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Dec 31, 2022
Nerdy Q4 2022 Earnings Report
Nerdy delivered revenue above guidance, driven by Learning Memberships and Institutional growth.
Key Takeaways
Nerdy, Inc. reported Q4 2022 revenue of $41.8 million, exceeding its guidance range. The company made substantial progress in its shift to an 'always on' business model, with Learning Membership adoption exceeding expectations. Varsity Tutors for Schools also showed strong interest in new recurring revenue Institutional products.
Delivered revenue of $41.8 million, above guidance range.
Learning Membership adoption continues to exceed expectations.
Varsity Tutors for Schools is seeing strong interest in new recurring revenue Institutional products.
Gross margins of 70.5% were approximately 230 bps higher than the comparable period in 2021.
Revenue by Segment
Forward Guidance
For Q1 2023, Nerdy expects revenue in the range of $45-47 million. For the full year 2023, the company expects revenue of $190-200 million and a Non-GAAP adjusted EBITDA loss in the range of $10 million to breakeven.
Positive Outlook
- Sequential quarterly revenue growth expected from Q4 to Q1.
- Full year growth driven by evolution towards recurring revenue streams.
- Build in the number of Learning Membership subscribers.
- Higher Institutional revenues expected.
- Expect to exit the aggregate J-Curve business model transition, driving year-over-year growth.
Challenges Ahead
- Full year revenue guidance reflects the decision to shift 100% of the Consumer business to Learning Memberships by the end of 2023.
- Revenue guidance also reflects normal summer seasonality, including anticipated lower levels of new customer acquisition, consumption, and retention during the summer months when K12 schools and universities are out of session.
- Full year adjusted EBITDA guidance reflects the impact of normal summer seasonality.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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