Even with its growth in other areas of the education sector, Chegg remains primarily a textbook seller, which means its business is still often very seasonal and that operating results can be hard to predict.
“The increased volume of orders that we have to process during these limited periods of time means that any shortfalls or disruptions in our business during these peak periods will have a disproportionately large impact on our annual operating results and the potential future growth of our business,” the company warned potential investors in its filing.
Some changes to the company are already taking place ahead of the IPO. Chegg founder Aayush Phumbhra is stepping down from the company’s board of directors. Four new high-profile members will be added to the board, which already included Rosensweig, Ted Schlein, and Barry McCarthy.
The new members are Jeffrey Housenbold, President and CEO of Shutterfly; Marne Levine, Vice President of Global Public Policy, Facebook; Richard Sarnoff, Senior Advisor of Kohlberg Kravis Roberts & Co; and Jed York, CEO of the San Francisco 49ers.
“Each of these new members has a successful track record of managing influential organizations, with significant accomplishments in media, commerce, public policy and beyond,” Rosensweig said in an announcement. “All have been engaged with innovative companies who put consumers first. Their combined expertise will be invaluable as we continue to expand our services to help students. We are thrilled to have them join our board.”