Nerdy Q3 revenue falls 10% on VT4S wind-down, fewer members
NRDY•Nerdy’s Q3 revenue fell 10% year over year as it wound down VT4S and had fewer active members. Adjusted EBITDA loss narrowed to $5.70 million, and the company expects Q4 revenue of $37 million to $39 million and approximately breakeven adjusted EBITDA.
1. Q3 results
Nerdy said revenue fell 10% year over year, reflecting the VT4S wind-down and lower Consumer revenue from fewer active members and lower average revenue per member. Adjusted EBITDA loss was $5.70 million, compared with a $7.52 million analyst consensus estimate. Lower sales staffing, reduced AI costs and cost discipline helped narrow the loss.
2. Delays and outlook
Delays in product enhancements and customer acquisition initiatives weighed on new client acquisition in Q3. Nerdy expects Q4 revenue of $37 million to $39 million, approximately breakeven non-GAAP adjusted EBITDA and year-end cash of $35 million to $37 million.
