Latest news with #ChuckCohn
Yahoo
07-08-2025
- Business
- Yahoo
Nerdy Announces Second Quarter 2025 Financial Results
Nerdy delivers a return to Learning Membership revenue and Varsity Tutors for Schools bookings growth, positioning the Company to deliver accelerating sequential revenue growth and gross margin expansion each quarter throughout 2025. Nerdy beats Non-GAAP Adjusted EBITDA Loss guidance, keeping the Company firmly on the path to profitability on a non-GAAP adjusted EBITDA basis in the fourth quarter of 2025. ST. LOUIS, August 07, 2025--(BUSINESS WIRE)--Nerdy Inc. (NYSE: NRDY) today announced financial results for the second quarter ended June 30, 2025. "Q2 proved that our Live+AI™ strategy is a growth engine," said Chuck Cohn, Founder, Chairman and CEO of Nerdy. "We reignited Learning Membership revenue growth, beat our EBITDA guidance, and are now rolling out AI-native tools that give every learner and educator real-time superpowers—putting us firmly on track for profitability in Q4." Please visit the Nerdy investor relations website to view the Nerdy Q2 Shareholder Letter on the Quarterly Results Page. Second Quarter Financial Highlights: Revenue In Line with Expectations – In the second quarter, Nerdy delivered revenue of $45.3 million, within our guidance range of $45 to $48 million, which represented a decrease of 11% year-over-year from $51.0 million during the same period in 2024. Consistent with expectations, revenue declined when compared to the prior year period primarily due to lower Institutional revenue and a specific $3.0 million state-funded Consumer revenue program in Q2 2024 that did not recur in Q2 2025. These impacts were partially offset by higher ARPM in our Consumer business as a result of a mix shift to higher frequency Learning Memberships and price increases enacted during the first quarter of 2025, coupled with higher retention in newer cohorts due primarily to improvements in the user experience and new Expert incentives. We expect consolidated revenue growth will accelerate sequentially each quarter throughout 2025. Consumer Learning Membership Returns to Growth – Second quarter Learning Membership revenue increased 4% year-over-year. Revenue recognized in the second quarter from Learning Memberships was $37.8 million and represented 84% of total Company revenue. As of June 30, 2025, there were 30.6 thousand Active Members, and ARPM was $348, which represented a 24% increase year-over-year. We expect Learning Membership revenue growth will accelerate sequentially each quarter throughout 2025 as the mix shift towards higher frequency and higher priced Learning Memberships is combined with the improvements in the user experience and improved retention in newer cohorts. Institutional Strategy – Institutional delivered revenue of $7.3 million and represented 16% of total Company revenue during the second quarter. The integration of Live+AI™ capabilities into our institutional offerings is resonating strongly with district leaders who desire data-driven insights to optimize learning outcomes and resource allocation. Varsity Tutors for Schools executed 50 contracts, yielding $4.9 million of bookings, an increase of 21% year-over-year. Our strategy to introduce school districts to the platform and ultimately convert them to our fee-based offerings continues to produce results by delivering 36% of paid contracts and 50% of total bookings value in the second quarter. Varsity Tutors signed the White House "Investing in AI Education" pledge in June. The four-year commitment will broaden AI literacy, accelerate student academic growth, and give every Learner a path to success while preserving the essential human connection in teaching. Gross Margin – Gross margin was 61.5% for the three months ended June 30, 2025, compared to a gross margin of 65.7% during the comparable period in 2024. The decrease in gross margin was primarily due to Expert incentives enacted during the fourth quarter of 2024. Following the adoption of the new incentives, we are seeing faster time to the first session, more sessions in the first 30 days, lower tutor replacement rates, and higher retention – all of which should continue to strengthen our business over the long-term. In addition, gross margin for the second quarter improved sequentially quarter-over-quarter as a result of price increases for new Consumer customers enacted during the first quarter of 2025. We expect to deliver sequential quarterly gross margin improvements as we move throughout 2025. Path to Profitability – Our second quarter performance reinforces confidence in our path to profitability. As a reminder, in the first quarter, we reduced headcount by approximately 16% as compared to December 31, 2024. Headcount restructuring changes were primarily enabled by AI-enabled productivity improvements, coupled with new software-driven processes and system implementations. Headcount restructuring and other cost reduction efforts have enabled us to generate operating efficiencies and remove significant costs from the business. We believe these results, together with a positive inflection in newly-acquired and active Monthly Recurring Revenue in June, keep us firmly on the path to profitability on a non-GAAP adjusted EBITDA basis in the fourth quarter. Adjusted EBITDA Loss Beats Guidance Range – Net loss was $12.0 million in the second quarter versus a net loss of $14.4 million during the same period in 2024. Excluding non-cash stock compensation expenses, which were treated as an adjustment for non-GAAP measures, non-GAAP adjusted net loss was $4.5 million for the second quarter of 2025 compared to a non-GAAP adjusted net loss of $3.1 million in the second quarter of 2024. We reported a non-GAAP adjusted EBITDA loss of $2.7 million for the second quarter of 2025, beating our guidance of negative $3.0 million to negative $6.0 million. This compares to a non-GAAP adjusted EBITDA loss of $2.1 million in the same period one year ago. Non-GAAP adjusted EBITDA outperformance relative to guidance was primarily driven by across-the-board P&L improvements via higher gross margin, coupled with lower marketing and G&A spend. Compared to last year, our non-GAAP adjusted EBITDA loss was worse primarily due to lower revenues and gross margin, partially offset by lower marketing spend, headcount reductions, and lower G&A spend. Liquidity and Capital Resources – With no debt and $36.7 million of cash on our balance sheet, we believe we have ample liquidity to fund the business and pursue growth initiatives. Third Quarter and Full Year 2025 Outlook: Today, we are introducing third quarter guidance and updating full year guidance. Revenue Guidance: For the third quarter of 2025, we expect revenue in a range of $37 million to $40 million. For the full year, we expect revenue in the range of $191 million to $197 million. Non-GAAP Adjusted EBITDA Guidance: For the third quarter of 2025, we expect a non-GAAP Adjusted EBITDA Loss in a range of $11 million to $13 million. For the full year, we expect a non-GAAP Adjusted EBITDA loss in the range of $13 million to $17 million. Liquidity and Capital Resources: We expect to end the year with no debt and cash in the range of $30 to $35 million, and believe we have ample liquidity to fund the business and pursue growth initiatives. Webcast and Earnings Conference Call Nerdy's management will host a conference call to discuss its financial results on Thursday, August 7, 2025 at 5:00 p.m. Eastern Time. Interested parties in the U.S. may listen to the call by dialing 1-833-470-1428. International callers can dial 1-404-975-4839. The Access Code is 310344. A live webcast of the call will also be available on Nerdy's investor relations website at A replay of the webcast will be available on Nerdy's website for one year following the event and a telephonic replay of the call will be available until August 14, 2025 by dialing 1-866-813-9403 from the U.S. or 1-929-458-6194 from all other locations, and entering the Access Code: 945878. About Nerdy Inc. Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The Company's purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy's comprehensive learning destination provides learning experiences across thousands of subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group tutoring, large format classes, and adaptive assessments. Nerdy's flagship business, Varsity Tutors, is one of the nation's largest platforms for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at Forward-looking Statements All statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our strategic priorities, including those related to revenue growth; enhancing the Learning Membership experience; AI-enabled productivity and operating leverage; the growth of our Institutional business; the sufficiency of our cash to fund future operations; and our anticipated quarterly and full year 2025 outlook; as well as statements that include the words "expect," "plan," "believe," "project," "will" and "may," and similar statements of a future or forward-looking nature. The forward-looking statements made herein relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made herein or in connection herewith, including but not limited to, our offerings continue to evolve, which makes it difficult to predict our future financial and operating results; our history of net losses and negative operating cash flows, which could require us to need other sources of liquidity; risks associated with our ability to acquire and retain customers, operate, and scale up our Consumer and Institutional businesses; risks associated with our intellectual property, including claims that we infringe on a third-party's intellectual property rights; risks associated with our classification of some individuals and entities we contract with as independent contractors; risks associated with the liquidity and trading of our securities; risks associated with payments that we may be required to make under the tax receivable agreement; litigation, regulatory and reputational risks arising from the fact that many of our Learners are minors; changes in applicable law or regulation; the possibility of cyber-related incidents and their related impacts on our business and results of operations; risks associated with the development and use of artificial intelligence and related regulatory uncertainty; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; and risks associated with managing our growth. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Annual Report on Form 10-K filed on February 27, 2025, as well as other filings that we may make from time to time with the SEC. View source version on Contacts Investor Relationsinvestors@
Business Wire
07-08-2025
- Business
- Business Wire
Nerdy Announces Second Quarter 2025 Financial Results
ST. LOUIS--(BUSINESS WIRE)--Nerdy Inc. (NYSE: NRDY) today announced financial results for the second quarter ended June 30, 2025. 'Q2 proved that our Live+AI™ strategy is a growth engine,' said Chuck Cohn, Founder, Chairman and CEO of Nerdy. 'We reignited Learning Membership revenue growth, beat our EBITDA guidance, and are now rolling out AI-native tools that give every learner and educator real-time superpowers—putting us firmly on track for profitability in Q4.' Please visit the Nerdy investor relations website to view the Nerdy Q2 Shareholder Letter on the Quarterly Results Page. Second Quarter Financial Highlights: Revenue In Line with Expectations – In the second quarter, Nerdy delivered revenue of $45.3 million, within our guidance range of $45 to $48 million, which represented a decrease of 11% year-over-year from $51.0 million during the same period in 2024. Consistent with expectations, revenue declined when compared to the prior year period primarily due to lower Institutional revenue and a specific $3.0 million state-funded Consumer revenue program in Q2 2024 that did not recur in Q2 2025. These impacts were partially offset by higher ARPM in our Consumer business as a result of a mix shift to higher frequency Learning Memberships and price increases enacted during the first quarter of 2025, coupled with higher retention in newer cohorts due primarily to improvements in the user experience and new Expert incentives. We expect consolidated revenue growth will accelerate sequentially each quarter throughout 2025. Consumer Learning Membership Returns to Growth – Second quarter Learning Membership revenue increased 4% year-over-year. Revenue recognized in the second quarter from Learning Memberships was $37.8 million and represented 84% of total Company revenue. As of June 30, 2025, there were 30.6 thousand Active Members, and ARPM was $348, which represented a 24% increase year-over-year. We expect Learning Membership revenue growth will accelerate sequentially each quarter throughout 2025 as the mix shift towards higher frequency and higher priced Learning Memberships is combined with the improvements in the user experience and improved retention in newer cohorts. Institutional Strategy – Institutional delivered revenue of $7.3 million and represented 16% of total Company revenue during the second quarter. The integration of Live+AI™ capabilities into our institutional offerings is resonating strongly with district leaders who desire data-driven insights to optimize learning outcomes and resource allocation. Varsity Tutors for Schools executed 50 contracts, yielding $4.9 million of bookings, an increase of 21% year-over-year. Our strategy to introduce school districts to the platform and ultimately convert them to our fee-based offerings continues to produce results by delivering 36% of paid contracts and 50% of total bookings value in the second quarter. Varsity Tutors signed the White House 'Investing in AI Education' pledge in June. The four-year commitment will broaden AI literacy, accelerate student academic growth, and give every Learner a path to success while preserving the essential human connection in teaching. Gross Margin – Gross margin was 61.5% for the three months ended June 30, 2025, compared to a gross margin of 65.7% during the comparable period in 2024. The decrease in gross margin was primarily due to Expert incentives enacted during the fourth quarter of 2024. Following the adoption of the new incentives, we are seeing faster time to the first session, more sessions in the first 30 days, lower tutor replacement rates, and higher retention – all of which should continue to strengthen our business over the long-term. In addition, gross margin for the second quarter improved sequentially quarter-over-quarter as a result of price increases for new Consumer customers enacted during the first quarter of 2025. We expect to deliver sequential quarterly gross margin improvements as we move throughout 2025. Path to Profitability – Our second quarter performance reinforces confidence in our path to profitability. As a reminder, in the first quarter, we reduced headcount by approximately 16% as compared to December 31, 2024. Headcount restructuring changes were primarily enabled by AI-enabled productivity improvements, coupled with new software-driven processes and system implementations. Headcount restructuring and other cost reduction efforts have enabled us to generate operating efficiencies and remove significant costs from the business. We believe these results, together with a positive inflection in newly-acquired and active Monthly Recurring Revenue in June, keep us firmly on the path to profitability on a non-GAAP adjusted EBITDA basis in the fourth quarter. Adjusted EBITDA Loss Beats Guidance Range – Net loss was $12.0 million in the second quarter versus a net loss of $14.4 million during the same period in 2024. Excluding non-cash stock compensation expenses, which were treated as an adjustment for non-GAAP measures, non-GAAP adjusted net loss was $4.5 million for the second quarter of 2025 compared to a non-GAAP adjusted net loss of $3.1 million in the second quarter of 2024. We reported a non-GAAP adjusted EBITDA loss of $2.7 million for the second quarter of 2025, beating our guidance of negative $3.0 million to negative $6.0 million. This compares to a non-GAAP adjusted EBITDA loss of $2.1 million in the same period one year ago. Non-GAAP adjusted EBITDA outperformance relative to guidance was primarily driven by across-the-board P&L improvements via higher gross margin, coupled with lower marketing and G&A spend. Compared to last year, our non-GAAP adjusted EBITDA loss was worse primarily due to lower revenues and gross margin, partially offset by lower marketing spend, headcount reductions, and lower G&A spend. Liquidity and Capital Resources – With no debt and $36.7 million of cash on our balance sheet, we believe we have ample liquidity to fund the business and pursue growth initiatives. Third Quarter and Full Year 2025 Outlook: Today, we are introducing third quarter guidance and updating full year guidance. Revenue Guidance: For the third quarter of 2025, we expect revenue in a range of $37 million to $40 million. For the full year, we expect revenue in the range of $191 million to $197 million. Non-GAAP Adjusted EBITDA Guidance: For the third quarter of 2025, we expect a non-GAAP Adjusted EBITDA Loss in a range of $11 million to $13 million. For the full year, we expect a non-GAAP Adjusted EBITDA loss in the range of $13 million to $17 million. Liquidity and Capital Resources: We expect to end the year with no debt and cash in the range of $30 to $35 million, and believe we have ample liquidity to fund the business and pursue growth initiatives. Webcast and Earnings Conference Call Nerdy's management will host a conference call to discuss its financial results on Thursday, August 7, 2025 at 5:00 p.m. Eastern Time. Interested parties in the U.S. may listen to the call by dialing 1-833-470-1428. International callers can dial 1-404-975-4839. The Access Code is 310344. A live webcast of the call will also be available on Nerdy's investor relations website at A replay of the webcast will be available on Nerdy's website for one year following the event and a telephonic replay of the call will be available until August 14, 2025 by dialing 1-866-813-9403 from the U.S. or 1-929-458-6194 from all other locations, and entering the Access Code: 945878. About Nerdy Inc. Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The Company's purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy's comprehensive learning destination provides learning experiences across thousands of subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group tutoring, large format classes, and adaptive assessments. Nerdy's flagship business, Varsity Tutors, is one of the nation's largest platforms for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at Forward-looking Statements All statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our strategic priorities, including those related to revenue growth; enhancing the Learning Membership experience; AI-enabled productivity and operating leverage; the growth of our Institutional business; the sufficiency of our cash to fund future operations; and our anticipated quarterly and full year 2025 outlook; as well as statements that include the words 'expect,' 'plan,' 'believe,' 'project,' 'will' and 'may,' and similar statements of a future or forward-looking nature. The forward-looking statements made herein relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made herein or in connection herewith, including but not limited to, our offerings continue to evolve, which makes it difficult to predict our future financial and operating results; our history of net losses and negative operating cash flows, which could require us to need other sources of liquidity; risks associated with our ability to acquire and retain customers, operate, and scale up our Consumer and Institutional businesses; risks associated with our intellectual property, including claims that we infringe on a third-party's intellectual property rights; risks associated with our classification of some individuals and entities we contract with as independent contractors; risks associated with the liquidity and trading of our securities; risks associated with payments that we may be required to make under the tax receivable agreement; litigation, regulatory and reputational risks arising from the fact that many of our Learners are minors; changes in applicable law or regulation; the possibility of cyber-related incidents and their related impacts on our business and results of operations; risks associated with the development and use of artificial intelligence and related regulatory uncertainty; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; and risks associated with managing our growth. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Annual Report on Form 10-K filed on February 27, 2025, as well as other filings that we may make from time to time with the SEC.
Business Wire
30-06-2025
- Business
- Business Wire
Varsity Tutors Signs White House Pledge to Advance AI Education for America's Youth
ST. LOUIS--(BUSINESS WIRE)--Nerdy Inc. (NYSE: NRDY), the parent company of Varsity Tutors and creator of the Live + AI next-generation AI-enhanced tutoring and intervention platform that pairs expert human instruction with artificial intelligence, today announced it has signed the White House 'Investing in AI Education' pledge. The four‑year commitment will broaden AI literacy, accelerate student academic growth, and give every learner a path to success while preserving the essential human connection in teaching. 'AI can personalize learning at a scale we've never seen before.' — Chuck Cohn, CEO of Nerdy Inc. Varsity Tutors' pledge to America's K‑12 students and teachers Over the next four years, Varsity Tutors will: Expand access - Make intuitive, age‑appropriate AI tools available to millions of students so they can explore, create, and thrive. Empower educators - Deliver AI‑driven productivity tools that streamline lesson planning, surface actionable insights, and free teachers to focus on instruction. Drive measurable impact - Deliver human + AI high-dosage tutoring that accelerates academic gains. 'AI can personalize learning at a scale we've never seen before,' said Chuck Cohn, founder and CEO of Nerdy Inc. and Varsity Tutors. 'Partnering with the White House on this pledge underscores our commitment to ensure every student has the skills and support to flourish in an AI‑rich future.' 'Fostering young people's interest and expertise in artificial intelligence is crucial to maintaining American technological dominance,' said Michael Kratsios, Director of the White House Office of Science and Technology Policy and Chair of the White House Task Force on AI Education, in a June 30, 2025 White House press release. 'These initial pledges from American organizations will help create new educational and workforce development opportunities for our students.' The pledge is part of a broader national effort to accelerate AI adoption in education. Varsity Tutors joins leading organizations in shaping how artificial intelligence enhances learning while strengthening, not replacing, the human connections at the heart of great teaching. Live + AI Key Capabilities: AI-Enhanced High-Dosage Tutoring: Live one-on-one and small-group tutoring sessions delivered by expert tutors with AI tools at their fingertips, ensuring recurring and intensive support aligned with evidence-based practices. AI analyzes student skill levels, learning styles, and schedules to intelligently pair them with the ideal tutor, fostering strong, consistent relationships. AI Session Insights & Video Playback: AI tools to provide educators and parents of learners with comprehensive summaries of learning progress and opportunities for follow-up instruction. 24/7 Academic Support: Instant live and AI-supported tutoring, essay reviews, and skill-building resources that seamlessly integrate into existing school workflows and educator practices, enhancing instructional effectiveness. Immersive Live Classes for Academic Intervention and Test Prep: Expert-led sessions focused on core subjects like math and science, ACT/SAT prep, and college and career readiness. AI Teacher Tools: Suite of AI-powered teacher tools to reduce lesson planning and administrative workload by 7–10+ hours weekly, facilitating personalized instruction and enabling teachers to focus on high-impact teaching. Real-Time Analytics: Actionable insights for educators via transparent dashboards, tracking progress and identifying areas for intervention. To learn more about how Varsity Tutors and Live + AI can support your students, school, or district, visit About Varsity Tutors Varsity Tutors is the leading AI-enhanced tutoring and intervention platform, trusted by more than 1,000 school districts nationwide. Leveraging nearly two decades of experience and over 10 million hours of live instruction, our unified solution streamlines every step of student support—from tutor selection and scheduling to personalized lesson delivery and real-time insights. Our high-dosage tutoring, comprehensive learning tools, and AI-powered tutor, student, and teacher resources deliver measurable impact, doubling student growth in core subjects compared to traditional interventions. Learn how we're helping educators move from intervention to lasting impact at About Nerdy Inc. Nerdy Inc. (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The company's purpose‑built proprietary platform leverages AI to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy's comprehensive learning destination provides experiences across thousands of subjects and multiple formats. Learn more at
Business Wire
08-05-2025
- Business
- Business Wire
Nerdy Announces First Quarter 2025 Financial Results
ST. LOUIS--(BUSINESS WIRE)--Nerdy Inc. (NYSE: NRDY) today announced financial results for the first quarter ended March 31, 2025. 'Our first-quarter results underscore the power of our Live + AI™ platform and our disciplined focus on high-quality, recurring revenue,' said Chuck Cohn, Founder and CEO of Nerdy. 'By pairing the empathy of expert educators with proprietary AI, we're driving stronger engagement and higher retention – all while positioning Nerdy to deliver sustainable, profitable growth in the quarters ahead.' Please visit the Nerdy investor relations website to view the Nerdy Q1 Shareholder Letter on the Quarterly Results Page. First Quarter Financial Highlights: Revenue Beat the Top End of Guidance Range – In the first quarter, Nerdy delivered revenue of $47.6 million, above the top end of our guidance range of $45 to $47 million, which represented a decrease of 11% year-over-year from $53.7 million during the same period in 2024. Consistent with expectations, revenue declined when compared to the prior year period primarily due to a lower number of Learning Memberships, as well as lower Institutional revenue. These impacts were partially offset by higher average revenue per member per month ('ARPM') in our Consumer business as a result of a mix shift to higher frequency Learning Memberships and price increases enacted during the first quarter of 2025, coupled with higher retention in newer cohorts due primarily to improvements in the user experience and new Expert incentives. Consumer Learning Membership Momentum – Revenue recognized in the first quarter from Learning Memberships was $37.9 million and represented 80% of total Company revenue. As of March 31, 2025, there were 40.5 thousand Active Members and ARPM was $335, which represented an increase of 14% from $293 as of March 31, 2024. Monthly recurring Learning Membership revenue (at month end) inflected positively on a year-over-year basis in March giving us the confidence that Learning Membership revenue will return to growth in the second quarter of 2025. Institutional Strategy – Institutional delivered revenue of $9.4 million and represented 19% of total Company revenue during the first quarter. Varsity Tutors for Schools executed 90 contracts, yielding $4.0 million of bookings. Our strategy to introduce school districts to the platform and ultimately convert them to our fee-based offerings continues to produce results by delivering 34% of paid contracts and 19% of total bookings value in the first quarter. Gross Margin – Gross margin was 58.0% for the three months ended March 31, 2025, compared to a gross margin of 68.0% during the comparable period in 2024. The decrease in gross margin was primarily due to Expert incentives enacted during the fourth quarter of 2024 and higher utilization of tutoring sessions across both our Consumer and Institutional businesses. Following the adoption of the new incentives, we are already seeing faster time to the first session, more sessions in the first 30 days, lower tutor replacement rates, and higher retention – all of which should continue to strengthen our business over the long-term. We expect price increases for new Consumer customers enacted during the first quarter of 2025 will yield sequential quarterly improvements to gross margin as we move throughout the year. Path to Profitability – During the first quarter, we reduced headcount by approximately 16% as compared to December 31, 2024. Headcount restructuring changes were primarily enabled by new software-driven processes and system implementations coupled with AI-enabled productivity and operating leverage improvements. We also moderated our investment in the Institutional business given near-term funding uncertainties. Adjusted EBITDA Loss At Top End of Guidance Range – Net loss was $16.2 million in the first quarter versus a net loss of $12.0 million during the same period in 2024. Excluding non-cash stock compensation expenses and restructuring costs, which were treated as an adjustment for non-GAAP measures, non-GAAP adjusted net loss was $7.9 million for the first quarter of 2025 compared to non-GAAP adjusted net loss of $0.9 million in the first quarter of 2024. We reported a non-GAAP adjusted EBITDA loss of $6.4 million for the first quarter of 2025, at the top end our guidance of negative $6.0 million to negative $8.0 million. This compares to non-GAAP adjusted EBITDA of $24 thousand in the same period one year ago. Non-GAAP adjusted EBITDA performance relative to guidance was primarily driven by marketing efficiency improvements coupled with benefits from headcount restructuring and AI-enabled productivity and operating leverage improvements. These improvements were partially offset by lower gross margin due to Expert incentives and higher utilization of tutoring sessions across both our Consumer and Institutional businesses. Compared to last year, non-GAAP adjusted EBITDA was lower primarily due to lower revenues and gross margin. Liquidity and Capital Resources – With no debt and $44.9 million of cash on our balance sheet, we believe we have ample liquidity to fund the business and pursue growth initiatives. Second Quarter and Full Year 2025 Outlook: Today, we are introducing second quarter guidance, increasing the low end of the revenue range for the full year, and reaffirming adjusted EBITDA guidance for the full year. Revenue Guidance: For the second quarter of 2025, we expect revenue in a range of $45 to $48 million. For the full year, we are increasing the low end of the revenue range by the first quarter outperformance to $191.5-200 million. Non-GAAP Adjusted EBITDA Guidance: For the second quarter of 2025, we expect adjusted EBITDA in a range of negative $3 million to negative $6 million. For the full year, we are reaffirming adjusted EBITDA guidance in a range of negative $8 million to negative $18 million. Liquidity and Capital Resources: We expect to end the year with no debt and cash in the range of $35 to $40 million, and believe we have ample liquidity to fund the business and pursue growth initiatives. Webcast and Earnings Conference Call Nerdy's management will host a conference call to discuss its financial results on Thursday, May 8, 2025 at 5:00 p.m. Eastern Time. Interested parties in the U.S. may listen to the call by dialing 1-833-470-1428. International callers can dial 1-404-975-4839. The Access Code is 198672. A live webcast of the call will also be available on Nerdy's investor relations website at A replay of the webcast will be available on Nerdy's website for one year following the event and a telephonic replay of the call will be available until May 15, 2025 by dialing 1-866-813-9403 from the U.S. or 1-929-458-6194 from all other locations, and entering the Access Code: 534129. About Nerdy Inc. Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The Company's purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy's comprehensive learning destination provides learning experiences across thousands of subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group tutoring, large format classes, and adaptive assessments. Nerdy's flagship business, Varsity Tutors, is one of the nation's largest platforms for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at Forward-looking Statements All statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our strategic priorities, including those related to revenue growth; enhancing the Learning Membership experience; continued improvements in sales and marketing leverage; gross margin and operating leverage; the growth of our Institutional business; changes to our marketplace infrastructure systems; simplifying our operations model while growing our business; the sufficiency of our cash to fund future operations; and our anticipated quarterly and full year 2025 outlook; as well as statements that include the words 'expect,' 'plan,' 'believe,' 'project,' 'will' and 'may,' and similar statements of a future or forward-looking nature. The forward-looking statements made herein relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made herein or in connection herewith, including but not limited to, our offerings continue to evolve, which makes it difficult to predict our future financial and operating results; our history of net losses and negative operating cash flows, which could require us to need other sources of liquidity; risks associated with our ability to acquire and retain customers, operate, and scale up our Consumer and Institutional businesses; risks associated with our intellectual property, including claims that we infringe on a third-party's intellectual property rights; risks associated with our classification of some individuals and entities we contract with as independent contractors; risks associated with the liquidity and trading of our securities; risks associated with payments that we may be required to make under the tax receivable agreement; litigation, regulatory and reputational risks arising from the fact that many of our Learners are minors; changes in applicable law or regulation; the possibility of cyber-related incidents and their related impacts on our business and results of operations; risks associated with the development and use of artificial intelligence and related regulatory uncertainty; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; and risks associated with managing our growth. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Annual Report on Form 10-K filed on February 27, 2025, as well as other filings that we may make from time to time with the SEC.
Business Wire
29-04-2025
- Business
- Business Wire
Varsity Tutors Launches Live + AI™ Platform for Schools, Delivering Next‑Generation Tutoring & Teacher Support System
ST. LOUIS--(BUSINESS WIRE)--Nerdy Inc. (NYSE: NRDY), parent company of Varsity Tutors, today announced the nationwide launch of Live + AI™ — a next-generation, AI-powered, high-dosage tutoring and live intervention platform designed to accelerate learning and close achievement gaps. Live + AI™ is grounded in a simple truth: technology is most powerful when it amplifies, not replaces, the human bond at the center of learning. By uniting the insight, empathy, and adaptability of expert educators with the real-time precision and limitless scale of AI, Live + AI™ delivers truly personalized instruction—accelerating student growth while preserving the irreplaceable spark of human connection. The platform delivers a comprehensive suite of solutions for schools and districts, offering high-impact tutoring, targeted intervention, and district-ready AI tools to support educators and drive student success at scale. Varsity Tutors Launches Live + AI™ Platform for Schools, Delivering Next‑Generation Tutoring & Teacher Support System. The launch comes days after President Donald J. Trump signed the Executive Order 'Advancing Artificial Intelligence Education for American Youth,' which calls for integrating AI across K–12 education, training teachers on AI utilization, and developing workforce skills for an AI-powered future. The Executive Order specifically highlights high-impact tutoring as a key application for AI in education, directing the Secretary of Education to issue guidance on using federal funds to improve educational outcomes through AI-based tutoring solutions. 'Artificial intelligence is transforming education—and its impact is greatest when paired with the personal touch, encouragement, and accountability of skilled educators,' said Chuck Cohn, Founder & CEO of Nerdy Inc. and Varsity Tutors. 'For students, Live + AI™ delivers truly personalized, high-dosage tutoring that drives measurable academic growth. For teachers, it reclaims 7–10 hours a week by automating lesson prep and progress reports while surfacing real-time insights into every learner's needs. At this inflection point, we're partnering with schools nationwide to ensure both students and teachers have the tools to thrive in an AI-driven future.' Decades of evidence confirm that high-dosage tutoring is one of the few school-based interventions that can add the equivalent of three to 15 months of learning in a single year—especially when it's grounded in consistent human relationships and expert guidance. Live + AI™ turns that research into action, giving every district a unified platform that combines high-dosage tutoring, 24/7 academic support, and AI-powered teacher and tutor copilot tools. By automating lesson prep, progress summaries, and individualized practice, it frees 7–10 hours per week for educators—advancing district priorities such as accelerating learning gains, improving student outcomes, and strengthening staff retention—while aligning with the White House AI-in-Education Executive Order. Live + AI™ Key Capabilities: AI-Enhanced High-Dosage Tutoring: Live one-on-one and small-group tutoring sessions delivered by expert tutors with AI tools at their fingertips, ensuring recurring and intensive support aligned with evidence-based practices. AI analyzes student skill levels, learning styles, and schedules to intelligently pair them with the ideal tutor, fostering strong, consistent relationships. AI Session Insights & Video Playback: AI tools to provide educators and parents of learners with comprehensive summaries of learning progress and opportunities for follow-up instruction. 24/7 Academic Support: Instant live and AI-supported tutoring, essay reviews, and skill-building resources that seamlessly integrate into existing school workflows and educator practices, enhancing instructional effectiveness. Immersive Live Classes for Academic Intervention and Test Prep: Expert-led sessions focused on core subjects like math and science, ACT/SAT prep, college and career readiness. AI Teacher Tools: Suite of AI-powered teacher tools to reduce lesson planning and administrative workload by 7–10+ hours weekly, facilitating personalized instruction and enabling teachers to focus on high-impact teaching. Real-Time Analytics: Actionable insights for educators via transparent dashboards, tracking progress and identifying areas for intervention. Our partnerships with over 1,000 districts nationwide show that students in Varsity Tutors' high-dosage programs can achieve up to 2X gains in targeted skill areas. With 18 years of experience and over 10 million hours of live, expert instruction, we know what it takes to drive learning outcomes — and we're ready to put that power to work for you. By embedding AI tools directly into the learning experience, we're giving students hands-on exposure to this transformative technology. This approach not only enhances their current studies but also equips them with the AI literacy that will be essential for their future success. "Our Live + AI™ platform addresses the core objectives of the President's Executive Order — expanding AI education, supporting teachers, and preparing students for future workforce needs," said Anthony Salcito, Chief Institution Business Officer at Nerdy. "By combining human expertise with AI capabilities, we're providing a unified and flexible solution that helps districts achieve better outcomes while consolidating vendor relationships and reducing costs." To learn more about how Varsity Tutors can support your school district, please visit About Varsity Tutors Varsity Tutors is the leading AI-enhanced tutoring and intervention platform, trusted by more than 1,000 school districts nationwide. Leveraging nearly two decades of experience and over 10 million hours of live instruction, our unified solution streamlines every step of student support—from tutor selection and scheduling to personalized lesson delivery and real-time insights. Our high-dosage tutoring, comprehensive learning tools, and AI-powered tutor, student, and teacher resources deliver measurable impact, doubling student growth in core subjects compared to traditional interventions. Learn how we're helping educators move from intervention to lasting impact at About Nerdy Inc. Nerdy (NYSE: NRDY) is a leading platform for live online learning, with a mission to transform the way people learn through technology. The Company's purpose-built proprietary platform leverages technology, including AI, to connect learners of all ages to experts, delivering superior value on both sides of the network. Nerdy's comprehensive learning destination provides learning experiences across thousands of subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group tutoring, large format classes, and adaptive assessments. Nerdy's flagship business, Varsity Tutors, is one of the nation's largest platforms for live online tutoring and classes. Its solutions are available directly to students and consumers, as well as through schools and other institutions. Learn more about Nerdy at
