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Sep 30, 2022
Nerdy Q3 2022 Earnings Report
Nerdy's Q3 2022 performance was marked by a revenue of $31.8 million, aligning with guidance, and a strategic shift towards Learning Memberships, which now constitute 18% of total revenue and have an annualized run rate of $50.2 million.
Key Takeaways
Nerdy, Inc. reported Q3 2022 revenue of $31.8 million, consistent with its guidance. The company focused on transitioning customers to Learning Memberships, which reached an annualized run rate of $50.2 million. Varsity Tutors for Schools signed 21 new contracts with $5.6 million in bookings. The company maintains a strong liquidity position with $106.4 million in cash reserves.
Nerdy's Q3 2022 revenue was $31.8 million, in line with guidance.
Learning Membership revenue grew to $5.8 million, representing 18% of total revenue, with an annualized run rate of $50.2 million.
Varsity Tutors for Schools signed 21 new contracts, yielding $5.6 million in bookings.
Nerdy maintains a strong liquidity position with $106.4 million in cash reserves and is on track to achieve adjusted EBITDA profitability by the end of 2023.
Revenue by Segment
Forward Guidance
Nerdy anticipates sequential quarterly revenue growth driven by Learning Membership subscribers and higher Institutional revenues. For Q4 2022, revenue is expected to be in the range of $39-41 million and a non-GAAP adjusted EBITDA loss in the range of $6-8 million. For the full year 2022, revenue is expected to be $160-162 million, with a non-GAAP adjusted EBITDA loss in the range of $36-38 million. The company targets exiting the J Curve business model transition by the end of Q1 2023.
Positive Outlook
- Sequential quarterly revenue growth expected.
- Increase in Learning Membership subscribers anticipated.
- Higher Institutional revenues projected.
- Continued moderation of marketing spend.
- Reduced levels of hiring demonstrating operating leverage.
Challenges Ahead
- Lower revenue recognized in the quarter due to Learning Memberships rollout.
- Longer-lead times in Institutional business due to focus on larger school districts.
- Non-GAAP adjusted EBITDA loss expected for Q4 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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