Nerdy's VTS Partners With Johnson County Schools

Nerdy, Inc. NRDY, the parent company of Varsity Tutors for Schools ("VTS"), has collaborated with Johnson County Schools to offer free access to the Varsity Tutors for Schools platform to all district students.

This collaboration, which extends through June 2030, underscores Nerdy's commitment to revolutionizing education through technology and solidifies its position as a leader in the online learning space.

The platform's diverse offerings — ranging from 24/7 On-Demand Chat Tutoring and Essay Reviews to Live Enrichment Classes and Personalized Learning Plans — are poised to meet the varied needs of students, whether they are struggling with homework or preparing for college entrance exams. The inclusion of celebrity-led classes and college readiness resources also adds unique value, differentiating Varsity Tutors from its competitors.

VTS: A Flagship Business

VTS — a leading tutoring services provider — utilizes its platform capabilities to offer institutions high-dosage tutoring and online learning solutions. The platform provides academic resources and tools with three simple models for high-dosage tutoring administration.

VTS platform is availed by more than 500 school districts across the United States to supplement classroom learning and effectively close learning gaps. Furthermore, the availability of this platform to all K-12 schools at no cost is a driving factor for Nerdy's market recognition and growth prospects. The zero-cost model for the district highlights Nerdy's innovative approach to expanding its user base while providing essential educational support, potentially opening doors to similar agreements nationwide.

Nerdy, on a mission to revolutionize the way people learn through technology, has developed a platform for live online learning that offers seamless access to more than 3,000 subjects through enhanced online technologies and capable tutors covering small group classes, large format group classes, adaptive self-study, and one-on-one instruction and many more.

Notably, during the second quarter of 2024, the operational leverage derived from access-based subscription revenue business models significantly surpassed the expenditures made in the different sectors and will facilitate the ongoing expansion of Varsity Tutors for Schools.

In the second quarter, Institutional generated $11.1 million in revenues, marking 33% year-over-year growth and accounting for 21% of total revenues. Varsity Tutors for Schools secured 56 contracts, resulting in $4 million in bookings. These bookings highlight a strategic emphasis on expanding access to the Varsity Tutors for Schools platform, as well as the hiring and onboarding of sales personnel to optimize performance during the back-to-school buying season and to capitalize on the longer-term market potential within the Institutional segment.

The company has no debt at present and has $69.8 million of cash in hand, which depicts sufficient liquidity to fund the business and pursue growth initiatives.

Image Source: Zacks Investment Research

Shares of NRDY have lost 69.6% in the year-to-date (YTD) period compared with the Zacks Schools industry's 1.7% decline. Although the company's shares have underperformed the industry, the recent convergence of the Consumer and Institutional platform, coupled with a focus on core value proposition in the Consumer business and the expansion of the Varsity Tutors for Schools go-to-market teams will enable the company to return to profitable growth as it exits the year.

Zacks Rank & Key Picks

Nerdy currently carries a Zacks Rank #3 (Hold).

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