The following is a summary of the Nerdy, Inc. (NRDY) Q2 2024 Earnings Call Transcript:
Financial Performance:
Nerdy, Inc. reported Q2 2024 revenue of $51 million, representing a 4% year-over-year growth.
Gross profit was at $33.5 million, while gross margin declined to 65.7% from 69.8% in the prior year, influenced by higher substitution costs and lower margins in institutional offerings.
Sales and marketing expenses increased to $15.5 million, up from $14.9 million year-over-year, attributed to investments in institutional sales.Non-GAAP adjusted EBITDA showed a loss of $2.1 million, within the guidance of negative $2 million to negative $4 million.
Business Progress:
Nerdy has focused on strengthening the offering of premium learning memberships resulting in better engagement and retention.
Achieved access for an additional 1.1 million students on the Varsity Tutors for schools platform, reaching a total of 3.3 million students across nearly 600 school districts.
The company is targeting access for 10 million students, about 20% of the K-12 population in the U.S., by the end of the year.
Introduced enhancements to the marketplace infrastructure for better customer experience and operational efficiency.
Opportunities:
The continued expansion and improvement of the Varsity Tutors for schools platform and the focus on premium learning memberships are expected to drive revenue growth and customer acquisition.
Operational improvements and the expansion of the school's go-to-market team are likely to support the back-to-school selling season and the 2024-2025 school year.
Risks:
The shift towards a focus on premium memberships comes following higher-than-expected seasonal cancellations in lower-priced, non-premium offerings, indicating a potential volatility in membership stability and revenue consistency.
More details: Nerdy IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.