Nerdy Inc falls after downbeat revenue outlook

Nerdy

17/05/2022 14:16

** Online learning platform's shares  NRDY.K  down 8.6% at
$2.35 in premarket trade after co forecasts downbeat Q2 and FY22
revenue
    ** Stock is on track to open at its lowest since going
public through a SPAC merger; at $2.35, NRDY is far below former
SPAC and merger partner TPG Pace Tech Acquisition Corp's debut
price of $9.7
    ** NRDY sees Q2 revenue up by 17% from a year earlier vs
estimates of 23.59% growth, as per Refinitiv data
    ** For FY22, co sees 19% revenue growth at the mid-point of
its predicted range compared with Refinitiv estimates of 26.57%
growth
    ** NRDY expects to post adjusted EBITDA loss in a range of
$9 mln to $12 mln for Q2 and $28 mln and $38 mln for FY22
    ** Record bookings and revenue in Q1, however, were unable
to drive stock gains after results https://s28.q4cdn.com/332169247/files/doc_financials/2022/q1/Nerdy-Q1-2022-Shareholder-Letter_FINALv3.pdf
 
    ** Multiple brokerages cut PT on stock, with Needham at a
Street low of $4
    ** 7 of 9 brokerages rate NRDY "buy" or higher and 2 "hold";
their median PT is $7 - Refinitiv data 
    ** As of last close, stock down ~43% YTD vs an 11% decline
in the NYSE composite index  .NYA 

 (Reporting by Sohini Podder in Bengaluru)
 ((sohini.podder@thomsonreuters.com))