Nerdy (NRDY) - 2024 Q2 - Quarterly Results

Executive Summary / Shareholder Letter The company made progress in Q2 2024 on three core goals: scaling products, expanding learner impact, and building profitable growth foundations Strategic Goals and Progress The company advanced three core goals in Q2 2024: scaling products, expanding learner impact, and building profitable growth foundations Scaling the Winning Product for Every Learner The company integrated institutional clients onto a unified platform and refocused consumer offerings on premium memberships for better retention - All Varsity Tutors for Schools institutional clients were integrated into a unified consumer experience platform to accelerate innovation and enhance value for both businesses[2] - The consumer business experienced higher-than-expected seasonal cancellations at year-end and during summer, resulting in fewer active members for the back-to-school season, primarily impacting lower-priced products[3] - Product offerings have been realigned towards premium learning memberships, encouraging weekly tutoring habits for improved retention and higher lifetime value[4] - The shift to premium memberships and digital user experience improvements positively impact new user cohorts, showing faster first session times, more weekly tutoring sessions, higher non-tutoring engagement, higher average revenue per member (ARPM), higher new learning member monthly recurring revenue (MRR), and improved retention[6] Expanding the Number of Learners We Can Impact The freemium strategy for institutional business successfully expanded platform access to 3.3 million students, targeting 10 million annually - The institutional business's freemium strategy successfully provided an additional 1.1 million students with Varsity Tutors for Schools platform access in Q2, reaching 3.3 million students across nearly 600 school districts[7] - The full-year goal is to provide Varsity Tutors for Schools platform access to 10 million students, approximately 20% of the US K-12 population[7] Laying the Foundation for Profitable Growth Expansion of the institutional sales team faced onboarding delays, while market infrastructure improvements aim to enhance gross margins - The expansion of the Varsity Tutors for Schools sales and marketing team is complete, but onboarding took longer than expected, resulting in lower-than-anticipated summer bookings[8] - Market infrastructure system improvements, including session scheduling enhancements and automated invoicing and tutor replacement, were introduced to address higher tutor replacement costs in the institutional business, expected to significantly improve gross margins and customer experience[9] In Closing The company focuses on delivering excellent customer experience for the back-to-school season, anticipating sustainable profitable growth by year-end - Entering the back-to-school sales season, the company is focused on ensuring the marketplace delivers an excellent customer experience[10] - Sustainable profitable growth is anticipated by year-end through the integration of consumer and institutional platforms, a focused consumer business value proposition, and the expansion of the Varsity Tutors for Schools marketplace team[10] Second Quarter in Review This section reviews the company's key financial and operational highlights for the second quarter Key Financial Highlights Q2 2024 revenue reached $51 million, up 4% YoY, with a $14.4 million net loss and negative $2.1 million adjusted EBITDA, at guidance upper end Key Financial Data Q2 2024 | Metric | Q2 2024 | Q2 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | Revenue | $51.0M | $48.8M | +4% | | Net Loss | $(14.4)M | $(5.6)M | -157% | | Non-GAAP Adjusted EBITDA | $(2.1)M | $1.3M | -261.5% | - Revenue growth was primarily driven by the continued scaling of consumer and institutional businesses, partially offset by lower ARPM in the consumer business[10] - The improvement in non-GAAP adjusted EBITDA relative to guidance was primarily due to enhanced marketing spend and operational efficiency[12] Key Operational Highlights Q2 saw 12% YoY new consumer customer acquisition growth, 15% active member growth to 35.5K, and institutional revenue up 33% to $11.1 million Key Operational Data Q2 2024 | Metric | Q2 2024 | Q2 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | New Consumer Customer Acquisition | - | - | +12% | | Active Members (as of Jun 30) | 35.5K | 31.0K | +15% | | ARPM (as of Jun 30) | $281 | $352 | -20% | | Learning Memberships Revenue | $36.4M | $35.7M | +2% | | Institutional Revenue | $11.1M | $8.35M | +33% | | Institutional Contracts Executed | 56 | - | - | | Institutional Bookings | $4.0M | - | - | | Students with Platform Access (Q2 add) | 1.1M | - | - | | Total Students with Platform Access | 3.3M | - | - | - The YoY decrease in ARPM was due to a higher mix of lower-frequency, non-premium learning memberships[11] - The institutional business's freemium strategy enabled the company to scale product offerings to school districts more broadly[12] Business Segment Review This section provides an overview of the company's performance across its consumer and institutional business segments Consumer Business The consumer business enhances personalized learning memberships via unified UX, simplified onboarding, and a shift to premium 4- and 8-hour plans, fostering weekly tutoring habits - Learning memberships offer personalized solutions across academic and interest subjects, integrating AI for HI® (Artificial Intelligence for Human Interaction)[13] - Continuous focus on enhancing the learning membership experience through modernizing and unifying the student user experience across the platform, simplifying onboarding for improved early engagement, and increasing the discoverability of learning tools[14] - Recent emphasis shifted to selling premium four- and eight-hour learning memberships to encourage weekly tutoring habits with consistent tutors, supporting learner goal attainment, better learning outcomes, and higher learner satisfaction[14][15] Institutional Business (Varsity Tutors for Schools) The Varsity Tutors for Schools platform offers robust academic resources and three tutoring models, with all clients integrated into a unified platform, reaching 3.3 million students via freemium - The Varsity Tutors for Schools platform provides a suite of robust academic resources for entire school districts, offering three high-intensity tutoring models (district-assigned, teacher-assigned, and parent-assigned) and a unified, competitive pricing model[16] - All Varsity Tutors for Schools clients have been integrated into a unified consumer experience platform, with improved administrator dashboards providing real-time key performance indicator views to measure the impact of high-intensity tutoring programs[17] - The freemium strategy successfully provided an additional 1.1 million students with Varsity Tutors for Schools platform access in Q2, bringing the total to 3.3 million students across nearly 600 school districts, with a full-year target of 10 million students[18] Financial Performance Details This section provides a detailed analysis of the company's revenue, gross profit, operating expenses, profitability, and liquidity Revenue Analysis Q2 2024 revenue grew 4% to $51 million, driven by scaling consumer and institutional businesses, offset by lower consumer ARPM and the absence of legacy package revenue Revenue Overview | Metric | Q2 2024 | Q2 2023 | YoY Change | YTD 2024 | YTD 2023 | YTD Change | | :----- | :------ | :------ | :--------- | :------- | :------- | :--------- | | Total Revenue | $51.0M | $48.8M | +4% | $104.7M | $98.0M | +7% | | Learning Memberships Revenue | $36.4M | $35.7M | +2% | - | - | - | | Institutional Revenue | $11.1M | $8.35M | +33% | $23.0M | $16.9M | +36% | | Legacy Package Revenue (Q2 2023) | $0 | $4.9M | -100% | $0 | $15.8M | -100% | - Revenue growth was primarily driven by the continued scaling of consumer and institutional businesses, partially offset by lower ARPM in the consumer business[18][25] Gross Profit and Gross Margin Analysis Q2 2024 gross profit fell 2% to $33.5 million, with margin at 65.7%, due to higher product utilization and tutor replacement costs, with future improvements expected Gross Profit and Gross Margin | Metric | Q2 2024 | Q2 2023 | YoY Change | YTD 2024 | YTD 2023 | YTD Change | | :----- | :------ | :------ | :--------- | :------- | :------- | :--------- | | Gross Profit | $33.5M | $34.1M | -2% | $70.0M | $68.0M | +3% | | Gross Margin | 65.7% | 69.8% | -4.1 pp | 66.9% | 69.4% | -2.5 pp | - The decrease in gross margin was primarily due to increased utilization of new access-type products for tutoring sessions and higher tutor replacement costs in the institutional business during seasonal peaks[20][27] - Improvements in market infrastructure systems (scheduling, invoicing, tutor replacement automation) are expected to significantly enhance gross margins in the back-to-school season and beyond[27] Operating Expenses Q2 2024 GAAP sales and marketing expenses rose to $15.5 million, and G&A to $33.2 million, including $11.6 million in product development, reflecting platform investment Sales and Marketing Expenses Q2 2024 GAAP sales and marketing expenses increased to $15.5 million, driven by investments in institutional sales and government relations Sales and Marketing Expenses | Metric | Q2 2024 (GAAP) | Q2 2023 (GAAP) | YoY Change | Q2 2024 (Non-GAAP) | Q2 2023 (Non-GAAP) | | :----- | :------------- | :------------- | :--------- | :----------------- | :----------------- | | Sales and Marketing Expenses | $15.5M | $14.9M | +$0.6M | $14.9M (29% of revenue) | $14.2M (29% of revenue) | - The increase in expenses was primarily driven by investments in institutional sales and government relations organizations to facilitate customer acquisition and brand awareness, partially offset by improved consumer marketing efficiency[29] General and Administrative Expenses Q2 2024 GAAP general and administrative expenses rose to $33.2 million, including $11.6 million for product development, reflecting platform investment General and Administrative Expenses | Metric | Q2 2024 (GAAP) | Q2 2023 (GAAP) | YoY Change | Q2 2024 (Non-GAAP) | Q2 2023 (Non-GAAP) | | :----- | :------------- | :------------- | :--------- | :----------------- | :----------------- | | General and Administrative Expenses | $33.2M | $29.7M | +$3.5M | $22.5M (44% of revenue) | $20.3M (42% of revenue) | | Product Development Costs | $11.6M | $8.4M | +$3.2M | - | - | - Investments in product development and a platform-first approach to growth enable the company to launch and continuously improve its "always-on" subscription offerings and streamline its operating model[31] Profitability (Net Loss and Adjusted EBITDA) Q2 2024 GAAP net loss widened to $14.4 million, and non-GAAP adjusted EBITDA loss was $2.1 million, driven by institutional sales and product development investments Net Loss and Adjusted EBITDA | Metric | Q2 2024 | Q2 2023 | YoY Change | YTD 2024 | YTD 2023 | YoY Change | | :----- | :------ | :------ | :--------- | :------- | :------- | :--------- | | GAAP Net Loss | $(14.4)M | $(5.6)M | -157% | $(26.4)M | $(37.8)M | +30% | | Non-GAAP Adjusted Net Loss (Earnings) | $(3.1)M | $0.4M | -875% | $(4.0)M | $0.9M | -544% | | Non-GAAP Adjusted EBITDA (Loss) | $(2.1)M | $1.3M | -261.5% | $(2.0)M | $2.7M | -174% | - The improvement in non-GAAP adjusted EBITDA and gross margin relative to guidance was primarily due to continued enhancements in marketing spend and operational efficiency[21][33] - The decrease in non-GAAP adjusted EBITDA and gross margin compared to the prior year was primarily due to investments in the Varsity Tutors for Schools sales and government relations organizations and product development to drive innovation and support continued growth[21][33] Liquidity and Capital Resources As of Q2 2024, the company had $69.8 million cash and no debt, with Q2 operating cash flow at negative $5.6 million, worsening YoY due to investments Liquidity Overview | Metric | As of Jun 30, 2024 | As of Dec 31, 2023 | | :----- | :----------------- | :----------------- | | Cash and Cash Equivalents | $69.8M | $74.8M | | Total Debt | $0 | $0 | Operating Cash Flow | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :----- | :------ | :------ | :------- | :------- | | Operating Cash Flow | $(5.6)M | $(4.5)M | $(1.2)M | $2.3M | - Negative operating cash flow was offset by investments in the Varsity Tutors for Schools sales and government relations organizations and product development[22] Third Quarter and Full Year 2024 Outlook This section outlines the company's financial guidance and expectations for the third quarter and the full year 2024 Q3 2024 Guidance Q3 2024 revenue is projected at $35-38 million, with adjusted EBITDA at negative $19-17 million, impacted by consumer seasonal cancellations and institutional summer lows Q3 2024 Financial Guidance | Metric | Q3 2024 Guidance | | :----- | :--------------- | | Revenue | $35M - $38M | | Adjusted EBITDA | $(19)M - $(17)M | - Consumer revenue is impacted by higher-than-expected year-end and summer seasonal cancellations and lower ARPM, resulting in fewer active members than anticipated[23] - Institutional business Q3 revenue guidance reflects the annual seasonal low as K12 schools and universities are on summer break[23] Full Year 2024 Guidance Full-year 2024 revenue is projected at $196-204 million, with adjusted EBITDA at negative $21-19 million, reflecting consumer acquisition, institutional delays, and expected profitable growth by year-end Full Year 2024 Financial Guidance | Metric | FY 2024 Guidance | | :----- | :--------------- | | Revenue | $196M - $204M | | Adjusted EBITDA | $(21)M - $(19)M | - Full-year consumer revenue guidance reflects anticipated new customer acquisition levels as students return for the back-to-school season, along with improved ARPM and retention from premium learning memberships[24] - Full-year institutional revenue guidance reflects the onboarding of the Varsity Tutors for Schools sales team, resulting in lower-than-anticipated summer bookings and an expectation for more back-weighted bookings in the 2024-2025 school year[24] - Consistent with previous guidance, the company anticipates returning to sustainable profitable growth by year-end[24] Condensed Consolidated Statements This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows Condensed Consolidated Statements of Operations (Unaudited) The unaudited Q2 2024 condensed consolidated statements of operations report a $14.4 million net loss on $51 million revenue Condensed Consolidated Statements of Operations Summary (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $50,984 | $48,839 | $104,711 | $98,019 | | Gross Profit | $33,487 | $34,099 | $70,002 | $67,989 | | Operating Loss | $(15,229) | $(10,473) | $(28,082) | $(21,843) | | Net Loss | $(14,398) | $(5,550) | $(26,413) | $(37,803) | | Basic and Diluted Loss per share | $(0.08) | $(0.03) | $(0.15) | $(0.24) | Revenue by Business Segment (Unaudited) Q2 2024 consumer revenue was $39.7 million (down 1%), while institutional revenue grew 33% to $11.1 million, reflecting segment performance Revenue by Business Segment (Unaudited) | Segment (in thousands) | Three Months Ended June 30, 2024 | % of Total | Three Months Ended June 30, 2023 | % of Total | YoY Change ($) | YoY Change (%) | | :--------------------- | :------------------------------- | :--------- | :------------------------------- | :--------- | :------------- | :------------- | | Consumer | $39,716 | 78% | $40,296 | 82% | $(580) | (1)% | | Institutional | $11,135 | 21% | $8,354 | 17% | $2,781 | 33% | | Other | $133 | 1% | $189 | 1% | $(56) | (30)% | | Total Revenue | $50,984 | 100% | $48,839 | 100% | $2,145 | 4% | Revenue by Business Segment (Six Months YTD, Unaudited) | Segment (in thousands) | Six Months Ended June 30, 2024 | % of Total | Six Months Ended June 30, 2023 | % of Total | YTD Change ($) | YTD Change (%) | | :--------------------- | :------------------------------- | :--------- | :------------------------------- | :--------- | :------------- | :------------- | | Consumer | $81,318 | 77% | $80,631 | 82% | $687 | 1% | | Institutional | $23,022 | 22% | $16,894 | 17% | $6,128 | 36% | | Other | $371 | 1% | $494 | 1% | $(123) | (25)% | | Total Revenue | $104,711 | 100% | $98,019 | 100% | $6,692 | 7% | Condensed Consolidated Balance Sheets (Unaudited) As of June 30, 2024, total assets were $111.3 million, with $69.8 million in cash, $28.8 million in liabilities, and $82.6 million in equity Condensed Consolidated Balance Sheets Summary (Unaudited) | Metric (in thousands) | June 30, 2024 | December 31, 2023 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $69,838 | $74,824 | | Total Current Assets | $82,386 | $95,037 | | Total Assets | $111,327 | $124,744 | | Total Current Liabilities | $25,697 | $35,605 | | Total Liabilities | $28,777 | $39,138 | | Total Stockholders' Equity | $82,550 | $85,606 | Condensed Consolidated Statements of Cash Flows (Unaudited) For H1 2024, net cash used in operating activities was $1.2 million, with $3.8 million used in investing, and period-end cash at $70.2 million Condensed Consolidated Statements of Cash Flows Summary (Unaudited) | Metric (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | | Net Cash Provided By (Used In) Operating Activities | $(1,235) | $2,279 | | Net Cash Used In Investing Activities | $(3,755) | $(2,049) | | Net Cash Used In Financing Activities | $0 | $0 | | Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | $(4,986) | $214 | | Cash, Cash Equivalents, and Restricted Cash, End of Period | $70,154 | $91,761 | Capitalization Reconciliation (Unaudited) As of June 30, 2024, total outstanding shares were 177,672 thousand, including Class A common stock and convertible interests Capitalization Reconciliation (Unaudited) | Metric (in thousands) | June 30, 2024 | | :-------------------- | :------------ | | Class A Common Stock | 112,245 | | Combined Interests convertible to Class A Common Stock | 65,427 | | Total outstanding share count | 177,672 | Reconciliation of GAAP to Non-GAAP Measures This section provides reconciliations of GAAP financial measures to their non-GAAP counterparts, offering a clearer view of core operational performance Reconciliation of GAAP to Non-GAAP Sales and Marketing Expenses (Unaudited) Q2 2024 non-GAAP sales and marketing expenses were $14.9 million, after deducting $0.6 million in non-cash stock-based compensation from GAAP figures Sales and Marketing Expenses GAAP to Non-GAAP Reconciliation (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales and marketing expenses (GAAP) | $15,537 | $14,859 | $32,929 | $30,419 | | Less: Non-cash stock-based compensation expense | $638 | $691 | $1,173 | $1,529 | | Non-GAAP sales and marketing expenses | $14,899 | $14,168 | $31,756 | $28,890 | Reconciliation of GAAP to Non-GAAP General and Administrative Expenses (Unaudited) Q2 2024 non-GAAP G&A expenses were $22.5 million, after deducting $10.7 million in non-cash stock-based compensation from GAAP figures General and Administrative Expenses GAAP to Non-GAAP Reconciliation (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | General and administrative expenses (GAAP) | $33,179 | $29,713 | $65,155 | $59,413 | | Less: Non-cash stock-based compensation expense | $10,676 | $9,440 | $21,253 | $19,651 | | Non-GAAP general and administrative expenses | $22,503 | $20,273 | $43,902 | $39,762 | Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Loss) (Unaudited) Q2 2024 non-GAAP adjusted EBITDA loss was $2.1 million, derived from GAAP net loss adjusted for non-cash items and derivative gains/losses GAAP Net Loss to Non-GAAP Adjusted EBITDA (Loss) Reconciliation (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss (GAAP) | $(14,398) | $(5,550) | $(26,413) | $(37,803) | | Add: Interest income | $(879) | $(783) | $(1,765) | $(1,616) | | Add: Income taxes | $38 | $53 | $61 | $76 | | Add: Depreciation and amortization | $1,873 | $1,690 | $3,663 | $3,393 | | Add: Non-cash stock-based compensation expense | $11,314 | $10,131 | $22,426 | $21,180 | | Add: Unrealized (gain) loss on derivatives, net | $0 | $(4,198) | $0 | $17,484 | | Adjusted EBITDA (Loss) | $(2,052) | $1,343 | $(2,028) | $2,714 | Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net (Loss) Earnings (Unaudited) Q2 2024 non-GAAP adjusted net loss was $3.1 million, derived from GAAP net loss adjusted for non-cash stock-based compensation and derivative gains/losses GAAP Net Loss to Non-GAAP Adjusted Net (Loss) Earnings Reconciliation (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss (GAAP) | $(14,398) | $(5,550) | $(26,413) | $(37,803) | | Add: Non-cash stock-based compensation expense | $11,314 | $10,131 | $22,426 | $21,180 | | Add: Unrealized (gain) loss on derivatives, net | $0 | $(4,198) | $0 | $17,484 | | Adjusted Net (Loss) Earnings | $(3,084) | $383 | $(3,987) | $861 | Key Operating Metrics and Non-GAAP Financial Measures Definitions This section defines key operating metrics and non-GAAP financial measures, clarifying their role in providing a clearer view of core operational performance by excluding non-cash and non-recurring items Key Operating Metrics Data As of June 30, 2024, active members reached 35.5K (up 15% YoY), and active experts were 11.6K (up 16%), driven by institutional growth Key Operating Metrics | Metric | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | YoY Change (June 30) | | :----- | :------------ | :------------- | :---------------- | :----------------- | :------------ | :------------------- | | Active Members (in thousands) | 35.5 | 46.1 | 40.7 | 39.5 | 31.0 | +15% | Active Experts | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | YoY Change (%) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | YTD Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Active Experts | 11.6 | 10.0 | 16% | 14.4 | 12.0 | 20% | - The number of active experts in Q2 2024 was primarily driven by an increase in active experts within the institutional business, reflecting its continued scaling[46] Key Performance Metrics and Non-GAAP Financial Measures Definitions This section defines key operating metrics and non-GAAP financial measures, clarifying their role in providing a clearer view of core operational performance by excluding non-cash and non-recurring items - Active Members: The number of learners with a paid, active learning membership at the end of the reporting period, excluding EduNation Limited and institutional business, serving as a key indicator of the ability to attract, engage, and retain learners[45][50] - Active Experts: The number of experts who have tutored one or more sessions during a given period, including institutional business but excluding First Tutors UK[46][51] - Bookings: The dollar amount of contracts executed by Varsity Tutors for Schools during the reporting period[51] - Non-GAAP Sales and Marketing Expenses exclude non-cash stock-based compensation expense[47] - Non-GAAP General and Administrative Expenses exclude non-cash stock-based compensation expense[47] - Non-GAAP Adjusted Net (Loss) Earnings are defined as net earnings or net loss, excluding non-cash stock-based compensation expense and unrealized (loss) gain on derivative financial instruments[47] - Non-GAAP Adjusted EBITDA (Loss) is defined as net earnings or net loss, excluding net interest income (expense), income taxes, depreciation and amortization expense, non-cash stock-based compensation expense, and unrealized (loss) gain on derivative financial instruments[47] - Management and the Board of Directors use these non-GAAP measures as supplemental performance metrics because they facilitate comparisons of operating performance on a consistent basis, removing the impact of items not directly attributable to core operations[49][51] Additional Information This section provides details on the conference call and important forward-looking statements Conference Call Details Nerdy management held a conference call on August 8, 2024, at 5:00 PM ET to discuss financial results, with a replay available via webcast and phone - The conference call was held on Thursday, August 8, 2024, at 5:00 PM ET[34] - A live webcast of the call is available at nerdy.com/investors; a telephone replay is accessible with a specified access code until August 15, 2024[34] Forward-Looking Statements This section disclaims forward-looking statements, noting actual results may differ due to operational history, net losses, customer risks, IP, regulatory changes, cyber events, AI, and growth management - All statements not historical facts are considered forward-looking, including those regarding strategic priorities, expected return to sustainable profitable growth by year-end, and the Q3 and full-year 2024 outlook[53] - Actual results may differ materially from forward-looking statements due to various factors, including but not limited to limited operating history, net losses, customer acquisition and retention risks, intellectual property, regulatory changes, cyber-related incidents, AI development risks, and managing rapid growth[55] - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law[54]