Financial Performance - In Q4 2024, the company reported revenue of $48.0 million, exceeding guidance of $44 to $47 million, but down 13% year-over-year from $55.1 million in Q4 2023[24]. - The adjusted EBITDA loss was $5.5 million, better than the guidance range of negative $7.0 million to negative $10.0 million, compared to a non-GAAP adjusted EBITDA of $3.0 million in Q4 2023[24]. - The net loss for Q4 2024 was $15.7 million, compared to a net loss of $9.2 million in Q4 2023[40]. - Non-GAAP adjusted net loss for Q4 2024 was $7.0 million, a significant decline from non-GAAP adjusted net earnings of $2.2 million in Q4 2023[40]. - Revenue for Q4 2024 was $47.99 million, a decrease of 12.9% from $55.08 million in Q4 2023[49]. - Net loss for the year ended December 31, 2024, was $67,142 thousand, a slight improvement from a net loss of $67,669 thousand in 2023[56]. - Non-GAAP adjusted EBITDA loss for the year ended December 31, 2024, was $21,472 thousand, compared to a loss of $2,480 thousand in 2023[62]. - Non-GAAP adjusted net loss for the year ended December 31, 2024, was $26,053 thousand, compared to a loss of $5,984 thousand in 2023[64]. Revenue Breakdown - Consumer Learning Memberships generated $39.2 million in revenue, accounting for 82% of total revenue, with 37.5K Active Members as of December 31, 2024[24]. - Institutional revenue was $6.8 million, representing 14% of total revenue, with 91 contracts executed yielding $4.6 million in bookings[24]. - Consumer revenue for Q4 2024 was $40.99 million, down 6% from $43.53 million in Q4 2023[51]. - Institutional revenue for Q4 2024 was $6.83 million, a decline of 40% from $11.34 million in Q4 2023[51]. Expenses - Sales and marketing expenses for Q4 2024 were $18.4 million, a decrease of 2.1% from $18.8 million in Q4 2023[34]. - For the year ended December 31, 2024, sales and marketing expenses increased to $71.6 million, up 4.5% from $68.5 million in 2023[34]. - General and administrative expenses for Q4 2024 were $29.9 million, a decrease of 2.6% from $30.7 million in Q4 2023[38]. - General and administrative expenses for the year ended December 31, 2024, were $126,879 thousand, slightly up from $125,570 thousand in 2023[60]. Cash and Liquidity - The company has $52.5 million in cash with no debt, providing ample liquidity to fund business operations and growth initiatives[24]. - As of December 31, 2024, cash and cash equivalents were $52.5 million, down from $74.8 million at the end of 2023[54]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $52,673 thousand, down from $75,140 thousand at the end of 2023[56]. - Cash used in operating activities increased to $15,603 thousand in 2024 from $7,560 thousand in 2023[56]. Membership and User Metrics - Active Members as of December 31, 2024, decreased by 8% year-over-year to 37.5 thousand, compared to 40.7 thousand in 2023[71]. - Active Experts increased by 17% year-over-year to 20.2 thousand in 2024, up from 17.2 thousand in 2023[71]. Future Outlook - The company expects first quarter 2025 revenue in the range of $45-47 million and full year revenue between $190-200 million[30]. - Full year adjusted EBITDA is projected to be negative $8 million to negative $18 million, with expectations of returning to positive adjusted EBITDA and cash flow in Q4 2025[30][29]. - The company anticipates continued improvements in sales and marketing leverage and growth in its Institutional business for 2025[85]. Risks and Challenges - The company faces significant risks that could cause actual results to differ materially from forward-looking statements, including evolving offerings and historical net losses[87]. - There are concerns regarding the ability to acquire and retain customers, as well as to scale up both Consumer and Institutional businesses[87]. - The company has a history of negative operating cash flows, which may necessitate seeking additional sources of liquidity[87]. - Risks associated with intellectual property claims could impact the company's operations and financial results[87]. - The classification of certain contractors as independent may pose additional risks to the company's business model[87]. - The company is exposed to litigation, regulatory, and reputational risks, particularly due to the involvement of minors in its learning programs[87]. - Cyber-related incidents and their potential impacts on business operations are a significant concern for the company[87]. - The development and use of artificial intelligence present regulatory uncertainties that could affect the company's future[87]. - The company acknowledges the possibility of adverse effects from economic, business, and competitive factors[87]. - Managing rapid growth poses additional risks that the company must navigate[87]. Product Development - The company introduced AI-driven products, including AI Lesson Plan and Practice Problem Generators, aimed at enhancing the learning experience and reducing operational costs[6][9]. - The company successfully expanded its platform to over 5 million students across more than 1,100 school districts, with 43% of paid contracts and 36% of total bookings value coming from these partnerships in Q4[16][24].

Core Viewpoint - The article emphasizes the importance of simple reasoning in developing effective investment strategies and outcomes, focusing on fundamental analysis and peer comparison to assess company value [1]. Group 1: Company Analysis - The author advocates for a straightforward approach to determine if a company holds value, suggesting that fundamental metrics and peer analysis are essential tools in this evaluation [1]. - The article does not provide specific company names or detailed financial data, but it implies that a thorough understanding of management accounting principles can lead to better investment decisions [1]. Group 2: Industry Insights - The content reflects a broader perspective on investment analysis, indicating that many analysts may not be licensed or certified, which could impact the reliability of their opinions [3]. - The article highlights the role of third-party sources in providing data for investment analysis, suggesting that investors should critically evaluate the information they receive [2][3].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $37.5 million, a decrease of 7% year-over-year, primarily due to lower Average Revenue Per Member (ARPM) in the Consumer business [22][24] - Gross profit was $26.5 million, down 9% year-over-year, with a gross margin of 70.5%, compared to 72.4% in the same period last year [26] - Non-GAAP adjusted EBITDA loss was $14 million, which was better than the guidance range of negative $17 million to negative $19 million, but worse than the loss of $8.2 million in the same period last year [29][30] Business Line Data and Key Metrics Changes - Consumer Learning Memberships generated $31.4 million in subscription revenue, representing 84% of total revenue, with active members increasing by 1% year-over-year to 39,700 [23] - Institutional business revenue was $5.4 million, a decrease of 3% year-over-year, accounting for 14% of total revenue [24] - 32% of paid contracts and 22% of total bookings value in Q3 came from school district partners who initially partnered via free access to the platform and later converted to paid offerings [16][24] Market Data and Key Metrics Changes - 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 [14] - Student engagement with the platform was stronger than expected as students returned to school, indicating a growing need for support beyond traditional classroom settings [15][44] Company Strategy and Development Direction - The company is focusing on scaling its product offerings and enhancing the onboarding experience to improve customer retention and lifetime value [6][10] - Investments were made in the Varsity Tutors for Schools go-to-market organization and platform infrastructure to drive market penetration and bookings growth [12][25] - The strategy of providing free access to the platform is aimed at building relationships with school districts and positioning for sustainable long-term growth in the K-12 market [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for live tutoring, citing growing recognition of high-dosage tutoring as an effective learning acceleration method [21] - The company expects revenue for Q4 2024 to be in the range of $44 million to $47 million, with full-year revenue guidance of $186 million to $189 million [31] - Adjusted EBITDA for Q4 is expected to be in the range of negative $7 million to negative $10 million, with a full-year expectation of negative $23 million to negative $26 million [32] Other Important Information - The company has a strong balance sheet with cash and cash equivalents of $65 million and no debt, providing ample liquidity for growth initiatives [30] - Sales and marketing expenses increased to $20.3 million, driven by investments in the Institutional sales organization, while consumer sales and marketing efficiency gains led to a decrease in customer acquisition costs [27][28] Q&A Session Summary Question: Visibility into stability in the consumer side of the business and engagement strategies - Management noted that retention among higher frequency tutoring customers improved, and product enhancements have led to better engagement and retention metrics [35][38] Question: Decline in Institutional revenue and monetization progress - Management attributed the decline to challenges with a new sales team and an overly focused strategy on the ESSER deadline, but expressed optimism about long-term growth through platform access strategies [40][42][44] Question: Expectations for active member growth versus ARPM dynamics in Q4 - Management expects to end the year with about 36,000 active members and ARPM to improve to around $310, driven by a focus on higher frequency customers [47]

Company Performance - Nerdy Inc. reported a quarterly loss of $0.14 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and compared to a loss of $0.13 per share a year ago, indicating an earnings surprise of 39.13% [1] - The company posted revenues of $37.53 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.47%, although this is a decline from year-ago revenues of $40.3 million [2] - Over the last four quarters, Nerdy has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Nerdy shares have declined approximately 74.3% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $57.06 million, and for the current fiscal year, it is -$0.48 on revenues of $198.39 million [7] Industry Outlook - The Schools industry, to which Nerdy belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - The performance of Nerdy may be influenced by the overall outlook for the industry, as empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

Membership Growth - Active Members increased to 39.7 thousand as of September 30, 2024, reflecting a year-over-year growth of 1%[55] - Active Experts rose to 9.5 thousand for the three months ended September 30, 2024, marking a 6% increase compared to the same period in 2023[56] Revenue Performance - Revenue for the three months ended September 30, 2024, was $37,530 thousand, a decrease of 7% from $40,296 thousand in the prior year[57] - Revenue for the nine months ended September 30, 2024, was $142,241 thousand, an increase of 3% from $138,315 thousand in the prior year[59] - Institutional revenue for the nine months ended September 30, 2024, increased by 27% to $28,451 thousand from $22,474 thousand in the previous year[59] Profitability Metrics - Gross profit for the three months ended September 30, 2024, was $26,453 thousand, down 9% from $29,188 thousand in the same period last year[61] - The gross margin for the three months ended September 30, 2024, was 70%, compared to 72% for the same period in 2023[61] - Operating loss for the three months ended September 30, 2024, was $(25,724) thousand, compared to $(25,553) thousand in the same period last year[57] - Net loss attributable to Class A common stockholders for the three months ended September 30, 2024, was $(15,900) thousand, a 42% increase from $(12,290) thousand in the prior year[57] Expense Management - Sales and marketing expenses for the three months ended September 30, 2024, increased by $1,221 thousand, or 7%, excluding stock-based compensation[64] - General and administrative expenses for the three months ended September 30, 2024, decreased by $3,646 thousand, or 10%, compared to the same period in 2023[65] - Product and development costs for the three months ended September 30, 2024, increased by $1,188 thousand, or 12%[65] Cash Flow and Liquidity - Cash used in operating activities for the nine months ended September 30, 2024, increased by $1,773 thousand compared to the same period in 2023[72] - Cash used in investing activities for the nine months ended September 30, 2024, was $5,700 thousand, an increase from $3,923 thousand in the same period in 2023[73] - As of September 30, 2024, the company had cash and cash equivalents totaling $65,002 thousand, down from $74,824 thousand as of December 31, 2023[68] - The company expects its cash on hand to be sufficient to satisfy future cash requirements within the next twelve months[69] Market Risks and Future Outlook - The company incurred cumulative losses from operations and may incur additional losses in the future[68] - The company had no debt obligations as of September 30, 2024[69] - The company expects improvements in gross margin due to recent enhancements in marketplace infrastructure systems[61] - The company's exposure to market risk, including foreign currency exchange rates and interest rates, is considered immaterial[82] - Interest income for the three months ended September 30, 2024, was $768 thousand, a decrease from $844 thousand in the same period in 2023[67]

Exhibit 99.1 nerdy Q3 | 2024 Earnings Release We Found Your Best Match > My Tutor RX: Request Finding the best motch Confirming ovallability Tutor matched @ Varily Tato 8 @ .. * .. x m Zxyz = 50' (2x)' > x = 10 30 A Note to Our Shareholders In the third quarter, we continued to make progress against the primary goals we laid out for the year, including: Scaling the winning product for every Learner: As we have shared in the past, we have historically seen that getting new customers on our platform and into ...

I am a value investor focused on "Sideline Activism": Finding activist situations in companies that are both undervalued to peers and are in industries seeing high levels of consolidation. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I h ...

Partnership and Market Expansion - Nerdy Inc's Varsity Tutors for Schools has partnered with The NET Charter High School - Gentilly Campus to provide live and on-demand tutoring resources at no cost through its online platform [1] - The partnership agreement extends through June 30, 2030, aiming to increase educational resources and support long-term growth for Nerdy [1] - The platform is utilized by over 500 school districts across the United States, enhancing Nerdy's market recognition and growth prospects [4] Platform Offerings and Value Proposition - Varsity Tutors for Schools offers 24/7 On-Demand Chat Tutoring, live enrichment classes, personalized learning plans, SAT/ACT prep classes, adaptive assessments, and college readiness resources [2] - The platform provides high-dosage tutoring and online learning solutions through three simple administration models, catering to a broad set of institutional and student needs [3] - The zero-cost model for K-12 schools highlights Nerdy's innovative approach to expanding its user base while delivering essential educational support [4] Financial Performance and Growth Drivers - Nerdy's shares have declined 71.4% year-to-date, underperforming the Zacks Schools industry's 2.2% decline [5] - Strong demand across consumer and institutional businesses, along with operational leverage from access-based subscription revenue models, supports future growth [5] - In Q2 2024, operational leverage from subscription revenue models significantly surpassed expenditures, facilitating the expansion of Varsity Tutors for Schools [6] Industry Comparison and Stock Performance - Royal Caribbean Cruises Ltd (RCL) has a trailing four-quarter earnings surprise of 18.5% and has rallied 61.3% in the past year, with 2024 sales and EPS expected to grow by 18.1% and 69.9%, respectively [8] - DoubleDown Interactive Co Ltd (DDI) has a trailing four-quarter earnings surprise of 22.1% and has surged 41.4% in the past year, with 2024 sales and EPS expected to increase by 12.6% and 15.8%, respectively [9] - Monarch Casino & Resort Inc (MCRI) has a trailing four-quarter negative earnings surprise of 3.5% and has risen 16.6% in the past year, with 2024 sales and EPS expected to grow by 2.3% and 10%, respectively [9]

Nerdy, Inc. (NRDY) , the parent company of Varsity Tutors for Schools ("VTS"), has collaborated with Johnson County Schools to offer free access to the Varsity Tutors for Schools platform to all district students. This collaboration, which extends through June 2030, underscores Nerdy's commitment to revolutionizing education through technology and solidifies its position as a leader in the online learning space. The platform's diverse offerings — ranging from 24/7 On-Demand Chat Tutoring and Essay Reviews t ...

The Dow Jones index closed lower by more than 50 points on Tuesday. When insiders purchase or sell shares, it indicates their confidence or concern around the company's prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision. Below is a look at a few recent notable insider transactions for penny stocks. For more, check out Benzinga's insider transactions platform. Zomedica The Trade: Zomedica Corp. ZOM COO Anthony K Blair bought ...