NRDY Earnings Prediction
The chart below shows how NRDY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NRDY sees a +9.37% change in stock price 10 days leading up to the earnings, and a -8.52% change 10 days following the report. On the earnings day itself, the stock moves by -1.00%. This data can give you a slight idea of what to expect for the next quarter's release.
NRDY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
37.53M
-6.86%
-26.39%
Gross Margin
70.48%
-2.69%
7.31%
Operating Margin
-68.54%
28.33%
129.46%
Net Margin
-66.50%
29.91%
135.48%
EPS
-0.14
-7.69%
75.00%
No Data Available
NRDY Earnings Analysis
Nerdy Inc. Corporation (NRDY.N) Earnings Conference Call
Positive
Learning Memberships Revenue Growth: 1. Revenue Growth in Learning Memberships: Nerdy reported a revenue of $37.5 million for Q3 2024, with subscription revenue from Consumer Learning Memberships at $31.4 million, representing 84% of total revenue.
Active Member Growth: 2. Increase in Active Members: The number of active members reached 39,700 as of September 30, marking a 1% year-over-year increase.
Average Revenue Per Member Growth: 3. Improved Average Revenue Per Member: Average Revenue Per Member (ARPM) increased by 7% from $281 at the end of Q2 to approximately $302 at the end of Q3, with expectations to reach around $310 by the end of Q4.
Institutional Partnership Expansion: 4. Expansion in Institutional Partnerships: 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.
Cost Reduction Strategies: 5. Cost Management and Efficiency Gains: Customer acquisition costs decreased by approximately $1.4 million or 8% year-over-year in Q3, reflecting improved marketing efficiency and targeting of higher lifetime value customers.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Nerdy, Inc. reported a revenue of $37.5 million for Q3 2024, a decrease of 7% year-over-year, primarily due to lower average revenue per member (ARPM) in the Consumer business.
Decline in Institutional Revenue: 2. Lower Institutional Revenue: The Institutional business generated $5.4 million in revenue, down 3% year-over-year, indicating challenges in monetizing the platform access strategy despite enabling access for an additional 1.1 million students.
Gross Profit Decline: 3. Decreased Gross Profit: Gross profit fell to $26.5 million, a 9% decline from the previous year, with gross margin decreasing from 72.4% to 70.5% due to lower ARPM and higher utilization of tutoring sessions.
Widened Adjusted EBITDA Loss: 4. Increased Adjusted EBITDA Loss: The non-GAAP adjusted EBITDA loss widened to $14 million, compared to a loss of $8.2 million in the same period last year, driven by investments in the Varsity Tutors for Schools sales organization and product development.
Q4 Revenue Guidance Decline: 5. Lower Guidance for Q4: The company expects Q4 revenue to be between $44 million and $47 million, reflecting a decline in Learning Membership subscribers and lower average revenue per member, alongside anticipated lower revenues in the Institutional business.
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NRDY Earning Call Sentiment
Nerdy, Inc. (NRDY) Q3 2024 Earnings Call Transcript
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NRDY.N
3.04%Positive
The earnings call summary reflects several negative aspects: a decline in revenue and gross margins, increased losses, and challenges in both consumer and institutional segments. Despite some positive product developments and slight growth in active members, the lack of a share repurchase program and vague management responses in the Q&A further contribute to a negative outlook. The absence of new partnerships or optimistic guidance, combined with declining financial metrics, suggest a likely negative stock price movement.
