Nerdy (NRDY) sinks 30% after reporting wider-than-expected loss

Nerdy (NYSE: NRDY) shares were indicated 30% lower in early Wednesday trade after the company reported wider-than-expected loss for the third quarter.

Nerdy posted a loss per share of 13 cents, while analysts were expecting a loss per share of 8 cents. Revenue for the quarter came in at $40.3 million versus the consensus estimate of $39.04 million.

On the adjusted Ebitda basis, the loss stood at $8.23 million.

“In the third quarter, our strong first half of the year continued and we delivered revenue and profitability ahead of our expectations. Both our Consumer and Institutional businesses saw strong demand in the quarter as the school year ramped,” said Chuck Cohn, Founder, Chairman and Chief Executive Officer of Nerdy Inc.

The company’s guidance for operating revenue was 10% below the Street estimates.

Goldman Sachs analyst Eric Sheridan cut the price target to $3 per share on Neutral-rated NRDY shares.

“Long term, we still see Nerdy as well-positioned to benefit from a few key themes: 1) various secular tailwinds supportive of forward growth for both DTC business and Institutional opportunity; 2) platform-based approach competitively positions Nerdy in a fragmented market; & 3) potential for significant operating leverage long term.”

By Senad Karaahmetovic

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