NYSE$NRDY
Nerdy Inc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Nerdy's revenue decreased due to lower ARPM in the Consumer business, but platform enhancements and strategic investments were made.
Nerdy reported Q3 2024 revenue of $37.5 million, a 7% decrease year-over-year, with a net loss of $25.0 million. The company focused on scaling its winning product and expanding its learner base through strategic investments in Varsity Tutors for Schools.
- Revenue was $37.5 million, a 7% decrease year-over-year, primarily due to lower ARPM in the Consumer business.
- Active Members totaled 39.7K, up 1% year-over-year.
- The Institutional business generated $5.4 million in revenue, a 3% decrease year-over-year.
- Nerdy enabled access to the Varsity Tutors platform for an additional 1.1 million students, reaching a total of 4.4 million students across nearly 900 school districts.
Headline financials
Revenue & EPS history
Nerdy · Revenue · Quarterly
$37.5M
Revenue by segment
Nerdy · $5.58M total across 1 segment · Q3 2023
- Institutional$5.58M+133.2%100.0%
Forward guidance
For the fourth quarter of 2024, Nerdy expects revenue in the range of $44-47 million and adjusted EBITDA in the range of negative $7 million to negative $10 million. For the full year, revenue is expected to be in the range of $186-189 million and adjusted EBITDA in the range of negative $23 million to negative $26 million.
Tailwinds
- Higher sequential quarterly revenues are expected from Learning Memberships.
- Higher sequential quarterly revenues are expected from Varsity Tutors for Schools.
- Sequential improvement in adjusted EBITDA is expected from the third to the fourth quarter.
- Ample liquidity is available to fund the business and pursue growth initiatives.
- Continued innovation and growth investments.
Headwinds
- Year-over-year Consumer revenue will be impacted by a decline in the number of Learning Membership subscribers.
- Year-over-year Consumer revenue will be impacted by lower average revenue per member per month.
- Lower bookings year-to-date will result in the flow through of lower revenues during the fourth quarter in the Institutional business.
- Investments in the institutional sales organization will impact adjusted EBITDA.
- Investments in product development will impact adjusted EBITDA.
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 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
| 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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