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Sep 30, 2024
Nerdy Q3 2024 Earnings Report
Nerdy's revenue decreased due to lower ARPM in the Consumer business, but platform enhancements and strategic investments were made.
Key Takeaways
Nerdy reported Q3 2024 revenue of $37.5 million, a 7% decrease year-over-year, with a net loss of $25.0 million. The company focused on scaling its winning product and expanding its learner base through strategic investments in Varsity Tutors for Schools.
Revenue was $37.5 million, a 7% decrease year-over-year, primarily due to lower ARPM in the Consumer business.
Active Members totaled 39.7K, up 1% year-over-year.
The Institutional business generated $5.4 million in revenue, a 3% decrease year-over-year.
Nerdy enabled access to the Varsity Tutors platform for an additional 1.1 million students, reaching a total of 4.4 million students across nearly 900 school districts.
Forward Guidance
For the fourth quarter of 2024, Nerdy expects revenue in the range of $44-47 million and adjusted EBITDA in the range of negative $7 million to negative $10 million. For the full year, revenue is expected to be in the range of $186-189 million and adjusted EBITDA in the range of negative $23 million to negative $26 million.
Positive Outlook
- Higher sequential quarterly revenues are expected from Learning Memberships.
- Higher sequential quarterly revenues are expected from Varsity Tutors for Schools.
- Sequential improvement in adjusted EBITDA is expected from the third to the fourth quarter.
- Ample liquidity is available to fund the business and pursue growth initiatives.
- Continued innovation and growth investments.
Challenges Ahead
- Year-over-year Consumer revenue will be impacted by a decline in the number of Learning Membership subscribers.
- Year-over-year Consumer revenue will be impacted by lower average revenue per member per month.
- Lower bookings year-to-date will result in the flow through of lower revenues during the fourth quarter in the Institutional business.
Historical Earnings Impact
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