員。歡迎來到 Chegg, Inc. 2022 年第三季度收益電話會議。 （操作員說明）會議正在錄製中。 （操作員說明）我現在想將會議轉交給投資者關係和 ESG 副總裁 Tracey Ford。請繼續。

Good afternoon. Thank you for joining Chegg's Third Quarter 2022 Conference Call. On today's call are Dan Rosensweig, Co-Chairperson and CEO; and Andy Brown, Chief Financial Officer. A copy of our earnings press release, along with our investor presentation, is available on our Investor Relations website, investor.chegg.com. A replay of this call will also be available on our website. We routinely post information on our website and intend to make important announcements on our media center website at chegg.com/mediacenter. We encourage you to make use of these resources.

下午好。感謝您加入 Chegg 的 2022 年第三季度電話會議。參加今天電話會議的有聯席主席兼首席執行官 Dan Rosensweig；和首席財務官 Andy Brown。我們的收益新聞稿副本以及我們的投資者介紹可在我們的投資者關係網站 investor.chegg.com 上獲取。本次通話的重播也將在我們的網站上提供。我們定期在我們的網站上發布信息，並打算在我們的媒體中心網站 chegg.com/mediacenter 上發布重要公告。我們鼓勵您使用這些資源。

Before we begin, I would like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of the company. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We caution you to consider the important factors that could cause actual results to differ materially from those in the forward-looking statements.

在我們開始之前，我想指出，在本次電話會議期間，我們將對未來事件做出前瞻性陳述，包括公司未來的財務和經營業績。這些前瞻性陳述受重大風險和不確定因素的影響，可能導致實際結果與前瞻性陳述中的結果存在重大差異。我們提醒您考慮可能導致實際結果與前瞻性陳述中的結果存在重大差異的重要因素。

In particular, we refer you to the cautionary language included in today's earnings release and the risk factors described in Chegg's annual report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2022, as well as our other filings with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

特別是，我們建議您參考今天的收益發布中包含的警示性語言和 Chegg 於 2022 年 2 月 22 日向美國證券交易委員會提交的 10-K 表格年度報告以及我們向美國證券交易委員會提交的其他文件中描述的風險因素秒。我們今天所做的任何前瞻性陳述均基於我們認為截至該日期合理的假設。我們不承擔因新信息或未來事件而更新這些聲明的義務。

During this call, we will present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release on the investor slide deck found on our IR website, investor.chegg.com. We also recommend you review the investor data sheet, which is also posted on our IR website. Now I will turn the call over to Dan.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。我們的 GAAP 結果和 GAAP 與非 GAAP 調節表可以在我們的 IR 網站 investor.chegg.com 上的投資者幻燈片上的收益新聞稿中找到。我們還建議您查看投資者數據表，該表也發佈在我們的 IR 網站上。現在我將把電話轉給丹。

Thank you, Tracey, and welcome, everyone, to our Q3 2022 earnings call. Chegg had a strong third quarter, exceeding both our top and bottom line expectations, with Chegg Services revenue growing 8% year-over-year, reaching 4.8 million subscribers. Our results reflect excellent execution and show the inherent profitability of our model while continuing to invest in future growth. We regularly monitor the trends in education. And as has been reported, U.S. undergraduate enrollment has stabilized and return to pre-pandemic norms.

謝謝 Tracey，歡迎大家參加我們的 2022 年第三季度財報電話會議。 Chegg 第三季度表現強勁，超出了我們的最高和最低預期，Chegg 服務收入同比增長 8%，訂戶達到 480 萬。我們的業績反映了卓越的執行力，並展示了我們模式的內在盈利能力，同時繼續投資於未來的增長。我們定期監測教育趨勢。正如所報導的那樣，美國本科生入學人數已經穩定並恢復到大流行前的水平。

What has changed is that students are increasingly going to schools offering online and hybrid classes, which are now offered by over half of the U.S. higher education institutions. In addition, 59% of U.S. students are now majoring in STEM & Business, with more than 80% taking STEM-B courses. Our data also suggests students are spreading their course load over the full year. We believe these trends are all positive for Chegg.

發生變化的是，學生越來越多地去提供在線和混合課程的學校，現在超過一半的美國高等教育機構都提供這些課程。此外，59% 的美國學生現在主修 STEM & Business，其中超過 80% 的學生選修 STEM-B 課程。我們的數據還表明，學生正在將他們的課程負擔分散到全年。我們相信這些趨勢對 Chegg 都是積極的。

We continue to make investments to increase the value of Chegg's offerings, both to our existing students as well as expand the opportunity to reach new learners. In addition to providing academic support, we are also adding nonacademic services and job skills preparation, which we believe will expand our TAM, increase retention, increase ARPU and better serve students. We believe this is a major opportunity, which is why we recently announced the promotion of Nathan Schultz to Chief Operating Officer.

我們繼續進行投資，以增加 Chegg 產品的價值，既對我們現有的學生，也擴大接觸新學習者的機會。除了提供學術支持外，我們還增加了非學術服務和工作技能準備，我們相信這將擴大我們的 TAM、增加保留率、增加 ARPU 並更好地為學生服務。我們認為這是一個重大機遇，這就是為什麼我們最近宣布將 Nathan Schultz 提升為首席運營官。

Nathan is now responsible for all of our direct-to-student offerings. For those who don't know Nathan, he has been at Chegg for 15 years and has held almost every senior role of the company. Most recently, he and his team built our Learning Services group, launched the Chegg Study Pack and led the integration of Writing and Mathway. This promotion is well deserved, a long time in coming and organizes the company around future growth. Congratulations, Nathan.

Nathan 現在負責我們所有直接面向學生的產品。對於那些不認識 Nathan 的人，他已經在 Chegg 工作了 15 年，幾乎擔任過公司的所有高級職位。最近，他和他的團隊組建了我們的學習服務小組，推出了 Chegg Study Pack 並領導了 Writing 和 Mathway 的整合。這次晉升是當之無愧的，來了很長時間，並圍繞未來的增長組織公司。恭喜你，內森。

This school year, we increased the price of our base product Chegg Study by $1 in the U.S. As expected, we saw a minimal impact on conversion and retention and a positive impact on the take rate for the Chegg Study Pack. Chegg Study and Chegg Study Pack are now renewing at similar rates, and we see the highest satisfaction scores from students using the Chegg Study Pack. Our strategy continues to be to increase our TAM as well as the percentage of students who subscribe to the Chegg Study Pack. This increases our ARPU and profitability and most importantly, serves the students better.

本學年，我們在美國將基本產品 Chegg Study 的價格提高了 1 美元。正如預期的那樣，我們看到對轉化率和保留率的影響微乎其微，並對 Chegg Study Pack 的採用率產生了積極影響。 Chegg Study 和 Chegg Study Pack 現在的更新速度相似，我們看到使用 Chegg Study Pack 的學生的滿意度最高。我們的戰略仍然是增加我們的 TAM 以及訂閱 Chegg Study Pack 的學生比例。這增加了我們的 ARPU 和盈利能力，最重要的是，更好地為學生服務。

As we add more value, we expect to add more students, which is why we continue to invest in more forms of content, subjects and personalization. As an example, our investment in Uversity, which was recently made available to students, is performing well, allowing us to better target the exact learning content students want. In addition to Uversity, our plan is to expand value by adding nonacademic services and job skills preparation in the future.

隨著我們增加更多價值，我們希望增加更多學生，這就是為什麼我們繼續投資於更多形式的內容、主題和個性化。例如，我們最近向學生開放的 Uversity 投資表現良好，使我們能夠更好地針對學生想要的確切學習內容。除了大學之外，我們的計劃是在未來通過增加非學術服務和工作技能準備來擴大價值。

So today, we are pleased to announce our partnership with Calm, the number one platform for mental fitness and well-being and the most preferred wellness brand for college users. Every Chegg Study Pack subscriber globally will now receive Calm Premium for free, which is a $70 annual value. The mental health challenge facing college students is huge. It's real and it's affecting their lives today. With over half the U.S. students reporting that mental health is impacting their studies and nearly 1/3 of students worldwide reporting their mental health has worsened since returning to campus.

因此，今天，我們很高興地宣布與 Calm 建立合作夥伴關係，Calm 是心理健康和幸福的第一平台，也是大學生用戶最喜歡的健康品牌。全球每位 Chegg Study Pack 訂閱者現在都將免費獲得 Calm Premium，即每年價值 70 美元。大學生面臨的心理健康挑戰是巨大的。這是真實的，它正在影響他們今天的生活。超過一半的美國學生報告說心理健康正在影響他們的學習，而全球近 1/3 的學生報告說他們的心理健康在返回校園後已經惡化。

We hope this partnership provides some of the support they need.

我們希望這種夥伴關係能夠提供他們所需的一些支持。

Internationally, we are prioritizing market share growth by delivering compelling value propositions for students in their countries, increasing our subscriber base through local pricing, content and user experience. These efforts are focused on expanding our reach in major markets, including Turkey, where we recently launched a fully localized app and have seen a significant increase in downloads, activation and engagement. We also just launched our Spanish language app in beta, and we believe this will be a major opportunity for us going forward.

在國際上，我們通過為學生所在國家/地區提供令人信服的價值主張，通過本地定價、內容和用戶體驗增加我們的用戶群，優先考慮市場份額的增長。這些努力的重點是擴大我們在包括土耳其在內的主要市場的影響力，我們最近在土耳其推出了一款完全本地化的應用程序，並且下載量、激活和參與度都有顯著增加。我們還剛剛推出了我們的西班牙語應用程序測試版，我們相信這將是我們前進的一個重要機會。

Students' needs continue to evolve, including the growth in demand for language learning. We are expanding the U.S. footprint of Busuu and have just launched an ad-supported freemium model. With over half of U.S. students reporting wanting to learn another language, we see a tremendous opportunity for U.S. growth. Busuu is also now a key part of our growing partnership with Guild. Thanks to the early success of our partnership and our strong outcomes, we are pleased to announce that we are adding Busuu's language learning into Guild marketplace in early 2023.

學生的需求不斷發展，包括對語言學習需求的增長。我們正在擴大 Busuu 在美國的足跡，並且剛剛推出了廣告支持的免費增值模式。超過一半的美國學生表示希望學習另一種語言，我們看到了美國發展的巨大機遇。 Busuu 現在也是我們與 Guild 不斷發展的合作夥伴關係的重要組成部分。由於我們合作夥伴關係的早期成功和我們取得的巨大成果，我們很高興地宣布，我們將在 2023 年初將 Busuu 的語言學習添加到公會市場。

Our partnership with Guild continues to yield excellent results. And as they grow their customer base among large employers, we are seeing increased adoption of our courses as well as a very strong learner completion rate, which is how we are measured for quality and value. We want to thank Guild and look forward to continuing to expand our partnership. The great work we have accomplished would not be possible without our amazing employees. Their tireless work to put students first has once again resulted in recognition for our teams.

我們與 Guild 的合作繼續產生出色的成果。隨著他們在大型雇主中擴大客戶群，我們看到越來越多的人採用我們的課程以及非常高的學習者完成率，這是我們衡量質量和價值的方式。我們要感謝 Guild，並期待繼續擴大我們的合作夥伴關係。沒有我們優秀的員工，我們不可能完成偉大的工作。他們以學生為先的不懈努力再次為我們的團隊贏得了認可。

This quarter, we are proud to win Comparably awards for our benefits and perks and compensation, work-life balance and perhaps most important, happiest employees as well as being recognized as the Fortune Best Workplaces for Women, and for Technology. Also, Chegg employees recently participated in our First Global Day of Impact where we furthered our commitment to put student success and health first.

本季度，我們很自豪地憑藉我們的福利、津貼和薪酬、工作與生活的平衡以及也許最重要、最快樂的員工贏得了 Comparably 獎項，並被《財富》雜誌評為女性和技術最佳工作場所。此外，Chegg 員工最近參加了我們的第一個全球影響力日，我們進一步承諾將學生的成功和健康放在首位。

Together, Chegg volunteers supported 13 global organizations supporting education, hunger, mental health and more. Our teams have helped almost 5,000 students and I couldn't be prouder. And with that, I'll turn it over to Andy.

Chegg 志願者共同支持 13 個支持教育、飢餓、心理健康等領域的全球組織。我們的團隊已經幫助了近 5,000 名學生，我感到無比自豪。有了這個，我會把它交給安迪。

Thanks, Dan, and good afternoon, everyone. Q3 was another good quarter for Chegg with revenue and adjusted EBITDA coming in above the high end of our expected ranges as the momentum we saw in Q2 carried into Q3. During the quarter, we also made a significant capital allocation to reduce our outstanding debt at a material discount to par. With that backdrop, let me walk you through the Q3 results.

謝謝，丹，大家下午好。第三季度對於 Chegg 來說又是一個不錯的季度，收入和調整後的 EBITDA 高於我們預期範圍的高端，因為我們在第二季度看到的勢頭延續到了第三季度。在本季度，我們還進行了大量資本配置，以低於面值的大幅折扣減少我們的未償債務。在此背景下，讓我向您介紹第三季度的結果。

For Q3, total revenue was $165 million. This was driven by Chegg Services revenue growth of 8% year-over-year to $159 million as subscribers grew 9% and to 4.8 million for the quarter. Gross margin continued to be strong and came in above the high end of our expectations at 73%, demonstrating continued leverage in our model. We are also seeing increased leverage in our operating expenses, all while continuing to make significant investments for future growth opportunities.

第三季度，總收入為 1.65 億美元。這是由 Chegg Services 收入同比增長 8% 至 1.59 億美元推動的，因為本季度訂戶增長 9% 至 480 萬。毛利率繼續保持強勁，高於我們 73% 的預期上限，表明我們的模型持續發揮槓桿作用。我們還看到運營費用的槓桿率有所增加，同時繼續為未來的增長機會進行大量投資。

This, combined with the gross margin improvement, resulted in a large adjusted EBITDA beat for the quarter, increasing our expected profitability for the year. Before moving on to the balance sheet, some of you may have noticed that our Q3 GAAP net income of $252 million, exceeded our net revenue of $165 million. Let me explain. There were 2 discrete items that contribute to this. First, during the quarter, we opportunistically repurchased $500 million of our outstanding 2026 notes for $400 million. These notes were trading at a significant discount to par and thus, provided a risk-free return to our shareholders. This resulted in a net gain after certain costs of $94 million and was recorded in the other income line on the income statement.

這與毛利率的提高相結合，導致本季度調整後的 EBITDA 大幅超過預期，從而提高了我們今年的預期盈利能力。在進入資產負債表之前，你們中的一些人可能已經註意到，我們第三季度的 GAAP 淨收入為 2.52 億美元，超過了我們 1.65 億美元的淨收入。讓我解釋。有 2 個獨立的項目對此做出了貢獻。首先，在本季度，我們機會主義地以 4 億美元回購了 5 億美元未償還的 2026 年票據。這些票據的交易價格大大低於面值，因此為我們的股東提供了無風險的回報。這導致扣除某些成本後的淨收益為 9400 萬美元，並記錄在損益表的其他收入行中。

The second item was the release of the vast majority of our valuation allowance against our deferred tax assets of $175 million, which was recorded in the benefit from income taxes line on the income statement. In simple terms, this release was taken because we have shown a consistent track record of GAAP profitability and we expect to remain profitable for the foreseeable future. As such, we now expect to be able to recognize the full benefits of these deferred tax assets.

第二項是釋放我們 1.75 億美元遞延稅資產的絕大部分估值備抵，這記錄在損益表的所得稅收益項中。簡而言之，之所以發布此新聞稿，是因為我們展示了 GAAP 盈利能力的一貫記錄，並且我們預計在可預見的未來仍將保持盈利。因此，我們現在預計能夠確認這些遞延稅項資產的全部收益。

Now looking at the balance sheet. We ended the quarter with $1.2 billion of cash and investments. As mentioned earlier, during the quarter, we used $400 million to retire $500 million of our outstanding debt. We also repurchased 1.1 million shares of our common stock at an average price of $20.10. We believe these actions increase shareholder value and where possible, given the strength of our balance sheet and an operating model that generates significant cash flows.

現在看資產負債表。我們以 12 億美元的現金和投資結束了本季度。如前所述，在本季度，我們用 4 億美元償還了 5 億美元的未償債務。我們還以平均 20.10 美元的價格回購了 110 萬股普通股。我們相信這些行動會增加股東價值，並在可能的情況下，考慮到我們強大的資產負債表和產生大量現金流的運營模式。

Moving on to guidance. With a solid Q3 behind us and the fall semester now in full swing, we have a better understanding of what to expect for the remainder of the year. As a result, we are significantly narrowing the ranges and increasing the midpoints for the year. We are also monitoring global macroeconomic trends around inflation and a possible recession for the potential impact it could have on our business as we enter 2023.

繼續指導。隨著第三季度的穩健發展和秋季學期的全面展開，我們對今年剩餘時間的預期有了更好的了解。因此，我們顯著縮小了今年的範圍並提高了中點。我們還在監測圍繞通貨膨脹和可能出現的經濟衰退的全球宏觀經濟趨勢，以了解它在我們進入 2023 年時可能對我們的業務產生的潛在影響。

For full year 2022, we now expect total revenue to be between $762 million and $765 million, with Chegg Services revenue between $730 million and $733 million, gross margin between 73% and 74% and adjusted EBITDA between $252 million and $255 million or 33% adjusted EBITDA margin and an increase of approximately 280 basis points from our prior guidance. We also expect free cash flow to be at the higher end of our expected range of 50% to 60% of adjusted EBITDA.

對於 2022 年全年，我們現在預計總收入在 7.62 億美元至 7.65 億美元之間，Chegg 服務收入在 7.3 億美元至 7.33 億美元之間，毛利率在 73% 至 74% 之間，調整後的 EBITDA 在 2.52 億美元至 2.55 億美元之間或 33%調整後的 EBITDA 利潤率，比我們之前的指導增加了約 280 個基點。我們還預計自由現金流將處於我們預期範圍的較高端，即調整後 EBITDA 的 50% 至 60%。

This results in Q4 guidance of total revenue to be between $200 million and $203 million, with Chegg Services revenue between $197 million and $200 million, gross margin between 74% and 76% and adjusted EBITDA between $71 million and $74 million or 36% margin.

這導致第四季度總收入指導值在 2 億至 2.03 億美元之間，Chegg 服務收入在 1.97 億美元至 2 億美元之間，毛利率在 74% 至 76% 之間，調整後的 EBITDA 在 7100 萬至 7400 萬美元之間或 36% 的利潤率。

In closing, the Chegg team continues to operate at a high level, and we have a balance sheet and an operating model that is second to none. This allows us to invest in the current business as well as new opportunities such as international expansion and skills to deliver increased profits and cash flows. With that, I'll turn the call over to the operator for your questions.

最後，Chegg 團隊繼續保持高水平運營，我們擁有首屈一指的資產負債表和運營模式。這使我們能夠投資於當前業務以及國際擴張和技能等新機會，以增加利潤和現金流。有了這個，我會把電話轉給接線員來回答你的問題。

(Operator Instructions)

（操作員說明）

Our first question comes from Stephen Sheldon of William Blair.

我們的第一個問題來自威廉·布萊爾的斯蒂芬·謝爾頓。

I guess just on the subscriber trends. I'm curious what trajectory you saw in subscribers coming out of the summer months and then over in the last few months? And did that look any different as you look at the U.S. market versus some of your international markets?

我想只是關於訂戶趨勢。我很好奇您在夏季幾個月和過去幾個月的訂戶中看到了什麼軌跡？當你看美國市場和你的一些國際市場時，這看起來有什麼不同嗎？

Yes, this is Dan. I think we saw what we expected were more on the high end of the range of what we expected. As we said in the summer, we saw a surge in summer school, students starting to make things up. And I think we reported then that 85% of them said that they had an expectation to continue into the fall. And we saw that, and we captured a lot of that, and we're really proud of the execution that we've done. I would say that international because of inflation and other things is a little less consistent.

是的，這是丹。我認為我們看到了我們預期的更多在我們預期範圍的高端。正如我們在夏天所說，我們看到暑期學校激增，學生們開始編造東西。我想我們當時報告說，85% 的人表示他們預計會持續到秋天。我們看到了，我們捕捉到了很多，我們為我們所做的執行感到非常自豪。我會說，由於通貨膨脹和其他因素，國際上不太一致。

The U.S. market was actually stronger. And we're very happy with that stronger in subscriptions and stronger in the percentage of take rate for the bundle. And for renewals, both international and U.S. are doing really well for both the bundle and for renewals. So I would say that what we saw was the stronger end of what we were hoping to see.

美國市場實際上更強勁。我們對訂閱量的增加和捆綁包的採用率的增加感到非常滿意。對於續訂，國際和美國在捆綁和續訂方面都做得很好。所以我會說我們所看到的是我們希望看到的更強大的結局。

Our next question comes from Doug Anmuth of JPMorgan.

我們的下一個問題來自摩根大通的 Doug Anmuth。

It's Bryan Smilek on for Doug. Just to start, can you dig a bit deeper into your commentary around overall back-to-school trends versus pre-pandemic levels? And then just how course load intensity is trending as well? And then just sticking with the macro to how are students at public 2-year colleges responding to the current environment, given they represent a meaningful amount of your sub-base?

Bryan Smilek 代替 Doug。首先，您能否更深入地了解您對整體返校趨勢與大流行前水平的評論？那麼課程負荷強度的趨勢如何？然後只關注宏觀，公立 2 年制大學的學生如何應對當前環境，因為他們代表了你的子基地的一個有意義的數量？

Yes. Here's what we saw. You asked a lot of questions there. What we saw was a stronger incoming freshmen class and return of the previous freshman class. What we haven't seen yet, but I expect that we will at some point is the return of the 15 million people that left to go into the workforce.

是的。這就是我們所看到的。你在那裡問了很多問題。我們看到的是更強大的新生班級和上一屆新生班級的回歸。我們還沒有看到，但我希望我們會在某個時候看到 1500 萬離開勞動力市場的人回歸。

In terms of the workload intensity, we are seeing, as I think our commentary says, we are seeing more students in the semester, they are engaged very highly throughout the semester earlier in the semester, which is why I think we picked up so many subs early in Q3. They're just taking fewer classes, and we think that is a result of the commentary that we said in Q2, which is we think a large portion of students now, particularly state school students, the larger state schools, are considering college 12-month a year versus 2 semesters and the summer off.

就工作量強度而言，正如我認為我們的評論所說，我們看到本學期有更多學生，他們在本學期早些時候整個學期的參與度非常高，這就是為什麼我認為我們獲得了這麼多潛艇在第三季度初。他們只是少上課，我們認為這是我們在第二季度所說的評論的結果，我們認為現在有很大一部分學生，尤其是公立學校的學生，較大的公立學校，正在考慮上大學 12-一年一個月與 2 個學期和暑假。

That's good for us because that's part of the reason we believe we're seeing increased renewal intensity. So from that perspective, the trends that we're seeing are what we saw and we're benefiting from that.

這對我們有好處，因為這是我們相信我們看到更新強度增加的部分原因。因此，從這個角度來看，我們所看到的趨勢就是我們所看到的，我們正在從中受益。

Our next question comes from Mike Grondahl of Northland Securities.

我們的下一個問題來自 Northland Securities 的 Mike Grondahl。

Congrats on the progress. And I guess I was just looking for a little bit of insight into the dollar price increase for new subscribers, I think you launched in July. And you gave some color how that went on your June call, and it was going to be rolled out to existing subscribers in October. Just kind of curious how it went, what you saw and did it truly push more people to the bundle?

祝賀進步。我想我只是想了解一下新訂戶的美元價格上漲，我想你是在 7 月份推出的。你在 6 月的電話會議上給出了一些顏色，並將在 10 月向現有訂戶推出。只是有點好奇它是怎麼回事，你看到了什麼，它真的把更多的人推向了捆綁嗎？

Yes, everything that we were hoping to see we saw. So we didn't see a reduction in conversion when we rolled out the price increase to new subscribers. We saw literally insignificant amounts of nonrenewals when we rolled out the increase to the base, and we saw a multi-point increase in people taking the bundle. So everything that the test suggested we would see, we've seen it now at scale, and that's really good news. And that's, again, reasons why you're seeing, as Andy pointed out in his prepared remarks, just the leverage in our model.

是的，我們希望看到的一切我們都看到了。因此，當我們向新訂戶推出價格上漲時，我們並沒有看到轉化率下降。當我們將增長推廣到基礎時，我們看到了微不足道的非續訂數量，並且我們看到使用捆綁包的人數增加了多點。所以測試表明我們會看到的一切，我們現在已經大規模地看到了，這真是個好消息。正如安迪在他準備好的發言中指出的那樣，這又是您看到我們模型中的槓桿作用的原因。

I think as our revenue grows, our profitability is growing much more significantly and we're generating a lot more cash. So those things are what we expected to see from the price increase and the increased take rate and improvement in renewals. So those were all really good results of the choices we make.

我認為隨著我們收入的增長，我們的盈利能力增長得更快，我們產生的現金也更多。所以這些事情是我們期望從價格上漲、提高的採用率和續訂的改進中看到的。所以這些都是我們所做選擇的真正好結果。

Our next question comes from Ryan MacDonald of Needham.

我們的下一個問題來自 Needham 的 Ryan MacDonald。

Congrats on a nice quarter. Dan, I'm curious, as we think about the continued expansion internationally, you talked about in the prepared remarks your launch of the fully localized app in Turkey. Can you give us a sense of what sort of the pipeline in terms of localization looks like? And potentially what sort of impact we might see on ARPU as these fully localized apps continue to be rolled out and the potential there that this could be offset by in terms of subscriber adoption?

祝賀一個不錯的季度。 Dan，我很好奇，當我們考慮在國際上的持續擴張時，您在準備好的評論中談到了您在土耳其推出完全本地化的應用程序。您能否讓我們了解一下本地化方面的管道是什麼樣的？隨著這些完全本地化的應用程序繼續推出，我們可能會在 ARPU 上看到什麼樣的影響，以及這可能會被訂閱者採用率所抵消？

Yes. I think you're not going to see a noticeable impact on ARPU, given just how big the U.S. is and for a while. I think what you'll see, if we're successful, is what we're seeing in Turkey, which is an increase in downloads, an increase in engagement and increase in conversions and an increase in retention, which are literally a home run. That's what we were hoping to see. The next one we just rolled out, which is Spanish language, as we said we would. We're rolled it out in Mexico. We have no results to report on there.

是的。我認為你不會看到對 ARPU 的顯著影響，因為美國有多大，而且在一段時間內。我認為，如果我們成功，您將看到我們在土耳其看到的情況，即下載量增加、參與度增加、轉化率增加以及保留率增加，這實際上是本壘打.這就是我們希望看到的。正如我們所說的，我們剛剛推出的下一個是西班牙語。我們在墨西哥推出了它。我們沒有結果可報告。

And we talked a while back about 6 regions -- 6 countries where we're focused on, and that's where we'll be doing all of our efforts. And just to remind people, what this allows for is for students to use this in English, use this in their local language, ask a question in English, ask a question in the local language, get a response in English, get a response in their local language. And all of those things increase conversion and retention, which is an increase in profitability.

我們剛才談到了 6 個地區——我們關注的 6 個國家，這就是我們將全力以赴的地方。只是提醒人們，這允許學生用英語使用它，用當地語言使用它，用英語提問，用當地語言提問，用英語得到回應，用英語得到回應他們的當地語言。所有這些都提高了轉化率和保留率，從而提高了盈利能力。

So I think more than a potential impact in the short term on ARPU, you'll see a continued increase in profitability, which is great because every one of these is incremental profit. So that's all good news for us.

所以我認為，除了對 ARPU 的短期潛在影響之外，你還會看到盈利能力的持續增長，這很好，因為每一個都是增量利潤。所以這對我們來說都是好消息。

Our next question comes from Jeff Gilbert of BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Jeff Gilbert。

This is Ryan on for Jeff. I was just wondering how did traffic trend throughout the quarter? Was the lift in September and now October in line with expectations as kids went back to school?

這是傑夫的瑞安。我只是想知道整個季度的流量趨勢如何？隨著孩子們重返學校，9 月和現在 10 月的增長是否符合預期？

Yes. We -- part of what we said at the very beginning of this year is what Andy has articulated is we wanted to get back to when we had 19 straight quarters of making and then improving our guidance, which is subscription models are supposed to be consistent and more predictable. That's basically what we've seen and been able to predict since April. So we're very, very, very happy about that.

是的。我們 - 我們在今年年初所說的部分內容是 Andy 明確表示的，我們希望回到我們連續 19 個季度製作然後改進我們的指導的時候，即訂閱模式應該是一致的並且更可預測。這基本上是我們自 4 月以來所看到並能夠預測的情況。所以我們對此非常、非常、非常高興。

Where we're seeing changes is just good changes. We're seeing an increase in take rate, we're seeing constant improvement in retention and the funnels have remained strong. And no one's asked yet, but I think the bundles are going to be a massive opportunity for us to increase conversion and retention and ARPU because the more value we put in the bundle for the same price and the more we're able to create value beyond just the academic year, the better it is for our business.

我們看到的變化只是好的變化。我們看到採用率有所提高，我們看到保留率不斷提高，並且漏斗一直很強勁。還沒有人問，但我認為捆綁將成為我們提高轉化率和保留率以及 ARPU 的巨大機會，因為我們以相同的價格在捆綁中投入的價值越多，我們創造的價值就越多不僅僅是學年，它對我們的業務就越好。

So the amount of comp today is pretty significant and the first of what we believe to be more brands that students are familiar with and want to come through Chegg. And there's no lack of interest from big name partners. So we're very excited about that.

因此，今天的補償數量非常可觀，我們認為這是學生熟悉並希望通過 Chegg 獲得的更多品牌中的第一個。大牌合作夥伴也不乏興趣。所以我們對此感到非常興奮。

Our next question comes from Brent Thill of Jefferies.

我們的下一個問題來自 Jefferies 的 Brent Thill。

Dan, on the core onboarding piece, I think you're alluding to more things to come here. Can you just walk through strategically what you're going to be doing here and maybe a transition to Andy on that? I know you get tired of me asking this question, but when you think about a 36% operating margin guide, versus skills and the clear onboarding international, all these things you want to do. Have you given yourself enough runway to give -- to put these in and make sure you're kind of full throttle into these new endeavors?

丹，關於核心入職培訓，我想你是在暗示更多的事情要來這裡。你能不能戰略性地介紹一下你將在這裡做什麼，也許可以過渡到 Andy？我知道你厭倦了我問這個問題，但當你想到 36% 的營業利潤率指南，而不是技能和清晰的入職國際時，所有這些事情你都想做。你有沒有給自己足夠的跑道來投入這些並確保你在這些新的努力中全力以赴？

I'll let Andy answer that very good question, but my answer is yes, of course. I mean, if you look -- it's just we have a great model, Brent. What can I say? It really does generate this level of profitability and cash flow, and it gives us the freedom to continue to invest, which is why you're seeing the success of what we're seeing. But Andy can go a little bit more into detail on that. the strategy is pretty exciting, which is we started off with textbooks to lower the price of college and reduce the pain and we did that. And then we built a very big brand which had allowed us to build, we believe, the premier homework help tutoring for the masses to allow anybody, particularly the people who historically have not -- who have been underserved by their institutions or their families or economically or structurally to be able to get unstuck and continue on with their studies.

我會讓安迪回答這個非常好的問題，但我的回答當然是肯定的。我的意思是，如果你看 - 這只是我們有一個很棒的模型，布倫特。我能說什麼？它確實產生了這種水平的盈利能力和現金流，它給了我們繼續投資的自由，這就是為什麼你們看到我們所看到的成功。但 Andy 可以更詳細地說明這一點。該策略非常令人興奮，我們從教科書開始，以降低大學的價格並減少痛苦，我們做到了。然後我們建立了一個非常大的品牌，這讓我們能夠建立，我們相信，最重要的家庭作業幫助輔導大眾，讓任何人，特別是那些歷史上沒有的人——他們的機構或家人或在經濟上或結構上能夠擺脫困境並繼續他們的學業。

And that is what Chegg Study became. And then Chegg Study Pack was a recognition that there's a set of students that their majors require them to have even more things, and we could provide overwhelming value for them. We recognize that, that is just part of what students need while they're on campus. So first, they absolutely need nonacademic support because there's almost none on college campuses. And as we said in our prepared remarks, you're seeing a real bifurcation of where students go -- they're going to very large schools now that they can't get into the Ivy League. So you're going to see a surge in the 4-year giant state schools that have football teams, frankly.

這就是 Chegg Study 變成的樣子。然後 Chegg Study Pack 認識到有一群學生，他們的專業要求他們擁有更多的東西，我們可以為他們提供壓倒性的價值。我們認識到，這只是學生在校期間所需的一部分。所以首先，他們絕對需要非學術支持，因為大學校園裡幾乎沒有。正如我們在準備好的發言中所說，你看到了學生去向的真正分歧——他們現在去非常大的學校，因為他們無法進入常春藤聯盟。所以坦率地說，你會看到擁有橄欖球隊的 4 年制大型公立學校數量激增。

And you're seeing a surge in HPC use for underserved communities because finally, the government has chosen to invest in them, which we think is a good thing. And you're seeing a surge in online not-for-profit schools. And so those are areas where Chegg should thrive, but you're also seeing them go to places where they have no support, no support in mental health, no support in financial literacy. And other areas of services that they want bundled into Chegg.

您會看到服務欠缺社區的 HPC 使用激增，因為政府最終選擇了對它們進行投資，我們認為這是一件好事。你會看到在線非營利學校激增。因此，這些是 Chegg 應該蓬勃發展的領域，但你也看到他們去了他們沒有支持、沒有心理健康支持、沒有金融知識支持的地方。以及他們希望捆綁到 Chegg 中的其他服務領域。

So we think by doing that, we'll attract the 10 million students that we don't currently have in the U.S. On top of that, we'll keep the students that we have longer and they'll see the value and will continue to be able to price accordingly. The skill side breaks into 3 areas: it breaks into the direct marketplace, which was the original take pool, which is the moment has been served by corporate marketplace. Corporations are paying for it as a benefit, which is why our relationship with Guild is really excellent. They're the largest provider of education opportunities as well now through us for skills in the frontline workers.

所以我們認為通過這樣做，我們將吸引我們目前在美國沒有的 1000 萬學生。最重要的是，我們將留住我們擁有的學生更長時間，他們會看到價值並將繼續能夠相應地定價。技術方面分為三個方面：它進入直接市場，這是最初的市場，這是由企業市場提供服務的時刻。公司為此付出了代價，這就是為什麼我們與公會的關係非常好。他們是最大的教育機會提供者，現在也通過我們為一線工人提供技能。

So Walmart, Chipotle, big companies like that, where they're really taking advantage of our skills, and that very well has a chance to be a really large business, and very profitable where others are not profitable because they have giant sales forces. We don't have to, Guild does that for us. So we think this is a big differentiator and a big opportunity for us. And although it just started this year, we're seeing the benefits of it already.

所以沃爾瑪、Chipotle 等大公司，他們真正利用了我們的技能，這很有可能成為一個真正的大企業，並且在其他人因為擁有龐大的銷售隊伍而無法盈利的情況下非常有利可圖。我們不必這樣做，Guild 會為我們做到這一點。所以我們認為這對我們來說是一個很大的差異化因素和一個很大的機會。儘管今年才剛剛開始，但我們已經看到了它的好處。

And then the third area, which goes with the bundles and part of the reason that we've organized around this through Nathan is we believe that providing academic support, support for the rest of your life, like things like Calm as well as employable skill support. Can I learn to use Adobe? Can I learn to use Office 360? Can I learn to you Salesforce? Things that are easier to learn that are lower price that we can build one time and they're like software. So their margins will be extraordinarily high, that we can either sell directly to the student at a very low price and/or bundle it in, which we believe will get a higher conversion and a higher retention rate.

然後是第三個領域，與捆綁包相關，我們通過 Nathan 圍繞這個進行組織的部分原因是我們相信提供學術支持，為你的餘生提供支持，比如冷靜和就業技能支持。我可以學習使用 Adobe 嗎？我可以學習使用 Office 360 嗎？我可以向您學習 Salesforce 嗎？更容易學習、價格更低的東西，我們可以一次性構建，它們就像軟件。所以他們的利潤率會非常高，我們可以以非常低的價格直接賣給學生和/或捆綁銷售，我們相信這將獲得更高的轉化率和更高的保留率。

So we believe it's a really big growth strategy, and we're super excited about it. As for are we investing enough? I will turn that back over to Andy.

所以我們相信這是一個非常大的增長戰略，我們對此感到非常興奮。至於我們投資夠不夠？我會把它轉回給安迪。

Yes. I mean, Dan nailed it up front, Brent. And we absolutely have the right amount of resource go against the opportunities ahead of -- now and ahead of us. I think one of the things that we have done for many years, even you've been with us for quite some time, even back when we were struggling to break even on an EBITDA line, we always said to ourselves, we're going to make sure we have enough resources to have enough what's behind the arrow, whatever we're going to do. And we're now at a point where we can focus on multiple things.

是的。我的意思是，丹在前面就把它釘牢了，布倫特。我們絕對擁有適量的資源來應對未來——現在和我們面前的機遇。我認為我們已經做了很多年的事情之一，即使你已經和我們在一起很長一段時間了，甚至在我們努力在 EBITDA 線上實現收支平衡的時候，我們總是對自己說，我們要確保我們有足夠的資源來獲得足夠的箭頭後面的東西，無論我們要做什麼。我們現在正處於可以專注於多件事的地步。

And you've seen many of the investments that we've made that are literally being tens of millions of dollars. I'll just point out one for this year, we -- Dan talked earlier about Uversity, that literally is an investment of tens of millions of dollars, period. So we feel like we're in a very unique position. As we continue to scale, we get more profitable. As we continue to scale, we drive more cash. As we continue to scale, we can invest more, and we are.

你已經看到我們所做的許多投資實際上是數千萬美元。我只想指出今年的一個，我們——丹早些時候談到了大學，這實際上是一項數千萬美元的投資。所以我們覺得我們處於一個非常獨特的位置。隨著我們繼續擴大規模，我們將獲得更多利潤。隨著我們繼續擴大規模，我們將獲得更多現金。隨著我們繼續擴大規模，我們可以投資更多，我們也確實如此。

And so we're investing in many things that I can't talk about today, but they will reveal themselves over the next 6, 12, 18 months that we believe future growth opportunities for us. So no, we're not underinvested. We're very well invested, and we continue to invest for future growth.

因此，我們正在投資許多我今天無法談論的事情，但它們將在未來 6、12、18 個月內顯露出來，我們相信我們未來的增長機會。所以不，我們沒有投資不足。我們的投資非常好，我們將繼續投資以實現未來的增長。

And by the way, we're not unhappy that we're profitable on every line, including GAAP. I mean, you don't often see software companies do that. And I think they could, and I think they should because we've shown that you can do it and grow and make the proper amount of investments.

順便說一下，我們對每條線都盈利並不感到不高興，包括 GAAP。我的意思是，你不會經常看到軟件公司這樣做。而且我認為他們可以，而且我認為他們應該這樣做，因為我們已經證明您可以做到並成長並進行適當數量的投資。

Our next question comes from Jason Celino of KeyBanc.

我們的下一個問題來自 KeyBanc 的 Jason Celino。

This is kind of feeding off of the last question. But over the last couple of years, Chegg's R&D teams have been very busy. You saw the completion of the piracy enforcement measures. We saw Uversity, Honor Shield, integration of Busuu, upgrading the UI to more personal experiences, big improvements to international localization. So when we think about the pace of R&D priorities over the next 12 to 24 months, would you say that these -- the R&D innovation will continue at the same pace? Interested to hear your answer to that.

這是最後一個問題的結果。但在過去的幾年裡，Chegg 的研發團隊一直非常忙碌。你看到了盜版執法措施的完成。我們看到了 Uversity、Honor Shield、博樹的整合、升級 UI 以提供更多個人體驗、國際本地化的重大改進。因此，當我們考慮未來 12 到 24 個月的研發重點步伐時，您會說這些——研發創新將以同樣的步伐繼續嗎？有興趣聽聽您對此的回答。

Well, first of all, I want you to speak at my eulogy because that was wonderful.

好吧，首先，我希望你在我的悼詞中發言，因為那太棒了。

Exactly.

確切地。

Thank you. Yes, look, we -- my old boss, Terry Semel used to say, don't tell anybody what you're going to do until after you've done it, right? And so we are constantly investing with the North Star, which is how do we create more value for the students. How do we ease their burden, how do we solve their biggest problems, how do we create leverage for them and therefore, create leverage for us.

謝謝你。是的，聽著，我們——我的前任老闆特里塞梅爾曾經說過，在你完成之前不要告訴任何人你將要做什麼，對嗎？所以我們不斷地投資北極星，這就是我們如何為學生創造更多價值。我們如何減輕他們的負擔，我們如何解決他們最大的問題，我們如何為他們創造影響力，從而為我們創造影響力。

And so the things that you articulated, all of them reduce friction in the system. And so for us, we always -- so for example, we're investing in Q&A is now structured Q&A, where every question, no matter what format it comes in, gets structured so that it's easier to discover. By the way, that reduces our CapEx because we end up doing fewer duplicate questions because it's all in a structured format.

因此，您闡明的所有內容都減少了系統中的摩擦。因此，對我們來說，我們總是——例如，我們投資於問答現在是結構化的問答，每個問題，無論以何種形式出現，都會得到結構化，以便更容易發現。順便說一句，這減少了我們的資本支出，因為我們最終會做更少的重複問題，因為它都是結構化的格式。

So we do a lot of things on the infrastructure standpoint to reduce friction in the process and make us more profitable. But in terms of the things that we're investing in Skills, we are absolutely investing. And we're investing in building relationships directly with companies as well as through Guild. For example, we also just extended the relationship that we said with Busuu inside of Guild, and we think that's an opportunity for extended growth.

因此，我們從基礎設施的角度做了很多事情，以減少流程中的摩擦並使我們獲得更多利潤。但就我們投資於技能的事情而言，我們絕對是在投資。我們正在投資於直接與公司以及通過 Guild 建立關係。例如，我們還剛剛在 Guild 內部擴展了我們所說的與 Busuu 的關係，我們認為這是擴展增長的機會。

We haven't really talked on this call about Busuu 3.0, which is the freemium model in the United States because you don't have very many customers in the United States, but you know what we have, we which the largest reach to college students of anybody who believe and trust our brand, and we know that 1 out of every 2 wants or needs to learn a language. So we think we have opportunities to invest in language.

我們在這次電話會議上並沒有真正談論 Busuu 3.0，這是美國的免費增值模式，因為你在美國沒有很多客戶，但你知道我們有什麼，我們最大的覆蓋大學相信和信任我們品牌的任何人的學生，我們知道每 2 人中就有 1 人想要或需要學習一門語言。所以我們認為我們有機會投資語言。

We talked about the investment in Skills. So we don't do more than we can handle, but we do the things. We have a road map, a multiyear road map with opportunities that we think will expand our TAM and continue to increase our ARPU and then continue to increase the relevance and the value of what we offer to a larger group of people, both domestically and internationally.

我們談到了對技能的投資。因此，我們不會做超出我們能力範圍的事情，但我們會做事情。我們有一個路線圖，一個多年路線圖，其中包含我們認為將擴大我們的 TAM 並繼續增加我們的 ARPU 的機會，然後繼續增加我們為更多國內外人群提供的服務的相關性和價值.

I mean you didn't mention what we've already done in Turkey and what we've done in Mexico. We have an extraordinarily talented product engineering design team. And they have a multiyear road map, and we're sticking to it because at least at the moment, it seems to be working. But thank you for recognizing that.

我的意思是你沒有提到我們已經在土耳其做了什麼，也沒有提到我們在墨西哥做了什麼。我們擁有一支才華橫溢的產品工程設計團隊。他們有一個多年的路線圖，我們會堅持下去，因為至少在目前，它似乎在起作用。但謝謝你認識到這一點。

Our next question comes from Josh Baer of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Josh Baer。

It's Matt Wilson on for Josh Baer. Congrats on the nice quarter. Maybe building on the last 2 questions. Annual guidance is calling for a 200 basis point increase in margin expansions, EBITDA margin, which is kind of in line with what you've done over the last few years. Can you talk about how much more room there is on the margin front and what leverage you have to pull beyond 2022 going into like 2023 and beyond?

喬什·貝爾換下馬特·威爾遜。恭喜這個漂亮的季度。也許建立在最後兩個問題的基礎上。年度指導要求將利潤率擴張 EBITDA 利潤率提高 200 個基點，這與您在過去幾年所做的工作相符。您能否談談在利潤率方面還有多少空間，以及您必須在 2022 年之後進入 2023 年及以後拉動什麼槓桿？

Well, I mean, I think -- if you take a look at our history over the last, 2, 3, 4, 5 years, as we continue to scale, the business just inherently gets more profit, period. Right? And particularly in the short term -- short time frame, right? Because when you think about it from a cost structure standpoint, much of the content is reusable. So it's not like we have to keep adding gobs and gobs of new content. We do have a CapEx budget, but it's reusable in whether or not we have 10 subscribers or 10,000 subscribers making use of the same content.

好吧，我的意思是，我認為——如果你看看我們過去 2、3、4、5 年的歷史，隨著我們繼續擴大規模，企業自然會獲得更多的利潤。正確的？特別是在短期內 - 短時間框架，對嗎？因為當您從成本結構的角度考慮時，很多內容都是可重用的。因此，我們不必不斷添加大量新內容。我們確實有資本支出預算，但無論我們有 10 個訂閱者還是 10,000 個訂閱者使用相同的內容，它都是可重複使用的。

So we do believe that our margins will continue to expand. I don't even think about it personally at what a steady state is. We're not at steady state. We're still growing. We expect to grow, and we expect to expand margins for the foreseeable future.

因此，我們確實相信我們的利潤率將繼續擴大。我什至沒有親自考慮過穩定狀態是什麼。我們沒有處於穩定狀態。我們還在成長。我們期望增長，我們期望在可預見的未來擴大利潤率。

Our next question comes from Alex Fuhrman of Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Alex Fuhrman。

Congratulations on a strong start to the school year here. I wanted to ask about your sales and marketing expense. If we go back over the last 5 or 10 years, it seems like the third quarter when you're gearing up for the beginning of the small semester is often one of your highest marketing expense quarters of the year.

祝賀這裡的學年開局良好。我想問問你們的銷售和營銷費用。如果我們回顧過去 5 年或 10 年，當您為小學期的開始做準備時，似乎第三季度通常是一年中營銷費用最高的季度之一。

And so far in '22, it looks like actually a pretty significant reduction in your marketing expense relative to what we saw in the first half of the year. Is that perhaps the beginning of a trend here? I'm wondering if maybe as you add more products to the bundle if you start to maybe get some leverage off of your marketing, and we maybe should see some more improvement there? Just curious how you're thinking about marketing expense as you continue to grow the business and add more to your product offering?

到目前為止，在 22 年，與我們在今年上半年看到的情況相比，您的營銷費用看起來實際上有了相當大的減少。這也許是這裡趨勢的開始？我想知道，如果您開始從營銷中獲得一些影響力，是否可以在向捆綁包中添加更多產品時，我們是否應該在那裡看到更多改進？只是好奇您在繼續發展業務並增加產品供應時如何考慮營銷費用？

Yes. Really great question. It gives me a chance to clarify something. A lot of that is the fact that we no longer own textbooks. So this was the quarter in which we spend a lot of money marketing textbooks. But now that we don't own them and they're an insignificant part of our business, although we still do millions of them. But the deals that the team cut are really great for our shareholders for exactly the reason you pointed out.

是的。真是個好問題。它讓我有機會澄清一些事情。其中很大一部分是因為我們不再擁有教科書。所以這個季度我們花了很多錢營銷教科書。但是現在我們不擁有它們並且它們是我們業務的微不足道的一部分，儘管我們仍然在做數百萬。但是，正是出於您指出的原因，團隊達成的交易對我們的股東來說確實很棒。

So majority of the marketing expense in this quarter always went to textbooks not to Chegg Study or Chegg Study Pack or those other things. So yes, this is more of a steady state of what you can expect to see. And we are seeing improvements in the top of the funnel. We are a great SEO company. Those hundreds of -- 100-plus million questions that we have all get SEO. That's part of the great flywheel that we've built that content is owned by us. And therefore, it is unique and it gets indexed by Google, and it gets indexed globally.

因此，本季度的大部分營銷費用總是用於教科書，而不是用於 Chegg Study 或 Chegg Study Pack 或其他東西。所以是的，這更像是您可以期望看到的穩定狀態。我們正在看到漏斗頂部的改進。我們是一家優秀的 SEO 公司。我們擁有的數百 - 100 多萬個問題都得到了 SEO。這是我們構建的偉大飛輪的一部分，內容歸我們所有。因此，它是獨一無二的，它被谷歌索引，並且在全球範圍內被索引。

And as we make it more local language, we'll see improvements in countries around the world. So that is our best form of marketing. And again, without the textbooks, you'll see this looking more like the steady state. And our efforts will be on improving the funnel -- I mean, improving inside the funnel, which we think the bundles will hopefully have a significant impact because every point improvement in conversion is quite substantial in our revenue and our profit.

隨著我們將其變成更本地化的語言，我們將看到世界各國的改進。所以這是我們最好的營銷形式。再一次，如果沒有教科書，你會看到這看起來更像是穩定狀態。我們的努力將放在改進漏斗上——我的意思是，在漏斗內部進行改進，我們認為捆綁包有望產生重大影響，因為轉化率的每一點改進對我們的收入和利潤來說都是相當可觀的。

And we think the bundles will go a long way to doing that. So we're pretty excited about it. So I'm really glad you pointed that out.

我們認為這些捆綁包將大大有助於實現這一目標。所以我們對此感到非常興奮。所以我很高興你指出了這一點。

Yes, Alex, let me just add to that, please. So when Dan said steady state, I just want to make sure that the seasonality that you've seen in the past is going to be smoother is really what we're talking about here. So we don't have the, where we have tons of marketing expense for textbooks, that clearly goes away in Q3 and then to a great extent in Q1.

是的，亞歷克斯，請讓我補充一下。所以當丹說穩定狀態時，我只是想確保你過去看到的季節性會更加平穩，這正是我們在這裡談論的。所以我們沒有，我們有大量的教科書營銷費用，這在第三季度明顯消失，然後在很大程度上在第一季度消失。

And the beauty of that is it also makes the seasonality of our profitability, I'll call it, less seasonal, right? Because what ended up happening with textbooks, we spend all of that money on marketing, but we only recognize a small amount of the revenue and the rest of the revenue will get recognized over the next 3 to 4 months. So I think what it does is it reduces the seasonal impact, both on the marketing line and the profitability line.

而且它的美妙之處在於它也使我們盈利能力的季節性，我稱之為，不那麼季節性，對吧？因為教科書最終發生了什麼，我們把所有的錢都花在了營銷上，但我們只確認了一小部分收入，其餘收入將在接下來的 3 到 4 個月內得到確認。所以我認為它的作用是減少季節性影響，包括對營銷線和盈利線的影響。

Our next question comes from Brian Peterson of Raymond James.

我們的下一個問題來自 Raymond James 的 Brian Peterson。

This is Jessica on for Brian. I just want to touch in with Busuu, how is progress been on realizing synergies with Busuu after integrating into your overall business? Also appreciate any color on progress of your initiative to begin raising brand awareness among your existing U.S. customers as well as potential new customers?

這是傑西卡為布賴恩。我只想談談 Busuu，在融入您的整體業務後，在實現與 Busuu 的協同效應方面進展如何？還欣賞您在現有美國客戶和潛在新客戶中開始提高品牌知名度的舉措取得進展的任何顏色嗎？

Yes. Great question. And it is super early. So anything I'd say, I can't tell you that it's projectable at this level yet. The integration is almost done. There's a lot of back-end things. There's a lot of things that when you put 2 companies together, you don't need any more. We focus first on putting the investment in the things that we do want to invest in. And so integration should be done before the end of this year, whatever is left.

是的。很好的問題。而且時間超級早。所以無論我要說什麼，我都不能告訴你它在這個水平上是可預測的。集成差不多完成了。有很多後端的東西。當你把兩家公司放在一起時，很多東西就不再需要了。我們首先專注於將投資投入到我們確實想投資的事情上。因此整合應該在今年年底之前完成，無論剩下什麼。

And in terms of recognition, it is just too early. I mean what we know is the recognition is low, but what we know is the need and desire for language is high. And so we call it Busuu 3.0. I mean it sounds to me like they had 2.0 before we bought them. And so they're early, we're seeing green shoots early. But I really -- I don't want to say more than that because I don't know more than that at this point.

就認可而言，現在還為時過早。我的意思是我們所知道的是認可度低，但我們所知道的是對語言的需求和渴望很高。所以我們稱之為 Busuu 3.0。我的意思是，在我看來，他們在我們購買之前就已經是 2.0 版本了。所以他們來得很早，我們很早就看到了綠芽。但我真的——我不想說更多，因為目前我知道的不多。

But what we know is the freemium model is very compelling to college kids for all the reasons that you would imagine. And that's not what Busuu had in the United States. And that's what we have now. So I would say that checking with us more in the middle of next year after we've had the first half of the year to really go through it and make the tweaks and see where it's working strong and see where we need to continue to adjust it. But it's early, but the early signs are positive, which is obviously why we've embarked on this because we believe it's going to be successful.

但我們知道，免費增值模式對大學生來說非常有吸引力，原因如你所想。這不是 Busuu 在美國所擁有的。這就是我們現在所擁有的。所以我想說的是，在我們今年上半年真正經歷過它並進行調整之後，明年年中與我們進行更多核實，看看它在哪裡運作良好，看看我們需要繼續調整的地方它。但現在還早，但早期跡像是積極的，這顯然是我們著手進行這項工作的原因，因為我們相信它會成功。

This concludes the question-and-answer session. I would like to turn the conference back over to Dan Rosensweig for any closing remarks.

問答環節到此結束。我想將會議轉回 Dan Rosensweig 的閉幕詞。

Thank you, everybody, for joining us. Really appreciate the time and attention to the company. As you can see, the last year has been a very difficult one last year. A year ago, this call was a very difficult one. This is much more positive as business is returning to a greater level of predictability. We see bigger opportunities ahead. One of the things that I've learned about the Internet since my days in computing magazine in Yahoo! is that there's always the next level of growth, and we think that Busuu 3.0, Skills, the investment in bundles and more value to more customers in the U.S. and around the world is a really big opportunity for us and the company is excited about it and executing well on it.

謝謝大家加入我們。非常感謝您對公司的時間和關注。如您所見，去年是非常艱難的一年。一年前，這個電話非常困難。隨著業務恢復到更高水平的可預測性，這更加積極。我們看到了未來更大的機會。自從我在 Yahoo! 的計算雜誌上工作以來，我學到的關於 Internet 的一件事。是總有下一個增長水平，我們認為 Busuu 3.0、Skills、捆綁投資以及為美國和世界各地的更多客戶提供更多價值對我們來說是一個非常大的機會，公司對此感到興奮並在上面執行得很好。

And we just happen to have one of those models that as it grows, it gets a lot more profitable, and we're proud of that. But it also gives us the resources to be able to invest in even bigger opportunities. So thank you, everybody, for joining. I want to thank all of our employees for all the awards that they have earned because the mission matters and they come here for the mission, and we're proud of the work that they do to serve the students. So thanks, everybody. Bye.

我們恰好擁有其中一種模式，隨著它的發展，它會獲得更多利潤，我們為此感到自豪。但它也為我們提供了能夠投資於更大機會的資源。謝謝大家的加入。我要感謝我們所有的員工，感謝他們獲得的所有獎項，因為使命很重要，他們來到這裡是為了使命，我們為他們為學生服務所做的工作感到自豪。所以謝謝大家。再見。

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您度過愉快的一天。