Nerdy Inc Down 19.03% To $2.55 After Earnings Beat

Nerdy Inc (NRDY) beat out earnings estimates for Q3 2023 this afternoon.

Nerdy Inc's earnings came in at an EPS loss of $0.09 per share, 57.00% higher than estimates for an EPS loss of $0.21 per share. The firm's loss per share narrowed by 57% since reporting a loss of $0.21 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $39 million. The Technology company managed to surpass those expectations for its third quarter with revenue of $40.3 million, a positive revenue surprise of $1.3 million (3%). The firm managed 27% growth year-over-year due to Nerdy Inc reporting quarterly revenue of $31.8 million in its year-ago quarter. Nerdy Inc achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 19.03% to $2.55 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 69. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Nerdy Inc is a curated direct-to-consumer platform for live online learning.