NYSE$NRDY

Nerdy Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Nerdy's Q1 2024 performance showed revenue growth and positive operating cash flow.

Nerdy, Inc. reported a 9% year-over-year increase in revenue to $53.7 million for Q1 2024, driven by growth in both Consumer and Institutional segments. The company achieved positive adjusted EBITDA of $24 thousand and positive operating cash flow of $4.4 million. Learning Memberships continued to scale, representing 74% of total revenue.

  • Total revenue increased by 9% year-over-year to $53.7 million.
  • Consumer Learning Membership subscription revenue grew by 34% year-over-year, reaching $39.9 million.
  • Institutional revenue increased by 39% year-over-year to $11.9 million.
  • The company reported positive operating cash flow of $4.4 million.

Headline financials

Total Revenue

$53.7M

Previous: $49.2M+9.2%
EPS

-$0.07

Previous: $0.01-800.0%
Active Members

46.1K

Previous: 32.9K+40.1%
ARPM

$293.00

Previous: $350.00-16.3%
Non-GAAP Gross Margin

68.0%

No prior period
Capital Expenditures

-$2.22M

Previous: -$982K-126.2%
Free Cash Flow

-$9.67M

Previous: -$19.9M+51.5%
Net Income

-$7.45M

Previous: -$18.9M+60.7%
Operating Income

-$12.9M

Previous: -$11.4M-13.0%
Gross Profit

$36.5M

Previous: $33.9M+7.7%
Stock-Based Comp

$11.1M

Previous: $11M+0.6%

Revenue & EPS history

Nerdy · Revenue · Quarterly

$53.7M

Q1 2024+9.2%vs Q1 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Nerdy · $5.58M total across 1 segment · Q3 2023

  • Institutional
    $5.58M+133.2%

Forward guidance

The company introduced guidance for the second quarter and reaffirmed the full year revenue and adjusted EBITDA guidance. They expect year-over-year revenue growth will be driven by the continued growth of Learning Memberships in their Consumer business, the corresponding increase in the number of Learning Membership subscribers coupled with LTV extension, and higher Institutional revenues as they continue to rapidly scale Varsity Tutors for Schools.

Tailwinds

  • Continued growth of Learning Memberships in Consumer business.
  • Increase in Learning Membership subscribers.
  • Higher Institutional revenues from Varsity Tutors for Schools.
  • Healthy new Learning Member acquisition.
  • Growing awareness of tutoring effectiveness.

Headwinds

  • Second quarter revenue growth is impacted by legacy Package revenue of $4.9 million.
  • These Package revenues do not recur in 2024 due to the completion of the transition to subscription-based Learning Memberships in our Consumer business.
  • Second quarter revenue growth is impacted by lower ARPM in our Consumer business.
  • The first quarter has historically been the lowest seasonal bookings quarter for Varsity Tutors for Schools.
  • The company's non-GAAP adjusted EBITDA and non-GAAP adjusted EBITDA margin were lower primarily due to investments in the Varsity Tutors for Schools go-to-market organization, and product development to drive innovation and support our continued growth.

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 2024

Historical avgQ1 2024

-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

Earnings price reactions
QuarterReport dateReaction (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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