Chegg CEO Dan Rosensweig said that in March, they saw a significant spike in student interest in ChatGPT. They now believe it is having an impact on their new customer growth rate, as ChatGPT claims its first financial victim.
Chegg shares tumbled after the online education company said ChatGPT is hurting its growth.
“In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups,” CEO Dan Rosensweig said during the earnings call Monday evening. “However, 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.”
The company, which provides homework assistance and online tutoring, said revenue would be between $175 million and $178 million this quarter, far below FactSet’s analyst consensus estimate of $193.6 million.
Chegg shares closed down 48.41% to $9.08 on Tuesday.
According to official reports, the yuan has overtaken the dollar to become the most-used currency in China’s cross-border transactions, with it being used in 48.4% of all such transactions.