Nerdy (US:NRDY)2025-05-08 20:03Membership and Revenue - Active Members as of March 31, 2025, decreased to 40.5 thousand, a 12% decline year-over-year compared to 46.1 thousand in March 31, 2024[67] - Average Revenue per Member per Month (ARPM) increased to $335 as of March 31, 2025, reflecting a 14% increase year-over-year from $293 in March 31, 2024[68] - Revenue for the three months ended March 31, 2025, was $47,595 thousand, an 11% decrease from $53,727 thousand in the same period of 2024[72] Profitability and Loss - Gross Profit for the three months ended March 31, 2025, was $27,611 thousand, resulting in a gross margin of 58%, down from 68% in the prior year[72] - Operating Loss for the three months ended March 31, 2025, was $(16,585) thousand, compared to $(12,853) thousand in the same period of 2024, reflecting a higher loss margin[72] Expert and Member Metrics - Active Experts decreased to 10.8 thousand for the three months ended March 31, 2025, a 12% decline from 12.3 thousand in the same period of 2024[70] Cash Flow and Expenses - Cash and cash equivalents as of March 31, 2025, totaled $44,922 thousand, down from $52,541 thousand as of December 31, 2024[87] - Cash used in operating activities for the three months ended March 31, 2025, was $(6,444) thousand, compared to cash provided of $4,353 thousand in the same period of 2024[92] - Sales and marketing expenses for the three months ended March 31, 2025, were $15,785 thousand, a 9% decrease from $17,392 thousand in the same period of 2024[80] - General and administrative expenses for the three months ended March 31, 2025, were $28,411 thousand, down 11% from $31,976 thousand in the same period of 2024[80] - Cash used in investing activities was $1,175 thousand for the three months ended March 31, 2025, compared to $2,221 thousand for the same period in 2024, primarily for capital expenditures related to internal use software and IT equipment[93] Company Classification and Future Outlook - The company continues to be classified as an "emerging growth company" and expects to remain so until the earlier of the fifth anniversary of its initial public offering or achieving total annual gross revenue of at least $1,235,000 thousand[106] - The company is also classified as a "smaller reporting company," allowing it to provide reduced disclosure obligations[108] Financial Risks and Uncertainties - The company has a history of net losses and negative operating cash flows, which may require it to seek other sources of liquidity[102] - The company faces risks associated with acquiring and retaining customers, as well as operating and scaling its Consumer and Institutional businesses[102] - The company has not disclosed any material changes to its critical accounting policies and estimates since its 2024 Annual Report[96] - The company has not issued any forward-looking statements regarding revenue growth or operational expectations, emphasizing the uncertainty of future results[100] - The company is exposed to various risks, including intellectual property claims and regulatory uncertainties related to artificial intelligence[102] - The company’s exposure to market risk, foreign currency exchange rates, and interest rates is considered immaterial[109]