St. LUIS–(BUSINESS THREAD)–Nerdy Inc. (NYSE: NRDY) today announced financial results for the second quarter ended June 30, 2022.
“During the second quarter, Nerdy made great strides in advancing our product strategy that delivers our ‘always on’ vision for both consumer and institutional customers,” said Chuck Cohn, founder , president and CEO of Nerdy Inc. “With the launch of consumer learning memberships and the launch of on-demand and teacher-assigned offerings for K-12 schools, we’re heading into the back-to-school season for the 2022 school year- 2023 in a position to offer the majority of our customers these new recurring solutions that will drive deeper engagement and support continuous learning throughout the school year and beyond.”
Visit the Nerdy Investor Relations website to see the Nerdy Q2 Shareholder Letter on Quarterly Results Page.
Financial highlights
Revenue above upper guidance range: In the second quarter, Nerdy had revenue of $42.2 million, results that exceeded the guidance range of $37 to $40 million and an increase of 29 % compared to the second quarter of 2021. Revenue growth was driven by continuity. strength in the 1-to-1 consumer audience and the addition of Nerdy’s institutional business, Varsity Tutors for Schools. Strong Market Dynamics: Nerdy continued to drive growth and engagement with both learners and experts. Active learners increased by 36% and online sessions increased by 35% compared to the second quarter of 2021. The number of active experts on the platform increased by 42% compared to the same period last year . Institutional Drive: In the second quarter, College Tutors for Schools signed 44 new contracts and generated $4.2 million in revenue, representing 10% of Q2 revenue, in line with our expectations. Nerdy is actively promoting Varsity Tutors for Schools’ wide range of learning solutions including High Dosage, On Demand and Teacher Assigned as we approach the start of the 2022-2023 academic year. Gross profit: Gross profit of $28.8 million in the second quarter was up 35.2% year over year. Gross profit increases were primarily driven by growth among individual consumer audiences and the addition of our institutional business, Varsity Tutors for Schools. Liquidity and profitability: With no debt and $121.0 million of cash on the balance sheet, Nerdy has plenty of liquidity to fund the business and pursue growth initiatives. We continue to expect to achieve adjusted EBITDA profitability by the end of 2023. Codeverse Acquisition: In July, Nerdy completed the acquisition of Codeverse, a platform that helps kids learn to code by creating interactive and shareable video games through projects and guided missions, which We intend to integrate into our all-inclusive learning subscription by the end of the year and make available to our institutional clients next year.
Earnings Webcast and Conference Call
Nerdy management will host a conference call today, August 15, 2022 at 5:00 PM ET. Those interested in the US can listen to the call by dialing 1-844-200-6205. International callers can dial 1-929-526-1599. The conference call ID is 802623. A live webcast of the call will also be available on Nerdy’s investor relations website at . A replay of the webcast will be available on Nerdy’s website for one year following the event and a telephone replay of the call will be available until August 22, 2022 by dialing 1-866-813-9403 from USA or 44-204-525. -0658 from all other locations and entering the access code 599693.
About Nerdy Inc.
Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The company’s purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages with experts, delivering superior value on both sides of the network. Nerdy’s comprehensive learning destination offers learning experiences in over 3,000 subjects and in a variety of formats, including one-on-one instruction, small group classes, large group classes, and adaptive self-study. Nerdy’s flagship business, Varsity Tutors, is one of the nation’s largest platforms for live online classes and tutoring. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at https://www.nerdy.com/.
Forward-looking statements
The information contained herein and in any oral statement made in connection herewith may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Stock Exchange of 1934, modified. . Forward-looking statements include, but are not limited to, statements about our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, all statements that refer to projections, forecasts or other characterizations of future events or circumstances, including underlying assumptions, are forward-looking statements. The words “anticipate”, “approximately”, “believe”, “envision”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “could”, “outlook” plans”, “possible”, “potential”, “predict”, “projects”, “should”, “seek”, “will”, “will” and similar expressions may identify forward-looking statements, but the absence of such words does not mean that a statement is not forward-looking.
Forward-looking statements made herein speak only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
There are a significant number of factors that could cause actual results to differ materially from the statements made herein or in connection therewith, including but not limited to our limited operating history, which makes it difficult to predict our financial results and future operations; our net loss history; risks associated with our intellectual property, including claims that we infringe a third party’s intellectual property rights; risks associated with our classification of certain persons and entities with whom we contract as independent contractors; risks associated with the liquidity and trading of the Company’s securities; risks associated with the payments we may be required to make under the tax receivable agreement; risks associated with the terms of our guarantees; legal, regulatory and reputational risks arising from the fact that many of our students are minors; our lack of an effective control environment to meet our accounting and reporting requirements; changes in applicable laws or regulations; the possibility of cyber-related incidents and their related impacts on our business and results of operations; the possibility that COVID-19 could adversely affect our results of operations, financial position and cash flows; the possibility that we may be adversely affected by other economic, business and/or competitive factors; and the risks associated with managing our rapid growth. Our actual results could differ materially from those stated or implied in the forward-looking statements due to a number of factors, including but not limited to the risks detailed in our filings with the SEC, including our annual report on the 10-K filed in February. 28, 2022, as well as such other documents as we may file with the SEC from time to time.
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