NYSE$NRDY
Nerdy Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Nerdy exited the 'J-Curve' business model transition and returned to growth, achieving Adjusted EBITDA profitability nine months ahead of schedule, driven by strong adoption of Learning Memberships and the application of AI.
Nerdy, Inc. reported a strong first quarter, exceeding revenue guidance and achieving adjusted EBITDA profitability ahead of schedule. The company's transition to Learning Memberships and its application of AI are driving growth and improved profitability.
- Revenue was $49.2 million, exceeding guidance and representing a 5% increase year-over-year.
- Learning Membership subscriptions accounted for 60% of total company recognized revenue.
- Institutional business delivered record revenue of $8.5 million, a 32% increase year-over-year.
- Adjusted EBITDA profitability was achieved, delivering nearly 1,700 bps of improvement year-over-year and $1.4 million of adjusted EBITDA.
Headline financials
Revenue & EPS history
Nerdy · Revenue · Quarterly
$49.2M
Revenue by segment
Nerdy · $8.54M total across 1 segment · Q1 2023
- Institutional$8.54M—100.0%
Forward guidance
Nerdy expects revenue growth to be driven by recurring revenue streams and higher Institutional revenues. The company raised its full year revenue targets to $193-200 million and expects an adjusted EBITDA loss in the range of $7 million to breakeven.
Tailwinds
- Continued evolution towards recurring revenue streams
- Build in the number of Learning Membership subscribers
- Higher Institutional revenues
- Sequential year-over-year revenue growth each quarter
- Improving gross margin profile
Headwinds
- Normal summer seasonality
- Anticipated lower levels of new customer acquisition
- Lower consumption during the summer months
- Lower Learning Membership retention during the summer months
- Higher variable costs in the third quarter
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
-7.0%
Avg return
Earnings day
-6.6%
Avg return
5 days after
+1.0%
Avg return
30 days after
33%
7 / 21 earnings
Positive
+31.1%
Q4 2022
Best reaction
-43.8%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.1% | -4.2% | -6.7% | |
| Q4 2025 | +2.1% | +0.2% | -13.4% | |
| Q3 2025 | -9.4% | -3.7% | +41.2% | |
| Q1 2025 | -6.2% | +7.4% | +9.2% | |
| Q4 2024 | -4.4% | -0.6% | -8.2% | |
| Q3 2024 | -6.2% | +2.3% | +83.0% | |
| Q2 2024 | -43.8% | -40.8% | -36.3% | |
| Q1 2024 | -11.0% | -21.7% | -43.4% | |
| Q4 2023 | -18.1% | -1.3% | -4.3% | |
| Q3 2023 | -17.2% | -19.2% | -4.5% | |
| Q2 2023 | -20.2% | -11.7% | -8.1% | |
| Q1 2023 | +3.4% | +15.5% | +7.2% | |
| Q4 2022 | +31.1% | +39.0% | +56.2% | |
| Q3 2022 | +5.5% | +1.7% | -17.9% | |
| Q2 2022 | +9.6% | -20.7% | -17.8% | |
| Q1 2022 | -32.0% | -37.3% | +18.0% | |
| Q4 2021 | +0.9% | -7.7% | +15.6% | |
| Q3 2021 | -23.0% | -23.7% | -32.9% | |
| Q2 2021 | -0.1% | -0.2% | -0.2% | |
| Q1 2021 | -0.3% | -0.9% | -0.2% | |
| Q4 2020 | -6.9% | -10.2% | -16.4% | |
| Q2 2020 | — | — | — |
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