Nerdy (NRDY)2025-02-27 21:02Financial Performance - In Q4 2024, the company reported revenue of 44 to 55.1 million in Q4 2023[24]. - The adjusted EBITDA loss was 7.0 million to negative 3.0 million in Q4 2023[24]. - The net loss for Q4 2024 was 9.2 million in Q4 2023[40]. - Non-GAAP adjusted net loss for Q4 2024 was 2.2 million in Q4 2023[40]. - Revenue for Q4 2024 was 55.08 million in Q4 2023[49]. - Net loss for the year ended December 31, 2024, was 67,669 thousand in 2023[56]. - Non-GAAP adjusted EBITDA loss for the year ended December 31, 2024, was 2,480 thousand in 2023[62]. - Non-GAAP adjusted net loss for the year ended December 31, 2024, was 5,984 thousand in 2023[64]. Revenue Breakdown - Consumer Learning Memberships generated 6.8 million, representing 14% of total revenue, with 91 contracts executed yielding 40.99 million, down 6% from 6.83 million, a decline of 40% from 18.4 million, a decrease of 2.1% from 71.6 million, up 4.5% from 29.9 million, a decrease of 2.6% from 126,879 thousand, slightly up from 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 74.8 million at the end of 2023[54]. - Cash, cash equivalents, and restricted cash at the end of 2024 were 75,140 thousand at the end of 2023[56]. - Cash used in operating activities increased to 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 190-200 million[30]. - Full year adjusted EBITDA is projected to be 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].