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Jun 30, 2022
Nerdy Q2 2022 Earnings Report
Nerdy delivered strong revenue growth, driven by consumer 1-on-1 audiences and the institutional business, Varsity Tutors for Schools.
Key Takeaways
Nerdy, Inc. reported revenue of $42.2 million for Q2 2022, a 29% increase compared to Q2 2021, exceeding their guidance range. The company saw growth in active learners, online sessions, and active experts. Net income was $15.3 million, compared to a net loss in the previous year, and the company reaffirmed its revenue guidance for the full year.
Nerdy delivered revenue of $42.2 million, up 29% compared to the second quarter of 2021.
Small class and group revenue increased 114% to reach $5.5 million.
Varsity Tutors for Schools signed 44 new contracts and yielded $4.2 million in revenue.
Active Learners up 36% and Online Sessions up 35% compared to the second quarter of 2021.
Forward Guidance
Nerdy expects to achieve adjusted EBITDA profitability by the end of 2023. For Q3 2022, they anticipate revenue between $30-33 million and a non-GAAP adjusted EBITDA loss between $14-17 million. For the full year 2022, they reaffirm revenue expectations of $160-175 million and a non-GAAP adjusted EBITDA loss between $28-38 million.
Positive Outlook
- Expansion of Learning Membership offering.
- Delivery of new products and product enhancements across institutional offerings.
- Learning Membership model aimed at providing unparalleled value and simplifying pricing.
- Learning Membership model aimed at driving longer duration and higher lifetime value relationships.
- Expect revenue reacceleration in the fourth quarter during the key back-to-school period.
Challenges Ahead
- Lower revenue recognition in the near-term for Learning Membership clients.
- Expect the third quarter to be the lowest revenue generating quarter due to summer seasonality.
- Impact to be greater this year as we lean into our all-inclusive Learning Membership model as the primary option presented to consumers this back-to-school season.
Historical Earnings Impact
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