Nerdy (NRDY) - 2024 Q3 - Quarterly Report

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$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$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$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 $(15,900) thousand, a 42$(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$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$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]