Nerdy Stock Drops As Loss Exceeds Expectations

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Nerdy Stock Drops As Loss Exceeds Expectations

Nerdy (NRDY) Drops 30% As Loss Exceeds Expectations

Nerdy (NRDY), which is a trending technology company, recently reported its results for Q3. As per the details, the loss of NRDY was way higher than the forecast set by the experts.

After posting poor results, the shares of NRDY dropped by almost 30% during Wednesday's session. The result also showed a $0.13 loss during the last quarter, while the forecast was only for a loss of $0.8 /share.

However, the revenue during the Q3 was $40.3 million, which is almost more than a million from the forecast of around $39.04 mn.

$8.23 mn EBITDA Posted By NRDY

If we look at the loss of NRDY by looking at the adjusted EBITDA, it is around $8.23 million, which is still a big number. According to Nerdy Inc. CEO, the profitability and revenue of the company were better than expectations.

They also added that the demand in the institutional & consumer sectors remained strong during Q3. He attributed it to the opening of the educational institutes which use the services from NRDY.

Another catalyst for the recent drop was the forecast for the NRDY operating revenue. The figures shared by the company were around 10% lower than the market expectations.

After the results announcement, Goldman Sachs proceeded to reduce the price target for NRDY by $3. As for the recommendation, the firm has maintained a neutral rating for the NRDY stock.

Goldman Sachs added that Nerdy will benefit in the long term based on the opportunities from the business & institutional customers. In addition, the company's position is very good, given the fragmented nature of the market. Last but not least, the company is in a good situation to enjoy operating leverage over the long run.

Despite the positive comments from the NERDY CEO, the bottom line is that the company's stocks dipped by almost 20%. No matter how one looks at it, a drop of this scale isn't normal at all and highlights the need to make some big changes in the company.

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