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Sep 30, 2021
Nerdy Q3 2021 Earnings Report
Nerdy's Q3 2021 results reflected revenue growth and strategic investments.
Key Takeaways
Nerdy Inc. reported a 19% year-over-year increase in revenue to $31.3 million for the third quarter of 2021. The company experienced growth in active learners and online sessions. Nerdy launched Varsity Tutors for Schools, securing contracts worth nearly $10 million. The company is well-capitalized with $170 million in cash and no debt.
Nerdy experienced record back-to-school performance with bookings up 32% year-over-year.
Third quarter revenue increased 19% year-over-year to $31.3 million.
Varsity Tutors for Schools launched, securing 47 contracts worth nearly $10 million.
Active Learners increased 36% and Online Sessions grew 45% year-over-year.
Forward Guidance
Nerdy expects revenue between $40 to $43 million for Q4 2021, representing a 25% increase at the midpoint year-over-year. Full year 2021 revenue is expected to be between $139 to $141 million, which is up 35% at the midpoint versus 2020. Adjusted EBITDA loss is expected to be between $4 to $6 million for Q4 2021.
Positive Outlook
- Expected revenue growth for Q4 2021.
- Anticipated full year revenue increase for 2021.
- Strong momentum heading into 2022.
- Favorable consumer demand trends expected to persist into 2022.
- Increased confidence in full year 2022 revenue targets.
Challenges Ahead
- Expected Adjusted EBITDA loss for Q4 2021.
- Continued investments in Varsity Tutors for Schools impacting profitability.
- Ongoing investments in Expert supply affecting earnings.
- New talent acquisition costs influencing EBITDA.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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