Eric Sheridan: Great, thank you.
Operator: Our next question comes from Stephen Sheldon with William Blair. Please proceed with your question.
Stephen Sheldon: Hey, thanks for taking my questions. I guess on the improvement that you talked about during 2Q and customer acquisition and retention, I would love some more detail there, especially how you’re measuring that improvement, if there’s any kind of rough quantification you can provide? And also, did you see some of those trends continue into early third quarter, thinking about July?
Dan Rosensweig: Yes, so what we’re referring to are, obviously, everybody that runs a company should know the levers in their business. Andy has explained subscription math multiple times. And — so it really is, what is your retention rates and in retention rates, you look at a lot of different variables, which is what’s up for renewal, what canceled, what percentage renewed, those kinds of things. So we have been seeing a decrease in cancels, which is excellent. And we have been seeing an increase in people that are up for renewal that renewed. So those metrics are basically we’re seeing higher retention rate, which is great. The second one is new accounts, which is really where all of this challenges started, because we used to do — before COVID, we used to do about 3.2 million new accounts a year, and we peaked at peak COVID about 5.8 million.
Now we have remained above 5 million. So we’re really so far ahead of where we were before COVID, that the company has just accelerated. So it always surprises me when people don’t really understand how big we become compared to what we were just a few years ago. But what we’re referring to now is the trend in new account growth. So we were seeing declining new account growth and it was pretty substantial, and that is improving each and every months, including in July. So we’re getting closer to our objective of returning to growth.
Stephen Sheldon: Very helpful. Good to hear. One quick follow-up. I just noticed that you didn’t use CheggMate branding at all in the press release or prepared remarks. Was that intentional? And I guess are you considering changing the potential branding there at all?
Dan Rosensweig: Yes. I mean, the point we’re trying to make here is it’s no longer going to be a separate product, it’s Chegg. And when I say Chegg, initially, it’s Chegg Study and Chegg Study Pack, Obviously, AI will be integrated into everything, including skills and writing and math. But as we got deeper and as we really understood the depth and the quality and the differentiation that we have versus ChatGPT or barter anybody else, even in the education space in terms of what we could know and the value it could create for students that we made the decision to just make it all of Chegg. And as we think about how additional value gets created, the more value that we create for students, the more that we had, the more sticky that it becomes, the more things we can do for them.
And as you watch the video — the concept video that we put out, you’ll see the other areas that we can address. We believe our pricing power, which has always been strong, will even get stronger. And over time, as we roll it out to everybody, we can imagine continuing to increase our ARPU and our yield. So it’s a bigger move than the one we had before.
Stephen Sheldon: Good to hear. Thank you.
Operator: Our next question comes from Josh Baer with Morgan Stanley. Please proceed with your question.
