Nerdy Inc. (NYSE:NRDY) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET
Company Participants
Molly Sorg – Head-Investor Relations
Chuck Cohn – Founder, Chairman and Chief Executive Officer
Jason Pello – Chief Financial Office
Conference Call Participants
Eric Sheridan – Goldman Sachs
Ryan MacDonald – Needham
Aaron Kessler – Raymond James
Maria Ripps – Canaccord
Doug Anmuth – JPMorgan
Brett Knoblauch – Fitzgerald
Andrew Boone – JMP
Mario Lu – Barclays
Greg Gibas – Northland Securities
Operator
Good afternoon. Thank you for attending today’s Nerdy Third Quarter 2022 Results Conference Call. My name is Jason, and I will be the moderator for today’s call. [Operator Instructions]
I would now like to pass the conference over to our host, Molly Sorg, Head of Investor Relations.
Molly Sorg
Good afternoon and thank you for joining us for Nerdy’s third quarter 2022 earnings call.
With me are Chuck Cohn, Founder, Chairman and Chief Executive Officer of Nerdy and Jason Pello, Chief Financial Officer.
Before I turn the call over to Chuck, I will remind everyone that this discussion will contain forward-looking statements including, but not limited to, expectations with respect to Nerdy’s future financial and operating results, strategy, opportunities, plans and outlook. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Any forward-looking statements are made as of today’s date and Nerdy does not undertake or accept any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in expectations or any changes in events, conditions or circumstances on which any such statement is based. Please refer to the disclaimers in today’s shareholder letter announcing Nerdy’s third quarter results and the company’s filings with the SEC for a discussion of the risks. Not all of the financial measures that we will discuss today are prepared in accordance with GAAP. Please refer to today’s shareholder letter for reconciliations of these non-GAAP measures.
With that, let me turn the call over to Chuck. Chuck?
Chuck Cohn
Thanks, Molly. And thank you to everyone who has joined us today. We are happy to be back in front of you discussing our third quarter results.
Two quarters ago we unveiled to you our ambitious plan to evolve our products and revenue model to orient towards long-term recurring relationships with customers that default to being always on. We did this in response to market changes we are seeing including new consumer and institutional customer preferences for learning solutions that can provide ongoing support across academic calendar years, subjects, and learning formats. As a result, we began to converge our product and revenue strategies and develop new recurring revenue products, including learning memberships for consumers in on-demand, teacher assigned for school district customers. Early data suggested our transitional learning memberships would lead to longer duration and higher lifetime value customer relationships, enhanced gross margins, better marketing efficiency, better forecasting visibility, and a more scalable and efficient operating model. We also believe the transition would allow us to serve a larger market of learners while offering experts an opportunity for more consistent earnings.