Online textbook rental service Chegg files for an IPO
August 16, 2013 11:30 AM
Chegg Inc., an online college textbook seller and rental service, filed for an initial public offering of stock this week and says it expects to raise $150 million.
Chegg, No. 103 in the Internet Retailer Top 500 Guide, says sales have been growing rapidly for the last three years. In an S-1 document filed with the U.S. Securities and Exchange Commission, the merchant publicly disclosed its online sales figures for the first time. Chegg brought in $213.3 million in 2012, $172.0 million in 2011 and $148.9 million in 2010.
In 2012, customers completed 3.7 million transactions on Chegg.com, and the merchant rented or sold more than four million printed and electronic textbooks, according to the filing.
Losses are mounting, however, as Chegg reported a net loss of $26.0 million in 2010, $37.6 million in 2011 and $49.0 million in 2012. The e-retailer says it plans to invest in the long-term growth of the company and, consequently, does not expect to be profitable in the near term.
Chegg also says it plans to use the funds it raises to repay $21.0 million in debt, and possibly to acquire or invest in complementary businesses or technology.
Internet Retailer editors included Chegg in its most recent Hot 100 magazine issue, which selects the most innovative e-retailers of the year.