Nerdy Inc. (NRDY) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.71%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.09, delivering a surprise of 35.71%.Over the last four quarters, the company has surpassed con ...

Nerdy (NRDY) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good afternoon, and thank you for attending the Nerdy Incorporated Q1 twenty twenty five Earnings Call. My name is Jason, and I'll be the moderator today. I would now like to pass the conference over to your host, DJ Lin, Associate General Counsel of Nerdy. You may proceed. Speaker1 Good afternoon, and thank you for joining us for Nerdy's first quarter twenty twenty five earnings call. With me are Chuck Cone, Donner, Chairman and Chief Exe ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _________________________________________ (Mark One) OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from _______ to _______ Commission File Number: 1-39595 NERDY INC. (Exact name of registrant as specifi ...

Exhibit 99.1 During the first quarter, we implemented tutor incentives that are driving higher utilization of tutoring sessions across both our Consumer and Institutional businesses. Following the adoption of the new Expert incentives, we are already seeing several positive leading indicators in the Learner-Expert relationship including: faster time to the first session, more sessions in the first 30 days, more sessions per active tutor, lower tutor replacement rates, and higher retention – all of which sho ...

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Nerdy Inc. (NRDY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Nerdy Inc. is one of 257 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #14 within the Zacks Sector Rank. The Zacks ...

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Nerdy Inc. (NRDY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Nerdy Inc. is one of 267 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. ...

Core Insights - Nerdy (NYSE: NRDY) experienced a significant late-year stock rally, achieving triple-digit growth, but is now facing challenges as the market stabilizes and lacks strong driving forces [1] - The emergence of technologies like Generative AI and the ongoing effects of the post-pandemic environment are creating new hurdles for the EdTech sector [1] Company Analysis - Nerdy is categorized as a pure-play in the EdTech industry, which is currently experiencing a slowdown after an initial surge [1] - The stock's impressive performance has been overshadowed by the decline of the Musk-Trump rally, indicating a shift in market sentiment [1] Industry Trends - The EdTech industry is grappling with the integration of advanced technologies such as Generative AI, which may disrupt traditional educational models [1] - The post-pandemic landscape continues to influence market dynamics, presenting both challenges and opportunities for companies within the sector [1]

Group 1 - J.P. Morgan analyst Bryan M. Smilek reiterated an Underweight rating on Nerdy Inc shares despite the company exceeding expectations in its fourth-quarter results [1] - Nerdy reported a 26% year-over-year improvement in engagement and better retention in the fourth quarter, driven by AI-driven optimizations [2] - The company raised its subscription product Average Revenue Per Member (ARPM) by 15-20%, with February ARPM tracking over $400, which is expected to foster consumer revenue growth in 2025 [2] Group 2 - On the institutional side, Nerdy adjusted its investments to align with a more stable sales cycle following uncertainties related to ESSER and N-T funding [3] - The company secured 91 paid contracts resulting in $4.6 million in bookings, extending platform access to over 5 million students across approximately 1,100 school districts [4] - Nerdy plans to integrate AI across its VTS offerings, expecting product upgrades and streamlined operations to drive institutional revenue growth in the second half of the year [5] Group 3 - The analyst expressed optimism about improved trends across consumer, institutional, and adjusted EBITDA, although visibility remains uncertain [5] - Key growth initiatives like Learning Memberships and VTS show potential for scaling and profitability, but challenges and execution risks persist [5] - Stronger execution and scalability across active members and VTS, along with positive adjusted EBITDA and free cash flow generation, could materialize in 2025 [6]

Core Insights - Nerdy reported a loss per share of $0.09, better than the consensus estimate of a loss of $0.14 per share [2] - Sales reached $48 million, exceeding the company's guidance of $44 million to $47 million and Wall Street's estimate of $45 million [2] - However, sales declined by 13% year-over-year, and gross margin fell to 66.6% from 71.3% in the previous year [3] - The net loss widened to $15.7 million compared to a loss of $9.2 million in the same quarter last year [3] - Active members decreased by about 8%, from 40,700 to 37,500 [4] Future Outlook - For the upcoming quarter, Nerdy expects sales between $45 million to $47 million, indicating a 14% decline from the previous year [5] - Adjusted EBITDA is projected to be a loss of $7 million, a significant drop from a positive EBITDA of $24,000 in the first quarter of 2024 [6]

Financial Data and Key Metrics Changes - In Q4 2024, Nerdy reported revenue of $48 million, which was above the guidance range of $44 million to $47 million, but represented a 13% decrease year-over-year from $55.1 million in Q4 2023 [29] - Gross profit for Q4 was $31.9 million, a 19% decline year-over-year, with a gross margin of 66.6% compared to 71.3% in the same period of 2023 [33] - Non-GAAP adjusted EBITDA loss was $5.5 million, better than the guidance of negative $7 million to negative $10 million, but compared to a positive adjusted EBITDA of $3 million in Q4 2023 [38][40] Business Line Data and Key Metrics Changes - Consumer Learning Membership subscription revenue was $39.2 million, accounting for 82% of total revenue, with active members at 37,500 and an average revenue per member (ARPM) of $302 [30] - The institutional business generated $6.8 million in revenue, representing 14% of total revenue, with 91 contracts executed yielding $4.6 million in bookings [31] - The strategy to introduce school districts to the platform resulted in 43% of paid contracts and 36% of total bookings value coming from school district partners in Q4 [25] Market Data and Key Metrics Changes - Consumer engagement rose 26% year-over-year in Q4, with improvements in onboarding and tutor matching leading to higher retention rates [23] - The company enabled access to the Varsity Tutors platform for an additional 600,000 students, bringing the total to 5 million students across over 1,100 school districts [31] Company Strategy and Development Direction - The company unified its consumer and institutional offerings, improved marketplace technology, and enhanced subscription offerings, focusing on AI-driven innovations to optimize the learning experience [9][10] - Plans for 2025 include further AI product enhancements, such as Tutor Copilot and advanced predictive analytics, aimed at improving engagement and operational efficiency [15][18] - The company aims to shift focus towards paid access to the Varsity Tutors platform, leveraging AI-led product enhancements to drive growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 performance, highlighting improvements in marketplace infrastructure and product innovations that are expected to drive retention and growth [49] - The outlook for 2025 includes expectations for a return to growth in consumer revenues, driven by product innovation and operational improvements [41] - Institutional revenue is anticipated to be flat in the first half of 2025 due to lower bookings in 2024, with growth expected to resume in the back-to-school period [88] Other Important Information - The company has zero debt and cash and cash equivalents of $52.5 million, providing ample liquidity for growth initiatives [40] - The company implemented new expert incentives to drive engagement and retention, which have already shown positive results [34] Q&A Session Summary Question: Can you help us bridge the assumptions on the active learning numbers and ARPM for Q1? - Management expressed confidence in Q4 performance and noted that tutor incentives have significantly improved engagement and retention, which they believe will positively impact Q1 [50][51] Question: What drove the pricing decision for new customers in Q1? - A 20% price increase was implemented due to added value from product enhancements and tutor incentives, which management believes are justified [53] Question: Are you starting to see returns from the localization of the sales force? - Management indicated that product enhancements and a focus on AI capabilities are expected to drive growth, despite a cautious approach to the sales force due to funding uncertainties [74] Question: How much of a benefit have you contemplated from AI tools within your fiscal 2025 outlook? - Management is optimistic about the potential of AI tools to enhance customer activation and process automation, which they believe will be self-funding over the year [80][81] Question: What factors do you think will drive growth expectations? - Management highlighted retention improvements, higher ARPM, and enhanced product offerings as key drivers for returning to growth [86]