NRDY - Earnings call transcript Q2 2024

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Operator

Good afternoon. Thank you for attending today's Nerdy Inc. Q2 2024 Earnings Call. My name is Matt, and I'll your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to your host, T.J. at Counsel General Associate Nerdy. Lynn,

T. Lynn

Executive thank Good Officer. Nerdy's Cohn, joining and Chief for for Quarter afternoon, Founder, Pello, XXXX Financial and Chuck and Second are Earnings us me Nerdy; you Call. Chief of Officer Chairman Jason With

any and the change which the Not discuss are is Please conditions we let that, in expectations results call to that the any all events, the These over and uncertainties undertake materially today turn reconciliations a plans today's over respect forward-looking made or filings in that and GAAP. obligation in today's to or statements could to results the contain in shareholder financial forward-looking disclaimers Please on not circumstances Nerdy's forward-looking based. this will to remind that Chuck, to SEC Chuck. release of with and letter accept company's refer non-GAAP shareholder accordance or will the or call I cause to, statements, statements expectations with letter statements from including, today's I'll second change With discussion risks differ actual measures. publicly risks. to prepared operating date, as does Nerdy's to updates forward-looking for of for these discussion significant to the Any announcing reflect opportunities, but measures Before results, quarter expected outlook. financial strategy, Nerdy statement everyone of future such any refer any me involve with any and of not results. any turn are to revisions limited

Charles Cohn

going intuitive serve out as scale of experienced the seasonal we innovation the to and the everyone year, end to our changes product Within period. customers and both naturally didn't encourage the within year better our drive fewer retrospect, tutoring learning consistently upon for winning the This a laid learning, cancellations, convergence better today. learners and flexibility. us a that institutional businesses. weekly category. habit experience this service membership schools higher this and goal, their through leverage school. frequencies a to important student progress These or weekly we their an X needs of learner. In the first of caused businesses retention ensuring of first to including establish the chemistry on while priorities overly doctor improvements dream to back-to-school encouraged which, we on of selection important product, by habit in making period Based long [ the to becoming We of tutor on reexamine unified over to our primary second pace in parent with tutoring value. getting thank medical over reoriented the the experience platform course to you [indiscernible]. habit personalized the value learning drove premium learning [indiscernible] a also make our for completed and sufficiently of learning tutoring in weekly summer unified lowest-priced product for was college consistent primarily joining a of a in resulted found increase and lifetime Thanks, goal, the focused consumer all level drives us business, across against which particular, instead, allowing our were experience of focused time and us retention toward T.J., anticipated higher-than-expected what organic which learners to scrutinize lens grade to we're a consumer significantly learning product support and a ] which include our have [indiscernible] The could we our outcome. every great a and our we achieving modern, for development grade learning of time Examples quarter, goals product we continued membership, an of active in members has a consumer to enter student than read driven In in institutional recently a provides both service of

significant experience learning [ enhancements XX focus of scheduling one area renewed improvements improves user digital significant Over learner's ] a a reliability, as the through the focused experience. and experience, period, membership a on scheduling In shipping that fundamentals includes we've which of to better days, quality onboarding to executing been of match is the on the including schedule activation great towards experience. the a customer team first particular, XX-day last ease multiple

affecting cohorts. The premium to levels of newly towards higher of it early the retention these sessions retention. through discoverability session, recurring cohorts levels with acquired improved many week, improvements digital positively recently of higher deployed, to tutoring as levels across new reducing learning of is member of monthly higher revenue average or churn and user older is platform, time While higher signal shift per product cohorts per driving with non-tutoring our promising first member in ARPM, revenue per faster higher memberships, new month, engagements both due experience were the relates improvements mix overall improved and quite of coupled engagement and

So the active while back-to-school experiencing. we're entering we we're members period than recent are improvements by the encouraged fewer anticipated, with

the for goal impact. expand Our was number to learners year to of can we continue the second

than a school premium Our in products us business larger to districts our is allowing at strategy institutional to scale before. ever our introduce

successfully Varsity at an the for X.X to million X.X access total Tutors quarter, additional to nearly During million the students, platform the districts. school students schools bringing enabled for second XXX we

and school the to XX% million ambitious for K-XX We district portion as scalable partners of we approximately believe for tutoring Varsity implement and these For no parents or aim cost platform preferred over the year, the in States, to our to is to with credibility to create becoming a of States. full scale district this large foundation a consumer halo the business with Tutors which resources have United set partners, a at set the look we enrichment will and platform to lay By believe an lower students they to way trust XX in at paid the we programs. and ourselves enabling introduce effect the providing efficiently United a students larger costs us of our business revenue of and a customer build robust access build academic population target acquisition school test-prep time. allow tutoring to

to continued student schools' the experiences. and Varsity Tutors progress improve also This quarter we for administrator to make

believe drive our for All customer unified heightened and usable. and experience been have more of by engagement the of membership. the schools' levels can consumer discoverable [indiscernible] product learning tutors making already resources customers onto converged for satisfaction [indiscernible] we available used now

measure programs' the dashboard leaders' ability to key high impact that tutoring program. view performance school Our metrics providing increases our revamped value district of dosage our reinforce administrative by the programs real-time of of a

of these learning. and still has team most level schools' Our the bit to was more for longer in activity a believe go-to-market That's profitable in third growth. year back-weighted period and a bookings than growing the slower expansion sales originally occurred way completed team. the we are awareness onboarding Hiring to the expectation. tutoring resulted investments lower-than-anticipated market We summer Varsity goal the effective that lay the forecasted. We later taken coupled the the seasonally accelerate given Tutors back-to-school, months in summer into foundation the bookings and deliver as of sales to the market that high with appropriate during dosage the in head is recently

feel compelling head up offering ladders back-to-school enhancements for We a more good as and made about that our into customers. how also [ to the product ] we

higher-than-anticipated During costs business the experienced our in period year. a within the tutor high second institutional quarter, we during school seasonally substitute

infrastructure first invoicing substitution our reliability. In will a subscription enhancements, our As scheduling and new introduced and our customer a that underlying advantage basis, overhaul tutor reliability we higher to systems, time levels margin with the infrastructure while us a able to due automation we're our access-based gross experience We enhancements we response, including the reminder, for to product. material school session logistical provide improving to represent best-in-class simultaneously allow year software-based these is are and will improvements deliver. on recently meaningfully believe improve to go-forward during period marketplace back-to-school marketplace expected to over competitive believe the this

business We scale and more time handle also us expect institutional larger material and easily have that required energy, these enable which even changes the efficiently scale opportunities. institutional and now will to

proposition exit in for appreciate evolving of with as a focused expansion back will more at return With meeting the As any recent season, enable we team look in exceptional workers over conversion interest discuss consumer selling the the growth I'll the financials customers. to and time. of and we institutional year. to to business to we coupled on for Varsity that, and to platform, durable consumer our any Tutors your turn to in ensuring We call company marketplace anywhere the needs enter and forward schools' shift are value The detail. our our and the subject, in continued profitable an core back-to-school our Jason the delivers experience hyper go-to-market the the our

Jason Pello

that we the growth. in Chuck towards delivered partially X out and represented the second businesses, of primary the goals continue X% million, achieving business. year. driven of growth results the we institutional by progress by consumer Revenue the in lower was our mentioned, for we to make quarter, offset consumer laid $XX year-over-year scaling revenue As In period year current our continued ARPM

quarter XX% the total business. due million Membership's transition current for in year-over-year and in XXXX, revenue respectively, the Consumer legacy revenue. $X.X represented of revenue of Learning company X June our included in period months revenue the the ended completion the did learning million million, recur consumer that and subscription year not package of Additionally, increased second and $XX.X memberships X X% $XX.X to to XX, of

learning New with growth learners. Active to members of year-over-year. quarter consumer healthy year-over-year XX,XXX continue were of up XX customer XX% second acquisition the as memberships June in XX% remained as of resonate with

mix of was to higher However, lower end. learning the they of XX,XXX a members memberships ARPM end run of at from ARPM frequency, of guidance million second learning quarter rate the of to resulted end quarter. at non-premium $XXX than memberships approximately were lower-than-expected $XXX the our an due The in anticipated. approximately annualized quarter below

for revenue $XX.X focus XX% opportunity institutional. increase which schools within a platform buying million for worth business Varsity of access reflect XX% hiring service Our to contracts, $X onboarding sales yielding period the Varsity revenue. of longer-term XX of Tutors executed for numbers personnel institutional total and million, an year-over-year, in increasing represented Bookings delivered of market in back-to-school schools' optimizing Tutors the on and in bookings.

business is field our products institutional our at than before. districts in ever school allowing us a Our larger to strategy premium introduce to

During enabled million the quarter, nearly additional at Tutors we for students, for million X.X the successfully the to Varsity bringing X.X schools students access school total districts. XXX an platform to

Moving current products for a year. in of the lower was access-based costs to XX.X% down and our year-over-year. the in both gross gross million year of period the P&L, a the X institutional during in compared subscription tutoring lower higher margins for our margin months gross of XX, to profit of comparable high $XX.X by due related in substitution sessions school offerings, result a XXXX, Gross XX.X% across XXXX. period to utilization second X% quarter June higher primarily margin was during seasonally decrease period was new margin to ended The

in or costs the revenue. mentioned, believe period million, $XX.X and $X.X excluding were Chuck go-forward stock-based gross Non-GAAP $XX.X or $XX.X have period Non-GAAP the costs, This noncash will the of million, basis. a period increase our or million margin expenses, $XX.X in Sales in systems, memberships, marketing by customer XXXX. were million in meaningfully on districts the close $XX.X offset up most period the million an revenue. an from were and This to to alignment initiatives, during recently the organization to model territories million through an transition educators. partially million XXXX. introduced presence greater million, to acquisition, growing million we order administrative free investments on $XX.X of school with XXXX. were by compared general driven XX% sales effective sales and learning General and to expenses These infrastructure organizations compensation same for and of which a marketing quarter in As the $X.X business. to and platform. to and expenses, of parallel in from increased activity government sales which and increase of than in stock-based awareness in market, a in $XX.X million back-to-school on in capture improve revenue to efficiencies in $XX.X the team our which building basis of a improvements compensation, is same the signing and quarter the was driven our driven Year-to-date, we by local were our administrative the Tutors ensure drive basis state revenue period have including increases awareness million, XXXX. reach, impacts by Varsity G&A product for excluding a XX% costs by while an marketplace million the expenses to accelerate $XX.X period compares of of XX% way sales the out development GAAP drive GAAP million same for in in access to tutoring in from in Included inside in operating marketing more learning of schools Sales XXXX. doubled increase allow $X.X same the noncash marketing number consumer a institutional XX% same were spend $X.X in efficient we also brand more relations were for that

non-GAAP operating million million of were relative adjusted EBITDA guidance by $X.X negative in continued to same continued efficiency due primarily driven range to were the us to to go-to-market drive investment lower our Non-GAAP access negative top end Our for growth. the subscription and a in and have and the based learning for to us loss XX, to continuously to June suite improve adjusted X offerings of the support allowed allows for model products, and needed at adjusted support $X EBITDA adjusted million EBITDA Tutors compared our which million platform. innovation $X.X investments Non-GAAP teacher and development organization and EBITDA guidance to months These our maximize gains. Varsity product simplify was adjusted memberships margin our assigned EBITDA non-GAAP in and and platform-oriented customers. in product ended customers organization, margins Compared improvements to our the operating year, approach non-GAAP district including $X parent XXXX. XXXX, of for launch development offerings institutional period and of last and the of EBITDA growth our adjusted non-GAAP investments in schools' teams to our primarily

our ample XX, June liquidity principal the us of balance and company's of As to our sheet $XX.X were with and cash growth XXXX, equivalents of sources operate cash million. strong liquidity initiatives. plan against We provides believe pursue

Turning our business outlook. to

third guidance. updating are and and adjusted EBITDA full providing year quarter We revenue

members resulted upcoming of by ARPM. as end For active the lower impacted with revenue cancellations, is higher-than-expected quarter, fewer in school consumer the and year period, third of coupled seasonal, which have level the enter than summer we anticipated back-to-school

normal when lower summer seasonality revenues universities from and For due to Tutors during reflects schools revenue year third K-XX the low institutional, on are and schools for in revenue Varsity quarter break. point the guidance the quarterly resulting

the lower ramp sales revenue drive Third quarter third EBITDA seasonally quarter in development into with to schools' season, guidance continued growth. the coupled back-to-school organizations impact and variable as relations Tutors and selling reflects costs higher in adjusted investments the of innovation product government and we and Varsity for the

coupled anticipated onboarding the reflects stemming premium year, levels guidance higher the on lower-than-anticipated we and the we the Consumer revenue acquisition memberships. enter of sales retention during and bookings of return and For year. to as revenue we from guidance year the months with summer Within customer Consistent students team, the delay return XXXX-XXXX full to our expect year. a full in improvements institutional, guidance, back-to-school, has Varsity reflects learning focus new prior with resulted as as exit back-weighted schools' during Tutors expectation school bookings more durable profitable in which for growth ARPM

$XX of million $XX quarter For third in million. expect revenue a of range to the XXXX, we

For million. to million revenue range $XXX we in the expect full $XXX the of year,

for adjusted year, of $XX full For XXXX, to EBITDA the adjusted million the expect negative of million in expect third quarter of negative million. we negative million. the range $XX negative And the $XX to we in EBITDA $XX range

acutely noted, to you and as for delivering closing, are for excellence. our the for season, selling Chuck we company. a operational As continued an our in again back-to-school ensuring for we thank that, focused Q&A. interest experience turn return over to the customers enter it In operator exceptional your and time on your I'll With

Operator

is question line of Ryan MacDonald from with [Operator Instructions] First Needham. the

Ryan MacDonald

how between students now freemium you Maybe to just institutional X.X this XXX you've strategy. districts the of And what from presence and start million the now on strategy? to to expanded this far thus quarter added the off talk rate districts type paid conversion -- have million and so X.X business, across you're maybe schools seen Can using during convert about more you customers?

Charles Cohn

been So that's that is platform that real one exciting perceived valued, giving fact and products administrators to marginal these our or them. value schools really strategy that there's and things cost are the of about or of for the our students low access their lot X access value from receive a really

willing there's past tail were very every just And products to just of encouraging been students these pretty us out. so exposed about and of And consider uptick toward the but a these the that heading summer, high to fact many the it's rolling semester rate. been meet school end this district into with is our

pulling that and school the the school partnerships number ultimately formed relationships. that into how and through then credibility paid trust meetings we're by encouraged the year districts number that with relates and we've building of to been to commercial of we've so and already heading those And having

I and getting happen those there's the free at our around making to later need better tools and one have then aspects commercial optimizing that not can of been think subsequently concurrently, and conversations. so have the is the the sure first And that conversation we've

thread and those opportunity at which is like like designs extent the district [ powerful ], school teachers can they to seen And back have just of secondary an benefit remediation, and took the excited coming then both more problems audience to little access many [ our encouraging. that ultimately the we've pull-through, ]. the of really now conversations both solve of tutoring. through we're more comprehensive administrator learning explain It bookings of and the core been platform [ attended elements on we've a about and of but at And be which loss in and how opportunities to so to at product, products helping getting is using to and all very coming access-based ], strategic students getting relate some point, conversation much, better have better nature conversations volume our to -- the like and this while motion to able seeing much honed space, very, those days

Ryan MacDonald

business. Maybe moving to the consumer

understand, perhaps, premium memberships? help strategy you for to So the making ARPM it on it's drive the as shift long the maybe like memberships. -- And going conversion? focusing sort premium third from learning towards that to you assumptions moving of for for the need sounds rebuild the we're looking take members top on lower the you're then strategy think and funnel more and you of what remainder year, us back you're the or of at to back and as offering guidance and price the that if quarter this Jason, do learning How could there you away maybe

Jason Pello

when we top back we're demand back-to-school, conversion as the we premium And shift what's important to last I we're rates healthy seeing about they're moving memberships still the what that is think the we year. above when saw of funnel. towards about then think about think the

opportunity would there, Recent by and seen LTV. and you see that factors. already a is higher anytime And we're into the the cohorts the those encouraged health we've consumer, tutors. starting the that, So habit think much to and premium consistent of higher of are indicate with levels weekly we data demonstrate our the relationship deeper provide get market students offerings to engagement

session, tutoring higher to So levels across we've we're enabled levels the to of non-tutoring platform. faster per higher seeing due engagement discoverability week, of times first sessions increased that

across $XXX higher summer. and cohorts new end the back seeing already since then ARPM to higher with MRR periods, think about higher expect members we back the expect retention see When a seasonality every with These year member rates from that of year. to are end active members. we to half volume and learning consolidated back-to-school in recurring towards peak the historical growth of the would each or the shifting back-to-school and You're we're we QX and XX,XXX ARPM weekly about highest at the the most XX,XXX the expect levels basis. on quarter with And in back-to-school end an we then premium about our consistent revenue middle recent because monthly mix perspective, active be period, members, of ARPM we above

Charles Cohn

customers would the in, thing it, other I of The double number seasonally is you that the June to frame. as is back in what and September October, July new call roughly enter time it add and is that you add school,

much, premium And membership. levels be so consistent will our ARPM with much able acquire And to case, larger at in this numbers higher of you're customers. it

and one-to-one how identifying on levels higher through year-over-year habit relative executed weekly lifting. cohorts it, past of going and people offerings a through to engagement a the that churn actually to work the basis, goodness We a heading and back-to-school as you the into lining into more side silver product of the been the in that get we a it, to do And little and to usage that started we ultimately to accelerate really then to a on spring. bit on we some needed So heavy on doing things activation of those level from revenue pulling had period. of that consider meaningfully realized retention. the recognizing about think of positive can lower-cost we're And do levels non-tutoring in has weekly to I one of be higher

and the flip the to to operational weekly seen positive product those we've year-over-year company towards or really, in make a nailing that's otherwise work successful to spring on negative ultimately, offering and that days freemium so our need summer also habit then retention ] within formations XX And today. low-cost cohorts drives And are the other what premium retention [ the in and acceleration really we do first from anyway, early as late activation. would it memberships initiatives, in oriented well to year-over-year and

Operator

Next question is from the line of Andrew Boone with JMP Securities.

Andrew Boone

talk engagement Chuck, to product to they the about What what exactly And can guys you you keys for? engagement? increasing looking to for that are the drive users? can do really

Charles Cohn

are to So doing consume the exactly Board know where somebody we're at get find intuitive, I experience the toward friction, their pending that need to to and one replace about that easy invoicing the that's high-quality or aimed they onboarding have work of company indicators we getting to times, a the funnel each Star our an indicate being that that the the true to matches manner system, through UX be tutor, that think that the it stands, our to tutor quality The and to progress removing that as significant and remove know that intuitively quickly session. to North is process people is to perfect [ value quickly of get enhancing experience, very then our step to without any and path first their of reschedule to friction that then And intuitive extent system, it. needs or in it able making the through well. ]. the to purchased helping process of push indicators the session a to we've that onboarding friction, thing extent experience not that that in they through needs in scheduling it and it's they're ultimately that's alternative experience get that out where it's extent as after general it session, way actual digital actually matching kind And digital is first needs our and made them improvements it things able their that be and along to to to in seamlessly to

you'll course are continued over expect that enhancements intuitive, and log somebody if the weekly it the dramatic And to primary around that oriented that getting see we've XX of make into So pretty you that you once or the you so should made days in, then nail the experience see to habit. upgrades last more separately, that objective And we the is then well. when value customers come twice them into to of the which products that somebody multimodality people tutoring, retention, our as non-tutoring the engaging want modality. as that we platform roughly up in get with learning end with, they those use with know only twice engages tutoring lifetime historically, the

engage of then learning easier in other much so classes, relevant to it benefit habit get of ultimately, well, experience. tutor, years. so additional intuitive the multiple subjects forms to school videos a that entire on-demand get to are tests, like And AI now it diagnostic into multiple can making then and people spans account relevant making we're And as discover relevant making family value that out students the to easy that and to also that add and from an we're

So that's big continue next to the and has as something few digital that gotten see at of doing, you'll the better course with months over there the focus progressively well. improve experience we'll a the all the we're and cohort rates, learning then other one-to-one and But of a and growth that both retention. utilization to -- basis through the ultimately basis to modalities seeing on year-over-year pull

I a could over refocus to days of through [indiscernible] better a but a and It us little of and experience, spring, hiccup bit XX there So all that really economics the summer better early first we're an it good. think initiatives for improve the identify as leading took that much to it in level our area of there ultimately, all pull indicators much X fullness having are really dig seeing late and unit we customer the time.

Andrew Boone

we're getting come think you ask there. remind as closer can with us had I I that past, we've this then us up? and [ know talked about I wanted you've conversations tell just to the in but ]; And recent the has expiration to about about schools SOX

Jason Pello

school Just reminder, the for still a the spent [ September September. about XX. of September have end to left school billion to in learning We Those multiyear do have agreements to of be be but to they students as their by support SOX We're about appropriated beyond funds $X funding they how SR X $X there's to them, was Plan. obligated by can be years multiple still into to by ] American XX; be enter utilize used order funds, conversations years. districts through best believe to date, billion over up active with to obligated how that Rescue having

as towards teachers we the to getting that teachers. school and so what into their active now daily they're support move back-to-school like programs administrators administrators period, more routines, hired, the we're getting move and in starting around look could into And are to students tutoring conversations

Charles Cohn

legislation state of tutoring fund in this SR are focused though seeing also funds, -- isn't and that's on been operating these dependent funds, programs, there's a variety title on grant states on funded to specific we have programs. been there's And conversations existing

works, reliability high-dosage we've delivering we than have the feel that sources which as reality of year are tutoring, a else scale, certainly at funding. conversations ultimately best-in-class the right? very in is us at learning And SR's learning drive the live to that made scale, $XX sources valuable school districts. Title billion and including per the just assets better we're progressively more funding logistical other very, tutoring roughly X, systems, underlying able anybody is so And And capability, funding shifted make deliver one toward there to like to partner lot including that's a and investments and we're great of live that out to like

it's massive feel learning with districts supplemental being be augment there's they exactly, or net school industry a how new to count formed. whatever So XX,XXX there may and public and opportunity the deliver a like we tutoring

high-dosage that reinforces study it. the that out, funding for all but So we're will remediate certainly new is was be effective fact data continue up, to of ] catch tutoring portion way a to our [ and off seeing from every SRX students the and industry, for there most coming that the sources

making than to So good to how of our this the particular a And a time improvements funding we're feel coming and the years. more creation and in focusing growth much product ladder are the in ultimately being on and expansive about participating us great conversations over partner up we industry nuanced source. schools

Operator

the from is Sklar line question Raymond James. with Alex Next of

Unknown Analyst

your consumer bigger Is -- seasonally like rebound think it is Like and sales it for team ramping Varsity also quarter? factor is like Or Tutors helping [ about out? ]? your single-digit you guidance for an a and do This contributing key as this been more schools implied being for up a a stronger start Alex. to call little revenue back question. you is bit on with, years, a growth on Jessica going revenue Thinking a To off which that's high for what has driver like you as what's follow-up earlier just [indiscernible] would

Charles Cohn

Yes.

going I to factors, think focus is premium the larger the levels higher our I size is given be this ARPM. of member, and on the to consumer the had which of drive just to if going driver, that the returning business the back-to-school weigh period -- X

those of the retention higher across mentioned, the early early I signal levels cohorts is high cohorts. As weekly from indicating engagement, of levels

September back-to-school towards the to season. largest is you level it So period, as compared funnel months. the selling October the move of and top nearly triples of as The summer in

but is [ as talked you'll effort institutional When deliver with back-to-school. we side the the drive see guidance on consumer Tutors and change think I also XX% onboarding time the Varsity the revenue on well team ramping last the will of it, marketing in the the decline relations the side government we from XX% back maybe towards the about in about decline the consumer what salesforce, the side institutional to schools' is is on the us move positioning time, ] of half. And so of to for and

Unknown Analyst

you Are XX question general, that districts with halo a Or larger about more or districts, about rural you reaching Another a -- urban kind considering believe thinking deals, districts? million team? of have are you or like suburban what a guys helping like students, as have of where thinking from out seeing targeting? [indiscernible] up is, so are discussions reaching more your benefit your and that, goal to these just you you're in to of with school in

Charles Cohn

There's in with districts. all with United prioritization school are how to trust credibility build and finding we we facto school and willing to effort resonates districts of go are but We're we as reach all this certainly products aiming and and have the with ultimately, de real happy platform a various all become these students. tutoring the and market a and value to States out, And to districts. These are school related all that valuable partner for administrators. result, students

Operator

Next question Fitzgerald. with line the of from Brett Cantor is Knoblauch

Unknown Analyst

beneficiary program tutoring. Or a rather earlier, programs? on SR. ensure and to a we Thomas that it into just about the state is I like on seems side? more schools you more fund on regulatory This for a does month, regulatory Nerdy going than but they're funds? new the lobbying broader see educating Brett. bit high-dosage or touched these them know is just so trying the Is It so landscape of these almost every How it federal it

Charles Cohn

tutoring. outlet to the are thing works at Well, tutoring city, the high-dosage reason is federal good who because state works, demonstrating for want in invest people because and that ample there's it county, level, studies

possible is that the it's was that of never realizing to to coming that's and that out works deliver is really now are before. kind an research and So the first at it thing people extent capable scale

the and an with sales building But able relations government Certainly, have to build are in, and that ultimately, the can and more students. and relationships have can quality you positive you can of you our impact And services products that more and to testify that great the the team we make are time, investing we we've deliver on we trusted. over team known relationships. enterprise that to efforts marketing sure execution and build been along So accrue that trust.

a because support at and that will as it's the opportunity trusted, all additional been effective more where be for have states feel been seeing we an ultimately good to federal there our better progressively leading getting the those so what ultimately those sequentially how that funding the upon -- And based products that conversations and regard. opportunity level, tutorage about an we're to help mature feedback environment perhaps students. market. And so in in provider high-dose and toward have customer even we'll for and And that's we've and builds participate getting of in

Operator

question line Northland Gibas is from Greg The the with of next Securities.

Gregory Gibas

Just curious, of you you're seeing higher-than-expected is level think this what driving do the summer? cancellations that

Charles Cohn

Well, not leaned we those many offerings as drive into lower of did weekly offerings, the some habit. of cost

place how historically people to habit calendars. I it's the drive wasn't the I'm tutoring do learn and is chemistry organic mechanism learn, to daughter afternoons, a organize their and weekly going in my I'm Wednesday to to -- that on every Monday night with for on people that pricing specialist going week. something going is or work reading think weekly on So ready traditionally, product was and a basis

tutoring. low-cost not you hoc, that very And basis, the calendarization which a the of better also habit-based. why at habit anything ad weekly it a how out people frequencies is use outcomes, basis around where And lives. that so their And it's to we're learning meeting in were products, people week is they with naturally, of kind fall is aligned ad hoc, manage easy to twice can important of aligned the buy oriented on or that

back making the And on in does enhancements into mix we're that product on and so alone right to driving now, not focus a people the scheduling perspective that memberships the the but retention, in habit likely. focusing naturally only weekly drive from also premium shifting improvement more

learning UX a we lot related really habit. going weekly getting that such product and put in and to a it's perhaps people that inform into it's and folks relearning so good And of the to

Gregory Gibas

And the ARPM but you trending to lower frequency do you this, on regarding year-over-year a memberships expect may have positively lower, inflect that the addressed trends from basis? when

Jason Pello

a during are see the would as that as shift of towards and on the given would see would with QX key summer, as mentioned the high into during above Xx $XXX we premium the we the and that beyond. end period, So back-to-school focus is carry that during I ARPM by expect and earlier, that QX, volumes what period you the memberships

in will what me through that's July infect started the as half quickly. early back confidence we that will above So gives year. so to it It's that it be again the moved and do already of $XXX August. And

Charles Cohn

on ARPM with seen higher customers the Yes, recently a lot trends there's of acquired. products you've some here, are and seasonality $XXX new approaching the the

time number to and mixing ] and that customers time we're frequency quickly of customers, higher can also on And [ retention the we you're higher so you're not accelerating recent just but build levels and over continue latter the execute. higher customers, ARPM seeing that of over cohorts as in

Operator

currently are [Operator There this time. There questions no instructions] at no further waiting registered. questions additional are

call. Thank your will for you that the participation. conclude So conference

disconnect You lines. now your may

Nerdy (NRDY) 8 Aug 242024 Q2 Earnings call transcript