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]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $48 million, which was a 13% decrease year-over-year from $55.1 million in Q4 2023, but above the guidance range of $44 million to $47 million [29][30] - The gross profit for Q4 was $31.9 million, representing a 19% decline year-over-year, with a gross margin of 66.6% compared to 71.3% in the same period last year [33][34] - The 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][39] 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, leading to an annualized run rate of approximately $136 million [30][31] - 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][32] Market Data and Key Metrics Changes - 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 by year-end [31][72] - In Q4, 43% of paid contracts and 36% of total bookings value came from school district partners who initially partnered with Varsity Tutors for Schools [25][65] Company Strategy and Development Direction - The company unified its consumer and institutional offerings and improved marketplace technology, focusing on AI-driven innovations to enhance the learning experience [9][10] - The strategy includes introducing AI-powered products to improve learner and expert support, such as an AI session playback tool and Tutor Copilot, aimed at increasing engagement and retention [11][57] - The company plans to shift focus towards paid access to the Varsity Tutors platform for new customers, leveraging significant AI-led product enhancements in 2025 [66][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 performance and the underlying marketplace infrastructure, which supports higher retention and engagement [90][92] - The company anticipates a return to growth in consumer revenues in 2025, driven by product innovation and operational improvements [41][82] - The outlook for institutional revenue remains cautious due to lower 2024 bookings and government funding uncertainties, but management sees significant opportunities in the institutional space [32][83] Other Important Information - The company has zero debt and cash and cash equivalents of $52.5 million, providing ample liquidity to pursue growth initiatives [40][81] - The company expects to be adjusted EBITDA and cash flow positive in Q4 2025, ending the year with cash in the range of $35 million to $40 million [44][86] Q&A Session Summary Question: Can you help us bridge the assumptions on the active learning numbers and ARPM for Q1? - Management feels confident about Q4 performance and the underlying foundation, which supports higher retention and engagement, leading to a positive outlook for Q1 [90][92] Question: What drove the pricing decision for new customers in Q1? - The company increased prices by approximately 20% due to added value from product enhancements and tutor incentives, which are expected to improve retention and customer experience [95][96] Question: How is the new AI products impacting retention in the consumer business? - AI products improve match quality and enhance the customer experience, leading to higher retention rates and better engagement [101][102] Question: Can you explain the gross margin and higher utilization dynamic in Q4? - Higher utilization positively impacts retention but affects gross margins in the short term; however, management expects sequential improvements in gross margin as new pricing takes effect [109][110]

Employee and Workforce Management - As of February 13, 2025, the company had approximately 600 full and part-time employees and 400 globally-sourced independent contractors[64] - The company emphasizes the importance of employee retention, growth, and development, offering competitive compensation and training opportunities[66] - In July 2023, the Company implemented workforce reductions to enhance operational efficiency through automation and new revenue relationships[394] - The company completed workforce reductions of approximately 17% of its total workforce in December 2022, primarily affecting variable hourly roles[395] Financial Performance - Revenue for 2024 was $190,231, a decrease of 1% from $193,399 in 2023[311] - Gross profit for 2024 was $128,394, down from $136,447 in 2023, reflecting a gross margin of approximately 67.5%[311] - Operating loss increased to $(70,108) in 2024 compared to $(57,571) in 2023[311] - Net loss for 2024 was $(67,142), slightly improved from $(67,669) in 2023[314] - Total assets decreased to $92,507 in 2024 from $124,744 in 2023, a decline of approximately 26%[316] - Cash and cash equivalents at the end of 2024 were $52,541, down from $74,824 in 2023, representing a decrease of 30%[316] - Total liabilities decreased to $31,394 in 2024 from $39,138 in 2023, a reduction of about 20%[316] - Total comprehensive loss attributable to Class A common stockholders was $(42,597) in 2024, compared to $(40,131) in 2023[314] - The total accumulated deficit increased to $515,281,000 as of December 31, 2023, compared to $475,107,000 at the end of 2022, indicating ongoing financial challenges[321] - The company reported a net loss attributable to Class A common stockholders of $42.585 million for the year ended December 31, 2024, compared to a net loss of $40.174 million in 2023[410] Revenue Recognition and Accounting Policies - The Company recognized revenue from contracts with Learners and Institutions as performance obligations are satisfied, with revenue from Learning Memberships recognized monthly[345][349] - Revenue is recognized for unredeemed payments for services over the period in which the performance obligation is satisfied, based on historical usage patterns[348][351] - The Company has adopted new accounting standards that will expand disclosures related to income taxes but will not materially impact financial statements[382] Regulatory and Compliance Issues - The company is subject to various regulatory and administrative investigations, which could have a material impact on its business and financial condition[67] - The company monitors changes to applicable regulations and designs its policies to comply with existing interpretations[72] Intellectual Property and Trademarks - The company relies on a range of intellectual property protections, including trademarks and copyrights, to safeguard its proprietary rights[74] - The company has an ongoing trademark registration program and has several registered and pending trademarks in the U.S. and foreign jurisdictions[75] Market Presence and Consumer Awareness - The company believes its online learning platform is more efficient, convenient, effective, and affordable compared to offline solutions, which is a significant factor in driving consumer adoption[61] - The company has scaled to millions of users, but many consumers and institutions in the U.S. remain unaware of the online solutions offered[63] - Nerdy Inc. has expanded its offerings to include Varsity Tutors for Schools, enhancing its market presence in institutional education[324] Cash Flow and Liquidity - Net cash used in operating activities was $(15,603) in 2024, compared to $(7,560) in 2023, indicating increased cash outflow[319] - Cash and cash equivalents decreased to $52.541 million in 2024 from $74.824 million in 2023[414] Stock and Equity - The number of Class A common stock shares increased to 106,416 as of December 31, 2023, up from 95,296 shares at the end of 2022, indicating growth in equity financing[321] - The weighted-average shares of Class A common stock for basic and diluted loss per share increased to 111,695 in 2024 from 97,157 in 2023[410] Expenses and Cost Management - Marketing expenses for the years ended December 31, 2024, 2023, and 2022 were $39,593, $43,043, and $45,113 respectively, indicating a decrease of 8.5% from 2023 to 2024[370] - The cost of revenue increased to $61.837 million in 2024 from $56.952 million in 2023, while employee-related expenses rose to $94.937 million from $85.756 million[458] Restructuring and Legal Matters - Total expected restructuring charges amount to $2.32 billion, with cumulative restructuring charges incurred to date also at $2.32 billion[397] - The Company expensed $1,700 million related to a legal settlement in 2023, which is included in general and administrative expenses[438]

Financial Performance - In Q4 2024, the company reported revenue of $48.0 million, exceeding guidance of $44 to $47 million, but down 13% year-over-year from $55.1 million in Q4 2023[24]. - The adjusted EBITDA loss was $5.5 million, better than the guidance range of negative $7.0 million to negative $10.0 million, compared to a non-GAAP adjusted EBITDA of $3.0 million in Q4 2023[24]. - The net loss for Q4 2024 was $15.7 million, compared to a net loss of $9.2 million in Q4 2023[40]. - Non-GAAP adjusted net loss for Q4 2024 was $7.0 million, a significant decline from non-GAAP adjusted net earnings of $2.2 million in Q4 2023[40]. - Revenue for Q4 2024 was $47.99 million, a decrease of 12.9% from $55.08 million in Q4 2023[49]. - Net loss for the year ended December 31, 2024, was $67,142 thousand, a slight improvement from a net loss of $67,669 thousand in 2023[56]. - Non-GAAP adjusted EBITDA loss for the year ended December 31, 2024, was $21,472 thousand, compared to a loss of $2,480 thousand in 2023[62]. - Non-GAAP adjusted net loss for the year ended December 31, 2024, was $26,053 thousand, compared to a loss of $5,984 thousand in 2023[64]. Revenue Breakdown - Consumer Learning Memberships generated $39.2 million in revenue, accounting for 82% of total revenue, with 37.5K Active Members as of December 31, 2024[24]. - Institutional revenue was $6.8 million, representing 14% of total revenue, with 91 contracts executed yielding $4.6 million in bookings[24]. - Consumer revenue for Q4 2024 was $40.99 million, down 6% from $43.53 million in Q4 2023[51]. - Institutional revenue for Q4 2024 was $6.83 million, a decline of 40% from $11.34 million in Q4 2023[51]. Expenses - Sales and marketing expenses for Q4 2024 were $18.4 million, a decrease of 2.1% from $18.8 million in Q4 2023[34]. - For the year ended December 31, 2024, sales and marketing expenses increased to $71.6 million, up 4.5% from $68.5 million in 2023[34]. - General and administrative expenses for Q4 2024 were $29.9 million, a decrease of 2.6% from $30.7 million in Q4 2023[38]. - General and administrative expenses for the year ended December 31, 2024, were $126,879 thousand, slightly up from $125,570 thousand in 2023[60]. Cash and Liquidity - The company has $52.5 million in cash with no debt, providing ample liquidity to fund business operations and growth initiatives[24]. - As of December 31, 2024, cash and cash equivalents were $52.5 million, down from $74.8 million at the end of 2023[54]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $52,673 thousand, down from $75,140 thousand at the end of 2023[56]. - Cash used in operating activities increased to $15,603 thousand in 2024 from $7,560 thousand in 2023[56]. Membership and User Metrics - Active Members as of December 31, 2024, decreased by 8% year-over-year to 37.5 thousand, compared to 40.7 thousand in 2023[71]. - Active Experts increased by 17% year-over-year to 20.2 thousand in 2024, up from 17.2 thousand in 2023[71]. Future Outlook - The company expects first quarter 2025 revenue in the range of $45-47 million and full year revenue between $190-200 million[30]. - Full year adjusted EBITDA is projected to be negative $8 million to negative $18 million, with expectations of returning to positive adjusted EBITDA and cash flow in Q4 2025[30][29]. - The company anticipates continued improvements in sales and marketing leverage and growth in its Institutional business for 2025[85]. Risks and Challenges - The company faces significant risks that could cause actual results to differ materially from forward-looking statements, including evolving offerings and historical net losses[87]. - There are concerns regarding the ability to acquire and retain customers, as well as to scale up both Consumer and Institutional businesses[87]. - The company has a history of negative operating cash flows, which may necessitate seeking additional sources of liquidity[87]. - Risks associated with intellectual property claims could impact the company's operations and financial results[87]. - The classification of certain contractors as independent may pose additional risks to the company's business model[87]. - The company is exposed to litigation, regulatory, and reputational risks, particularly due to the involvement of minors in its learning programs[87]. - Cyber-related incidents and their potential impacts on business operations are a significant concern for the company[87]. - The development and use of artificial intelligence present regulatory uncertainties that could affect the company's future[87]. - The company acknowledges the possibility of adverse effects from economic, business, and competitive factors[87]. - Managing rapid growth poses additional risks that the company must navigate[87]. Product Development - The company introduced AI-driven products, including AI Lesson Plan and Practice Problem Generators, aimed at enhancing the learning experience and reducing operational costs[6][9]. - The company successfully expanded its platform to over 5 million students across more than 1,100 school districts, with 43% of paid contracts and 36% of total bookings value coming from these partnerships in Q4[16][24].

Core Viewpoint - The article emphasizes the importance of simple reasoning in developing effective investment strategies and outcomes, focusing on fundamental analysis and peer comparison to assess company value [1]. Group 1: Company Analysis - The author advocates for a straightforward approach to determine if a company holds value, suggesting that fundamental metrics and peer analysis are essential tools in this evaluation [1]. - The article does not provide specific company names or detailed financial data, but it implies that a thorough understanding of management accounting principles can lead to better investment decisions [1]. Group 2: Industry Insights - The content reflects a broader perspective on investment analysis, indicating that many analysts may not be licensed or certified, which could impact the reliability of their opinions [3]. - The article highlights the role of third-party sources in providing data for investment analysis, suggesting that investors should critically evaluate the information they receive [2][3].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $37.5 million, a decrease of 7% year-over-year, primarily due to lower Average Revenue Per Member (ARPM) in the Consumer business [22][24] - Gross profit was $26.5 million, down 9% year-over-year, with a gross margin of 70.5%, compared to 72.4% in the same period last year [26] - Non-GAAP adjusted EBITDA loss was $14 million, which was better than the guidance range of negative $17 million to negative $19 million, but worse than the loss of $8.2 million in the same period last year [29][30] Business Line Data and Key Metrics Changes - Consumer Learning Memberships generated $31.4 million in subscription revenue, representing 84% of total revenue, with active members increasing by 1% year-over-year to 39,700 [23] - Institutional business revenue was $5.4 million, a decrease of 3% year-over-year, accounting for 14% of total revenue [24] - 32% of paid contracts and 22% of total bookings value in Q3 came from school district partners who initially partnered via free access to the platform and later converted to paid offerings [16][24] Market Data and Key Metrics Changes - The company enabled access to the Varsity Tutors for Schools platform for an additional 1.1 million students, bringing the total to 4.4 million students across nearly 900 school districts [14] - Student engagement with the platform was stronger than expected as students returned to school, indicating a growing need for support beyond traditional classroom settings [15][44] Company Strategy and Development Direction - The company is focusing on scaling its product offerings and enhancing the onboarding experience to improve customer retention and lifetime value [6][10] - Investments were made in the Varsity Tutors for Schools go-to-market organization and platform infrastructure to drive market penetration and bookings growth [12][25] - The strategy of providing free access to the platform is aimed at building relationships with school districts and positioning for sustainable long-term growth in the K-12 market [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for live tutoring, citing growing recognition of high-dosage tutoring as an effective learning acceleration method [21] - The company expects revenue for Q4 2024 to be in the range of $44 million to $47 million, with full-year revenue guidance of $186 million to $189 million [31] - Adjusted EBITDA for Q4 is expected to be in the range of negative $7 million to negative $10 million, with a full-year expectation of negative $23 million to negative $26 million [32] Other Important Information - The company has a strong balance sheet with cash and cash equivalents of $65 million and no debt, providing ample liquidity for growth initiatives [30] - Sales and marketing expenses increased to $20.3 million, driven by investments in the Institutional sales organization, while consumer sales and marketing efficiency gains led to a decrease in customer acquisition costs [27][28] Q&A Session Summary Question: Visibility into stability in the consumer side of the business and engagement strategies - Management noted that retention among higher frequency tutoring customers improved, and product enhancements have led to better engagement and retention metrics [35][38] Question: Decline in Institutional revenue and monetization progress - Management attributed the decline to challenges with a new sales team and an overly focused strategy on the ESSER deadline, but expressed optimism about long-term growth through platform access strategies [40][42][44] Question: Expectations for active member growth versus ARPM dynamics in Q4 - Management expects to end the year with about 36,000 active members and ARPM to improve to around $310, driven by a focus on higher frequency customers [47]

Company Performance - Nerdy Inc. reported a quarterly loss of $0.14 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and compared to a loss of $0.13 per share a year ago, indicating an earnings surprise of 39.13% [1] - The company posted revenues of $37.53 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.47%, although this is a decline from year-ago revenues of $40.3 million [2] - Over the last four quarters, Nerdy has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Nerdy shares have declined approximately 74.3% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $57.06 million, and for the current fiscal year, it is -$0.48 on revenues of $198.39 million [7] Industry Outlook - The Schools industry, to which Nerdy belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - The performance of Nerdy may be influenced by the overall outlook for the industry, as empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

Membership Growth - Active Members increased to 39.7 thousand as of September 30, 2024, reflecting a year-over-year growth of 1%[55] - Active Experts rose to 9.5 thousand for the three months ended September 30, 2024, marking a 6% increase compared to the same period in 2023[56] Revenue Performance - Revenue for the three months ended September 30, 2024, was $37,530 thousand, a decrease of 7% from $40,296 thousand in the prior year[57] - Revenue for the nine months ended September 30, 2024, was $142,241 thousand, an increase of 3% from $138,315 thousand in the prior year[59] - Institutional revenue for the nine months ended September 30, 2024, increased by 27% to $28,451 thousand from $22,474 thousand in the previous year[59] Profitability Metrics - Gross profit for the three months ended September 30, 2024, was $26,453 thousand, down 9% from $29,188 thousand in the same period last year[61] - The gross margin for the three months ended September 30, 2024, was 70%, compared to 72% for the same period in 2023[61] - Operating loss for the three months ended September 30, 2024, was $(25,724) thousand, compared to $(25,553) thousand in the same period last year[57] - Net loss attributable to Class A common stockholders for the three months ended September 30, 2024, was $(15,900) thousand, a 42% increase from $(12,290) thousand in the prior year[57] Expense Management - Sales and marketing expenses for the three months ended September 30, 2024, increased by $1,221 thousand, or 7%, excluding stock-based compensation[64] - General and administrative expenses for the three months ended September 30, 2024, decreased by $3,646 thousand, or 10%, compared to the same period in 2023[65] - Product and development costs for the three months ended September 30, 2024, increased by $1,188 thousand, or 12%[65] Cash Flow and Liquidity - Cash used in operating activities for the nine months ended September 30, 2024, increased by $1,773 thousand compared to the same period in 2023[72] - Cash used in investing activities for the nine months ended September 30, 2024, was $5,700 thousand, an increase from $3,923 thousand in the same period in 2023[73] - As of September 30, 2024, the company had cash and cash equivalents totaling $65,002 thousand, down from $74,824 thousand as of December 31, 2023[68] - The company expects its cash on hand to be sufficient to satisfy future cash requirements within the next twelve months[69] Market Risks and Future Outlook - The company incurred cumulative losses from operations and may incur additional losses in the future[68] - The company had no debt obligations as of September 30, 2024[69] - The company expects improvements in gross margin due to recent enhancements in marketplace infrastructure systems[61] - The company's exposure to market risk, including foreign currency exchange rates and interest rates, is considered immaterial[82] - Interest income for the three months ended September 30, 2024, was $768 thousand, a decrease from $844 thousand in the same period in 2023[67]

Partnership and Market Expansion - Nerdy Inc's Varsity Tutors for Schools has partnered with The NET Charter High School - Gentilly Campus to provide live and on-demand tutoring resources at no cost through its online platform [1] - The partnership agreement extends through June 30, 2030, aiming to increase educational resources and support long-term growth for Nerdy [1] - The platform is utilized by over 500 school districts across the United States, enhancing Nerdy's market recognition and growth prospects [4] Platform Offerings and Value Proposition - Varsity Tutors for Schools offers 24/7 On-Demand Chat Tutoring, live enrichment classes, personalized learning plans, SAT/ACT prep classes, adaptive assessments, and college readiness resources [2] - The platform provides high-dosage tutoring and online learning solutions through three simple administration models, catering to a broad set of institutional and student needs [3] - The zero-cost model for K-12 schools highlights Nerdy's innovative approach to expanding its user base while delivering essential educational support [4] Financial Performance and Growth Drivers - Nerdy's shares have declined 71.4% year-to-date, underperforming the Zacks Schools industry's 2.2% decline [5] - Strong demand across consumer and institutional businesses, along with operational leverage from access-based subscription revenue models, supports future growth [5] - In Q2 2024, operational leverage from subscription revenue models significantly surpassed expenditures, facilitating the expansion of Varsity Tutors for Schools [6] Industry Comparison and Stock Performance - Royal Caribbean Cruises Ltd (RCL) has a trailing four-quarter earnings surprise of 18.5% and has rallied 61.3% in the past year, with 2024 sales and EPS expected to grow by 18.1% and 69.9%, respectively [8] - DoubleDown Interactive Co Ltd (DDI) has a trailing four-quarter earnings surprise of 22.1% and has surged 41.4% in the past year, with 2024 sales and EPS expected to increase by 12.6% and 15.8%, respectively [9] - Monarch Casino & Resort Inc (MCRI) has a trailing four-quarter negative earnings surprise of 3.5% and has risen 16.6% in the past year, with 2024 sales and EPS expected to grow by 2.3% and 10%, respectively [9]