Nerdy Announces Second Quarter 2022 Financial Results
15 August 2022 - 10:01PM
Business Wire
Nerdy Inc. (NYSE: NRDY) today announced financial results for
the second quarter ended June 30, 2022.
“During the second quarter, Nerdy made tremendous strides in
advancing our product strategy that delivers on our ‘always on’
vision for both consumer and institutional customers,” said Chuck
Cohn, Founder, Chairman and Chief Executive Officer of Nerdy Inc.
“With the rollout of Learning Memberships for consumers, and the
launch of On Demand and Teacher Assigned offerings for K-12
schools, we are heading into the back-to-school season for the
2022-2023 school year in a position to offer the majority of our
customers these new, recurring solutions that will drive deeper
engagement and support ongoing learning throughout the school year
and beyond.”
Please visit the Nerdy investor relations website
https://www.nerdy.com/investors to view the Nerdy Q2 Shareholder
Letter on the Quarterly Results Page.
Financial Highlights
- Revenue Above High End of Guidance Range – In the second
quarter, Nerdy delivered revenue of $42.2 million, results
exceeding the guidance range of $37-40 million, and up 29% as
compared to the second quarter of 2021. Revenue growth was driven
by continued strength in the consumer 1-on-1 audiences and the
addition of Nerdy’s institutional business, Varsity Tutors for
Schools.
- Strong Marketplace Dynamics – Nerdy continued to drive
growth and engagement with both Learners and Experts. Active
Learners increased 36% and Online Sessions were up 35% compared to
the second quarter of 2021. The number of Active Experts on the
platform increased 42% versus the same period in the prior
year.
- Institutional Momentum – In the second quarter Varsity
Tutors for Schools signed 44 new contracts and yielded $4.2 million
in revenue, representing 10% of second quarter revenue, consistent
with our expectations. Nerdy is actively promoting the unparalleled
breadth of Varsity Tutors for Schools’ learning solutions,
including High Dosage, On Demand, and Teacher Assigned as we
approach the start of the 2022-2023 academic school year.
- Gross Profit – Gross profit of $28.8 million in the
second quarter increased 35.2% year-over-year. Gross profit
increases were primarily driven by growth across consumer 1-on-1
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 ample 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 guided
projects and missions, which we intend to integrate into our
all-inclusive learning membership later this year and make
available to our institutional customers next year.
Webcast and Earnings Conference Call
Nerdy management will host a conference call today August 15,
2022 at 5:00 p.m. Eastern Time. Interested parties in the U.S. may
listen to the call by dialing 1-844-200-6205. International callers
can dial 1-929-526-1599. The Conference ID is 802623. A live
webcast of the call will also be available on Nerdy’s investor
relations website at https://www.nerdy.com/investors. A replay of
the webcast will be available on Nerdy’s website for one year
following the event and a telephonic replay of the call will be
available until August 22, 2022 by dialing 1-866-813-9403 from the
U.S. 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
to experts, delivering superior value on both sides of the network.
Nerdy’s comprehensive learning destination provides learning
experiences across 3,000+ subjects and multiple formats—including
one-on-one instruction, small group classes, large format group
classes, and adaptive self-study. Nerdy’s flagship business,
Varsity Tutors, is one of the nation’s largest platforms for live
online tutoring and classes. 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 included herein and in any oral statements 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 Securities Exchange Act of 1934, as
amended. Forward-looking statements include, but are not limited
to, statements regarding our or our management team’s expectations,
hopes, beliefs, intentions, or strategies regarding the future.
Additionally, any statements that refer to projections, forecasts,
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking
statements. The words “anticipates,” “approximately,” “believes,”
“contemplates,” “continues,” “could,” “estimates,” “expects,”
“intends,” “may,” “might,” “outlook,” “plans,” “possible,”
“potential,” “predicts,” “projects,” “should,” “seeks,” “will,”
“would,” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking.
The forward-looking statements made herein relate only to events
as of the date on which the statements are made. We undertake no
obligation to update any forward-looking statements 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 statements made herein or
in connection herewith, including but not limited to, our limited
operating history, which makes it difficult to predict our future
financial and operating results; our history of net losses; risks
associated with our intellectual property, including claims that we
infringe on a third party’s intellectual property rights; risks
associated with our classification of some individual and entities
we contract with as independent contractors; risks associated with
the liquidity and trading of the Company’s securities; risks
associated with payments that we may be required to make under the
tax receivable agreement; risks associated with the terms of our
warrants; litigation, regulatory and reputational risks arising
from the fact that many of our learners are minors; our lack of an
effective control environment that meets 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 may 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 risks associated with managing our rapid growth. Our
actual results could differ materially from those stated or implied
in forward-looking statements due to a number of factors, including
but not limited to, risks detailed in our filings with the SEC,
including our Annual Report on Form 10-K filed on February 28,
2022, as well as other filings that we may make from time to time
with the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20220815005589/en/
Brian Nelson Media Relations press@nerdy.com
Molly Sorg Investor Relations investors@nerdy.com
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