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

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