Nerdy Inc. Reports $190.2 Million Revenue for Fiscal Year 2024, Net Loss of $67.1 Million

Nerdy Inc. reported a revenue of $190.2 million for the fiscal year ending December 31, 2024, a decrease of 2% from $193.4 million in 2023. The decline in revenue was primarily attributed to a lower average revenue per member in the Consumer segment, which was partially offset by growth in the Institutional business. The company incurred a net loss of $67.1 million, slightly improved from a net loss of $67.7 million in the previous year. The operating loss also widened to $70.1 million from $57.6 million in 2023, reflecting increased costs associated with higher utilization of tutoring sessions and investments in the Institutional sales organization.

In terms of operational metrics, Nerdy reported a decrease in Active Members, which are defined as Learners with an active paid Learning Membership, due to a higher mix of lower frequency memberships. However, the number of Active Experts increased by 17% year-over-year, reaching 20,200, driven by the scaling of the Institutional business. The company also expanded its reach, serving over 1,100 school districts and impacting more than five million students through its Varsity Tutors for Schools platform.

Strategically, Nerdy has focused on enhancing its Learning Memberships, which provide an all-access subscription model for Learners. The company has also made significant investments in technology, including improvements to its marketplace infrastructure and the integration of artificial intelligence to enhance user experience. Despite these advancements, the company continues to face challenges, including a competitive landscape and the need to attract and retain Learners and Experts effectively.

Looking ahead, Nerdy anticipates continued investment in growth and innovation, particularly in its Institutional offerings. The company aims to leverage its technology platform to enhance customer engagement and retention, which it believes will drive long-term profitability. However, management cautioned that achieving profitability remains uncertain due to ongoing investments and the evolving nature of its business model. The company also highlighted potential risks related to economic conditions, regulatory changes, and competition that could impact its future performance.