Nerdy Announces Third Quarter 2024 Financial Results
Nerdy (NYSE: NRDY) reported Q3 2024 revenue of $37.5 million, near the top of guidance but down 7% year-over-year. Learning Memberships generated $31.4 million (84% of total revenue) with 39.7K Active Members. The company reported a non-GAAP adjusted EBITDA loss of $14.0 million, better than guided negative $17-19 million. Institutional segment delivered $5.4 million revenue with 117 contracts worth $8.5 million in bookings. Gross margin decreased to 70.5% from 72.4% year-over-year. The company maintains strong liquidity with $65.0 million cash and no debt.
Nerdy (NYSE: NRDY) ha riportato per il terzo trimestre 2024 ricavi di 37,5 milioni di dollari, vicino al massimo delle previsioni ma in calo del 7% rispetto all'anno precedente. Le iscrizioni per l'apprendimento hanno generato 31,4 milioni di dollari (84% del ricavo totale) con 39.7K membri attivi. L'azienda ha registrato una perdita di EBITDA rettificato non-GAAP di 14,0 milioni di dollari, migliore rispetto alla previsione di una perdita negativa di 17-19 milioni di dollari. Il segmento istituzionale ha prodotto ricavi di 5,4 milioni di dollari con 117 contratti del valore di 8,5 milioni di dollari in prenotazioni. Il margine lordo è sceso al 70,5% rispetto al 72,4% dell'anno precedente. L'azienda mantiene una forte liquidità con 65,0 milioni di dollari in contante e nessun debito.
Nerdy (NYSE: NRDY) reportó ingresos de 37.5 millones de dólares en el tercer trimestre de 2024, cerca del límite superior de la guía, pero con una caída del 7% interanual. Las Membresías de Aprendizaje generaron 31.4 millones de dólares (84% de los ingresos totales) con 39.7K Miembros Activos. La compañía reportó una pérdida de EBITDA ajustada no-GAAP de 14.0 millones de dólares, mejor que la guía de una pérdida negativa de 17-19 millones de dólares. El segmento institucional generó ingresos de 5.4 millones de dólares con 117 contratos por un total de 8.5 millones de dólares en reservas. El margen bruto disminuyó al 70.5% desde el 72.4% interanual. La compañía mantiene una sólida liquidez con 65.0 millones de dólares en efectivo y sin deudas.
Nerdy (NYSE: NRDY)는 2024년 3분기 매출이 3,750만 달러로, 가이던스 상단 근처에 있지만 전년 대비 7% 감소했다고 보고했습니다. 학습 멤버십에서 3,140만 달러(총 매출의 84%)를 생성하며 39,700명의 활성 멤버를 보유하고 있습니다. 회사는 비-GAAP 조정 EBITDA 손실이 1,400만 달러로, 가이던스의 1,700만~1,900만 달러보다 나았다고 보고했습니다. 기관 부문은 540만 달러의 매출을 기록했으며, 예약 금액이 850만 달러인 117개의 계약이 있었습니다. 총 마진은 전년 대비 72.4%에서 70.5%로 감소했습니다. 회사는 6,500만 달러의 현금과 부채가 없음을 유지하며 강력한 유동성을 보유하고 있습니다.
Nerdy (NYSE: NRDY) a signalé des revenus de 37,5 millions de dollars pour le troisième trimestre 2024, près du sommet des prévisions, mais en baisse de 7% par rapport à l'année précédente. Les adhésions d'apprentissage ont généré 31,4 millions de dollars (84% des revenus totaux) avec 39,7K membres actifs. L'entreprise a enregistré une perte d'EBITDA ajusté non-GAAP de 14,0 millions de dollars, meilleure que la prévision d'une perte de 17 à 19 millions de dollars. Le segment institutionnel a livré des revenus de 5,4 millions de dollars avec 117 contrats d'une valeur totale de 8,5 millions de dollars en réservations. La marge brute a diminué à 70,5% contre 72,4% l'année précédente. L'entreprise maintient une forte liquidité avec 65,0 millions de dollars en espèces et aucune dette.
Nerdy (NYSE: NRDY) gab bekannt, dass die Einnahmen im 3. Quartal 2024 37,5 Millionen Dollar betrugen, nahe dem oberen Ende der Prognose, aber im Vergleich zum Vorjahr um 7% zurückgingen. Lernmitgliedschaften generierten 31,4 Millionen Dollar (84% des Gesamtumsatzes) mit 39,7K aktiven Mitgliedern. Das Unternehmen meldete einen Verlust beim bereinigten EBITDA nach Nicht-GAAP von 14,0 Millionen Dollar, besser als die prognostizierten 17-19 Millionen Dollar Verlust. Der institutionelle Sektor lieferte Einnahmen von 5,4 Millionen Dollar mit 117 Verträgen, die einen Buchungswert von 8,5 Millionen Dollar hatten. Die Bruttomarge fiel von 72,4% im Vorjahr auf 70,5%. Das Unternehmen hat eine starke Liquidität mit 65,0 Millionen Dollar in bar und keinerlei Schulden.
- Better than expected adjusted EBITDA loss of $14.0M vs guidance of $17-19M loss
- Revenue of $37.5M at top end of guidance range
- Strong liquidity position with $65M cash and no debt
- 32% of paid contracts came from schools converting from free to paid services
- Improved operating cash flow to -$3.1M from -$4.8M year-over-year
- Revenue declined 7% year-over-year to $37.5M from $40.3M
- Net loss increased to $25.0M from $20.6M year-over-year
- Gross margin decreased to 70.5% from 72.4% year-over-year
- Adjusted EBITDA loss widened to $14.0M from $8.2M year-over-year
- Lower ARPM due to higher mix of lower frequency Learning Memberships
Insights
Q3 results reveal concerning trends for Nerdy. Revenue declined -7% year-over-year to
The adjusted EBITDA loss widened to
The institutional segment shows promise with 117 new contracts worth
The strategic pivot toward institutional sales through the "Varsity Tutors for Schools" platform demonstrates promising market penetration, now reaching 4.4 million students. The
The shift in consumer preferences toward lower-frequency learning memberships signals potential market saturation or pricing sensitivity in the direct-to-consumer segment. While high-dosage tutoring effectiveness supports long-term demand, near-term growth depends on successfully transitioning from a consumer-focused to a hybrid business model balancing both institutional and direct sales channels.
Nerdy delivers revenue of
Nerdy reports a non-GAAP adjusted EBITDA loss of
Nerdy Q3 2024 Financial Highlights (Graphic: Business Wire)
“During the third quarter, Nerdy continued to make progress against the primary goals we laid out for the year, including: scaling the winning product for every Learner, expanding the number of Learners we can impact, and laying the foundation to deliver profitable growth,” said Chuck Cohn, Founder, Chairman and Chief Executive Officer of Nerdy Inc. “We delivered product enhancements that are both increasing engagement and improving the quality and reliability of live learning delivered on our platform that expand our reach and the number of learners we can positively impact. Looking ahead, we continue to believe that the growing awareness and recognition that high-dosage tutoring is the most effective way to accelerate learning provides us with confidence in the demand for live tutoring in the years ahead.”
Please visit the Nerdy investor relations website https://www.nerdy.com/investors to view the Nerdy Q3 Shareholder Letter on the Quarterly Results Page.
Financial and Operating Highlights
-
Revenue In Line with Expectations – In the third quarter, Nerdy delivered revenue of
$37.5 million $35 -38 million7% year-over-year from$40.3 million -
Learning Memberships – Revenue recognized in the third quarter from Learning Memberships was
$31.4 million 84% of total Company revenue. There were 39.7K Active Members as of September 30, 2024. -
Institutional – In the third quarter, Institutional delivered revenue of
$5.4 million 14% of total revenue. Varsity Tutors for Schools executed 117 contracts, yielding$8.5 million 32% of paid contracts and22% of total bookings value coming from school district partners who initially partnered with Varsity Tutors for Schools via free access to our platform and subsequently converted to our paid offerings. -
Gross Margin – Gross margin was
70.5% for the three months ended September 30, 2024, compared to a gross margin of72.4% during the comparable period in 2023. The decrease in gross margin was primarily due to lower ARPM coupled with higher utilization of tutoring sessions across Learning Memberships in our Consumer business, partially offset by lower seasonal utilization of our access-based products in our Institutional business. -
Adjusted EBITDA Loss Beats Guidance Range – Net loss was
$25.0 million $20.6 million $15.1 million $9.1 million $14.0 million $17.0 million $19.0 million $8.2 million -
Operating Cash Flow and Liquidity – Negative operating cash flow was
$3.1 million $4.8 million $65.0 million
Fourth Quarter and Full Year 2024 Outlook – We are providing fourth quarter and updating full year revenue and adjusted EBITDA guidance.
-
Revenue Guidance: For the fourth quarter of 2024, we expect revenue in a range of
$44 $47 million $186 $189 million -
Non-GAAP Adjusted EBITDA Guidance: For the fourth quarter of 2024, we expect adjusted EBITDA in a range of negative
$7 million $10 million $23 million $26 million
Webcast and Earnings Conference Call
Nerdy’s management will host a conference call to discuss its financial results on Thursday, November 7, 2024 at 5:00 p.m. Eastern Time. Interested parties in the
A live webcast of the call will also be available on Nerdy’s investor relations website at https://www.nerdy.com/investors. A replay of the webcast will be available on Nerdy’s website for one year following the event and a telephonic replay of the call will be available until November 14, 2024 by dialing 1-866-813-9403 from the
About Nerdy Inc.
Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The Company’s purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy’s comprehensive learning destination provides learning experiences across thousands of subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group tutoring, large format classes, and adaptive assessments. Nerdy’s flagship business, Varsity Tutors, is one of the nation’s largest platforms for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at https://www.nerdy.com.
Forward-looking Statements
All statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our strategic priorities, including those related to enhancing the Learning Membership experience; continued improvements in sales and marketing leverage; gross margin and operating leverage; the growth of our Institutional business; changes to our marketplace infrastructure systems; simplifying our operations model while growing our business; the sufficiency of our cash to fund future operations; and our anticipated fourth quarter and full year 2024 outlook; as well as statements that include the words “expect,” “plan,” “believe,” “project,” and “may,” and similar statements of a future or forward-looking nature.
The information included herein and in any oral statements made in connection herewith may include “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions, or strategies regarding the future, including our expectations with respect to: the guidance with respect to our financial performance; continued improvements in sales and marketing leverage; the growth of our Institutional business; simplifying our operations model while growing our business; and the sufficiency of our cash to fund future operations. Additionally, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipates,” “approximately,” “believes,” “contemplates,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “outlook,” “plans,” “possible,” “potential,” “predicts,” “projects,” “should,” “seeks,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements made herein relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
There are a significant number of factors that could cause actual results to differ materially from statements made herein or in connection herewith, including but not limited to, our limited operating history, which makes it difficult to predict our future financial and operating results; our history of net losses; risks associated with our ability to acquire and retain customers, operate, and scale up our Consumer and Institutional businesses; risks associated with our intellectual property, including claims that we infringe on a third-party’s intellectual property rights; risks associated with our classification of some individuals and entities we contract with as independent contractors; risks associated with the liquidity and trading of our securities; risks associated with payments that we may be required to make under the tax receivable agreement; litigation, regulatory and reputational risks arising from the fact that many of our Learners are minors; changes in applicable law or regulation; the possibility of cyber-related incidents and their related impacts on our business and results of operations; risks associated with the development and use of artificial intelligence and related regulatory uncertainty; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; and risks associated with managing our rapid growth. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Annual Report on Form 10-K filed on February 27, 2024, as well as other filings that we may make from time to time with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107799741/en/
Investor Relations
investors@nerdy.com
Source: Nerdy Inc.
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