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Dec 31, 2021
Nerdy Q4 2021 Earnings Report
Nerdy reported record fourth quarter and full year revenues, driven by growth in the direct-to-consumer business and the launch of the institutional strategy.
Key Takeaways
Nerdy's Q4 2021 revenue reached a record high of $42.0 million, a 27% increase year-over-year. The company's full-year revenue also hit a record of $140.7 million, representing a 35% increase year-over-year. The growth was fueled by strong demand in the direct-to-consumer business and the launch of Varsity Tutors for Schools.
Achieved record fourth quarter and full year revenues.
Experienced strong growth in the direct-to-consumer business.
Launched the institutional strategy with Varsity Tutors for Schools.
Active Learners increased by 46% year-over-year.
Forward Guidance
Nerdy provided revenue guidance for Q1 2022 and full year 2022. The company expects revenue in the range of $45-48 million for Q1 2022, representing a 34% increase at the midpoint from the year-ago quarter. For the full year 2022, the company expects revenue of $196-200 million, representing >40% growth at the midpoint vs. 2021 revenue.
Positive Outlook
- Revenue is expected to grow more than 40% in 2022.
- Varsity Tutors for Schools is expected to ramp up in the 2022-2023 academic school year.
- Strong consumer and institutional demand trends are expected to continue.
- The company has a strong balance sheet with $144 million in cash.
- The company expects to be profitable by the end of 2023.
Challenges Ahead
- The company expects a Non-GAAP adjusted EBITDA loss in the range of $(6)-(8) million for Q1 2022.
- The company expects a Non-GAAP adjusted EBITDA loss in the range of $(20)-(25) million for the full year 2022.
- The company is making accelerated investments to support growth in the direct-to-consumer and institutional categories.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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