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Many professors now buy Chegg accounts and share them among their departments to help catch cheaters.This is what the correspondence between a professor and Chegg looked like (acquired by a FOIA request to OSU):.I cannot imagine what would happen when the switch would flip on all of the professors and they would start reviewing old material. All rights reserved.So often on subreddits like /r/EngineeringStudents I see posts of people getting caught using Chegg for something they did weeks ago. Benzinga does not provide investment advice. Reaction: Microsoft Gaming, Azure Growth Key To Success Moving Forward Looking Into Southwest Airlines's Return On Capital Employed If that’s the case, Chegg’s policy of cooperation in cheating inquires and their efforts to limit account sharing may turn tailwinds into headwinds in short order.Ģ Shopify Analysts Raise Outlooks Ahead Of Q2 Report On E-Commerce Acceleration My sense, is it’s far more of the former, very few of the latter. If that happens, and how big a dent it can cause, depends on how many of Chegg’s paying users are using it to cheat versus how many are using it to actually, honestly study. Or as more schools become aware that they can get that information and do. In other words, rather that boosting new accounts, more authentication may actually reduce them.įurther, account usage and subscriptions may also slip as students become aware that Chegg is outing them to schools. Rather than do that, rather than expose themselves to more trackable evidence of cheating, students who use Chegg to cheat, simply won’t use it. Now, imagine that Chegg wants to verify a subscriber’s identity on their phone. Why cheat under your own name when you can use someone else’s? And, knowing that Chegg is now cooperating with schools, students have also stopped signing up for Chegg with their real names. The students, not being absolutely stupid, have long shared Chegg accounts. When schools or professors ask, Chegg turns over the account info of students who accessed forbidden material or sought or received answers to exam questions from “tutors.” Where accounts match student e-mail addresses or it can be inferred, it does not take Sherlock Holmes to make the case. If you can cut down on account sharing, you ought to be able to increase paid subscriptions.Īnd to their credit, Chegg has helped turn in the cheaters. They are, Brown said, “developing technologies to try to either eliminate or reduce account sharing” and “I don’t think we comprehended as a company how big account sharing has been.” That makes sense. While growth is strong and likely to continue so long as students are displaced and studying online, Brown said the company is focused on cracking down on account sharing.
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CFO Andy Brown also told investors on a June 24 video call, “We’ve clearly been seeing tailwinds since the shelter in place and kids were learning off campus.” Those tailwinds and trends boosted their earnings, and it seems their stock value, accordingly.īut buried in that video call with the CFO though was a nugget that could give investors pause. Their last earnings report described “remarkable trends” as students went home including, “a substantial increase in new subscribers, both domestically and globally. Chegg Inc (NYSE: CHGG), the online tutor and academic answer provider, has enjoyed a nice ride since March, when Covid-19 forced schools to close their campuses.