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ST. LOUIS— Nerdy Inc. (NYSE:NRDY) Chief Financial Officer Jason H. Pello recently executed a significant stock sale, according to a recent filing with the Securities and Exchange Commission. On March 12, Pello sold 75,000 shares of Nerdy’s Class A common stock, generating a total of $113,250. The shares were sold at a weighted average price of $1.51 per share, with individual sale prices ranging from $1.49 to $1.56.
The transaction was carried out under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at a predetermined time, independent of any material nonpublic information they might possess. Following this sale, Pello retains ownership of 2,068,805 shares, including 770,679 shares of Class A common stock and 1,298,126 restricted stock units. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 2.28 and holds more cash than debt on its balance sheet, though analysts do not expect profitability this year.
The sale was not due to any disagreement with the company, and Pello continues to serve as Nerdy’s CFO. For deeper insights into NRDY’s financial health, valuation metrics, and expert analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Nerdy Inc. reported its Q4 2024 earnings, revealing a 13% decline in revenue year-over-year to $48 million, though this surpassed the forecasted $44.94 million. Despite the revenue beat, challenges in profitability and decreased consumer learning membership revenue have been noted. Cantor Fitzgerald analyst Brett Knoblauch raised Nerdy’s stock target to $1.50, maintaining a Neutral rating, acknowledging a modest turnaround in the fourth quarter of 2024. The company has launched several AI-powered products aimed at improving the learning experience, which are expected to drive growth in the Consumer segment in 2025.
Nerdy’s institutional business revenue was reported at $6.8 million, with consumer learning membership revenue comprising 82% of total revenue. The company’s adjusted EBITDA was reported at a loss of $5.5 million, down from a positive $3 million in Q4 2023. Looking ahead, Nerdy projects 2025 revenue between $190 million and $200 million, with an adjusted EBITDA guidance ranging from -$8 million to -$18 million. The company anticipates achieving EBITDA and cash flow positivity by Q4 2025, driven by consumer revenue growth and stable institutional revenue.
CEO Chuck Tone emphasized the productivity improvements achieved through AI tools, which are also supporting teachers and administrators. The company plans to continue enhancing its AI-driven offerings to improve the tutor and student experience. Additionally, Nerdy has been refining its go-to-market strategies, with new sales talents contributing to a more robust deals pipeline. As the sales force gains maturity, Cantor Fitzgerald anticipates potential growth acceleration for Nerdy in the latter half of 2025.
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