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Mar 31, 2024
Nerdy Q1 2024 Earnings Report
Nerdy's Q1 2024 performance showed revenue growth and positive operating cash flow.
Key Takeaways
Nerdy, Inc. reported a 9% year-over-year increase in revenue to $53.7 million for Q1 2024, driven by growth in both Consumer and Institutional segments. The company achieved positive adjusted EBITDA of $24 thousand and positive operating cash flow of $4.4 million. Learning Memberships continued to scale, representing 74% of total revenue.
Total revenue increased by 9% year-over-year to $53.7 million.
Consumer Learning Membership subscription revenue grew by 34% year-over-year, reaching $39.9 million.
Institutional revenue increased by 39% year-over-year to $11.9 million.
The company reported positive operating cash flow of $4.4 million.
Revenue by Segment
Forward Guidance
The company introduced guidance for the second quarter and reaffirmed the full year revenue and adjusted EBITDA guidance. They expect year-over-year revenue growth will be driven by the continued growth of Learning Memberships in their Consumer business, the corresponding increase in the number of Learning Membership subscribers coupled with LTV extension, and higher Institutional revenues as they continue to rapidly scale Varsity Tutors for Schools.
Positive Outlook
- Continued growth of Learning Memberships in Consumer business.
- Increase in Learning Membership subscribers.
- Higher Institutional revenues from Varsity Tutors for Schools.
- Healthy new Learning Member acquisition.
- Growing awareness of tutoring effectiveness.
Challenges Ahead
- Second quarter revenue growth is impacted by legacy Package revenue of $4.9 million.
- These Package revenues do not recur in 2024 due to the completion of the transition to subscription-based Learning Memberships in our Consumer business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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