NYSE$NRDY

Nerdy Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Nerdy's Q3 2021 results reflected revenue growth and strategic investments.

Nerdy Inc. reported a 19% year-over-year increase in revenue to $31.3 million for the third quarter of 2021. The company experienced growth in active learners and online sessions. Nerdy launched Varsity Tutors for Schools, securing contracts worth nearly $10 million. The company is well-capitalized with $170 million in cash and no debt.

  • Nerdy experienced record back-to-school performance with bookings up 32% year-over-year.
  • Third quarter revenue increased 19% year-over-year to $31.3 million.
  • Varsity Tutors for Schools launched, securing 47 contracts worth nearly $10 million.
  • Active Learners increased 36% and Online Sessions grew 45% year-over-year.

Headline financials

Total Revenue

$31.3M

No prior period
EPS (adj)

-$0.27

No prior period
Capital Expenditures

-$3.77M

No prior period
Free Cash Flow

-$25M

No prior period
Net Income

-$21.3M

No prior period
Operating Income

-$58M

No prior period
Gross Profit

$20.7M

No prior period
Cash & Equivalents

$170M

No prior period
Total Assets

$238M

No prior period
Stock-Based Comp

$37.5M

No prior period

Revenue & EPS history

Nerdy · Revenue · Quarterly

$31.3M

Q3 2021
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Institutional
    $5.58M+133.2%

Forward guidance

Nerdy expects revenue between $40 to $43 million for Q4 2021, representing a 25% increase at the midpoint year-over-year. Full year 2021 revenue is expected to be between $139 to $141 million, which is up 35% at the midpoint versus 2020. Adjusted EBITDA loss is expected to be between $4 to $6 million for Q4 2021.

Tailwinds

  • Expected revenue growth for Q4 2021.
  • Anticipated full year revenue increase for 2021.
  • Strong momentum heading into 2022.
  • Favorable consumer demand trends expected to persist into 2022.
  • Increased confidence in full year 2022 revenue targets.

Headwinds

  • Expected Adjusted EBITDA loss for Q4 2021.
  • Continued investments in Varsity Tutors for Schools impacting profitability.
  • Ongoing investments in Expert supply affecting earnings.
  • New talent acquisition costs influencing EBITDA.
  • Uncertainty regarding the timing or magnitude for gains or losses on mark-to-market derivative financial instruments.

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 Q3 2021

Historical avgQ3 2021

-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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