NYSE$NRDY
Nerdy Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Nerdy delivered strong revenue growth, driven by consumer 1-on-1 audiences and the institutional business, Varsity Tutors for Schools.
Nerdy, Inc. reported revenue of $42.2 million for Q2 2022, a 29% increase compared to Q2 2021, exceeding their guidance range. The company saw growth in active learners, online sessions, and active experts. Net income was $15.3 million, compared to a net loss in the previous year, and the company reaffirmed its revenue guidance for the full year.
- Nerdy delivered revenue of $42.2 million, up 29% compared to the second quarter of 2021.
- Small class and group revenue increased 114% to reach $5.5 million.
- Varsity Tutors for Schools signed 44 new contracts and yielded $4.2 million in revenue.
- Active Learners up 36% and Online Sessions up 35% compared to the second quarter of 2021.
Headline financials
Revenue & EPS history
Nerdy · Revenue · Quarterly
$42.2M
Revenue by segment
Nerdy · $5.58M total across 1 segment · Q3 2023
- Institutional$5.58M+133.2%100.0%
Forward guidance
Nerdy expects to achieve adjusted EBITDA profitability by the end of 2023. For Q3 2022, they anticipate revenue between $30-33 million and a non-GAAP adjusted EBITDA loss between $14-17 million. For the full year 2022, they reaffirm revenue expectations of $160-175 million and a non-GAAP adjusted EBITDA loss between $28-38 million.
Tailwinds
- Expansion of Learning Membership offering.
- Delivery of new products and product enhancements across institutional offerings.
- Learning Membership model aimed at providing unparalleled value and simplifying pricing.
- Learning Membership model aimed at driving longer duration and higher lifetime value relationships.
- Expect revenue reacceleration in the fourth quarter during the key back-to-school period.
Headwinds
- Lower revenue recognition in the near-term for Learning Membership clients.
- Expect the third quarter to be the lowest revenue generating quarter due to summer seasonality.
- Impact to be greater this year as we lean into our all-inclusive Learning Membership model as the primary option presented to consumers this back-to-school season.
- Transition toward subscription offerings results in lower near-term Package and Class revenue and adjusted EBITDA.
- Transition in revenue recognition to achieve equal cumulative revenue recognition for a given customer between the membership and package models.
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 Q2 2022
-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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