U.S. textbook rental website Chegg, the first day was plunged 22.6%

The U.S. textbook rental website Chegg was officially traded at the NYSE in WEDNESDAY. But in contrast to the Dow's renewed record, Chegg plunged 22.6% on its first day on the market.

Chegg on the first day of the market opened, opening to 11.00 U.S. dollars, after a small climb, Chegg share prices continued to fall, the final report closed at 9.68 U.S. dollars, more than 12.50 U.S. dollar issued price fell 22.6%. Chegg A total of 187.5 million dollars in the initial public offering.

Dan Rosensweig, chief executive of Chegg, said, "I can't control the market or the stock price per day." We can only create long-term value for our shareholders. "In the first three quarters up to September 30, Chegg leased or sold more than 5.5 million sets of digital and physical textbooks, but was still not profitable." Although the company's first three quarterly revenue growth of 23% to 178.5 million U.S. dollars, but the net loss still reached 50.4 million U.S. dollars.

Chegg also became the first technology or internet company to go public since Twitter was listed on November 7. Twitter shares rose 64% on the first day of the IPO. Technology and Internet companies have raised 6.9 billion of billions of dollars in the US securities market this year, with an average rise of 56% on the first day of the IPO, according to Bloomberg statistics.

Rosenwig, who previously served as chief operating officer, joined Chegg in 2010 and is committed to pushing the company into a digital product transition. Chegg has already completed a series of acquisitions, including innovative companies focused on electronic textbooks and online homework quiz forums.

Increase profitability

In the first three quarters ending September 30, Chegg's digital business accounted for about 21% of the company's total revenue. Rosenwig said the company's digital products had a gross profit margin of 80%. Overall, the profit margin of Chegg in the first three quarters was close to 30%. As digital sales continue to accelerate, Chegg profit margins will improve. "We will use the built textbook base to drive the growth of new businesses," Rosenwig said. ”

Chegg will spend most of its money on debt repayment and investment, and another 1% will be used to set up the Chegg Foundation to fund education-related activities.

JPMorgan Chase and BofA/Merrill Lynch are responsible for Chegg's initial public offerings.