NYSE$NRDY
Nerdy Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Nerdy's Q3 2022 performance was marked by a revenue of $31.8 million, aligning with guidance, and a strategic shift towards Learning Memberships, which now constitute 18% of total revenue and have an annualized run rate of $50.2 million.
Nerdy, Inc. reported Q3 2022 revenue of $31.8 million, consistent with its guidance. The company focused on transitioning customers to Learning Memberships, which reached an annualized run rate of $50.2 million. Varsity Tutors for Schools signed 21 new contracts with $5.6 million in bookings. The company maintains a strong liquidity position with $106.4 million in cash reserves.
- Nerdy's Q3 2022 revenue was $31.8 million, in line with guidance.
- Learning Membership revenue grew to $5.8 million, representing 18% of total revenue, with an annualized run rate of $50.2 million.
- Varsity Tutors for Schools signed 21 new contracts, yielding $5.6 million in bookings.
- Nerdy maintains a strong liquidity position with $106.4 million in cash reserves and is on track to achieve adjusted EBITDA profitability by the end of 2023.
Headline financials
Revenue & EPS history
Nerdy · Revenue · Quarterly
$31.8M
Revenue by segment
Nerdy · $2.39M total across 1 segment · Q3 2022
- Institutional$2.39M—100.0%
Forward guidance
Nerdy anticipates sequential quarterly revenue growth driven by Learning Membership subscribers and higher Institutional revenues. For Q4 2022, revenue is expected to be in the range of $39-41 million and a non-GAAP adjusted EBITDA loss in the range of $6-8 million. For the full year 2022, revenue is expected to be $160-162 million, with a non-GAAP adjusted EBITDA loss in the range of $36-38 million. The company targets exiting the J Curve business model transition by the end of Q1 2023.
Tailwinds
- Sequential quarterly revenue growth expected.
- Increase in Learning Membership subscribers anticipated.
- Higher Institutional revenues projected.
- Continued moderation of marketing spend.
- Reduced levels of hiring demonstrating operating leverage.
Headwinds
- Lower revenue recognized in the quarter due to Learning Memberships rollout.
- Longer-lead times in Institutional business due to focus on larger school districts.
- Non-GAAP adjusted EBITDA loss expected for Q4 2022.
- Non-GAAP adjusted EBITDA loss expected for full year 2022.
- J Curve business model transition expected to continue until the end of Q1 2023.
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 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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