NYSE$NRDY

Nerdy Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Nerdy reported record fourth quarter and full year revenues, driven by growth in the direct-to-consumer business and the launch of the institutional strategy.

Nerdy's Q4 2021 revenue reached a record high of $42.0 million, a 27% increase year-over-year. The company's full-year revenue also hit a record of $140.7 million, representing a 35% increase year-over-year. The growth was fueled by strong demand in the direct-to-consumer business and the launch of Varsity Tutors for Schools.

  • Achieved record fourth quarter and full year revenues.
  • Experienced strong growth in the direct-to-consumer business.
  • Launched the institutional strategy with Varsity Tutors for Schools.
  • Active Learners increased by 46% year-over-year.

Headline financials

Total Revenue

$42M

Previous: $26.4M+59.2%
EPS (adj)

-$0.05

Previous: -$0.09+48.7%
Capital Expenditures

$1.39M

No prior period
Free Cash Flow

-$20.3M

No prior period
Net Income

$33.1M

Previous: -$5.04M+756.9%
Operating Income

-$26.6M

Previous: -$3.13M-749.8%
Gross Profit

$28.7M

Previous: $22.6M+27.0%
Cash & Equivalents

$144M

No prior period
Total Assets

$177M

No prior period
Stock-Based Comp

$15.9M

No prior period

Revenue & EPS history

Nerdy · Revenue · Quarterly

$42M

Q4 2021+59.2%vs Q4 2020
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 provided revenue guidance for Q1 2022 and full year 2022. The company expects revenue in the range of $45-48 million for Q1 2022, representing a 34% increase at the midpoint from the year-ago quarter. For the full year 2022, the company expects revenue of $196-200 million, representing >40% growth at the midpoint vs. 2021 revenue.

Tailwinds

  • Revenue is expected to grow more than 40% in 2022.
  • Varsity Tutors for Schools is expected to ramp up in the 2022-2023 academic school year.
  • Strong consumer and institutional demand trends are expected to continue.
  • The company has a strong balance sheet with $144 million in cash.
  • The company expects to be profitable by the end of 2023.

Headwinds

  • The company expects a Non-GAAP adjusted EBITDA loss in the range of $(6)-(8) million for Q1 2022.
  • The company expects a Non-GAAP adjusted EBITDA loss in the range of $(20)-(25) million for the full year 2022.
  • The company is making accelerated investments to support growth in the direct-to-consumer and institutional categories.
  • Marketing expenses as a percentage of revenue may fluctuate from quarter to quarter.
  • The company's growth forecast reflects normal pre-COVID seasonality in the first half of the year, followed by the anticipation of heightened travel during the summer months.

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 Q4 2021

Historical avgQ4 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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