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Jun 30, 2024
Nerdy Q2 2024 Earnings Report
Nerdy's revenue increased by 4% year-over-year, driven by growth in both Consumer and Institutional segments but was partially offset by lower ARPM in the Consumer business. The company reported a net loss, but improvements were made in non-GAAP adjusted EBITDA relative to guidance due to marketing spend and operating efficiency gains.
Key Takeaways
Nerdy, Inc. reported Q2 2024 revenue of $51.0 million, a 4% increase year-over-year. Revenue growth was driven by the Consumer and Institutional segments. The company's net loss was $14.4 million. They ended the quarter with $69.8 million in cash and no debt.
Revenue was $51.0 million, up 4% year-over-year.
New Consumer customer acquisition increased 12% year-over-year.
Institutional business revenue was $11.1 million, up 33% year-over-year.
The company enabled access to the Varsity Tutors platform for an additional 1.1 million students, bringing the total to 3.3 million students.
Revenue by Segment
Forward Guidance
The company provided revenue guidance for Q3 2024 in the range of $35-38 million and full year 2024 revenue in the range of $196-$204 million. They also provided adjusted EBITDA guidance for Q3 2024 in the range of negative $19 million to negative $17 million and full year 2024 adjusted EBITDA in the range of negative $21 million to negative $19 million.
Positive Outlook
- Anticipated levels of new customer acquisition as students return during back-to-school.
- Higher ARPM and retention improvements stemming from our focus on premium Learning Memberships.
- Return to durable and profitable growth as we exit the year.
- improvements to our marketplace infrastructure systems, including: session scheduling enhancements, and invoice and tutor substitution automation improvements
- Collectively are expected to meaningfully improve gross margin during the back-to-school period and on a go-forward basis
Challenges Ahead
- Consumer revenue is impacted by the higher than expected level of seasonal end of school year and summer cancellations
- Fewer Active Members than anticipated as we enter the upcoming back-to-school period coupled with lower ARPM.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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