Nerdy (NRDY) PT Lowered to $1 at Goldman Sachs

Goldman Sachs analyst Eric Sheridan lowered the price target on Nerdy (NYSE: NRDY) to $1.00 (from $1.50) while maintaining a Neutral rating.

The analyst comments "In its Q3 ’24 earnings report, Nerdy produced a set of results characterized by roughly inline to better than expected revenue and Adj EBITDA loss but presented Q4 operating guidance with revenue ~20% below the GS/Street estimates at the mid-point and with an adj. EBITDA solidly below expectations. NRDY mgmt framed their guidance as reflecting two primary drivers: 1) consumer revenue softness into Q4 as the segment continues to be impacted by a decline in learning membership subscribers (as older cohorts continue to show higher level of cancellations); 2) lower than expected institutional bookings flowing through to Q4 revenues and into the beginning of 2025. During the quarter, the company concentrated resources around the institutional opportunity, noting a newly hired sales team, acute focus on the ESSER deadline, and complexity involved in onboarding free platform access school district partners as key reasons for shifting resource allocation. As a result, certain product initiatives planned for Q4 were delayed, impacting both the consumer and institutional segments. We reiterate our Neutral rating on the shares, adjust our operating estimates for this earnings report & forward mgmt commentary and decrease our 12-month PT from $1.50 to $1.00 on the back of those changes."

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