Nerdy, Inc. (NRDY) Bundle
A Brief History of Nerdy Inc.
Nerdy Inc. has evolved significantly since its inception, focusing on providing innovative educational solutions through its platform. As of 2024, the company has experienced both growth and challenges, reflecting its strategic positioning within the online education sector.
Financial Performance Overview
For the three months ended September 30, 2024, Nerdy Inc. reported revenues of $37,530 thousand, a decline of 7% from $40,296 thousand in the same period of 2023. For the nine months ended September 30, 2024, the revenue increased slightly to $142,241 thousand, up 3% from $138,315 thousand in the previous year.
| Period | Revenue (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Net Loss (in thousands) |
|---|---|---|---|---|
| Q3 2024 | $37,530 | $11,077 | $26,453 | $(24,958) |
| Q3 2023 | $40,296 | $11,108 | $29,188 | $(20,626) |
| 9M 2024 | $142,241 | $45,786 | $96,455 | $(51,371) |
| 9M 2023 | $138,315 | $41,138 | $97,177 | $(58,429) |
Operating Expenses
Nerdy Inc.'s operating expenses for the three months ended September 30, 2024, totaled $52,177 thousand, down 5% from $54,741 thousand in Q3 2023. For the nine months ended September 30, 2024, total operating expenses increased 4% to $150,261 thousand from $144,573 thousand in 2023.
| Period | Sales and Marketing Expenses (in thousands) | General and Administrative Expenses (in thousands) | Total Operating Expenses (in thousands) |
|---|---|---|---|
| Q3 2024 | $20,315 | $31,862 | $52,177 |
| Q3 2023 | $19,233 | $35,508 | $54,741 |
| 9M 2024 | $53,244 | $97,017 | $150,261 |
| 9M 2023 | $49,652 | $94,921 | $144,573 |
Net Loss and Earnings Per Share
As of September 30, 2024, Nerdy Inc. reported a net loss attributable to Class A common stockholders of $(15,900) thousand for Q3 2024, compared to $(12,290) thousand in Q3 2023. For the nine months ended September 30, 2024, the net loss was $(32,439) thousand, down from $(34,519) thousand in the same period in 2023. The basic and diluted loss per share for Q3 2024 was $(0.14) compared to $(0.13) in Q3 2023.
| Period | Net Loss (in thousands) | Loss per Share |
|---|---|---|
| Q3 2024 | $(15,900) | $(0.14) |
| Q3 2023 | $(12,290) | $(0.13) |
| 9M 2024 | $(32,439) | $(0.29) |
| 9M 2023 | $(34,519) | $(0.37) |
Liquidity and Capital Resources
As of September 30, 2024, Nerdy Inc. had cash and cash equivalents totaling $65,002 thousand, down from $74,824 thousand at the end of 2023. The company reported no debt obligations and anticipates that its cash on hand will be sufficient to meet its working capital requirements over the next twelve months.
Active Membership and Expert Growth
Nerdy Inc. reported 39.7 thousand active members as of September 30, 2024, reflecting a 1% year-over-year increase. The number of active experts reached 9.5 thousand, a 6% increase compared to the prior year.
A Who Owns Nerdy, Inc. (NRDY)
Ownership Structure
As of September 30, 2024, Nerdy Inc. has a significant ownership structure involving both the company and its non-controlling interests. The ownership percentages are as follows:
| Entity | Ownership Percentage |
|---|---|
| Nerdy Inc. | 63.9% |
| Legacy Nerdy Holders | 36.1% |
OpCo Units Ownership
The following table summarizes the ownership of OpCo Units in Nerdy LLC:
| Ownership Type | OpCo Units Owned | Ownership Percentage |
|---|---|---|
| Nerdy Inc. | 114,972 | 63.9% |
| Legacy Nerdy Holders | 64,943 | 36.1% |
Class A and Class B Common Stock
Nerdy Inc. has two classes of common stock, Class A and Class B. The following table outlines the shares outstanding as of October 31, 2024:
| Class | Shares Outstanding |
|---|---|
| Class A Common Stock | 115,431,656 |
| Class B Common Stock | 64,946,009 |
Recent Changes in Ownership
The following table details the changes in ownership of OpCo Units in Nerdy LLC over the past year:
| Period | Nerdy Inc. OpCo Units | Legacy Nerdy Holders OpCo Units |
|---|---|---|
| Beginning of 2024 | 106,416 | 67,256 |
| End of September 2024 | 114,972 | 64,943 |
Financial Performance Metrics
For the nine months ended September 30, 2024, Nerdy Inc. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Revenue | $142,241 |
| Net Loss | $(51,371) |
| Gross Profit | $96,455 |
| Operating Expenses | $150,261 |
Key Shareholder Information
The distribution of shares among major shareholders as of the latest report is outlined below:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Management and Insiders | Approx. 10% of Class A | Approx. 10% |
| Institutional Investors | Approx. 40% of Class A | Approx. 40% |
| Public Float | Remaining shares | Approx. 50% |
Conclusion on Ownership Dynamics
The ownership structure of Nerdy Inc. reflects a blend of management, institutional investors, and public shareholders, with Nerdy Inc. maintaining a controlling interest in the company.
Nerdy, Inc. (NRDY) Mission Statement
Overview
The mission of Nerdy, Inc. is to provide accessible, personalized learning experiences that empower learners of all ages to achieve their academic and professional goals. The company focuses on leveraging technology to enhance educational outcomes and deliver high-quality tutoring services.
Financial Performance
As of September 30, 2024, Nerdy, Inc. reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $37,530,000 | $40,296,000 | $142,241,000 | $138,315,000 |
| Cost of Revenue | $11,077,000 | $11,108,000 | $45,786,000 | $41,138,000 |
| Gross Profit | $26,453,000 | $29,188,000 | $96,455,000 | $97,177,000 |
| Operating Loss | $(25,724,000) | $(25,553,000) | $(53,806,000) | $(47,396,000) |
| Net Loss | $(24,958,000) | $(20,626,000) | $(51,371,000) | $(58,429,000) |
| Loss per Share (Basic and Diluted) | $(0.14) | $(0.13) | $(0.29) | $(0.37) |
Active Members and Experts
As of September 30, 2024, Nerdy, Inc. had the following active members and experts:
| Period | Active Members (in thousands) | Active Experts (in thousands) |
|---|---|---|
| September 30, 2024 | 39.7 | 9.5 |
| June 30, 2024 | 35.5 | 9.0 |
| March 31, 2024 | 46.1 | 8.5 |
| December 31, 2023 | 40.7 | 8.0 |
Cost Structure
Nerdy, Inc. has detailed its cost structure for the relevant periods:
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Sales and Marketing Expenses | $20,315,000 | $19,233,000 | $53,244,000 | $49,652,000 |
| General and Administrative Expenses | $31,862,000 | $35,508,000 | $97,017,000 | $94,921,000 |
| Total Operating Expenses | $52,177,000 | $54,741,000 | $150,261,000 | $144,573,000 |
Balance Sheet Highlights
As of September 30, 2024, Nerdy, Inc. reported the following balance sheet highlights:
| Asset Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $65,002 |
| Accounts Receivable, Net | $7,424 |
| Total Current Assets | $78,079 |
| Total Assets | $106,759 |
| Accounts Payable | $5,808 |
| Total Liabilities | $38,953 |
| Total Stockholders’ Equity | $67,806 |
Market Position and Strategy
Nerdy, Inc. continues to focus on expanding its market presence by enhancing its offerings and leveraging digital platforms to reach a broader audience. The integration of technology in education is a core component of their strategy, aiming to improve the learning experience for users globally.
How Nerdy, Inc. (NRDY) Works
Overview of Operations
Nerdy, Inc. operates primarily as an online learning platform, offering various educational services through its brands, including Varsity Tutors. The company focuses on both consumer and institutional markets, providing personalized tutoring and learning experiences.
Financial Performance
As of September 30, 2024, Nerdy, Inc. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $37,530,000 | $40,296,000 | $(2,766,000) | (7)% |
| Cost of Revenue | $11,077,000 | $11,108,000 | $(31,000) | (0)% |
| Gross Profit | $26,453,000 | $29,188,000 | $(2,735,000) | (9)% |
| Gross Margin | 70% | 72% | - | - |
| Operating Expenses | $52,177,000 | $54,741,000 | $(2,564,000) | (5)% |
| Net Loss | $(24,958,000) | $(20,626,000) | $(4,332,000) | (21)% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was broken down as follows:
| Business Segment | Revenue ($) | Percentage (%) |
|---|---|---|
| Consumer | $113,237,000 | 79% |
| Institutional | $28,451,000 | 20% |
| Other | $553,000 | 1% |
| Total Revenue | $142,241,000 | 100% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were categorized as follows:
| Expense Type | Amount ($) | Prior Year ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $20,315,000 | $19,233,000 | $1,082,000 | 6% |
| General and Administrative | $31,862,000 | $35,508,000 | $(3,646,000) | (10)% |
| Total Operating Expenses | $52,177,000 | $54,741,000 | $(2,564,000) | (5)% |
Cash Flow and Liquidity
As of September 30, 2024, Nerdy, Inc. reported cash and cash equivalents of:
| Date | Cash and Cash Equivalents ($) |
|---|---|
| September 30, 2024 | $65,002,000 |
| December 31, 2023 | $74,824,000 |
Loss Per Share
The computation of basic and diluted net loss per share of Class A Common Stock for the three and nine months ended September 30, 2024, is summarized below:
| Period | Net Loss Attributable to Class A Common Stockholders ($) | Weighted-Average Shares Outstanding | Loss per Share ($) |
|---|---|---|---|
| Q3 2024 | $(15,900,000) | 113,287 | $(0.14) |
| Q3 2023 | $(12,290,000) | 97,077 | $(0.13) |
| 9M 2024 | $(32,439,000) | 110,267 | $(0.29) |
| 9M 2023 | $(34,519,000) | 94,453 | $(0.37) |
Active Memberships and Experts
The active memberships and expert counts as of September 30, 2024, are as follows:
| Metric | Count |
|---|---|
| Active Members | 39,700 |
| Active Experts | 9,500 |
The company has seen a year-over-year increase in active experts of 6% in Q3 2024 compared to Q3 2023, reflecting growth in their institutional business segment.
How Nerdy, Inc. (NRDY) Makes Money
Revenue Streams
Nerdy, Inc. generates revenue primarily through two segments: Consumer and Institutional. The revenue distribution for the three months ended September 30, 2024, is presented below:
| Category | Revenue (in thousands) | Percentage of Total Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Consumer | $31,919 | 85% | $(2,575) | (7%) |
| Institutional | $5,429 | 14% | $(151) | (3%) |
| Other | $182 | 1% | $(40) | (18%) |
| Total Revenue | $37,530 | 100% | $(2,766) | (7%) |
For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Category | Revenue (in thousands) | Percentage of Total Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Consumer | $113,237 | 79% | $(1,888) | (2%) |
| Institutional | $28,451 | 20% | $5,977 | 27% |
| Other | $553 | 1% | $(163) | (23%) |
| Total Revenue | $142,241 | 100% | $3,926 | 3% |
Cost of Revenue and Gross Profit
The cost of revenue and gross profit for Nerdy, Inc. for the three months ended September 30, 2024, is detailed below:
| Metrics | Amount (in thousands) |
|---|---|
| Revenue | $37,530 |
| Cost of Revenue | $11,077 |
| Gross Profit | $26,453 |
| Gross Margin (%) | 70% |
For the nine months ended September 30, 2024, the figures are:
| Metrics | Amount (in thousands) |
|---|---|
| Revenue | $142,241 |
| Cost of Revenue | $45,786 |
| Gross Profit | $96,455 |
| Gross Margin (%) | 68% |
Operating Expenses
Nerdy, Inc. incurs significant operating expenses, primarily in sales and marketing, as well as general and administrative costs. The breakdown for the three months ended September 30, 2024, is shown below:
| Expense Type | Amount (in thousands) | Percentage of Revenue |
|---|---|---|
| Sales and Marketing Expenses | $20,315 | 54% |
| General and Administrative Expenses | $31,862 | 85% |
| Total Operating Expenses | $52,177 | 139% |
For the nine months ended September 30, 2024, the operating expenses are:
| Expense Type | Amount (in thousands) | Percentage of Revenue |
|---|---|---|
| Sales and Marketing Expenses | $53,244 | 38% |
| General and Administrative Expenses | $97,017 | 68% |
| Total Operating Expenses | $150,261 | 105% |
Net Loss
Nerdy, Inc. reported a net loss for the three months ended September 30, 2024, as follows:
| Metric | Amount (in thousands) |
|---|---|
| Net Loss | $(24,958) |
| Net Loss Attributable to Class A Common Stockholders | $(15,900) |
| Loss per Share (Basic and Diluted) | $(0.14) |
For the nine months ended September 30, 2024, the net loss figures are:
| Metric | Amount (in thousands) |
|---|---|
| Net Loss | $(51,371) |
| Net Loss Attributable to Class A Common Stockholders | $(32,439) |
| Loss per Share (Basic and Diluted) | $(0.29) |
Active Memberships and Expert Engagement
As of September 30, 2024, Nerdy, Inc. had 39.7 thousand active members, reflecting a year-over-year increase of 1%. The number of active experts was reported at 9.5 thousand, a 6% increase from the previous year.
| Metric | Value |
|---|---|
| Active Members (thousands) | 39.7 |
| Active Experts (thousands) | 9.5 |
Cash and Liquidity Position
As of September 30, 2024, Nerdy, Inc. reported cash and cash equivalents of $65,002 thousand, down from $74,824 thousand at the end of the previous year. The cash flows from operating activities for the nine months ended September 30, 2024, were $(4,288) thousand.
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $65,002 |
| Net Cash Used in Operating Activities | $(4,288) |
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Resources:
- Nerdy, Inc. (NRDY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nerdy, Inc. (NRDY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nerdy, Inc. (NRDY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.