The debt is gone. But so is nearly half the cash.
Chegg repaid $33.9 million in convertible notes on September 1, the day they came due, according to an 8-K filed with the SEC the same day. The notes carried no interest — the filing describes them as 0% convertible senior notes — and with that payment, Chegg says it carries no outstanding debt.
The cash position tells the other half of the story. As of June 30, Chegg held about $72 million in cash and investments. Handing over $33.9 million cut that roughly in half: the company said in its press release that cash on a pro forma basis would have been approximately $38 million. The filing does not say how long that is expected to last.
Shares closed 18.31% higher at $0.9788 on September 4, after the filing, on dollar volume of about $8.8 million.
"We have taken meaningful actions to reduce costs and improve cash flow," CFO David Longo said in the press release attached to the filing. "With no debt and a stronger financial foundation, we have the financial flexibility to execute on our strategy and create long-term value for our shareholders."
The company has not said what that strategy costs, or how far $38 million takes it.