Nerdy (NRDY)2025-02-27 21:03Employee and Workforce Management - As of February 13, 2025, the company had approximately 600 full and part-time employees and 400 globally-sourced independent contractors[64] - The company emphasizes the importance of employee retention, growth, and development, offering competitive compensation and training opportunities[66] - In July 2023, the Company implemented workforce reductions to enhance operational efficiency through automation and new revenue relationships[394] - The company completed workforce reductions of approximately 17% of its total workforce in December 2022, primarily affecting variable hourly roles[395] Financial Performance - Revenue for 2024 was 193,399 in 2023[311] - Gross profit for 2024 was 136,447 in 2023, reflecting a gross margin of approximately 67.5%[311] - Operating loss increased to (57,571) in 2023[311] - Net loss for 2024 was (67,669) in 2023[314] - Total assets decreased to 124,744 in 2023, a decline of approximately 26%[316] - Cash and cash equivalents at the end of 2024 were 74,824 in 2023, representing a decrease of 30%[316] - Total liabilities decreased to 39,138 in 2023, a reduction of about 20%[316] - Total comprehensive loss attributable to Class A common stockholders was (40,131) in 2023[314] - The total accumulated deficit increased to 475,107,000 at the end of 2022, indicating ongoing financial challenges[321] - The company reported a net loss attributable to Class A common stockholders of 40.174 million in 2023[410] Revenue Recognition and Accounting Policies - The Company recognized revenue from contracts with Learners and Institutions as performance obligations are satisfied, with revenue from Learning Memberships recognized monthly[345][349] - Revenue is recognized for unredeemed payments for services over the period in which the performance obligation is satisfied, based on historical usage patterns[348][351] - The Company has adopted new accounting standards that will expand disclosures related to income taxes but will not materially impact financial statements[382] Regulatory and Compliance Issues - The company is subject to various regulatory and administrative investigations, which could have a material impact on its business and financial condition[67] - The company monitors changes to applicable regulations and designs its policies to comply with existing interpretations[72] Intellectual Property and Trademarks - The company relies on a range of intellectual property protections, including trademarks and copyrights, to safeguard its proprietary rights[74] - The company has an ongoing trademark registration program and has several registered and pending trademarks in the U.S. and foreign jurisdictions[75] Market Presence and Consumer Awareness - The company believes its online learning platform is more efficient, convenient, effective, and affordable compared to offline solutions, which is a significant factor in driving consumer adoption[61] - The company has scaled to millions of users, but many consumers and institutions in the U.S. remain unaware of the online solutions offered[63] - Nerdy Inc. has expanded its offerings to include Varsity Tutors for Schools, enhancing its market presence in institutional education[324] Cash Flow and Liquidity - Net cash used in operating activities was (7,560) in 2023, indicating increased cash outflow[319] - Cash and cash equivalents decreased to 74.824 million in 2023[414] Stock and Equity - The number of Class A common stock shares increased to 106,416 as of December 31, 2023, up from 95,296 shares at the end of 2022, indicating growth in equity financing[321] - The weighted-average shares of Class A common stock for basic and diluted loss per share increased to 111,695 in 2024 from 97,157 in 2023[410] Expenses and Cost Management - Marketing expenses for the years ended December 31, 2024, 2023, and 2022 were 43,043, and 61.837 million in 2024 from 94.937 million from 2.32 billion, with cumulative restructuring charges incurred to date also at 1,700 million related to a legal settlement in 2023, which is included in general and administrative expenses[438]