Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Nerdy Q2 2022 Earnings Release
nerdy Q2 | 2022 Earnings Release
Slide 3: I realized what a great value my membership is
I realized what a great “I just purchased 4 hr monthly 1-on-1 tutoring per month membership yesterday and [I’m] already extremely satisfied. [I’ve] been blown away by their customer service and quality of classes offered. My subscription value my membership includes unlimited classes for all members
Slide 4: A Note to Our Shareholders
A Note to Our Shareholders As we head into the back-to-school season for the 2022-2023 school year, we continue to see tremendous potential for Nerdy to transform the way that people learn. During the quarter, we executed against a product strategy that delivers on our ‘always on’ vision for both co
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Slide 6: Learning Membership Model
Q2 Earnings Release 2022 4 Learning Membership Model Learning Memberships deliver a comprehensive learning solution that includes access to 1-on-1 tutoring, unlimited live group classes, celebrity-taught live and on-demand lessons, adaptive assessments, and self-study modules. Learning Memberships a
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Slide 9: Learning Membership components: tutoring, classes, StarCourses, self-study
Q2 Earnings Release 2022 5 1-on-1 Tutoring • Varsity Tutors intelligently matches Learners with Experts using artificial intelligence and machine learning to create a personalized plan tailored to each student’s unique needs • 4 or 8 hours a per month across any subject • Available in both recurring
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Slide 11: Learning Membership Benefits
LEARNING MEMBERSHIP BENEFITS We’ve leaned into rolling out Learning Memberships as a result of strong Tremendous Value to the Customer performance signals and positive customer feedback. Among Learners, early data shows higher satisfaction, higher customer retention as Our Learning Membership prices
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Slide 13: Product expansion and the Codeverse acquisition
Q2 Earnings Release 2022 7 We’re continuing to invest to expand and broaden the product depth with even more learning solutions for our members to deliver unparalleled and enhanced value. An example of our product expansion strategy is the acquisition of Codeverse, which we completed in July and are
Slide 14: nerdy Q2 Earnings Release 2022
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Slide 16: Varsity Tutors for Schools: Institutional product expansion
Q2 Earnings Release 2022 8 From the inception of Varsity Tutors for Schools in August of last year through July 31, 2022, we have already contracted with over 180 unique school district partners – and we are just scratching the surface of the opportunity to partner with schools as they seek to suppo
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Slide 19: Teacher Assigned and On Demand Tutoring
Q2 Earnings Release 2022 9 Teacher Assigned Launching for the first time this fall, Teacher Assigned brings together multiple modalities of learning and allows teachers to decide which students receive additional support. Teachers assign hours and identify where students are struggling so tutors can
Slide 20: nerdy Q2 Earnings Release 2022
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Slide 21: In Closing
In Closing We believe education is on the precipice of a sea change, and that it will become increasingly normal for Learners to select and engage with one primary partner to support their many learning objectives. Nerdy’s ‘always on’ product offerings align with this trend, position us to win the t
Slide 22: Financial Highlights
Financial Highlights ● Revenue Above High End of Guidance Range – In the second quarter, Nerdy delivered revenue of $42.2 million, exceeding our guidance range of $37-40 million, and up 29% as compared to the second quarter of 2021. Revenue for the six months ended June 30, 2022 was $89.1 million, a
Slide 23: Third Quarter and Full Year 2022 Outlook
Third Quarter and Full Year 2022 Outlook During the second quarter, we continued to execute against our evolution This results in lower revenue recognition in the near-term for Learning toward ‘always on’ learning with the expansion of our Learning Membership clients, as compared to package clients,
Slide 24: Continued LTV Momentum and Learner Engagement
Continued LTV1 Momentum and Learner Engagement Our investments in innovation, coupled with the long-term education trends we highlighted in February, including the increased adoption and normalization of online learning, the GPA War, and heightened ownership and personal accountability for learning
Slide 25: Financial Discussion
Financial Discussion Revenue Revenue for the three months ended June 30, 2022 was $42.2 million, Sales and marketing expenses for the six months ended June 30, 2022 on an increase of 29% from $32.8 million during the same period in 2021. a GAAP basis were $41.0 million, an increase of $12.2 million
Slide 26: Conference Call Details
General and administrative expenses for the six months ended June 30, For both non-GAAP adjusted net loss and non-GAAP adjusted EBITDA 2022 on a GAAP basis were $63.3 million, an increase of $35.5 million loss, revenue and gross profit improvements were offset by investments in from $27.8 million in
Slide 27: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue $ 42,186 $32,786 $ 89,111 $ 67,351 Cost of revenue 13,431 11,513 27,583 22,705 Gross Profit 28,755 21,273 61,528 44,646
Slide 28: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) June 30, December 31, 2022 2021 ASSETS Current Assets Cash and cash equivalents $ 120,976 $ 143,964 Accounts receivable, net 2,837 5,321 Other current assets 4,133 6,165 Total Current Assets 127,946 155,450 Fixed assets, net 11,697 10,
Slide 29: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Six Months Ended June 30, 2022 2021 Cash Flows From Operating Activities Net Loss $ (16,470) $ (6,062) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation & amortization 2,861 2,629 Amorti
Slide 30: Reconciliation of GAAP to Non-GAAP Sales and Marketing Expense
RECONCILIATION OF GAAP TO NON-GAAP SALES AND MARKETING EXPENSE (Unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Sales and marketing expenses $18,011 $14,165 $40,957 $28,747 Less: Stock-based compensation 970 — 2,045 — Non-GAAP sales and marketing e
Slide 31: Reconciliation of GAAP Net Earnings (Loss) to Adjusted Net Loss
RECONCILIATION OF GAAP NET EARNINGS (LOSS) TO ADJUSTED NET LOSS (Unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net Earnings (Loss) $ 15,277 $ (336) $(16,470) $ (6,062) Add: Stock-based compensation 10,854 502 23,344 1,004 Unrealized gain on deriv
Slide 32: Key Financial and Operating Metrics
KEY FINANCIAL AND OPERATING METRICS Three Months Ended Six Months Ended June 30, Change June 30, Change Active Learners in ones; favorable/(unfavorable) 2022 2021 % 2022 2021 % Active Learners 73,976 54,206 36% 102,164 72,856 40% Three Months Ended Six Months Ended June 30, Change June 30, Change do
Slide 33: Key Performance Metrics and Non-GAAP Financial Measures
Key Performance Metrics and Non-GAAP Financial Measures This earnings release includes non-GAAP financial measures for non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP adjusted EBITDA (loss), and non-GAAP adjusted net loss. Non-GAAP sales and marketing ex
Slide 34: Forward-Looking Statements
Sessions Taught per Active Expert is calculated as the number of 1-on-1 sessions, the number of paid online group classes, and the number of paid group tutoring sessions per active Expert in a given period (excluding Legacy Businesses and our subscription service, VT+). 1-on-1 average session length
Slide 35: Forward-looking risk factors
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 limited operating history, which makes it difficult to predict our future financial and operating results; our histo